STOP LEARNING, stop earning
Distress sale disputes
It’s more than just a rhyme.
Tips to make these disputes not so distressing.
MAGAZINE
December 2011 $5.00
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Designations Certifications
What You and Your Clients Should Know
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North Central Home of the Best AgentsÂŽ
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table of contents
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6 features 6
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28, no. 3
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articles
Designations and Certifications: What You and Your Clients Should Know Want to increase income as well as enhance your image? (No? You’re probably crazy.) Find out which designations and certifications are right for you and for your clients.
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Stop Learning and You’ll Stop Earning!
It’s not just a rhyme; it’s a fact: REALTORS® with the advanced education from a designation earn nearly twice as much as their cohorts without designations.
Wisconsin is Presidential Battleground State
Do You Know Where Your Listings Are?
An overview of syndication agreements, including contract details, consequences of agreements and the possibility of inaccurate listing information being public.
Distress Sale Disputes
With various practice tips, learn how you can achieve success in these challenging and complicated transactions.
Log in to WRA.org A reminder of how and why you should access memberonly information on the WRA’s website.
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Best of the Legal Hotline: Shift Happens Questions and answers highlighting agents shifting to new companies, new approaches to referrals, the roles of personal assistants and more.
Proposed Legislation Seeks to Modify Pier Regulations ... Again
The WRA supports proposed legislative modifications impacting waterfront property owners.
A combination of the 2011 results and recent polling in Wisconsin provides hints for what to expect in the 2012 elections.
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News
inside the wra
with mike theo
Top News Stories in and Around the Industry United Way Honors the Stark Family for Service to Community United Way of Dane County
Wisconsin Receives Millions to Ease Foreclosure Crisis
Our Market and You
substantially increase funding for rental assistance, particularly help for working families.
Milwaukee Business Journal (WI) (09/30/08)
NAR Releases Free FHA Toolkit United Way of Dane County recognized the Stark The state of Wisconsin is due to receive nearly $39 Wisconsin REALTORS® Association (10/30/08) Family with the 2008 Tocqueville Society Award million in federal funds to stabilize neighborhoods for outstanding service to the Dane County and stave off a spate of abandoned homes. According NAR and the WRA are eager to help you meet the community and United Way. The to HUD and Gov. Jim Doyle, the funds are separate After reviewing these and other facts about economy. We ver the past several weeks, I’ve been asked by current challenges of the troubled Tocqueville Society Award celebrates from approximately $9.2 million the government is the economy, consumers, and public policies, journalists, aboutthe foreclosure and acknowledges people or families, policymakers awarding theand city ofmembers Milwaukee, where know that you need resources that can help you I then posing the question about you, Wisconsin’s market. They want toHUD knowis awarding such as the Starks, who have made real estate rate is currently 9.9 percent. thetell those transactions, and you need them at little or no ® the REALTORclose how we’reofdoing.funds They via expect me to talk about the , and your role in this market. While a major impact on the quality its Neighborhood Stabilization Program, cost. NAR has just has released an from all-new FHA Toolkit consumers and public policies, they$4probably it’s true fallen about life in Dane County througheconomy, their exceptional service under which but almost billion isdon’t being allocated to that our membership online for FREE to help you get clients the financing and commitment to the community. local and state governments for the redevelopment expect me to talk about you. But I do. 19,000 at the height of the housing bubble to a more Bill Malkasian ® of abandoned and foreclosed houses. historically normal 13,000 today, the REALTORS of It is they need in a credit-strapped environment. WRA President
O
From anReceives economic perspective, Wisconsin’s economy has fared City Housing Authority nation. OurJust unemployment rate, Sites: Not for Personal 100-Unit Grant slightly better than that of the Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia for example, is a full percentage point better Anymore than the national Connections
today are theone survivors – thecomprehensive best of the best. You NAR are has of the most toolkits the experts inever each and every market; the experts on ® produced, andlocal it’s available to all REALTORS how to navigate new banking rules and practices to secure right now by visiting the link below. They also have Minneapolis-St. Business Journal (09/29/08) Grayson, average authority over the isfirst of thePaul year. But our overall The city of Milwaukee’s housing duenine months financing; the experts on pricing, marketing and bringing the launched a new page called “NAR Helps You Navigate growth remains flat, with Katharine slight improvements in the private to receive $6.7 million injob federal Hope VI money right buyers and sellers together. Now more than ever before, offset reductions inSt.public sector jobs.REALTOR Until the® job to build 100 new housing sector units. The 100by units will Paul, Minn.-based Teresa Boardman ® the Current Economy” you can find dozens of consumers need the expertise of awhere Wisconsin REALTOR . And be constructed in a 2.5-mile area improves, and will include Flickr, and other social networking market the housingsays market willFacebook remain soft. greatwho products andaresources, the will FHAfind Toolkit, those consumers engage REALTOR®like today how 29 public housing and affordable rental units; sites make it easy to meet people who might to take advantage of today’s despite Visit all thewww.Realtor. challenges. for free or at a market steep discount. But there is hope. Wisconsin has recovered from long stretches of
