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table of contents
april
features
articles
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Priced to Sell
8
11
Embracing Diversity Is Good for Business
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Setting the right price for a property is key. Here are several strategies to set expectations with clients.
Client profiles are changing fast. With a little effort, REALTORS® can reach this growing multicultural market of homebuyers.
HUD and REALTORS® Address Discrimination Based on Sexual Orientation in Real Estate
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2010 |
Best of the Legal Hotline
How to Build Your Business Using Twitter Tweet through with your business and make an impact with Twitter.
Product Showcase An inside look at Twitter client HootSuiteTM and fair housing resources from NAR.
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Inside the Wisconsin Way
26
Carbon Monoxide Detectors
28
Working with the WHEDA Advantage
news.wra.org
26, no. 7
42 years of fair housing....get answers to commonly asked questions.
Learn about fair housing law, including the first federal study on discrimination in real estate based on sexual orientation.
Get an inside look at the Wisconsin Way, a multiyear plan to restore Wisconsin’s economic prosperity.
vol.
Off to the Races Get the latest developments in the run-up to fall elections.
What you need to know about the new legislation that will require detectors in all homes.
WHEDA partners with Fannie Mae to bring first-time homebuyers an affordable mortgage.
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News
inside the wra
with bill malkasian
Top News Stories in and Around the Industry
Top News Stories in and Around the Industry United Way the Stark for Service Community
A
Mike Theo’s pril is Fair Housing Month, a chance to addressMillions a topic toSpeaking substantially increase funding for rental assistance, Honors Wisconsin Receives Ease of elections, article “Insideparticularly the Wisconsin that is important toForeclosure us all. In 1968, Crisis Lyndon Johnson help for Way” working families. Family signed the Fair Housing Act. Business Wisconsin later became Milwaukee Journal (WI) (09/30/08) gives an inside look at The Blueprint for to Change, whichNAR givesReleases lawmakersFree someFHA freshToolkit one of the first states to join the Department of The state of Wisconsin is due to receive nearly $39
solutions to ourWisconsin state’s REALTORS® most critical fiscal and and Urban Development’s voluntary EO funds program. Today, neighborhoods Association (10/30/08) million in federal to stabilize economic problems. Over the past two years, the WRA continues to work closely with equal opportunity divisions and stave off a spate of abandoned homes. According United Way of Dane County recognized the Stark and the WRA are organizations eager to help you meet the WRA has NAR partnered with other within theSociety state, as well for as at thetofederal level. HUD and Gov. Jim Doyle, the funds arethe separate Family with the 2008 Tocqueville Award current challenges of the troubled economy. We to develop the project, and it’s now time to move from approximately $9.2 million the government is outstanding service to the Dane County community In this spirit, we are devoting thisawarding month’sthe edition the magazine from development finalization, that the plan city ofof Milwaukee, where the foreclosure knowtothat you needsoresources that can can help you and United Way. The Tocqueville Society Award to the topic of free and fair access the articles ratetois housing. currentlyAmong 9.9 percent. HUD is awarding the to candidates be brought this fall.and I encourage you toatbe celebrates and acknowledges people or families, close transactions, you need them little or no willmade find aare: funds via its Neighborhood Stabilization part Program, such as the Starks, whoyou have major impact of the process by reading the articlean and contacting cost. NAR has just released all-new FHA Toolkit under which almost $4 billion is being allocated on the quality of life in Dane County through us withtoyour ideas. You will hear a lot more about The • “Embracing Diversity” by Debbi Conrad, about the growing online for FREE to help you get clients the financing local and state governments for the redevelopment exceptional service and commitment to the Billtheir Malkasian Blueprint for Change in the future. Latino and Southeast Asian in and Wisconsin and how of cultures abandoned foreclosed houses. community. they need in a credit-strapped environment. It is WRA President awareness of these cultures can make you a better, more This brings us one to ourofannual fall convention, which takesNAR placehas the most comprehensive toolkits ® successful, REALTOR . Sites: Not Just for Personal September 26-28. Please mark your calendar. If you like, get City Housing Authority Receives ever produced, and it’s available to all REALTORS® Anymore 100-Unit Grant • An inside look at a plan Connections a jump on registration by sending or faxing in the form on page to restore Wisconsin’s right now by visiting the link below. They also have Minneapolis-St. Paul Businesseconomic Journal (09/29/08) Grayson, Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia 15. prosperity called “Inside the Wisconsin Way” by Mike Theo. United Way of Dane CountyHousing
Katharine launched a new page called “NAR Helps You Navigate The city of Milwaukee’s housing authority is due ® This month’s Technology Corner features social St. Paul, Minn.-based REALTOR Teresa Boardman the Current Economy” where youTwitter, can find the dozens of to receive $6.7 million• in federal Hope VIbymoney An overview Cori Lamont on fair housing law, including says Flickr, Facebook and other social networking networking site. You may know Facebook, but do you know to build 100 new housing units. The 100 units will great products and resources, like the FHA Toolkit, Wisconsin’s groundbreaking 1982 statute against sites make it easy to meet people who mightIn his article “How to Build Your Business Using Twitter,” Twitter? be constructed in a 2.5-milediscrimination area and will include based on sexual orientation. for free or at a steep discount. Visit www.Realtor. eventually become clients. While many professionals 29 public housing and affordable rental units; Joe Leschisin gives you the basics, including what Twitter is and org/NARHelpsYou for links to these great programs are using these sites to make business contacts nine affordable housing units for the income-eligible April marks first nationwide Open House Weekend on April 10how you can use it in your business. and companies use them to conduct background and products. ® families; and 62 moderately priced, open-market 11. The event, created by the National Association of REALTORS checks or recruit new workers, many simply want 15th, the Executive Committee will meet to review the On April condominiums. HUD Secretary Steven C. Preston and supported by local and state realtor associations, is an to connect with people who have similar 2009-2010 interests. comments, “Milwaukee’s housing authority has budget. far, Going all signsStrong, show ourAlbeit membership Home So Loans a opportunity for sellers to showcase their homes and prospective According to Boardman, “The hard sell isnumbers dead. It holding steady. In other news, I’m pleased to announce demonstrated it has the leadership to lead and Bit Tighter, in Area buyers to shop for a home while doesn’t the homebuyer tax credit, expiring work door-to-door, and it doesn’tthat workweonwill host National Director Vicki Cox Golder at the meeting. revitalize neighborhoods and transform lives. April 30, still and available. created a webOn page withBoardman tools Wisconsin State Journal (10/17/08) Balousek, Marv social networks.” Flickr, connected Cities like Milwaukee change andisgrow need toWRA has We welcome Vicki to Wisconsin and look forward to working with and sure information to help you get involved and spread the word. with a fellow photographer whoVisit eventually used her revitalize housing to make many aren’t priced Despite the ongoing national credit crisis, property her. it online at www.wra.org/openhouseweekend. services to purchase a home. out.” Milwaukee is one of a half-dozen housing professionals say mortgage money remains available authorities nationwide to receive new Hope VI Now is a particularly important time in the industry as agents gear throughout southern Wisconsin to home buyers Foreclosures Push Rents Higher, grants.
up for the spring selling season. Bob Corcoran’s article Squeezing Low feature Income Families with solid credit. Ron Steinhofer, manager of “Priced to Sell” includes tips on staging and successful promotions Minnesota Public Radio (MN) (09/21/08) Olson, Dan Housing Study Delay Frustrates Marshall & Ilsley Bank’s regional home lending Until next month, as well as pitfalls (such as rushing and price padding) to avoid. Advocates In Minnesota’s Twin Cities, a wave of home group, states, “There’s plenty of money for home Milwaukee Journal SentinelMarcus (10/07/08) Williams, Scott in Wally’s article,
turn, discusses gifts more to leave a into the rental foreclosuresclosing has pushed people lastingtheimpression. apartment sector. The result is an intensifying Two years after promising Milwaukee metro demand on Minneapolis and St. Paul’s rental housing area’s first major housing study in three decades, In the area of education, we have a number of Continuing Education stock, so much so that the vacancy rate is very low the Southeastern Wisconsin Regional Planning courses planned, GREEN designation courses andthealso Aprilin28 Bill lowand rents are on rise.anThis, turn, means Commission (SEWRPC) is still struggling to get the offering, “At the Home Withwill Diversity,” whichworking will help prepare for monthly rents income families faceyou higher effort launched. Proponents hope study the changing cultural landscape.even though their income hovers at unchanging serve as a catalyst for improving affordable housing levels. Since 2005, the Twin Cities apartment opportunities throughout the city’s suburbs. But In the public policy world, April sees the end statefrom legislative commissioners have yet to assemble an advisory vacancy rate of hasthe dipped 7 percent to closer to session. At or theset same time, our 4Public Policy Committee picks upover that same committee to oversee the research a specific percent. Average monthly rents thethe pace, working steadily on over of legislation timetable for conducting survey. Phil Evenson, timea hundred span are pieces up more than $25, rising to more to bring to Capitol lobbyists definitely a productive the commission’s executive director, said other issues and staff. than This $850.is The St. Paul-based Wilder Foundation keep getting in the way.time The for delays frustrated thehave committee, and werecently will keep you informed asfor their reviewed income data several Twin Cities housing advocates theefforts most.become Bethany counties. The organization’s research found that the law.Sanchez, vice president of the Metropolitan Milwaukee Fair number of people in those markets paying too much We are gearing for fall elections, interesting time from around Housing Council, laments, “It’salso been a longuptime for theiralways rental an housing will double coming.” The Pewaukee-based commission haslook for of the year. Each month, write-ups fromto Joe Murray on 70,000 currently a whopping 140,000 by 2010. not conducted a comprehensive review of in housing say afrom partial solution would key developments the electionSome process, polling numbers to be for the U.S. patterns since the 1970s. course housing policy and candidates’ stances on importantgovernment issues. In to thisreverse edition, Joe’son“Off
loans out there. It is slightly more difficult to qualify than two or three years ago, but if you have a good credit score, a good job and a down payment, money is available.” Steinhofer adds that banks still are making loans via such programs as Fannie Mae and Freddie Mac. Furthermore, credit standards remain about the same as they were six months ago, meaning that qualified home buyers can get loans if they have the proper income verification. On the downside, banks have been less willing to make loans with higher loan-to-value ratios. In addition, conventional financing without a down payment has indeed disappeared. However, 100 percent financing is still available with Veterans Administration and Rural Development home loans.
to the Races” takes the pulse of Wisconsin voters.