nine affordable housing units for income-eligible eventually become clients. While many professionals org/NARHelpsYou for links to these great programs highpriced, unemployment in the pastareto see economy again.business In families; and 62 moderately open-market usingourthese sites grow to make contacts In the print pages of this magazine or the screen pages of condominiums. HUD Secretary Steven C.recession Preston of 1980-82, and companies use them to conduct background the double-dip Wisconsin’s unemployment our website and and products. e-mails, you’ll see the WRA talk a lot about comments, “Milwaukee’s rate housing authority haspercent checks recruit new many simply want topped off at 11.5 and or it remained in workers, double digits the economy, consumers, and public policies that impact our demonstrated it has the for leadership to Itlead andgo back to down connect with5people similar interests. over a year. didn’t below percentwho untilhave 1987. Home equally Loansimportant Going Strong, Albeitthata you market. But what’s is the expertise revitalize neighborhoods Byand transform to Boardman, hardatsell is dead. It contrast in this lives. recession,According our unemployment rate“The peaked Tighter, in Area bring on to that Bit market. It’s a good time to invest in that expertise. Cities like Milwaukee change and grow and need to door-to-door, it doesn’t work 9.2 percent, having hovered doesn’t in the work 7.3 percent to 7.9and percent Wisconsin Stateeducational Journal (10/17/08) Balousek, Marv Take advantage of the opportunities to improve revitalize housing to make sure many aren’t priced social networks.” On Flickr, Boardman connected range since September 2010. your skills, whether through quality continuing education or out.” Milwaukee is one of a half-dozen housing with a fellow photographer who eventually used her Despite the ongoing national credit crisis, property authorities nationwide toWhile receive new Hope VI by seeking professional designations. This market, as well as services to purchase a home. housing prices in Wisconsin have declined, they have professionals say mortgage remains available grants. all future markets, will depend on themoney expertise of Wisconsin
fallen at an annualized pace of less than 5 percent in the second
throughout southern Wisconsin to home Foreclosures Push Rents Higher, REALTORS®. Make sure you’re ready by investing in you.buyers quarter of this year - that’s much better than many other states. Housing Study Delay Frustrates Squeezing Low Income Families with solid credit. Ron Steinhofer, manager of And while the drop has not helped current homeowners, it has Advocates Minnesota Public Radio (MN) (09/21/08) Olson, Dan Marshall & Ilsley Bank’s regional home lending
improvedWilliams, the affordability Milwaukee Journal Sentinel (10/07/08) Scott
of homes for those looking to buy. Minnesota’s TwinasCities, a wave ofHappy homeHolidays, group, states, “There’s plenty of money for home However with more than 15 In months of inventory of October, Two years after promising the Milwaukee metro foreclosures has pushed more 2012. people into the rental we can expect the buyer’s market to continue throughout loans out there. It is slightly more difficult to qualify area’s first major housing study in three decades, apartment sector. The result is an intensifying the Southeastern Wisconsin Planning on Minneapolis numbers and St. Paul’s From Regional a consumer perspective,demand these unemployment are rental housing Commission (SEWRPC) is still struggling to get the stock, so much so that the vacancy a major contributor to a lack of confidence. Their confidence israte is very low effort launched. Proponents hope the study will andnew rentsground are on the in turn, means lowfurther weakened by confusing rulesrise. forThis, obtaining Mike Theo serve as a catalyst for improving affordable housing income working families face higher monthly rents even creditworthy buyers are hesitant to enter the opportunities throughout financing the city’sassuburbs. But even though their income hovers at unchanging market, despite historically levels. low interest rates and affordable commissioners have yet to assemble an advisory Since 2005, the Twin Cities apartment committee to oversee the prices. research or set a specific vacancy rate has dipped from 7 percent to closer to timetable for conducting the survey. Phil Evenson, 4 percent. Average monthly rents over that same a said public policy we’re in an equally tough the commission’s executiveFrom director, other issuesperspective, time span are up more than $25, rising to more market. make hard decisions to address keep getting in the way. The delaysOur havelawmakers frustrated mustthan $850. The St. Paul-based Wilder Foundation chronicBethany budget Sanchez, deficits, but they are doing so at a data timefor when housing advocates the most. recently reviewed income several Twin Cities demand for basic social is increasing and the research need forfound that the vice president of the Metropolitan Milwaukee Fair services counties. The organization’s Housing Council, laments,investment “It’s been ina infrastructure long time and education systems is also rising. number of people in those markets paying too much coming.” The Pewaukee-based Whethercommission you supporthas budget for actions the legislature thisdouble year from around theirbyrental housing will not conducted a comprehensive housing solutions, 70,000 currently to adecisions whoppingwere 140,000 by 2010. or you review supportofalternative these tough patterns since the 1970s. made without increasing property Sometaxes say awhich partialcould solution havewould furtherbe for the U.S. government to reverse course on housing policy and weakened an already-fragile housing market.
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december 2011
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.
www.wra.org/wrem
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
Rob Keefe, Chairman rkeefe@keeferealestate.com
WRA General Membership Meeting
Renny Diedrich, Chairman-Elect rdiedrich@coldwellhomes.com
WRA Holiday Hours
WRA members are invited to attend the WRA’s General Membership meeting.
Steve Lane, Treasurer lanes@firstweber.com Michael Theo, cae, President mtheo@wra.org Editorial Staff:
WHEN:
3:00 p.m., Thursday, January 19, 2012
WHERE:
Holiday Inn at the American Center
5109 West Terrace Drive
Madison, Wisconsin
The WRA holiday hours are as follows:
AGENDA:
I. Call to Order – Rob Keefe, Chairman of the Board
Michael Theo
II. Association Issues
Publisher
III. Adjournment
For more information, call Sandy Bolgrihn at (608) 241-2047 or (800) 279-1972.
Robert Uhrina Managing Editor
College Scholarships Available
Lauren Bizorik Editor
The selection process is now under way for the 2012 Wisconsin REALTORS® Foundation REALTOR® Children’s Scholarship program. This program awards college scholarships to children of WRA members. The foundation is offering 10 scholarships in the amount of $750 each. The deadline for submitting an application is March 9, 2012. The application is available online at www.wra.org/ChildScholarshipAppl/?terms=scholarship or by contacting Sandy Bolgrihn at Sandyb@wra.org.
Joe Leschisin 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.
WRA Nominating Committee Seeks Candidates Are you interested in serving in a leadership role for your state association? The WRA Nominating Committee is seeking candidates for the positions of 2012-2013 Chairman-Elect and Treasurer. The application is available from the WRA website or by contacting Sandy Bolgrihn at the WRA at sandyb@wra.org. The deadline for submitting an application is December 30, 2011.
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.
In addition, the Nominating Committee is seeking applications for the positions of 2012-2013 Executive Committee Vice President, NAR Director and WRA Board of Director Regional Representative. Please note that the number of openings for Regional Representative is determined by the membership as of February 28, 2012. The application deadline is March 15, 2012.
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
Contact Us:
When you take advantage of NAR’s REALTOR Benefits® Program, you can choose from a variety of valuable offers and savings from industry leaders. Plus, every partner provides products and services that you can use every day in both your business and personal life. For more details, visit www.realtor.org/realtor_benefits.