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wisconsin real estate magazine wisconsin real estate magazine
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april 2010 october 2009
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Real Estate
Wisconsin Real Estate Magazine™ is published by the WISCONSIN REALTORS® ASSOCIATION. Trademark issued pursuant to Wisconsin state statute; federal trademark is pending.
notes from the wra
John Flor, ABR, CRS, e-PRO, GRI, RRS, Chairman johnflor@sixlakesrealty.com
Wisconsin Celebrates the 42nd Anniversary of Fair Housing Month
John Horning, Chairman-Elect jphorning@shorewest.com
The Wisconsin REALTORS® Association commemorates Fair Housing month, marking the 42nd anniversary of the historic Fair Housing Act. The landmark civil rights legislation – also known as Title VIII of the Civil Rights Act – was enacted April 11, 1968, and each April the nation honors the occasion by rededicating itself to equal housing opportunities for all. Fair housing laws protect the right of every individual and family to live in the home of their dreams, in the neighborhood of their choice. The law prohibits discrimination based on race, color, national origin, religion, sex, disability, familial status, and elderliness.
Robert Keefe, Treasurer rkeefe@keeferealestate.com William E. Malkasian, cae, President wem@wra.org Editorial Staff:
Join in learning and sharing Fair Housing knowledge at the Fair Housing Luncheon on April 23 in Pewaukee. The program includes a panel discussions of participants who will share their experiences with programs that have successfully helped homeowners avoid foreclosure. You will also gain insights about the Lake Bluff case and the impact of zoning on segregation. For more information visit www.wra.org/fairhousingluncheon
William E. Malkasian Publisher
Robert Uhrina Managing Editor
Vanessa Merina
Dental Coverage Exclusively for REALTORS®
Publication Editor
Joe Leschisin
Maintaining a healthy smile is not only important for your professional image, but is also important in maintaining good health. Regular dental visits can prevent periodontal disease which, according to a study in the Journal of Periodontology, may lead to significant savings not only on dental costs, but also on medical costs. Those with severe periodontal disease have been shown to have healthcare costs up to 21 percent higher than those with no such disease.
Senior Designer Wisconsin Real Estate Magazine, USPS 597-850, ISSN 1548-0526, is published monthly by the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Road, Ste. 201, Madison, WI 53704. Periodical postage paid in Madison, WI and additional mailing offices. An annual subscription rate of $5 is included in membership dues and a copy is mailed to every paid REALTOR® and affiliate member of the association. Nonmember subscription rate: $60. POSTMASTER: please send address changes to the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201, Madison WI 53704-7337.
As a WRA member, you are eligible for dental insurance through REGIT, Inc. The plan gives you complete freedom of choice in selecting your dentist … or you can select a network doctor to provide you with lower out-of-pocket expenses. You’ll have access to preventive services with no deductible and no waiting period. There is also no waiting period for Minor Services and just a six-month waiting period for Major Services … much shorter than other products in the marketplace. The price for single coverage is competitive at just over $30 per month.
Permission to reprint or quote any material from this issue is hereby granted, provided the Wisconsin Real Estate Magazine is given proper credit in all articles or commentaries, and the WISCONSIN REALTORS® ASSOCIATION is provided with a copy of any reprint.
Call or email REGIT today to get all the details and an application. You can reach REGIT toll-free at 800.537.9786. If you prefer, email REGIT at regit@regitinc.com. This dental plan is sure to make you smile!
Advertising of third party products and services herein does not imply endorsement by the WRA unless specifically stated. Furthermore, the WRA does not endorse, approve, or otherwise warrant the accuracy or legality of any information or content contained in advertisements. Any questions regarding advertising policies should be directed toward the editor.
NAR’s REALTOR Benefits® Program Did you know that you can earn back more than your national membership dues by simply taking advantage of NAR’s REALTOR Benefits® Program? Choose from a variety of value-added offers and savings from industry leaders. Plus, every partner provides products and services that you can use every day, in your business or personal life.
Contact Us: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972 legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: editor@wra.org Website: www.wra.org
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REALTOR NEWSWIRE ®
Top News Stories in and Around the Industry
Nationwide Open House April 10-11, 2010 an Opportunity for Wisconsin REALTORS® On April 10-11, REALTORS® across the nation will hold open houses to mark the first-ever Nationwide Open House Weekend. The event, created by local and state realtor associations, gives sellers the chance to showcase their homes and prospective buyers to shop for a home while the homebuyer tax credit, expiring April 30, is still available. For Wisconsin REALTORS®, this is an opportunity to use the momentum of a national campaign to educate prospective buyers on the benefits of home ownership and housing opportunities in Wisconsin. Buyers who wish to qualify for the tax credit must sign a contract to purchase a home on or before April 30, 2010, but they have until July 1, 2010 to close on the home. For more details about the tax credit, visit a consumer-based Web site developed by the REALTORS® at www.wisconsinhomebuyer.org. For more details about Nationwide Open House, visit WRA’s event page at http://www.wra.org/ openhouseweekend.
Midwest Home Sales Up Nearly 10 Percent in February New York Times (03/23/10)
The Midwest recorded approximately 68,000 home sales in the 11-state Midwest region last month. That not only represents an almost 10 percent increase over the same period last year, it is also better than the national average of 8 percent. The Midwest region did experience a 2 percent drop in median home price to $128,000, but that is in line with the 2 percent decline experienced nationally. Chicago paced the region’s cities in sales growth with a 33 percent increase over last year. Fargo was the only other city in the Midwest to experience sales growth, with Cleveland, Des Moines, Detroit, Indianapolis, Kansas City, Milwaukee, Minneapolis, Omaha, St. Louis, and Wichita all posting declines. Omaha posted the biggest drop of 12 percent. With a healthy economy in place, locals blame the particularly harsh winter weather for the slow sales pace. Prices have generally dropped enough throughout the region to begin to attract more first-time homeowners and investor-buyers, which suggests the bottom may be near. Median home prices have actually increased in Cleveland, up 40 percent from this time last year to $98,000, and in Detroit up 38 percent to $55,000.
Energy Loan Programs in State Help Spread Out Costs Milwaukee Journal Sentinel (WI) (03/21/10) P. D1; Content, Thomas
Financing movements for renewable energy and conservation are becoming more popular in Wisconsin, as city officials and utilities are pushing residents to be more energy efficient. Milwaukee has developed a new solar loan program that will provide revolving loans that homeowners can repay on their property tax. The city will provide $135,000 for the initial loans to Milwaukee Shines, the city’s solar project. Qualified residents will receive loans between $5,000 and $20,000, and they will contain an interest rate of 5.25 percent, which is two percentage points higher than the prime rate. “The big barrier to entry for people has been the significant upfront cost, and that’s the strongest part of this package,” says Alderman Tony Zielinski. “For as little as $300, they can have a solar system installed on their homes and they have 15 years to pay back the city. The money they save on reduced costs for energy, those dollars can be used to pay back the city.” Other initiatives also are being announced, including River Falls Municipal Utilities, which is allowing residents in Pierce County, Wis., to extend payments for renewable energy upgrades. The residents would see a decrease in their electric bill similar to the loan payment. Racine, WI, will allow residents to fund energy-efficient retrofits in the Retrofit Racine program. The idea behind focusing on older buildings, such as the ones in Racine, will allow residents to see that older buildings are so inefficient that they pay too much on their utility bills. Studies have shown in Wisconsin and elsewhere that energy efficiency is the cheapest way to lower emissions of carbon dioxide.
Going Social: How Social Media Enables Real Estate Pros to Build Business RISMedia (03/22/10)
Keller Williams Realty is among the property brokerages emphasizing the importance of social media and taking steps to help agents use such tools to build business. The company focuses on using social media to advertise, market, and generate leads, as well as to communicate with clients. “Social media provides a way to connect with people on the level they want to be connected with,” says Sue Adler of Keller Williams. “It is simply an extension of what real estate professionals do on the phone or in person, and it should be used to facilitate face-to-face time.” Agents should post videos and community information and ask questions to engage consumers. Facebook,
Twitter, and LinkedIn can be used to expand their business when agents position themselves as local market experts, use pay-per-click ads to generate leads, connect with a targeted audience, farm social networks, and reach out to their sphere. Those who build a large network of friends and followers can generate and make referrals.
Fannie Mae: recovery is moving forward Fannie Mae, National Association of REALTORS® (03/17/2010)
The decline in home sales in February was a disappointment to the housing industry, but Fannie Mae’s analysts say it is temporary and a sustainable turnaround is likely by the end of the year. Fannie Mae Chief Economist Doug Duncan points to evidence that a recovery is on its way, including an increase in consumer spending, an improving service sector, and the likelihood that employers will begin hiring soon. “More favorable financial conditions overall keep us optimistic that we are moving forward with the recovery, albeit at a lower trajectory than previously forecast,” Duncan said in a statement.
Single-Family starts hold firm in February National Association of Home Builders
The pace of single-family home production remained virtually unchanged in February, with a 0.6 percent decline to a seasonally adjusted annual rate of 499,000 units, according to figures released today by the U.S. Commerce Department. Meanwhile, a large decline on the more volatile multi-family side brought the overall number of housing starts down 5.9 percent to a seasonally adjusted annual rate of 575,000 units. While the combined pace of single- and multi-family housing starts fell 5.9 percent to 575,000 units in February, that decline was mostly due to a 30.3 percent dip in multi-family starts to a 76,000-unit pace following a double-digit increase on that side in the previous month. Meanwhile, single-family starts held virtually even, with a 0.6 percent decline to a 499,000-unit pace. On a regional basis, combined starts activity declined 9.6 percent in the Northeast and 15.5 percent in the South, where unusually poor weather conditions were a factor in February. Meanwhile, starts activity posted gains of 14.3 percent in the Midwest and 7.9 percent in the West.
REALTOR® Newswire is a monthly news service prepared exclusively for the Wisconsin REALTORS® Association by Information, Inc. Reproduction, use, or inclusion of this material in other publications, products, services or Web sites is not allowed without prior written permission from the Wisconsin REALTORS® Association.
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to
priced sell By bob corcoran
Jo Ferraro admits the decision to buy a home is usually an emotional one, but she says in this economy, “it’s the numbers that matter most.” And perhaps the most important number these days? Well, to me, that’s easy. It’s price. “Buyers are scrutinizing prices much more closely now,” says Ferraro, a REALTOR® with Century 21 Affiliated in Madison, and one of my clients. Even though she says she’s seeing housing inventory drop, “it’s still a buyer’s market out there and I would say price is much more important.” I couldn’t agree more. In fact, I believe pricing is the most important factor in home sales. Why? Because everything about a home relates directly to its price: the home’s location, its condition, the amenities, the schools, the yard, the garage. They’re all indicative of the one number everyone considers closely: the price. And for a home to sell in a reasonable amount of time, within a few weeks to a couple of months, the price has to be right and it has to reflect all those factors. Price is everything. Ferraro adds that today she’s seeing multiple offers on properties. But here’s the kicker: She’s only seeing multiple offers on homes that “are priced competitively.” “You have to remember a house is a product and if it’s not priced competitively it won’t win in the marketplace,” she says. Truer words have never been spoken. So how do you price a home to sell? Keep reading. >>> continued on page 6
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Even in a buyer’s market, you can still tap the scarcity principle. The trick is to make your listing more exclusive by promoting all the positive characteristics that make it different from other homes.
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Market’s Speaking, Are you Listening? Most economists will tell you that no matter how much market data, stats and comps you compile to list the right price, it comes down to a willing buyer and willing seller who decide what the price will be. That may be true – in the textbooks. But in the real world of real estate, it’s a REALTOR®’s job to know the marketplace so you can arrive at a price that’s fair, honest and yields showings and, eventually, offers. I’d love to see an economist spend a day in a REALTOR®’s shoes. A buyer stops by for a walk-through and the economist says, “So, I don’t really have a price. What do you think it’s worth?” Sure, maybe after a while they could come to a price that suits them both. But this gets to why I say price is the most important number. When a buyer talks to a REALTOR®, one of the first things out of his mouth is, “I’m looking for something in the price range of such-and-such.” Price gets things started. It brings buyers and sellers together who have similar numbers in mind. If you remember anything in this article, this is it: The goal of a price is to get showings and offers. Without either, you might as well pull out the classifieds and find another line of work. Economists can talk all day long about theory, but REALTORS® have to do the work. And much of that work revolves around listening to the market and what it’s telling you about today’s market. REALTORS®, probably better than economists, know about market fluctuations, particularly over the last three years. Knowing the market – the comps, the days on market, list price ratios – all go to helping you lead the market. You lead the market by pricing homes correctly from the start. You follow the market when you have to change prices to reflect the actual market. Something Ferraro does that I like is to learn what competing listings are priced at along with the average sale price in the area (and not the average list price). Knowing these two numbers helps you and your seller price more effectively. And another point: Knowing market conditions goes directly to your revamped role as a REALTOR®. I say “revamped” because the Internet has landed all of us into an information-rich society. And this has changed the way you add value to the real estate transaction. Now you’re a consultant who helps set consumers’ expectations of price properly.
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Slow Down to Speed up One way to set those expectations is to slow down after you get the listing. “A lot of REALTORS® rush; they get too eager,” Ferraro says. “I suggest taking your time to get the details right.” She mentions another agent’s listing that got just four showings over six months. “The photos were bad, the square footage was wrong, there was no additional information on the house,” Ferraro says. “But what’s interesting is they had done updates, they had a new furnace, a new roof, a new kitchen, but none of that was highlighted. I think they rushed and just didn’t do their homework at the start.” Ferraro and her team took over the listing. “We took our time and we did our homework and we got two offers in four days.” Take your time. It pays.
april 2010
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To Pad or not to Pad Another mistake besides rushing is overpricing, either by a REALTOR® or overzealous seller. For REALTORS®, that kind of tactic eventually catches up to you. Word spreads and you get the reputation that leads to quiet phones. And sometimes you meet sellers who just want an unreasonable price. Ferraro says she simply shows them supporting data, speaks honestly and lets them know their options to be successful at selling in this market. “I educate them on the market and bring them the most amount of money the current market will bear,” she says. “If they still want to overprice, then I don’t take the listing unless there are automatic price adjustments built into the listing agreement.” Plus, overpricing usually leads to lowering prices in a buyer’s market, and it gives the impression that something is wrong with the property. Worse yet, it wastes time. If you overprice from the start, the property lingers on the market. That’s wasted time for you and for the sellers. You do the math. What’s the five percent commission on a $300,000 home compared to the commission on two homes, each priced at $250,000? No brainer. In the time it takes to sell one overpriced home, you may very well sell two homes that are priced correctly.
Of Psychology and Staging One way to improve the price of listings correctly is to sprinkle a little psychology on top of your staging.
This is where staging can help. As Jo says, staging today has taken on more significance than usual. Buyers are scrutinizing price and the property’s condition. Staging is key because when it’s done right, it helps to build value in the mind of the buyer. Ferraro says she’s found the features that help raise a home’s value often include stainless steel appliances, granite countertops, and custom cabinetry along with softer warmer colors such as tan and taupe (avoid grays and blues). And a good question to pose if you start getting objections from buyers is, “If this were your house, what would you do to it?” Then, just let them think it through. “They usually start visualizing and get some great ideas and overcome their own objections,” Ferraro says. To wrap up, know your market, take your time, do your homework and stage well. Do these and you’ll find the right price to make your “cookie” irresistible. Good luck! Bob Corcoran is a nationally recognized speaker and author who is founder and president of Corcoran Consulting Inc. (www.CorcoranCoaching.com, 800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into the residential or commercial broker or agent’s existing practice.
Robert Cialdini, in his book Influence: The Psychology Of Persuasion, talks about an experiment with, of all things, cookies. I know what you’re thinking: Bob, you’re talking about cookies, and we’re out here working to sell houses in a buyer’s market, come on. I know, but stay with me for a minute. In the study, one group of people was given a cookie from a jar of 10 cookies. Another group was given a cookie from a jar that had just two cookies. The cookies from the jar of two were not only rated better in taste, but also more attractive and deserving of a higher price. This is what social scientists call the scarcity principle. And yes, even in a buyer’s market, you can still tap the scarcity principle. The trick is to make your listing more exclusive by promoting all the positive characteristics that make it different from other homes nearby. In other words, make it look as if it’s coming from a jar of just one other cookie.
wisconsin real estate magazine
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april 2010
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legal
best of the legal hotline
with tracy rucka and debbi conrad
April is Fair Housing Month The following questions involve important fair housing issues.
The REALTOR® and the Rental Property The broker is thinking about buying a home in the Northwoods on a lake and anticipates renting it out for periods throughout the year. The broker is concerned about the liability if rented to people with small children. Can the broker stipulate no rental to families with children under the age of 6 because of the possible danger the lake would present if children can’t swim? The Fair Housing Act applies to both the sale and rental of real estate. It applies to individuals as well as brokers providing real estate brokerage services. In addition, as a landlord or principal in the sale or rental of real property, REALTORS® agree to comply with the Code of Ethics, including Article 10, which provides that REALTORS® shall not be parties to discrimination. Under the Federal Fair Housing Act and Wisconsin fair housing law, familial status (families with children under the age of 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18) is a protected class. A concern for safety cannot be a pretext for engaging in discrimination.
REALTOR® Code of Ethics, Article 10 REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. (Amended 1/90) REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. (Amended 1/00)
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Well-intentioned Steering An apartment building has open stairways and there is a second floor unit. A family with young children is looking at it. It is somewhat of a safety hazard with the open stairways and a couple of balconies that are two stories up. Is it the broker’s place to tell them whether or not the apartment is safe for their children? The broker must tread lightly because he wants to make sure he is not representing or implying that families with young children are not welcome to live on the second floor. That would be a discrimination complaint waiting to happen. It is against federal and Wisconsin fair housing law to limit the floors on which families and children may live. The broker may politely point out in a general manner, not specific to children, the safety hazards of an open stairway on the second floor. It would be most prudent, however, to not mention it because the family may perceive adverse implications or innuendoes in even innocent statements and file a complaint. The agent’s well-intentioned concern could be characterized as a subtle form of steering. The agent decides on behalf of the buyer that should not rent the unit because of this hazard. Unless the agent points out the safety concern to all potential tenants, it is best to not mention it. For more information, see the April 2007 Legal Update, “Avoiding Discrimination in Advertising and Racial Steering,” online at www.wra.org/LU0704. news.wra.org
The 70-Pound Lab An offer has been written on a condominium unit where dogs over 15 pounds are not allowed. The offer is contingent upon written authorization from the condominium association for a “service dog” (a Labrador retriever weighing approximately 70 pounds) to accompany the buyers on the purchased premises and related common areas. The buyers have no apparent disabilities. The listing agent is aware that there are emotional needs that may require a service animal. Would it be proper for the listing agent to request a letter from the buyers’ doctor for proof of disability and also proof of training for the service animal? If the buyers submit both, is the association legally bound to give the requested authorization? Or may they still deny the request? The listing agent should advise the seller and/or the condominium association to contact their attorney to advise them on how to proceed and whether it is permissible and legal to deny the request. Under federal law pertaining to reasonable accommodations, if the person with disabilities provides documentation that he or she has a physical or psychiatric disability that substantially limits a major life activity and that because of the person’s disability a companion animal is necessary to enable the person to equally enjoy the unit, the companion animal must be allowed. This requires some documentation of both the disability and the need for the accommodation. The buyers, however, need not disclose the details of the disability nor provide a detailed medical history. See the Wisconsin Real Estate Magazine articles on this topic at http://news.wra.org/story.asp?a=336 and http://news.wra.org/ story.asp?a=684. Also see the discussion of service animals on pages 13-14 of the April 2009 Legal Update, “Wisconsin Rentals,” at www.wra.org/LU0904 (same rules generally apply for rental properties and condominium associations). wisconsin real estate magazine
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Condominium Documents An agent is writing an offer on a condominium and is looking through the condominium documents. There is no mention of it being for older adults only but the documents state that there shall be no minor children allowed to reside in any of the units. Is this illegal? The 1988 Fair Housing Amendments Act created new protected classes. The members of those protected classes have the right to seek legal remedies against persons who discriminate against them based upon their status. Familial status was among those protected classes. As a result, a condominium declaration or other document prohibiting occupancy by minor children is legally unenforceable. If the condominium association attempts to discourage or prohibit a family with children from occupying the condominium, significant legal liability could result. Although one might initially assume that this is discrimination based on age, it appears to be discrimination based upon family status. Under Wisconsin’s fair housing laws, age discrimination applies only with respect to persons at least 18 years of age. The agent may refer the parties to legal counsel to review the condominium documents. The condominium association may consider having an attorney review and amend the governing documents to comply with current federal and state law including fair housing standards. For further discussion, see pages 5-7 of the March 1998 Legal Update, “Thirty Years After the Federal Fair Housing Act,” at www.wra.org/ LU9803. Legal Hotline ... continued on page 10
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55 and Older Housing
Legal Hotline ... continued from page 9
A builder has a 55 and older project. The builder has sold one unit to a 74-year-old person and one is rented but the seller doesn’t know the age of the renter. The seller is considering selling to someone who is 50 years old. What concerns should the broker have about listing a 55 and older housing project? Under both federal and Wisconsin law, housing for persons who are 55 years of age or older means that at least one person who is 55 years of age or older occupies at least 80 percent of the occupied units, and the project adheres to a policy that demonstrates an intent to operate as housing designed for persons who are age 55 or older. Housing projects that meet these requirements are exempt from the prohibitions against discrimination based upon familial status under federal law, and are exempt from the prohibitions against discrimination based upon age and family status under Wisconsin law. In order for a housing facility or community to qualify as housing designed for persons who are 55 years of age or older, the owner must publish and adhere to policies and procedures that demonstrate the intent to operate as housing for persons 55 years of age or older. These policies and procedures should appear or be referenced in advertising, lease provisions, written rules and regulations, deed restrictions, the actual practices of the housing facility or community and postings in common areas. However, phrases such as “adult living” or “adult community” in written advertisements are not precise enough to demonstrate an intent to operate as housing for persons 55 years of age or older.