4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972
Marketing Entertainment® Promotions FedEx® FedEx OfficeSM Lowe’s REALTOR.com® REALTOR Team Store® Ifbyphone Technology Dell DocuSign® Hewlett Packard Lenovo
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
facebook: www.facebook.com/wisconsinrealtors twitter: www.twitter.com/wirealtors linked-in: www.wra.org/linkedin youtube: www.wra.org/youtube wisconsin real estate magazine
Friday, December 23: closed Monday, December 26: closed Friday, December 30: closed at noon Monday, January 2: closed Happy Holidays to all of our members!
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december 2011
relay® SentriLock LLC Xerox zipForm® Ifbyphone Insurance Victor O. Schinnerer & Company Inc. E&O Insurance Liberty Mutual REALTORS® Core Health Insurance REALTORS® Dental Insurance
Financial Services & Personal Protection American Home Shield IdentitySecure® REALTORS® Federal Credit Union Educational Tools ABR SRES ePRO SFR GREEN Designation
Office Solutions FedEx® FedEx OfficeSM OfficeMax® Travel Avis Budget New! Chrysler Hertz
As of 11/15/2011. Subject to change.
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news monthly wisconsin housing report
home sales up in october as median prices fall View all housing statistics at www.wra.org/housingstatistics
By David E. Clark, Economist, C3 Statistical Solutions
> WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY - OCTOBER 2011
% Change
YTD-2011
YTD-2010
% Change
-17.8% 13.5% -7.8%
97,169 44,312 $132,000
115,691 45,606 $140,000
-16.0% -2.8% -5.7%
Median Price OCT-2011 OCT-2010 % Change
Existing Home Sales OCT-2011 OCT-2010
% Change
$139,110 $150,000 $122,500 $116,900 $107,000 $115,000
1,493 782 480 775 289 516
19.2% 12.7% 16.2% 11.5% 16.1% 2.0%
Statewide
OCT-2011
OCT-2010
New Listings Closed Sales Median Sales Prices
6,671 4,342 $129,000
8,116 3,825 $139,900
Region Southeast South Central West Northeast Central North
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or the fourth straight month, Wisconsin’s monthly home sales outpaced last year while median prices continued to fall, according to data released by the Wisconsin REALTORS® Association (WRA). Existing home sales increased 13.5 percent in October compared to October 2010, and median prices fell 7.8 percent over the same period to $129,000. “We are continuing the trends seen throughout the third quarter with home sales well above the depressed levels of 2010,” said Rob Keefe, Chairman of the WRA Board of Directors. “By front-loading sales in 2010, the Federal Tax Rebate Program made sales in the first half of this year look weak,” said Keefe. “Conversely sales in the second half of this year look much stronger by comparison,” he added. Sales in the first half of 2011 were 17.6 percent below the 2010 levels, but in the last four months, the state is 24.5 percent ahead of last year’s pace, making the year-to-date figures just 2.8 percent lower. “The economic fundamentals really haven’t changed much over the past year so it’s not surprising our sales volume is about the same overall,” said Keefe.
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$154,750 $153,000 $135,000 $129,900 $113,000 $120,000
-10.1% -2.0% -9.3% -10.0% -5.3% -4.2%
1,253 694 413 695 249 506
All regions within the state saw their October sales volume increase, with all but the North region up by more than 10 percent over October 2010. On a year-to-date basis, all regions are in the vicinity of last year’s volume with the Southeast slightly above year-to-date sales up 0.6 percent, the North region slightly below year-to-date sales down 0.3 percent, and the Northeast region just 3.7 percent below sales levels through October of last year. The remaining regions are between 5.6 percent and 8.2 percent lower year-to-date.
economic news has been mixed,” said Theo.
Statewide, the median price of existing homes fell 7.8 percent in October 2011 relative to October 2010, and on a year-todate basis, median prices were 5.7 percent lower than last year. “It’s clear that prices have moderated, and that’s not surprising given the high inventory levels in the state,” said WRA President and CEO Michael Theo. Currently there is 15.5 months of housing inventory, meaning that it would take 15.5 months to sell the existing inventory given the average monthly pace of sales over the last 12 months. “Homebuyers are waiting for good news on the economy before they jump back into this market, and so far the
employment. The WRA’s report also showed
december 2011
The state unemployment rate is more than a percent below the national rate, fluctuating between 7.3 percent and 7.8 percent throughout the year, and overall job growth has been flat. “Although we’ve seen some promising signs in the manufacturing sector, which added 8,800 jobs this year alone, job growth needs to be more widespread for home buying to really pick up,” he said. For 2011, private sector job growth has essentially offset losses in government that housing affordability is at a very high level, with the median family income able to buy 243 percent of the median priced home in October. “The combination of low mortgage rates, currently in the 4.7 percent range for a 30-year fixed-rate conventional mortgage, and low housing prices statewide translates into some excellent deals for buyers who are ready to buy,” said Theo. For more information, contact David E. Clark, Economist, C3 Statistical Solutions Office phone: (414) 803-6537
www.wra.org/wrem
Log in to WRA.org
Access Member-Only Information By Joe LEschisin
W
hile analyzing the WRA website, we found an alarming statistic: 18.5 percent of WRA members have never logged in. With the recent redesign and access to endless information, we thought it would be a good time to explain why you should log in and how easy it is.
Why you should log in As a part of your WRA membership, you have access to memberonly information, such as Legal Services and myWRA. Within the myWRA section, members can view their purchase history, see what continuing education they have completed or need to complete, gain access to resources, and update their profile. With over 325,000 visits to the website and 17,000 searches on the Find-A-REALTOR® section last year, it is key for members to have updated information along with a professional picture. Your odds of being contacted are greatly increased. Along with a number of online resources, being logged in to the website automatically gives you member pricing for education, products and events. Any online forms or purchases will automatically fill with your information, saving you time. Online Member Benefits Include: •
Online Legal Search
•
Legal Hottip Library
•
Legal Update Library
•
Broker Supervision News
•
Education Discounts
•
Sales and Marketing Tools
How to set up an account and log in Go to the WRA website at www.wra.org and navigate to the top right corner of the page. Click “Create Account” and you will be asked a few simple questions. An e-mail will be sent to your inbox verifying your information. Once your information is verified, your account is set up - it’s that simple. If you have any questions or comments, please don’t hesitate to contact the WRA at wra@wra.org.
Joe Leschisin is the Senior Designer and Marketing Communications Manager for the WRA.