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In order for a housing project to qualify as housing for persons 55 years of age or older, it also must be able to produce verification of compliance with the 80 percent rule through reliable surveys and affidavits. Such procedures may be part of the leasing or purchasing process, but regular updates of the occupancy and age information must be done at least every two years. Reliable documentation of an occupant’s age includes: driver’s license; birth certificate; passport; immigration card; military identification; other official government documents containing a birth date; or a certification in a lease, application, offer to purchase, affidavit, or other document signed by any member of the household age 18 or older asserting that at least one person in the unit is 55 years of age or older. In addition, the project needs to periodically survey the ages of current residents. The law also provides protection for real estate licensees and other persons who rely upon representations that a particular property qualifies for the “55 and over” exemption. A person may not be held personally liable for monetary damages for discrimination in violation of fair housing law if the person reasonably relied, in good faith, on the application of the 55 and over exemption. A person may show reasonable reliance, in good faith, if the person can show that: a.
He or she has no actual knowledge that the housing is not or will not be eligible for the exemption; and
b.
The owner of the housing has stated formally, in writing, that the housing complies with the requirements for the exemption.
Thus brokers working with housing projects intended for persons age 55 years or older may be well advised to request a written report or letter from the owner stating that the housing project complies with all legal requirements for the 55 and over exemption under Wisconsin fair housing law. For additional information regarding senior housing projects and the HUD rules for 55 and over housing, visit http://www.hud.gov/offices/fheo/seniors/ index.cfm. Tracy Rucka is Director of Professional Standards and Practices and Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA. news.wra.org
Embracing Diversity is Good for Business
legal By debbi conrad
At Home with Diversity® Course Offered April 28 in Madison
As the data from the 2000 United States Census Bureau confirm, Wisconsin has become increasingly diverse. Wisconsin, once predominantly white except for Native Americans, became more Asian and more Latino during the 1990s, according to the U.S. Census Bureau. The number of Latinos in the state doubled from 93,194 in 1990 to 192,921 in 2000. Asians totaled 52,782 in 1990; in 2000, 88,763 listed Asian as their only race and a total of 102,768 chose Asian as one of their races, an increase of over 50 percent.
experience with real estate agents or home ownership, are very financially conservative and turn to family as the primary source of information and advice. Many Spanishspeaking Latinos want or need a real estate agent who speaks Spanish because they do not feel comfortable conducting transactions in English. The survey indicated that African Americans are often receptive to real estate agents, are likely to seek information and advice from them, and are also financially conservative. Asian Americans were shown to be receptive to real estate agents, to rely upon them for information and advice, to show interest in expensive homes, to be likely to prefer new construction and to feel fairly comfortable with the overall home buying process. Buyers from these groups generally comprise around 40-50 percent of first-time homebuyers in many market areas.
The growing Latino and Southeast Asian populations in Wisconsin constitute a growing proportion of first-time homebuyers. The number of persons from other countries and cultures in Wisconsin also seems to be on the rise. For example, Somalian refugees are settling in northwest Wisconsin and Minnesota. As a result, the fair housing emphasis for the successful and profitable REALTOR® entails not only guarding against discrimination, but also being prepared to provide an equal opportunity for housing to people with different cultures and customs. According to Harvard University’s Joint Center for Housing Studies, minorities will grow ever more important to housing markets in the coming years, accounting for an estimated two-thirds of net new households. Minority population growth has become critical to sustaining housing markets, employment bases, school enrollments and commerce in almost every large metropolitan city in the country. A survey by the Texas A&M University Real Estate Center in 2004 (http://recenter.tamu. edu/pdf/1697.pdf) showed variances among ethnic groups with respect to their experience, attitudes and expectations when it comes to purchasing real estate. Latinos have the least
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In order to help Wisconsin REALTORS® develop the skills needed to successfully interact with different cultures and populations, the WRA and the WRA Equal Opportunity in Housing committee are proud to offer the At Home with Diversity® course on Wednesday, April 28, 2010 from 8:30-4:30 at WRA Headquarters in Madison. As part of the WRA’s celebration of Fair Housing Month, the course fee will be only $10. At Home With Diversity® is an educational experience designed to present a picture of the changing face of the real estate industry. More importantly, the class teaches REALTORS® how to work effectively with — and within — a rapidly changing multicultural market. The course offers: •
Updated statistics, exercises, and resources
It is good business for REALTORS® to develop the skills to reach the growing multicultural market of prospective homeowners. In today’s housing market, where client profiles are changing rapidly, earning the confidence of a potential homebuyer is more complex than it used to be. The increasingly rich diversity in culture, religion and tradition found in our society in the 21st century means that real estate professionals who successfully interact with these different populations should become aware of different values, manners and gestures that may need to be observed in order to successfully interact with people from various ethnic groups:
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Improved focus on the subtleties of fair housing
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Greater emphasis on developing an inclusive business plan
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More details on business etiquette for specific cultures
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Additional attention to international clientele and real estate practice
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Shaking a client’s hand isn’t always the key to sealing a deal now.
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An improper form of address can turn a business transaction sour.
Come celebrate Fair Housing Month and expand your horizons! Visit www.wra. org/athomewithdiversity for registration information.
•
Translating key phrases into your client’s language generates success.
Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.
april 2010
demographics,
Completion of this seven-hour course earns you credit toward the CIPS, CRS and PMN designations, as well as the NAR At Home with Diversity® certification.
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legal
In February, the U.S. Housing and Urban Development Department (HUD) began recruiting residents in New York, San Francisco and Chicago to participate in a brainstorming exercise to aid the government in its first study on discrimination against gays in the housing market. HUD determined a study was necessary because of the increase in the number of housing discrimination complaints by gay, lesbian, bisexual and transgendered people. The challenge for HUD is to determine how the study should be conducted. In previous federal housing studies based on discrimination, the process was more clear-cut. For example, in a study of race discrimination, the treatment by landlords, sellers and real estate licensees of different races were easily noted and compared to the treatment of Caucasians. In its first attempt, HUD has recruited members from what it describes as three cities with a large gay population. HUD is asking for the members of this group to provide their input as to how the government should attempt to conduct such a study. HUD has also provided opportunities for individuals to e-mail or present their suggestions during webinars. In addition, HUD is also concerned about individuals being denied access to housing that is federally subsidized because of the individual’s sexual orientation and has prioritized the creation of regulations to address the issue. In 1982 Wisconsin became the first state to pass a comprehensive statute that prohibited discrimination against sexual orientation. Since Wisconsin’s progressive step, 20 other states plus the District of Columbia have passed laws banning discrimination based on sexual orientation and/ or gender identity/expression. However, in the states that do not address these groups it would be permissible for REALTORS® to discriminate in the provision of housing and real estate services based upon sexual orientation. The WRA Equal Opportunities in Housing Committee strongly believed that the Code of Ethics of the National Association of REALTORS® (NAR) should provide that REALTORS® shall not deny equal professional services
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to any persons seeking to sell, buy, or rent real property based upon their sexual orientation. Therefore, the WRA Equal Opportunities Committee proposed that an amendment to Article 10 of the Code of Ethics should be sought to prohibit REALTORS® from denying equal professional services, being party to a plan or agreement to discriminate, or discrimination in real estate employment practices based upon sexual orientation. After an August 2009 request from the Committee, the WRA Board of Directors authorized the Committee to propose the Article 10 amendment. The NAR 2009 Equal Opportunity-Cultural Diversity Committee adopted a motion on November 13, 2009 “that NAR support equal housing opportunity on the basis of sexual orientation.” The NAR Board of Directors then amended NAR policy on equal housing opportunity to include opposition to discrimination based on sexual orientation. In May at the mid-year NAR meeting in Washington, D.C., the Professional Standards Committee will vote on a proposal to amend Article 10 of the Code of Ethics. The fair housing laws were originally created at a federal level. However, over time, state law and even local ordinances have added to the list of the federally protected classes. Fair housing law makes it illegal to discriminate against protected classes in the sale and rental of housing. The 1968 federal Fair Housing Act prohibits discrimination in the sale, renting or financing of housing on the basis of race, color, religion, gender and national origin. In 1988, the Fair Housing Amendments Act created new protected classes based on handicap and familial status. Wisconsin law also includes the protected classes of sexual orientation, marital status, lawful source of income, age and ancestry. Federal housing discrimination violations carry a maximum civil penalty of $11,000 for a first offense, in addition to the complainant’s actual damages, any injunctive relief and attorneys’ fees. Similar remedies are available to victims of discrimination under Wisconsin law. news.wra.org
HUD and REALTORS® address discrimination based on sexual orientation in real estate By cori lamont
For real estate brokers and salespersons, their licenses may also be at stake if they engage in illegal steering or if they treat “any person unequally solely because of sex, race, color, handicap, national origin, ancestry, marital status or lawful source of income.” In addition, it is a violation of real estate license law for a licensee to discriminate against any person, deny equal services to any person, or be a party to any plan or agreement to discriminate in violation of applicable federal, state or local fair housing law.
Federal Fair Housing Protected Classes •
Race: A person’s membership in a group possessing characteristics and traits transmitted by descent.
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Color: A person’s skin color.
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Religion: A person’s religious or spiritual beliefs and practices, or his or her denominational affiliations.
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Sex: Whether a person is male or female.
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Disability: Whether a person has a physical or mental disability that substantially limits one or more major life activities, has a record of such a disability, or is regarded as having such a disability. In Wisconsin, this class includes a person using illegal drugs/controlled substances if the person is in a supervised drug rehabilitation program.