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54% of members spend more than 20 hours a week on the Internet. 50% of members indicate “Accessing Legal Services online” as the top reason for visiting WRA.org.
18.5% Percent of membership that has not logged into the WRA website
Data collected from November 2009 WRA Member Survey of 1,200 members. Margin of error is plus or minus 2.8 percentage points.
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Designations Certifications
What You and Your Clients Should Know
By lauren bizorik
“A lot of people wonder what a designation or certification is and why an agent would want to earn one. You hear a lot of letters thrown about, and sometimes they are referred to as ‘alphabet soup,’ but really a designation is an acknowledgement of professionalism. A designation shows that an agent has gone above and beyond and has taken additional coursework to better themselves and their clients.” Beth Jaworski, REALTOR®, ABR, CMHS, CRS, GREEN, GRI, Milwaukee, Wis. Succeeding in a real estate career goes beyond simply hosting open houses and completing forms; it involves becoming a true expert to better serve the client in a particular or specialized area of real estate. Acquiring new skills, learning new listing methods, or gaining expert knowledge about a client niche can keep REALTORS® on the cutting edge of new developments to succeed in real estate - to ultimately take a seat at the closing table. And holding a designation can get you there.
6 6 wisconsin real wisconsin estate magazine real estate | december magazine2011 | december 2011
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Why Earn a Designation? The National Association of REALTORS® (NAR) offers a wide array of designations and certifications to benefit REALTORS® with increasing skills, proficiency and knowledge as well as boosting productivity and marketability. Upon meeting qualifications, such as completing certain courses, filling out an application or submitting a business plan, designations and/or certifications in a variety of real estate disciplines are awarded by each NAR-affiliated society, council or institute to REALTORS® across the country every year. A designation or certification is available for nearly every concentration in real estate, from real estate investing to managing industrial properties to selling vacant land. Why earn one? While the reasons may vary from REALTOR® to REALTOR®, a few reasons are worth noting that most REALTORS® with designations will echo: •
Increasing income: According to NAR, holding a designation almost doubles the income of REALTORS®. Based on 2011 NAR survey data, the median income of REALTORS® without a designation in 2010 was $26,900, and the median income of those with at least one designation in 2010 was $49,300 – a difference of $22,400.
•
Networking: REALTORS® can easily meet others and make new contacts while attending designated course offerings and designation-specific events. Because designations are awarded by various societies, councils or institutes, REALTORS® have exclusive networking access to like-minded and like-disciplined professionals, giving them a distinct advantage in the networking and referral world.
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Enhancing professional image: Beyond building skills, knowledge and productivity to boost your sales, the extra letters after your name bring credibility and respectability to your business and to your brand.
•
Increasing proficiency and productivity: The advanced education available for REALTORS® with designations keeps them up-to-date and on the cutting edge of new practices and new technologies in the ever-changing environment of real estate. They’re ready for anything because of their designation’s advanced education.
“I’ve had sellers that have contacted me and said that they had looked up my qualifications,” said REALTOR® Kathy Allison-Zimmermann, ABR, CHMS, CRB, CRS, of Lake Mills, Wis. “One thing that they were impressed with was all the letters behind my name – not necessarily that they knew what they all meant but they knew that you had to do something to achieve them.” And a designation isn’t only to the REALTOR®’s advantage. Just as a patient may seek out a professional with “M.D.” following the name when finding a doctor, real estate clients are similar when finding a REALTOR®. Even if a client doesn’t know exactly what “ABR” means and how it impacts them, your “alphabet soup” can nevertheless be a great conversation starter with your ability to explain the worthiness of your designation or certification to clients. Clients can quickly trust you as an expert with letters after your name that signal the additional coursework and experience you’ve taken to be ready to serve them. And with a concentration and specialized skills on a property type or a segmented demographic, clients appreciate that you understand their needs, whether it be their lifestyle, their age or the type of property they want to buy. Let’s take a closer look.
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DESIGNATIONS THAT SET YOU APART Certified Residential Specialist (CRS): The CRS is the professional designation offered by the Council of Residential Specialists. Since the 1970s, the CRS Council has awarded this designation to agents in the residential sales field that demonstrated professional accomplishments in both experience and education. Only 4 percent of all REALTORS® nationwide hold the CRS designation. Based on a 2011 Westat Research survey of CRS members, a CRS-designated agent earns an annual income of $79,000, three times the median income of the average REALTOR® selling real estate without this designation. CRS-designated agents complete an average of 16 transactions per year and have average gross sales of $2.44 million dollars annually. “The first year I had my CRS was ’97,” said Jaworski. “And that was the first year that I really started making good money selling real estate.”
Graduate, REALTOR® Institute (GRI): The GRI designation is the most widely recognized of the national real estate designations. The GRI is earned only after a REALTOR® successfully completes a minimum of 90 hours of classroom instruction, covering subjects in contract law, professional standards, sales and marketing, finance and risk reduction. Because a REALTOR® with a GRI designation is considered to be at the highest level of real estate professionalism, this REALTOR® can navigate the current real estate market, no matter its condition. Furthermore, REALTORS® with the GRI are well-equipped at serving sophisticated clients because of their understanding of new technologies, laws and regulatory changes. According to NAR, REALTORS® with the GRI designation reported an increase in referrals within the first year of earning the GRI. “As an instructor, I’ve watched people in the designation class get to know each other so well that referrals are going back and forth as the course is going on,” said Barb McGill, ABR, ABRM, CRB, CRS, GRI, SRES, from Brookfield, Wis., echoing this referral trend.
Accredited Buyer Representative (ABR): The ABR designation is considered the standard of quality and excellence in buyer representation. This designation is awarded to REALTORS® by the Real Estate Buyer’s Agent Council (REBAC), which was founded in 1988 to promote exceptional buyer representation skills and services. Over 40,000 members are involved in REBAC, and it’s the world’s largest organization comprised of REALTORS® focused on buyer representation. REALTORS® with the ABR designation not only gain valuable ABR-specific education, but also receive ongoing information and updates on marketplace trends relating to homebuyers as well as access to REBAC members-only marketing tools and resources.
Certified Real Estate Brokerage Manager (CRB): The CRB designation is one of the oldest and most respected professional designations in the industry. This designation is awarded to REALTORS® who have completed advanced requirements, both educational and professional. Through the CRB Council’s leading-edge education and resources, REALTORS® with this designation are among the most efficient, effective and profitable managers in the country, as they are able to integrate new technologies, apply new trends to business strategies, and streamline operations of their businesses. REALTORS® with the CRB designation receive exclusive access to the CRB Knowledge Center as well as access to a network of CRB Chapters across the country; they also receive CRB-specific publications and an online membership and referral directory.
Broker’s Price Opinion Resource (BPOR): Established this year, NAR’s newest certification helps residential agents and brokers sharpen their skills with evaluating properties, applying alternative valuation techniques, and efficiently generating accurate and professional reports. According to industry estimates from NAR, 10 million Broker Price Opinions (BPOs) are performed every year across the country, and they are becoming widely adopted as a valuation tool in the mortgage industry.
Not only can a BPOR certification provide additional income with REALTORS® able to complete BPOs for lenders, but a BPORcertified agent or broker is an expert on the local market in respect to short sale and REO inventory. A BPOR-certified REALTOR® also is able to price short sales and REO properties more effectively by understanding the BPO process and the lender’s perspective. “Unlike facilitating traditional real estate transactions, with BPOs, the REALTOR®’s ‘client’ is the mortgage lender. It is important for REALTORS® to fully understand BPO guidelines and apply best practices as BPO price conclusions can significantly affect market values, short sales and REO properties,” said Debbie Buckrucker, BPOR, SFR, SRES, instructor of the BPOR certification course. With the evolving housing, regulatory and financial markets, BPOs are in high demand – and now is a great time to earn the BPOR certification.
Short Sales and Foreclosure Resource (SFR): REBAC began offering its Short Sales and Foreclosures course in 2006 and developed a completely revised course along with the SFR certification in 2009, with over 51,000 REALTORS® earning the certification within its first year. This quick increase of SFR designees validates the new norm in the real estate industry of distressed sales. Knowing how to help clients deal with the complications of short sales and foreclosures isn’t just a good skill to have in your toolbox – it’s essential to success in this market. “Just a few years ago, foreclosures and short sales were rare indeed, but today they are commonplace,” said Michael Theo, WRA President and CEO. “And to succeed in business, REALTORS® must understand the complexities associated with these types of transactions.” REALTORS® with this designation are viewed as the trusted and expert resource to assist clients involved with these distressed sales. As the demand for professional expertise in this distressed sale market increases, this certification is necessary in your relationships with clients affected by these properties and problems.
Resort & Second-Home Properties Specialist (RSPS): Since being launched in 2006 to serve the growing second-home and resort real estate market, the RSPS program now has over 1,300 members. This certification allows buyers and sellers to have confidence in the abilities of a REALTOR® specializing in resort and second homes to assist them with their search. Real estate practitioners involved in this market are those engaged in the buying, selling or management of properties for investment, retirement or second homes in both recreational or vacation destinations. A REALTOR® with the RSPS certification is dedicated to a “lifestyle niche” of real estate. REALTORS® with this certification receive self-promotion materials, special national networking opportunities and access to customizable brochures for highlighting to potential clients the value of the RSPS certification. From vacation homes to investment properties, the resort and second-home market is filled with opportunities for REALTORS® to specialize and excel in this area of the industry.
Seniors Real Estate Specialist (SRES): The SRES® designation is the only designation that addresses the fastest growing market in real estate. As the largest and most comprehensive seniors program in the real estate industry, the SRES designation can assist in your practice working with clients aged 50-plus in the process of buying, selling or relocating due to retirement, health concerns or grandchildren, to name a few. “I knew it would be hard for most folks to move out of their homes that they had for 20 to 30 years or longer to adjust into a retirement home or assisted living,” said REALTOR® Gary Lukens, ABR, CRS, GRI, SRES of Madison, Wis. “I also felt that I needed to be better informed as to their questions and concerns, and earning this designation did exactly that.” According to the U.S. Census Bureau, the senior population grew at a faster rate than any other age range between 2000 and 2010. With the Baby Boomer generation aging and increasing in number, carrying the SRES designation is critical to your success in relationships with these clients that fall in this age demographic.
Upcoming designation courses Resort and Second-Home Markets (RSPS Certification) January 25, 2012 Lake of the Torches | Lac du Flambeau ABR Elective and Core Course for RSPS Certification Discover the knowledge and skill base needed to buy, sell or manage second homes in a resort, recreational and/or vacation destination as well as properties for investment or development. This course is required to earn the RSPS certification and also meets the elective course requirement for the ABR Designation. Registration for this course also includes the registration for the Winter Convention. www.wra.org/WinterConv
CRS 202: Sales Strategies February 6-7, 2012 Plaza Hotel and Suites | Eau Claire Co-Sponsored by the Wisconsin CRS Chapter Learn how to tap into the motivations of today’s qualified homebuyers and help them achieve homeownership! You’ll learn about identifying buyers and gaining their trust and loyalty. Earn 16 credits toward your CRS designation with CRS 202. Don’t miss this course - and don’t miss prime networking opportunties with other REALTORS®! Instructor: Jackie Leavenworth, CRS www.wra.org/CRSCourses
BPO (Broker Price Opinion)
GREEN: Established by REBAC in 2008, this designation came about due to the increasing interest by real estate buyers, sellers and practitioners to “go green.” This is the only NAR-recognized designation for professionals willing to become experts about energy efficiency and sustainability in various areas of real estate.
February 9, 2012 WICPA | Brookfield
GREEN-designated REALTORS® are equipped with an expert knowledge to participate in a green real estate market that differentiates their respective market focus in the eyes of clients and associates. And according to the U.S. Green Building Council, the construction of green homes and commercial properties is expected to grow with current market projections. Now is the time to earn the GREEN designation to be ready for market changes and green real estate trends.
Whether you are experienced at preparing broker price opinions (BPOs) or are new to the business, this new NAR certification course will provide you with the know-how to produce professional and accurate BPOs. With your BPOR certification, you’ll be able to prepare accurate BPOs, evaluate market tools for productive preparation of BPOs, and identify and weigh all factors influencing the creation of a useful valuation.
And there you have it. NAR offers even more designations than mentioned above, and the WRA holds multiple designation courses at its Madison headquarters as well as throughout the state every year. No matter which you decide to pursue, whether a BPOR, CRS, or GREEN, designations and certifications indeed increase your success. And with increased success from a designation or certification with your sales, your office, your productivity and your clients, only one question is left to ask: why not earn one?