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National Origin: The country from which a person or his or her ancestors originated or came.
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Familial/Family Status: Whether persons are members of families in which one or more children under 18 years old live with a parent, a person with legal custody, or the designee of the parent or legal custodian (with written permission). This class also includes pregnant women and persons seeking legal custody of a minor. wisconsin real estate magazine
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Wisconsin law also includes persons seeking physical placement or visitation rights of a minor child and persons whose households include one or more adults or minors in their legal custody, or pursuant to physical placement, visitation rights or a court-ordered guardianship.
Wisconsin Fair Housing Protected Classes •
Ancestry: A person’s racial and ethnic background.
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Marital Status: Whether a person is single, married, divorced, separated or widowed.
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Sexual Orientation: Whether a person has a preference for heterosexuality, homosexuality or bisexuality; has a history of such preference; or is identified with such a preference.
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Lawful Source of Income: The source of a person’s income, provided that it is legal.
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Age: The age of persons at least 18 years old.
Local ordinances may also be created to include additional protected classes. Madison, parts of Dane County, the City of Milwaukee and Appleton have all created additional protected classes. More specifically, some have created an additional protection for transgendered individuals because while Wisconsin law does address discrimination against sexual orientation, it does not specifically include gender identity. Therefore, in Madison and parts of Dane County Sexual Orientation (Heterosexuality, homosexuality, bisexuality and gender identity) was added as a protected class. In addition, the City of Milwaukee amended its Equal Rights law to include Gender Identity or Expression (Gender-related identity, appearance, expression or behavior of an individual, regardless of the individual’s assigned sex at birth) as a protected class. Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.
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>>Technology Corner How to Build Your Business Using Twitter A Quick Guide to Getting Started By Joe Leschisin
upload your professional photo, most likely the one on your business card, for easy recognition.
You’ve finally gotten comfortable using Facebook, but now everyone is talking about Twitter. What is Twitter, you ask? Twitter describes itself as “a real-time information network powered by people all around the world that lets you share and discover what’s happening now.”
Build Your Social Network The beautiful thing about Twitter is that you can follow whoever you’d like. The concept of “following” is virtually the same as adding a friend on Facebook. You can import e-mail lists or even search for friends and colleagues through their search engine. You may also follow people that you may not consider friends. If you are crazy about sports, for example, you have the ability to follow some of the biggest sports stars and get an inside look at their personal life. Once you begin to follow people, you will start to see a timeline of “tweets” appear in your feed. These are the status updates by those you are following.
The basic concept behind Twitter is to create occasional status updates and not dive into a personal conversation, one of the reasons you are limited to 140 characters or fewer for each “tweet.”
Why Use Twitter? As a REALTOR®, life is crazy enough and adding another task to your daily list can seem a bit overwhelming. However, Twitter is a great way to listen to what your clients and colleagues are saying. Where else can you tap into thousands of conversations taking place all over your area?
Now it is your turn! To post a message, or “tweet,” to your followers, simply go to your profile and type your update in the box provided. It is that simple! Remember that Twitter is public, and even someone who is not considered a “follower” is able to see your profile. Make sure you use proper etiquette when posting updates, because it is there for all of the public to see.
Direct Message or DM This is a way to send a private message or Twitter e-mail directly to someone without the public being able to see it. Again, you are only allowed up to 140 characters. Of course, there are many more words in the Twitter Glossary, but these four will get your feet wet.
HootSuite One tool I recommend using to save time, and most likely sanity, is HootSuite (www.hootsuite.com). Through HootSuite, you are able to manage multiple social networks such as Twitter, Facebook, LinkedIn or Ping.fm through a single interface. There is no need to log in to different accounts to post multiple items. It allows you to schedule tweets, search current trends, shorten URLs, manage followers, track statistics and more!
Twitter Language 140 Characters The Twitter language is a bit different for first-time users. As I stated earlier, you are limited to 140 characters per “tweet.” Many people use URL shortening to shrink links to websites that they are posting.
FIGURE 1 - Twitter
The Basics To sign up for Twitter, go to www.twitter.com and click on “Sign up now.” Set up your account by creating a username and providing other simple information. Make your username unique to you, but easy for followers to remember. For example, the Wisconsin REALTORS® Association uses “wirealtors” and can be found by going to www. twitter.com/wirealtors. Set up your profile “settings” by selecting a stock background or uploading an image of your choice. Make sure you include a little information about yourself and a link to your website if you have one. You will also want to
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@ reply The @ sign is used to directly reply to a specific person. For example, if you wanted to reply to the WRA, simply type @wirealtors and the message you are trying to send. # sign The hashtag is used to mark keywords in your tweet. Hashtags make it easier for people to find certain topics when searching on Twitter.
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FIGURE 2 - HootSuite
For a more in-depth look at HootSuite, turn to the Product Showcase section on page 17. Here are some ideas for Tweets: • Open House Announcement • Link to New Listing on MLS • Staging Tips • Local Housing Stats & News • Community Events Joe Leschisin is the Senior Designer for the WRA. He oversees all social media communication within the WRA’s social networks.
news.wra.org
and the
winner is... wra 2010 convention
September 26-28, 2010 |
Kalahari Resort & Convention Center - Wisconsin Dells
www.wra.org/2010Convention
and the
winner is... wra 2010 convention
September 26-28, 2010 Registrant One INFORMATION: Check here if you are an Association Executive Name_ ___________________________________________ Firm Name ________________________________________ Address_ __________________________________________ City_ _______________________State_______ Zip__________ Phone (W) (
)____________________________________ (H) (
) _______________________________________
E-mail Address_ ______________________________________ WRA member # _____________________________________
*TWO-FER Convention Special: Register one WRA member for one full convention pass at regular price and register a second WRA member at a special introductory price – up to a 15% savings (see details at www.wra.org/convention2010fees). Your second guest must be a member of the WRA who has NEVER attended the Fall Convention or has NOT attended in the past five years. Limit one discounted registration per order. Register using this form or by visiting www.wra.org/convention2010reg. After you have registered you will receive a promotion code. Give this promotion code to a WRA member and tell that member to visit the Web site to register and redeem the discounted pricing.
Two-FER: 2nd WRA Member INFORMATION: Name___________________________________________ Firm Name_______________________________________ Address__________________________________________ City ______________________ State _____ Zip ________ Phone (W) ( )_ _________________________________ (H) ( ) _______________________________________ E-mail Address_ ___________________________________ WRA member # ___________________________________ Member Thru 7-31 Thru 8-23 After 8-23 ATD
1-Day Pass ( Sun/Mon/Tues ) circle one $ 84 $ 94 $ 104 $ 124 Full Convention Pass $ 114 $ 124 $ 134 $ 154 TWO-FER: 2nd WRA Member* $ 54 $ 64 $ 74 $ 94 Unlicensed Spouse/Guest/Sig. Other $ 35 $ 35 $ 35 $ 55 Name of Spouse/Guest or Significant Other:____________________________________________. $ 114 $ 154
$ 124 $ 164
$ 134 $ 174
$ 154 $ 194
Included in Registration Fee: • Icebreaker Party “A Night at the Awards” – 9/26
Real Estate Continuing Education CE - Attend All 6 (4 FREE – You pay for 2) $15 per $20 per $25 per $45 per (You may select up to FOUR courses for free included in a Full Convention Pass, each additional course pricing above. Elective B – 1031 Exchanges & Exchange Opp. 8:30 – 12:00 (9/26) Course 1 – Listing Contracts – 8:30 – 12:00 (9/27) Elective E – Financing the Sale – 1:00 – 4:30 (9/26) Course 2 – Offer to Purchase – 1:00 – 4:30 (9/27) Course 3 – New Developments – 8:30 – 12:00 (9/28) Course 4 – Buyer Agency Agreements – 1:00 – 4:30 (9/28) Designation Classes
Two-Fer Pricing
Intro to CCIM 9/26-9/27 ABR Elective – Short Sales & Forecl. 9/26 CRS 111 – Short Sales & Foreclosures 9/27 ABR & CRS – Short Sales & Forcl. 9/26-9/27 Ninja – Part 1 – 9/26 Ninja – Part 2 – 9/27 Ninja Part 1 & 2 – 9/26-9/27
2nd WRA Member* .....$ 276 2nd WRA Member* .....$ 115 2nd WRA Member* .....$ 115 2nd WRA Member* .....$ 175
$ 330 $ 169 $ 169 $ 229 $ 185 $ 185 $ 330
$ 340 $ 179 $ 179 $ 239 $ 195 $ 195 $ 340
$ 350 $ 189 $ 189 $ 249 $ 205 $ 205 $ 350
$ 370 w/conv $ 209 w/conv $ 209 w/conv $ 269 w/conv $ 225 $ 225 $ 370 w/conv
Kalahari Resort and Convention Center 1305 Kalahari Dr. | Wisconsin Dells, WI Phone: 877-253-5466 or 608-254-5466 Room Rates Standard Room: $119 Jacuzzi Suite: $119 Royal African Queen Suite: $119 Release Date: August 25, 2010
Non-Member 1-Day Pass ( Sun/Mon/Tues ) circle one Full Convention Pass
Hotel information:
2nd WRA Member* .....$ 276
Appraisal CE Courses - 9/28 Two-Fer Pricing WRA Appraisal Section Member Class Only $ 134 $ 144 $ 154 $ 174 Class w/ Convention $ 144 $ 154 $ 164 $ 184 2nd WRA Member* .....$ 90 WRA REALTOR® Member Class Only Class w/ Convention
$ 144 $ 154
$ 154 $ 164
$ 164 $ 174
$ 184 $ 194 2nd WRA Member* .....$ 100
Non-Member Class Only Class w/ Convention
$ 154 $ 164
$ 164 $ 174
$ 174 $ 184
$ 194 $ 204
• Real Estate Continuing Education – Four of Six courses included in Full Convention Pass - MUST register in advance - first come, first served! • Access to Indoor Theme Park following Chairman’s Dinner - 9/27 Event Fee – Per Person: Golf (9/26) ���������������������������������������������������������������$98 Wild Rock Golf Club - Wisconsin Dells Member One 2nd WRA Member Chairman of the Board’s Dinner (9/27) ���������������������$49 Member One 2nd WRA Member CRS Luncheon (9/28) �����������������������������������������������$22 Member One 2nd WRA Member Special Services: Check here if you require special services to attend. Attach written description of needs. Cancellation Policy: The WRA reserves the right to cancel courses if not filled. Cancellations must be made in writing prior to September 26, 2010 and will be refunded, minus a $25 administration fee. Registrations cannot be transferred from person to person.
PAYMENT: Register by Mail: Wisconsin Realtors® Association 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337
Register by Phone: 800.279.1972 | 608.241.2047 Register by Fax: 608.241.5168
Total amount $__________________ Enclosed is my check made payable to the WRA Charge my VISA / MasterCard (circle one) Card Number ������������������������������������������������ Exp. Date___________
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Free Fair Housing Resources from NAR
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Right Tools, Right Now Initiative Offers Resources on Fair Housing
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Make the most of Fair Housing Month with FREE resources from NAR’s Right Tools, Right Now program, covering fair housing regulations and housing discrimination issues. To help promote Fair Housing Month, we’re highlighting three e-products that you can download and print for immediate use: “Fair Housing Sales: Pocket Guide”, “Fair Housing Rental: Pocket Guide” and “Fair Housing Handbook - Fourth Edition”. All of these tools are free and at-cost through NAR’s Right Tools, Right Now initiative.
HootSuite helps organizations use the social web to launch marketing campaigns, identify and grow audience size, and distribute targeted messages across multiple channels. Using HootSuite’s unique social media dashboard, teams can collaboratively schedule updates to Twitter, Facebook, Linkedin, Wordpress and other social networks via web, desktop or mobile platforms. You can even track campaign results and industry trends to adjust tactics.
Fair Housing Sales: Pocket Guide (eProduct) This pocket reference guide is a must for brokers and agents alike. It contains examples of the most commonly asked questions from buyers and sellers which relate to housing discrimination and offers the appropriate responses to those questions as well as reasoning for the answer. Electronic Copy Free. Order at www.wra.org/fairhousingpocketguide
Fair Housing Rental: Pocket Guide (eProduct) This pocket guide is a must for anyone involved with management or leasing of real estate. The information covered includes fair housing laws, the responsibilities of real estate professionals and checklists to ensure proper procedures.
Features: Multiple Networks Manage multiple social networks in one place. Update to Twitter, Facebook, Linkedin, Wordpress an others through a single platform.
Electronic Copy Free. Order at www.wra.org/fairhousingrentalpocketguide
Team Workflow If you have more than one person contributing, you can set up multiple users to manage various social accounts.
Fair Housing Handbook: Fourth Edition (eProduct) This handbook is an excellent resource for fair housing guidance. It is the most comprehensive fair housing resource available in the industry. Topics include: suggested fair housing office procedures, background on fair housing regulations, samples of the HUD Equal Housing Opportunity poster logo, equal service report forms, information on the NAR/HUD partnership and a self-assessment questionnaire. A great resource for brokers, agents and associations.
Schedule Posts Don’t have time to be posting things all day? Pre-schedule any items for future posting. Track Statistics Track the popularity of each link or message. Display outstanding graphs to summarize statistics. Feed Your RSS Automatically feed your RSS streams or blog. >> For complete details and to sign up for a FREE HootSuite account, visit www.HootSuite.com.
Electronic Copy Free. Order at www.wra.org/fairhousinghandbooknar
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education
Save $$ with 4 and 6 Pack Save up to 22% on CE costs by purchasing your education in “6-packs” or “4-packs.” The 6-pack option allows you to take all four mandatory classes plus your choice of two elective courses. When selecting the 4-pack option, you can choose any combination of CE courses, but remember Courses 1-4 are manditory and 18 hours are needed to satisfy your 2009-2010 CE requirements.
6-Pack Discount Get four mandatory courses (1-4), plus two elective course for only $126.members and $180 non-members ($30 per course) – 14% savings.
4-Pack Discount Choose any combination of the mandatory and elective courses for only $92/members, $128 non-members. Pricing applies to residential Continuing Education On Demand ONLY. Package pricing is not available in other residential formats or commercial courses.
GREEN (2-Day) Course April 7-8, 2010
GREEN Residential April 9, 2010
Brookfield
Brookfield
NAR’s GREEN designation gives you the tools you need to guide clients through buying, selling, or building in the sustainable marketplace. You will learn how to explain to your clients what makes a home, building or property green; list and market green properties; determine the energy efficiency of a property, and more. For more information, visit: www.wra.org/Green
Elective
NAR’s GREEN Designation Residential Elective Course gives you the knowledge and awareness of green building principles applied in residences so that you can guide buyer-clients in purchasing and retrofitting green homes as well as help sellers by listing and marketing green properties. For more information, visit: www.wra.org/Green
Short Sales & Foreclosures April 23, 2010
Broker Pre-License April 19-22, 2010
WRA Headquarters - Madison
Madison
Working with buyers and sellers of distressed properties can be frustrating and time-consuming, but also rewarding. This CRS course provides you with practical approaches to the pre-foreclosure and foreclosure processes that will result in the successful disposition of these properties. Learn the intricacies of the short sale and foreclosure processes. Co-Sponsored with Wisconsin CRS Chapter, Wisconsin CRS Chapter Members receive a $20 discount. Fulfill core course for SFR Certification Visit: www.wra.org/CRSinfo
Course content includes: contracts, approved forms, trust accounts, escrow and closing statements, business management and marketing, financial and office management, personnel business ethics, consumer protection, and specialty areas. (Completion of education, passing exam and applying for broker license fulfills 2009-10 CE requirements.) Visit: www.wra.org/brokerpl
Sales Pre-License Course July 19-22; 26-29, 2010
QuickStart On Demand
WRA Headquarters - Madison
The QuickStart program assists agents in learning the business of real estate. Courses focus on contract issues, agency relationships and negotiating strategies. The program is designed to help agents become confident in their practice as well as focused on their personal business plan. Completion of the QuickStart program (four days) and passing the exams fulfills the requirements for GRI Course 1. Visit: www.wra.org/QuickStartondemand
To obtain a real estate license in the state of Wisconsin, you must first complete 72 hours of approved education courses such as our sales pre-licensing course. Second, you must pass a state-administered exam. The WRA is offering an eight-day accelerated, 72-hour sales program on April 5-8 and 12-15, 2010 in Madison. For more information, visit: www.wra.org/SalesPL
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www.wra.org/OnDemandDiscounts
wisconsin real estate magazine
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april 2010
news.wra.org
Course Schedule
Visit wra.org/CourseSchedule for full schedule.
Sales & Marketing Management Date Course Location
*Plus books ** Early registration applies two weeks prior to the start of the course. ***Includes Winter Convention Registration.
April 7-8, 2010 April 9, 2010 April 23, 2010 # Appraiser section members receive a discount.
GREEN (2-day) Brookfield 295 1-day GREEN Residential Elective Brookfield 140 Short Sales & Foreclosures: Protecting Madison 145 155 Your Clients Interests (CRS Core 1-day class ) Fulfills core education for NAR new Short Sales and Foreclosure Resource (SFR) certification
Conference and Conventions
Date Event
Real Estate Continuing Education
Date
Course
April 8, 2010 April 13, 2010 April 20, 2010 April 21, 2010 April 22, 2010 April 21, 2010 April 22, 2010 April 26-30, 2010 April 26-30, 2010 May 3, 2010 May 5, 2010 May 12, 2010 May 12, 2010 May 12, 2010 May 13, 2010 May 19, 2010 May 19, 2010 May 19, 2010 May 20, 2010
2009-10 Courses 3 & 4 *2009-10 Courses 3 & 4 2009-10 Courses 1 & 2 2009-10 Courses 3 & 4 2009-10 Electives A & C 2009-10 Electives D & E 2009-10 Electives A & E 2009-10 Course 3 (DVD) 2009-10 Elective A (DVD) 2009-10 Electives A & C 2009-10 Courses 2 & 1 2009-10 Course 4 2009-10 Courses 2 & 1 2009-10 Courses 1 & 2 2009-10 Courses 3 & 4 2009-10 Electives A & E 2009-10 Courses 4 & 3 2009-10 Courses 1 & 2 2009-10 Courses 3 & 4
Elective A: Elective B: Elective C: Elective D: Elective E:
*Approved for Minnesota Real Estate Credit.
Pre-License * Plus books Available
ATD
$
315 150 175
Location
September 26-28, 2010 WRA Annual Convention
Wisconsin Dells - Kalahari Resort Location 8:30 – 4:30 8:30 – 4:00 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 - 4:30 8:30 – 4:30 8:30 – 12:00 1:00 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30 8:30 – 4:30
Sturgeon Bay La Crosse Rhinelander Rhinelander Rhinelander Brookfield Marinette Mosinee Mosinee La Crosse Madison Sheboygan Brookfield Hayward Hayward Hayward Brookfield Wausau Wausau
920-743-9651 608-785-7744 800-279-1972 800-279-1972 800-279-1972 800-279-1972 715-735-0547 715-693-7325 715-693-7325 608-785-7744 800-279-1972 920-457-7908 800-279-1972 715-835-0923 715-835-0923 715-835-0923 800-279-1972 800-279-1972 800-279-1972
$27/m; $35/nm $27/m; $35/nm $27/m; $35/nm $27/m; $35/nm
$27/m; $35/nm $27/m; $35/nm
$27/m; $35/nm $27/m; $35/nm $27/m; $35/nm
Risk Reduction 1031 Exchanges and Exchange Opportunities Condominiums Landlord/Tenant and Property Management Financing the Sale
Date Course Location
online!
Early Reg.** $Reg.
$
$
April 19-22, 2010 Broker Pre-License Course 8:00 - 5:00 Madison July 19-22; 26-29, 2010 Sales Pre-License Course 8:00 - 5:00 Madison August 9-12, 2010 Broker Pre-License Course 8:00 - 5:00 Madison
Early Reg.** 260* 325* 260*
$
Regular Reg.
280* 325* 280*
QuickStart sales training program
www.wra.org/QuickStartOnDemand
wisconsin real estate magazine
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19
Realtor® sales tip
Creating a Lasting Impression
Our parents taught us long ago that it is better to give than to receive, and the same holds true in real estate transactions. My tip for this month centers around selecting the proper closing gift. One of the reasons to offer a token at closing is to create a lasting impression. Since we are in the business of “good will,” and the lifeblood of the real estate business is built on referrals, a little token of appreciation can go a long way when closing out a transaction. I have chosen several items over the years, but one of my favorites is decorative street address numbers of the home I am closing. It costs me less than $50 and really makes a lasting impression! Each time the buyers come home, they see it and potentially think of me. The business of offering a referral is tightly regulated and we must be careful when giving gifts or incentives to anyone. Understanding the law is our best defense. Wis. Stat. 452.19 limits referral fees to real estate licensees. The potential dilemma is that a closing gift may be viewed as an illegal referral fee for future business. Referrals may be distinguished from incentives. Incentives are offered to sellers or buyers to persuade them to sell or purchase real estate. Seller or buyer incentives can be offered as cash or a discounted fee, or as an item of personal property such as a home warranty plan, savings bond, gift certificate, appliance or some other item. Such incentives must be clearly documented before closing, and the parties must have a clear and thorough understanding of the incentive’s terms and conditions. This advance documentation is necessary to establish that the party incentive is not a fee-splitting arrangement with a non-licensee, which would be illegal under Wisconsin law. Bottom line: find a gift for your customers/clients that leaves a lasting impression. And the best part is that it does not have to cost you a lot of money. Despite tough market conditions, real estate professionals continue to view closing gifts as an important business expense – one aimed not only at generating future referrals, but also honoring the clients who picked them. A small token is a way of thanking customers/clients for putting their trust in us to find them the home that suits them and meets their needs. I also believe that we should show appreciation for client loyalty. After all, without it, we are out of business!