Upon completing this one-day course, you’ll be required to view a free webinar, submit the BPOR application and pay a one-time fee to earn the BPOR certification. The course also meets the elective course requirement for the ABR designation.
Earn the Broker Price Opinion Resource (BPOR) Certification!
www.wra.org/BPOR_overview
Lauren Bizorik is the Editorial Communications Specialist for the WRA.
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legal
Do You Know Where Your Listings Are? A cautionary tale about entering into syndication agreements
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hile it seems to be called by a variety of names, for this article, we will refer to it as “syndication.” Most traditionally, syndication is the automated process of pulling information from the Multiple Listing Service (MLS) data or from a broker and displaying it to the public on third party websites. Syndication is basically the sharing of the broker’s listing information beyond the MLS and the company or agent’s personal website.
information is being provided by the MLS to these syndicators, the information is most accurate. Because the MLS is the provider of the information to the syndicator and the MLS is informed by the company if the listing is modified, terminated or expired, the MLS will be providing the most accurate information relating to that listing.
Listing syndication provides companies the ability to advertise their listings to consumers well beyond the local MLS, which is a great marketing benefit. However over the course of the last year, a conversation about the quality of information being posted on sites has come into question.
Agents should first look to their company policy to see if syndication agreements are permissible. If the company policy does not specifically address syndication agreements, then the agent may wish to speak to their supervising broker as syndication agreements separate from MLS are a fairly recent phenomenon and the company policy may not yet have been modified. For brokers that have not updated their company policy to address syndication, now may be the time.
By cori lamont
Let’s begin with defining the players. The syndicator is the third party that is receiving the information from the MLS, broker or agent, such as ListHub or Point2. The information is the content that the MLS, broker or agent is providing to the syndicator. And a publisher is a third party that the syndicator has entered into an agreement with to resyndicate the information. Essentially listing syndication is a data license. Simply stated, this data license is entered into by the MLS, broker or agent with the syndicator agreeing to allow the syndicator to display that listing information for consumers to see. Traditionally the MLS provides the information to the syndicator through a data license agreement which commonly does not permit the syndicator to resyndicate. Often each MLS provides a list of syndicators that the broker may choose from to syndicate their information. The broker may choose all of the MLS provided syndicators, some or possibly none. Most commonly, when the
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The goal of this article is to highlight some of the consequences of entering into syndication agreements beyond those of the MLS. Of course, this presumes that company policy permits agents to enter into separate syndication agreements.
Another way to look at listing syndication is to treat it as a data license. Simply stated, this data license is entered into by the MLS, broker or agent, with the syndicator agreeing to display that listing information for consumers to see. Firms may enter into their own separate data license agreements but cannot include the information of other companies as part of that agreement. The firm may choose to prohibit an agent of their company from entering into a syndication agreement. If the firm wishes to enter into its own syndication agreement or permits an agent to enter into a syndication agreement, there are a couple of items to keep in mind when reviewing and entering into the data license agreement. All data license agreements are not created equally and should be treated accordingly. A data license agreement should provide the MLS, broker or agent the opportunity to set the parameters for the syndication. For example, www.wra.org/wrem
the syndication agreement would allow the broker to remain in custody of the listing content during the term of the listing, and when the agreement expires, the provider agrees to purge the data from its site. Like any contract, the devil is in the details, and when in doubt ask for clarification before signing. Below are just 10 details to consider: 1.
Read the fine print.
2.
Determine what information to be provided.
3.
Limitations, if any, with that information.
4.
Permission to resyndicate the information.
5.
Rights after the listing expires, terminates or sells.
6.
Security of the information.
7.
Content that is distributed for consumer viewing.
8.
Frequency of picking up the information feed.
9.
Term of the agreement, and if an automatic renewal included.
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10. Termination rights. There is one last item to mention: inaccurate information. Inaccurate information is being provided to consumers and has started to create a buzz in the real estate community. The common and frequent incidence most often occurs when sites pull information without permission from syndicators or MLS, and do not update the information regularly or at all. Aside from not having permission to publish this information, which means a cease and desist letter will be sent by your attorney, consumers are coming across this inaccurate information, which creates a great deal of confusion.
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Another way this is occurring is through resyndication. Does the syndicator have the ability at their pleasure to resyndicate the information to a third party or publisher? If so, what consequence may that have for the firm? One of the biggest issues in this scenario is trying to figure out the terms of the agreement between the syndicator and the publisher as well as if the publisher can sell your information to another publisher. If so, how does the agent control the quality of the information, and if the agent discovers inaccurate information, how does the agent go about getting that information corrected? Lastly, does the broker have any rights relating to that publisher’s content? Philosophically this issue of published inaccurate information does present a few questions, such as: •
If we know that the consumer is receiving inaccurate information that can easily be corrected by a conversation with the agent, what is the harm?
•
Is all press good press?
•
Are there legal consequences, if any?
Wisconsin has administrative rules and statutes relating to advertising, and the REALTOR® Code of Ethics Article 12 addresses presenting a true picture in advertisements and representations to the public. I leave you with one last question to consider. Do you know where your listings are? Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA. wisconsin real estate magazine
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{Disputes} Distress Sale By debbi conrad
W
orking with distressed properties and at-risk sellers is, well … distressing. Short sales take forever and REO sellers and asset managers generally believe that it is their way or the highway. Short sale sellers are in financial distress, and buyers are having the darnedest time finding a suitable loan. While these transactions are challenging, they can be successful for those who understand the process and persevere. Although diligence, patience and luck are important factors for those that make it to the finish line, those professionals achieving success also know how to avoid some of the potential pitfalls along the way. Unfortunately there are plenty of liability traps for the unwary in this area of practice. Real estate professionals know that if the deal goes wrong, frequently the parties will be looking for someone to blame. Sometimes an agent has missed a deadline or made some other error. Or at the last minute, the buyers might discover a property condition they believe is a defect that should have been disclosed to them. Often the parties are simply frustrated, so they blame the agents when the deal did not come together despite the agents’ best efforts. While these situations sometimes cannot be avoided, REALTORS® should not provide ammunition to stressed-out parties looking for targets for their frustration and anger. Adherence to the rules, repeated discussions with the parties regarding the quirks of REOs and short sales, and resisting the urge to fall into the known practice traps go a long way toward avoiding unnecessary conflict and potential liability. Typical areas of avoidable miscues in short sales and REO sales involve the absence of property condition disclosure and repairs, giving legal or tax advice, “as-is” misconceptions, and accidental property manager problems.