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By marcus wally
The average amount spent per gift has stayed relatively steady over the past several years. Real estate professionals spend an average of $51.80 on each closing gift (compared to $54.20 in 2003), according to the MRI Market Solutions 2009 REALTOR® Magazine Reader Profile Study released in June. But how much do you really need to spend to leave a lasting impression with your customers? Laws regarding closing gifts vary by state, with several limiting the gift amount to $25. It’s always a good idea to check with your local REALTOR® association to be sure you are staying within your state’s guidelines. Be cautious! As your last point of contact with buyers and sellers in a transaction, closing gifts are more than just an unexpected courtesy. They serve as a sincere sign of appreciation for business and a low-key way to generate referrals. Although some practitioners balk at the notion that they should feel obliged to further reward clients for a job well done, an overwhelming majority do offer gifts at the completion of a sale. The forms gifts take are as varied as the personalities of those who give them. But the most popular, according to the survey, are gift cards, flowers and plants, gift baskets, personalized home accessories, alcoholic beverages, and food or sweets. Once I even filled the refrigerator for some clients with small children and very limited time. I really wanted to welcome them and make their transition smooth as they moved into their new home. REALTOR® Magazine’s own informal online poll – asking visitors about their closing gift choices – uncovered a much broader mix of gift options. Some reported giving distinct items, such as artistic renderings of the new house, hand-painted plates or maple syrup. Others seem to go the practical route with new locks for doors and windows and environmentally friendly cleaning products. Other ideas included charitable donations in the client’s name, a membership to the local zoo and chew toys for the family dog. Most gift givers seem to agree that it is important to put some thought into the gift selection so it reflects well on the giver, and that it is better to give nothing at all than something obviously cheap or inappropriate. Today, e-commerce makes it more convenient than ever to select and experiment with a variety of gifts. Many gift company Web sites feature “wizards” to help narrow your selection based on price or the purpose of the gift.
news.wra.org
Thoughtful Giving Deciding to include closing gifts in your transactions is the easy part. Choosing the proper gifts is a bit more challenging. Consider the following: •
Cost. Don’t be “cheap” when it comes to gifts. Select something someone will actually appreciate receiving. Let the home’s selling price and buyers’ affluence help guide you to what is appropriate.
•
Personal touch. Though it takes more time and effort to make the selection, a personalized gift can say most about how much you appreciate the client.
•
Staying power. Something the client proudly displays or uses for years will serve as an ongoing reminder of you and a chance for the client to talk up your services again and again. And that is what we really want!
•
Follow-up. A giving strategy in which you regularly follow up with tokens of appreciation such as cards or friendly calls can effectively reinforce the good will generated by your gift.
And don’t forget to make sure these new customers/clients have lots of your business cards so that they can help promote YOU! While closing gifts offer many benefits, keep in mind that fee-splitting for referrals to non-party, non-licensees is illegal. Wis. Stat. § 452.19 limits the payment of referral fees, finder fees and commission splits to Wisconsin licensees or persons lawfully and regularly engaged in real estate brokerage in another state. However, incentives may be offered to sellers or buyers provided they are documented properly prior to closing. The party must have a clear, thorough, advance understanding of all the terms and conditions of the incentive. Such incentives may be offered in any amount in order to induce the buyers and sellers to purchase or sell. After closing gifts, any “extras” – such as a gift certificate to a local restaurant or any other gift that has not been previously documented – should be restricted to nominal value. Marcus A. Wally, MBA, is an active Florida REALTOR® in St. Augustine, Florida. Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. He can be reached at 904-669-1081 or by e-mail at marcuswally@comcast.net.
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wisconsin real estate magazine
Wisconsin Restaurant Association
800.589.3211 or www.wirestaurant.org |
april 2010
21
public affairs
OFF TO THE RACES By joe murray
Voters in Wisconsin Wisconsin voters are not happy with the direction of their state or federal governments, according to recent polling information. In a February 15-17, 2010 survey of likely voters conducted by Public Opinion Strategies (WRA’s pollster sample size = 400; margin of error ± 4.97%), Wisconsin voters make it very clear that they are ready and willing to move in a new direction this November. Here are three key indicators of voter dissatisfaction: Do you approve or disapprove of the job Barack Obama is doing as President?
50% Total Approve
47% Total Disapprove
Would you say that things in Wisconsin are going in the right direction, or have they pretty seriously gotten off on the wrong track?
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31% Right Direction
60% Wrong Direction
wisconsin real estate magazine
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Do you approve or disapprove of the job Jim Doyle is doing as Governor?
38% Total Approve
60% Total Disapprove
The right direction/wrong track number is a significant and powerful election barometer. Based on past experience, about two-thirds of “wrong track” voters will ultimately vote against the incumbent party candidate, providing a potentially strong boost to the eventual Republican nominee, whoever it turns out to be. The issues most important to Wisconsin voters? Jobs and the economy (38%) and taxes and government spending (31%). These are the same two issues voters cite as top priorities across the board this year. With seven months to go before the November election, a lot could change. But the political trend is heading in one direction right now and it looks like a potentially good year for Republicans in 2010. The question is whether this trend will hold steady from now through November 2nd.
news.wra.org
Feingold vs. Thompson? Another sign of voter dissatisfaction with Congress is U.S. Senator Russ Feingold’s polling numbers when matched up with former Governor Tommy Thompson’s. Four recent surveys have Thompson leading Feingold in a hypothetical match-up this November. As recently as November 2009, a very credible poll conducted by the Democratic firm Public Policy Polling, had Feingold beating Thompson by nine points. Here are the most recent published polls tracking a potential FeingoldThompson U.S. Senate race: Public Policy Polling, November 20-22, 2009:
Russ Feingold (D) 50%
Tommy Thompson (R) 41%
Election 2010: Rasmussen Reports, January 26:
Tommy Thompson (R) 47%
Russ Feingold (D) 43%
Election 2010: Rasmussen Reports, February 17:
Tommy Thompson (R) 48%
Russ Feingold (D) 43%
Wisconsin Policy Research Institute, March 7-9, 2010:
Tommy Thompson (R) 51%
Russ Feingold (D) 39%
Election 2010: Rasmussen Reports, March 16: Tommy Thompson (R) 47%
Barrett Catches a Break
Russ Feingold (D) 45%
Milwaukee Mayor Tom Barrett, the all but certain Democratic nominee in the November gubernatorial race, may be catching the first big break of the 2010 race for governor. As his two primary GOP opponents begin to ramp up their campaigns and spend money in advance of the September primary, Barrett will continue to stockpile cash for the expensive November general election as Republicans Walker and Neumann deplete their reserves and focus on each other.
Public Policy Polling: March 20, 2010: Russ Feingold (D) 47% Tommy Thompson (R) 44% For incumbents like Feingold, the struggling economy is a real political problem, along with high unemployment and mounting deficits. But the issue that may be hurting Feingold more than all the others combined is the ongoing debate over health care reform. The last time Feingold held a true lead over Thompson was in November 2009, just before the first health care vote. One month later, the U.S. Senate passed their version of health care reform and, since that time, Feingold has trailed Thompson in most credible published polling. Polling in Wisconsin indicates strong opposition to Obama’s health care reform plan. In the March Wisconsin Policy Research Institute poll, 55 percent opposed the plan while 37 percent supported it. Feingold has long supported comprehensive health care reform, but Wisconsin voters seem to disagree.
wisconsin real estate magazine
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Neumann started his ad campaign in February, about three weeks before Walker went up with his first ad of the year. How much each of them ultimately spends as they fight it out in the Republican primary remains to be seen. Either way, as both GOP candidates spend to win, Tom Barrett can push his considerable fund raising prowess into overdrive (with a little help from the White House) and position himself to begin the post-primary campaign in a strong financial position. Tactically, this is a political gift for the Barrett campaign. Most experts believe this race will be close. In a year when momentum is trending GOP, this break may be the right one at the right time for Tom Barrett. Joe Murray is Director of Political & Governmental Affairs for the WRA.
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public affairs
Inside the Wisconsin Way A closer look at the plan to restore Wisconsin prosperity By michael theo
The WRA is a founding partner in the Wisconsin Way project – a multiyear effort by a coalition of diverse organizations to revolutionize the way we tax, spend and invest in Wisconsin. This effort has produced a “Blueprint for Change,” a set of ideas for reforming Wisconsin. Over the next several months, Wisconsin Way organizations will be traveling the state meeting with the media, civic organizations, decision makers, candidates, opinion leaders and average citizens, in an attempt to stimulate discussions around the proposed reforms. The goal is to provide fresh ideas for a new governor and lawmakers to address our state’s most critical fiscal and economic problems. The Wisconsin Way strategic goals are ambitious but straightforward: 1.
Create a strong, prosperous middle class
2.
Create a healthy, growing economy and business community
3.
Create a strong, reliable infrastructure
4.
Create a robust, sustainable tax base
5.
Create a great place to live
Wisconsin Way Ideas for Economic Development Growing the pie
The Blueprint for Change proposals are presented in the following three areas: 1.
2.
3.
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Economic development a.
Stronger economic development infrastructure
b.
More investment capital
c.
Focused, energized workforce development
Tax reform and modernization a.
Make it fair
b.
Make it appropriate
c.
Make it affordable
d.
Make it effective
Government reform and modernization a.
Make it accessible and accountable
b.
Make it efficient and effective wisconsin real estate magazine
This article is the first in a series that will appear in this publication, highlighting some of the ideas being proposed in the Wisconsin Way’s Blueprint for Change. This article will focus on economic development.