1. No disclosures, no repairs Occasionally short sale sellers resist making any property condition
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disclosures because they see no benefit or point in doing so. Even when they do, conditions may change since many short sales take such a long time that the disclosures may no longer be entirely accurate by the time the transaction closes. Seller’s lenders in short sales, as well as REO lenders and sellers, frequently insist on “asis” sales, leading to the absence of meaningful property condition disclosures. Many sellers ignore the federal law mandate for leadbased paint (LBP) disclosures, even though there is no special exception carved out in the federal LBP law for these distressed transactions. Not only do REO sellers fail to disclose property conditions, they often do nothing to prevent or repair serious damage or deterioration. Even though “as-is” clauses are typically used, buyers and agents may still expect them to cure major defects that are a threat to health and safety. The REO sellers refusing to repair serious defects and the buyer’s lenders refusing to allow the buyer to make repairs together put the buyer behind the eight ball because the buyer’s lender insists the problems be corrected before it can provide a mortgage loan to the buyer. In these scenarios, the responsibility to make disclosures falls squarely on the listing and cooperating brokers. Many licensees and consumers apparently believe that an “as-is” clause in a contract absolves the brokers of any duty to disclose known material adverse facts, but that simply is not the case. REALTOR® disclosures are critical to the buyers in these transactions and are legally required. ++ REALTOR® Practice Tip: Wis. Admin. Code § RL 24.07 requires listing brokers to inspect property prior to entering into a listing and cooperating brokers are to inspect during the showing. They are both then required to promptly disclose material adverse facts and conditions suggesting the possibility of material adverse facts to the parties in writing – no exceptions!
www.wra.org/wrem
++ REALTOR® Practice Tip: There is no exemption from the Wis. Stat. Chapter 709 seller disclosure law for most short sale and REO sellers. The federal LBP law does not exempt short sales or REOs so the agent may have to act to ensure compliance. If the seller does not complete a Real Estate Condition Report (RECR), the listing and cooperating brokes are still required to make timely written disclosures of any material adverse facts. ++ REALTOR® Practice Tip: One way to avoid some of these headaches is to follow the lead of one Massachusetts brokerage that now requires sellers to complete the RECR before the company will list a home on the market. The company acknowledges that listings are hard to come by but feels it is more important to avoid the red flags associated with a seller who won’t disclose.
2. Don’t give tax or legal advice
One tool used in many states to help avoid such potential legal trouble is the short sale advisory form. In Wisconsin we have the WRA Addendum SSL to the Listing Contract – Short Sales.
Short sale parties frequently have many questions, and REALTORS® must resist the urge to advise sellers on matters outside of their expertise. This means: do not provide tax or legal advice! For instance, short sale sellers want to know whether they will owe any deficiency and what the tax consequences will be. Will they be better off to let the bank foreclose or to just walk away? The REALTOR® undoubtly intends to be helpful, but if the REALTOR® answers, he or she will invariably be in violation of license law. If he or she gets it wrong, that REALTOR® will be the number one target in a costly lawsuit. One tool used in many states to help avoid such potential legal trouble is the short sale advisory form. In Wisconsin, we have the WRA Addendum SSL to the Listing Contract – Short Sales. This addendum gives the broker an opportunity to obtain the sellers’ signatures on a document whereby the sellers acknowledge that they have been cautioned about the potential outcome and consequences of a short sale. Key points that should be covered in a short sale advisory form include all of the personal financial information and additional paperwork involved, the maddening delays, the seemingly discretionary and arbitrary control that the lenders have, and the last-minute obligations that lenders seem to cook up. The form also urges sellers to consult attorneys and tax professionals with their questions. ++ REALTOR® Practice Tip: In addition to using the Addendum SSL for short sale sellers, parties should be encouraged at every juncture to consult with their attorneys and tax advisors if they have any legal or financial questions or concerns. Note: The WRA-SSC Short Sale Checklist, WRA-SSL Addendum SSL to the Listing Contract – Short Sales, and WRA-SSO Addendum SSO to the Offer to Purchase – Short Sales are discussed in the March 2009 Legal Update, “Working with Distressed Sales,” at www.wra.org/
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LU0903, and available from the WRA in hard copy as well as on ZipForm.
3. “As-is” misconceptions “As-is” means that if the buyer closes and defects are later found, the buyer cannot go back to the seller for any compensation. Banks disclaim seller disclosure duties and require “as-is” deals. REO agents simply do not provide any information regarding the property condition, despite the fact that the broker will be blamed for undisclosed defects discovered after the transaction closes. Clearly many REALTORS® and consumers mistakingly believe that an “as-is” clause absolves them of any duty to disclose known material defects. ++ REALTOR® Practice Tip: The fact that the seller will sell “as is” does not release REALTORS® from compliance with Wisconsin license law and the obligation to inspect and to disclose material adverse facts.
++ REALTOR® Practice Tip: An “asis” clause alerts the buyer that he or she is responsible for determining the condition of the property being purchased, that is, having the property thoroughly inspected and tested. The inspection contingency provides a way for the buyer to get out of the transaction if the condition is such that the buyer no longer wants the property. See “Uncovering the Truth: As Is Transactions” in the June 2011 edition of Wisconsin Real Estate Magazine at www.wra.org/WREM/ JUN11/AsIsTransactions for discussion of additional misconceptions.
4. Accidental property manager status Often brokers and agents are not truly aware of the consequences of handling REO sales, for example, that in most cases they must assume the additional role of a property manager, and as a result, they may not be covered under their E&O insurance. Listing agents are asked, for example, to clean out personal property, arrange for weatherization, hire contractors to make repairs, change locks, frequently drive by the property to assure it remains vacant, turn off power and change utility bills into the agent’s name. Physical property management-type services, which do not require a real estate license, may be performed under the name of the brokerage as one of the company’s services, or this may be an activity performed by the agent as a business that is completely separate from the brokerage. For additional information, see “Best of the Legal Hotline: The Accidental Property Manager, Take 2” in the January 2011 edition of Wisconsin Real Estate Magazine at www.wra.org/WREM/Jan11/ AccidentialPropertyManagerTake2. Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.