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april 2010
Wisconsin’s current economic situation is not sustainable. We have a growing gap between our public needs and responsibilities and our fiscal capacity to pay for them. The average age of our population is increasing and so is the public demand for good schools, housing, sewers, roads, energy sources, police and fire protection, to name just a few. How government taxes and spends is critically important, but our future wellbeing depends on our ability to improve and grow our economy. Here are some Wisconsin Way ideas on how to do that. 1. Building a more strategic, comprehensive and aggressive statewide economic development program •
Establish a confederation of all economic development entities that can serve as a focal point and engine for an energized statewide economic development effort.
•
Review and refine the existing regional economic development business plans to seek synergies and to assure that they serve entire regions, address the state’s economic need to attract and keep more people with advanced degrees, and strengthen and diversify the economy. news.wra.org
•
Consolidate and streamline the various programs and initiatives created to promote business growth in a user-friendly, one-stop economic development shop.
•
Establish and fund a central public-private partnership capable of providing ongoing and timely research and marketing expertise available to those regions that join the confederation.
•
Create an economic development investment fund (i.e., a fund that would invest money in specific economic enterprises in expectation of a return on that investment) able to provide a two-to-one match for funds raised by certified regional economic development entities (i.e., those belonging to the confederation with certified business plans).
•
•
•
Increase state support for cluster industry, training and productivity initiatives. Specifically, enhance existing industry clusters such as agriculture, manufacturing, paper, forest products and tourism and emerging industry clusters such as high-tech, bio-tech, business services and IT-enabled services. Increase state support for the Wisconsin Manufacturing Extension Partnership, the Wisconsin Regional Training Partnership and other similar organizations that provide business strategies to improve manufacturing and agribusiness processes and ultimately productivity. Establish a rapid response program designed to help small businesses in difficult economic times.
•
Encourage Wisconsin’s public and private colleges and universities to develop and offer advanced degree programs based upon a different type of “four-year” degree that would provide students with a degree that would enable them to start their work careers at the end of three years and guarantee access to an additional “year” of instruction credits over the course of a graduate’s career.
•
Allow students enrolled in three-year degree programs to participate in a delayed tuition program that would effectively and significantly reduce their in-school tuition costs.
•
Encourage educational systems to focus their curricula on skills that are in high demand or are likely to be in high demand.
•
Increase state funding for STEM (science, technology, engineering and math) subjects.
•
Starting with 10th grade of high school, create and develop more school-to-work opportunities for Wisconsin students, including technical college training, apprenticeships and other private sector experiences that count for high school credit and enact education tax credits to encourage public and private market-driven donations to Wisconsin’s pre-K-12 public schools and the post-secondary education of individuals.
2. Generating more angel and venture capital to support Wisconsin start-ups and expansions. •
Allow Wisconsin income taxpayers to invest up to 1 percent of the state income tax they owe in a state managed venture capital investment fund.
•
Create a Wisconsin Venture Capital Mutual Fund dedicated to making investments in start-ups and expansions in Wisconsin.
•
Create public service opportunities that could generate credits that could be used as tax or tuition credits.
•
Broaden the approved investment options available to local units of government to include the new state venture capital mutual fund.
•
•
Undertake a careful investigation of whether or not there are processes that would allow the State of Wisconsin Investment Board (SWIB) to invest more of its funds more effectively in specific types of Wisconsin businesses and job creation ventures while meeting their fiduciary responsibilities.
Keep Wisconsin college graduates and attract new workers by offering loan forgiveness and tuition credits to graduates who stay in the state.
•
Establish incentives for Wisconsin businesses that participate in programs to keep recent Wisconsin college graduates in the state.
•
•
Eliminate the state capital gains tax on all investments made in Wisconsin start-ups and expansions provided the gain is re-invested in Wisconsin, in companies and other entities that provide jobs that pay well. Eliminate the state corporate income tax for the first five years of operations on all start-ups and expansions.
3. Creating efficient, affordable pathways for Wisconsin citizens to gain the workforce skills they need to compete in today’s economy while simultaneously pursuing efforts to create and attract the jobs that will allow them to pursue the careers for which they have trained in our state.
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april 2010
4. Ensure that Wisconsin can effectively compete: a) to keep and grow the businesses and jobs we already have; b) for entrepreneurs and investors and the start-ups they create; c) for non-Wisconsin firms looking for new locations.
What do you Think? The economic development proposals above, along with the next articles in this series that will review the tax reform and government reform proposals, are presented in an effort to find solutions and stimulate discussion. Remember, it’s a blueprint and change orders are an option! We’d like to know what you think. Send your reaction to this article, as well as thoughts for new ideas, to mtheo@wra.org. Michael Theo is Vice President of Legal and Public Affairs for the WRA.
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public affairs
New Law Will Require Carbon Monoxide Detectors in All Homes By tom larson
On March 10, 2010, Governor Doyle signed into law Senate Bill 415, legislation that requires all homes to have carbon monoxide detectors beginning on February 1, 2011. Carbon monoxide is a dangerous, poisonous gas which cannot be detected by human senses. Dubbed the “silent killer,� carbon monoxide claims more than 2,000 lives each year and sends more than 40,000 people to the emergency room in the U.S. alone. At high concentrations, carbon monoxide can be fatal within minutes. Twentythree other states already have laws requiring carbon monoxide alarms in residential properties. This new law will expand the current carbon monoxide detector requirements to all one- and two-family homes and parallels requirements for smoke alarms for ease of installation. Specifically, this new law will require carbon monoxide alarms to be installed in the basement of the dwelling and on each floor level except the attic or storage area of both newly constructed and existing homes. For new construction, the alarms must be hard-wired in order to be current with national model safety codes. For existing homes, the alarms can be battery operated and can be multipurpose (smoke and carbon monoxide). Dwellings with no attached garages, no fireplaces and no fuel-burning appliances are exempted from this requirement. Similar to the smoke alarm law, the new carbon monoxide detector law does not have a fine or penalty associated with non-compliance. However, all home inspections will be required to check for carbon monoxide alarms. Last session, the legislature passed and Governor Doyle signed into law a measure requiring carbon monoxide detectors in all new and existing multifamily units. Beginning April 1, 2010, all existing multifamily units are required to have carbon monoxide detectors. Plug-in alarms are acceptable to comply with this new law in existing multifamily units. For more information, please contact Tom Larson (tlarson@wra.org) at 608-2408254. Tom Larson is Director of Regulatory and Legislative Affairs for the WRA.
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news.wra.org
We are all Part of
the Puzzle Fair Housing
Luncheon April 23, 2010 Country Springs Hotel and Conference Center, Waukesha
www.wra.org/FairHousingLuncheon
Referrals Cheryl L. Eskridge A HEART for REAL ESTATE!
Serving Northern Wisconsin & Also serving the Austin Texas Area! Broker Associate ABR,CRS,GRI,PMN
Direct Ph: 512-749-6833 I love referrals!! cheryleskridge@nnex.net www.heartforrealestate.com
Licensed in Texas and Wisconsin Western Wisconsin & Southeast Minnesota (Licensed in Both States)
Serving La Crosse and Surrounding Communities
Jo Baldridge, CRS, GRI, CHMS
608-797-0337 jo_baldridge@centurytel.net www.JoBaldridgeRealtor.com
Serving Clients on Both Sides of the Mississippi
27
special report
Working with the WHEDA Advantage By kate venne
If you’re working with a first-time home buyer, chances are pretty good they qualify for the WHEDA Fannie Mae Advantage. Available since March 1st, the Wisconsin Housing and Economic Development Authority (WHEDA) partnered with Fannie Mae on this new loan product to bring first-time home buyers in Wisconsin an affordable, fixed-rate mortgage with 100% financing.
“The WHEDA Fannie Mae Advantage has a lot of
Like the old WHEDA Home Loan, products under the WHEDA Advantage umbrella all use a preapproval process to get a buyer started.
means a very affordable monthly payment.
“There’s great value in the WHEDA pre-approval,” said WHEDA Executive Director Antonio Riley. “A pre-approval from WHEDA means the buyer has been evaluated on three pretty significant items – credit, ability to pay, and eligibility under the income limits. Your buyer’s income is fully documented and verified as part of the preapproval process.”
home purchase price of $103,100), assuming a
Once the buyer finds a property, their offer has been accepted, and an appraisal that meets HVCC rules has been conducted, their lender can lock an interest rate and submit a full loan package to WHEDA for underwriting. From the date of the rate lock, the buyer has 45 days to close. While this process is taking place, your homebuyer also needs to take homebuyer education – required on the WHEDA Fannie Mae Advantage. “WHEDA has always strongly believed in the value of good homebuyer education. One of the reasons our loans perform so well is because our homebuyers understand the complexities of buying and owning a home,” said Riley. Eligible buyers can also qualify for the WHEDA Fannie Mae Advantage with as little as $1,000 cash at closing – a big benefit for people who have a good credit history but have had trouble saving money for a down payment. “In the past, WHEDA offered a Zero Down product that has performed tremendously well,” said Riley.
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similarities to Zero Down both in its underwriting and eligibility guidelines. We’re looking forward to it being a big success, both in terms of consumer demand and loan performance.” With no mortgage insurance requirement and a low APR, the WHEDA Fannie Mae Advantage also
For example, on a $100,000 mortgage (for a total 3% down payment and a 5.75% current rate and 5.938% APR, a borrower’s monthly payment with the WHEDA Fannie Mae Advantage would be $583.57. In contrast, a conventional loan with a rate of 5.400% and an APR of 6.185% with Private Mortgage Insurance would have a borrower’s monthly payment of $652.57. To see the current and APR rates, as well as an estimate of your buyer’s closing costs, go to www.WHEDA.com/ Realtors/. “We’ve learned that the best way to make home ownership affordable and attainable to families is to offer a low, fixed monthly payment and to minimize down payment costs,” said Riley. “Fannie Mae was very committed to working with Housing Finance Agencies like WHEDA to come up with a product that meets the needs of firsttime homebuyers. And we know that a low down payment is just as important to people as a low, fixed-rate monthly payment.” To learn more about the WHEDA Advantage, call 800-334-6873 or visit www.wheda.com. Kate Venne is the Director of Communications for Wisconsin Housing and Economic Development Authoriy (WHEDA).
news.wra.org
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GO buy a house!
A
WHEdaŽ advantage pre-approval means your first-time buyer is ready to go house hunting! They can make an offer on a home they can afford for the long-term with confidence because their credit and income has been verified and they meet WHEDA’s eligibility guidelines.
Discover the WHEda advantage. To learn more, go to wheda.com/Realtors/. Follow us on Facebook! Wisconsin Housing and Economic dEvElopmEnt autHority 201 West Washington Ave n Madison, WI 53703 800.334.6873 n www.wheda.com