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best of the legal hotline
with tracy rucka
Shift Happens As REALTORS® look back on the past year and plan for the next, the Hotline questions and answers this month focus on agents shifting to new companies, new roles in the company and new approaches to referrals.
Shifting to New Companies Termination of Employment An agent is leaving another company and coming to work for the broker. The previous broker is saying she will not release the agent until next month. An independent contractor’s relationship with a broker-employer effectively exists on two different levels: the regulatory level governed by the Department of Safety and Professional Services (DSPS) and on the contractual level. With respect to the DSPS, Wis. Admin. Code § RL 17.06 indicates that an agent is required to file the Notice of Termination of Employment of Broker or Salesperson Form #766 within 10 days after leaving the previous company. No fee is required. A licensee’s transfer from one broker or employer to another is effective upon
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the mailing of a completed Notice of Real Estate Employment Form #812 and a $10 fee payable to the DSPS. Forms are available from the DSPS at P.O. Box 8935, Madison, WI, 53708, (608) 266-5522, or online at drl.wi.gov/prof_docs_list.asp?profid=118&locid=0. A broker who has an agent leave is best served to also submit the Notice of Termination to assure the DSPS has notice of the termination. On the contractual level, there may be other obligations associated with the process of ending the independent contractor relationship, for example giving advance notice of the termination date. Whether there are other contractual consequences resulting from the timing of the termination would have to be answered by the agent’s independent contractor agreement, office policy and any other applicable documents. The best practice for the agent is to read and review her documents before taking action. www.wra.org/wrem
See the March 2008 Legal Update, “Running a Real Estate Office, at www.wra.org/LU0803 and Legal Update 00.12, “Real Estate Office Management,” at www.wra.org/LU0012 for further information.
Commissions After Termination The agent is moving on to a new broker and wants to know how commission for pending transactions will be paid? The entitlement to a commission in this situation depends upon the contract between the broker and agent, which can be the independent contractor agreement or company policy and procedures manual, for example. If the contract does not cover the situation, prior actions of the broker in this regard and the prevailing practice in the industry would be factors that would be considered if the matter went to court. Wisconsin real estate statutes and administrative rules do not address commission policies between an employee or broker and a salesperson. This is an issue of contract law. If the former broker does not pay commission according to the terms of the agreement, the salesperson can attempt to have the dispute arbitrated at the local REALTOR® association, provided the previous broker agrees to arbitrate. This would be considered a voluntary arbitration under Article 17 of the Code of Ethics. If the former broker refuses to arbitrate, the salesperson can bring separate actions in small claims court for each commission due. For more information, see page 10 of the March 2008 Legal Update, “Running a Real Estate Office” at www.wra.org/LU0803.
New Real Estate Roles Who Hires a Personal Assistant?
What Roles May a Personal Assistant Play?
The licensee is a broker associate working for a licensed real estate business entity. The licensee wants to provide an opportunity for an agent who is shifting gears by hiring the person as a licensed assistant and hanging the assistant’s salesperson’s license under his individual broker’s license. What are the rules regarding hanging a salesperson’s license under a broker who is hanging his license under a licensed real estate broker or business entity?
Two licensees have been talking and one is thinking of not renewing her REALTOR® membership. Can she go to work for her friend as a personal assistant? What would the agent, who has a salesperson’s license, be allowed to do as a licensed personal assistant? They are thinking that the salesperson could be an assistant to help at open houses, do showings, draft offers and otherwise cover in the broker’s absence.
The license of a licensed personal assistant must be held by the employing broker or firm; in this case, the business entity. A licensed personal assistant needs to be engaged by the broker, as required per Wis. Admin. Code § RL 17.03(2). That rule indicates that a licensee, with a salesperson’s or a broker’s license, employed by and licensed with a broker may not, in turn, employ another licensee such as a licensed personal assistant. The broker or entity must be the one to engage and hold the license of the licensed personal assistant. More information about licensed and unlicensed personal assistants is available in the January 1998 Legal Update, “New Personal Assistant Rules & Forms” at www.wra.org/LU9801.
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As a person with a salesperson’s license, the agent may not engage in real estate brokerage services per Wis. Stat. § 452.02 without an employing broker. If the salesperson has her license held with the friend’s employing broker, the licensee may act as a licensed assistant and provide brokerage services according to the independent contractor or licensed assistant agreement with the broker. If the services are merely administrative in nature and do not include brokerage tasks such as conducting showings, negotiations, and drafting contracts, then the licensee could provide such services without having her license held with the broker. In such a case, the licensee would be working as an unlicensed assistant despite the fact that she does have her sales license.
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Does the salesperson in the previous situation need to be a REALTOR®?
LU0201. Before entering into the referral agreement, it is prudent to confirm that the agent is active and eligible to practice on the DSPS Licensee Lookup at online.drl.wi.gov/ LicenseLookup/LicenseLookup.aspx.
The broker or owner who is a member of the REALTOR® association and is the designated REALTOR® determines whether REALTOR® membership is a condition of employment for a licensed assistant. The licensee and the broker owner may review the company’s agreements and office policy to see whether REALTOR® membership is an office requirement and to whom it applies. If not required, agents and licensed assistants may continue to work for the broker - not as REALTORS®, but as licensees working for a REALTOR® broker. These agents and licensed assistants may not hold themselves out as REALTORS®.
A broker is considering starting a separate “referral company” so licensed agents who are not currently practicing could give the broker referrals. What licensing and other issues must be addressed to make this happen? The broker may consider creating a Limited Function Referral Office (LFRO). The REALTOR® dues formula provides that each designated REALTOR® is responsible for dues for each licensee affiliated with the broker. One exception to the dues formula is if the designated REALTOR® has an LFRO. An LFRO is a separate legal entity that the broker has to credential licensees who do referrals only. The entity is created and engaged exclusively to solicit and/or refer clients and customers, and the agents are not engaged in listing, selling, leasing, managing, counseling or appraising real property. See www.wra.org/lfroforbroker.
The term used for these licensees is “salesperson assessments.” According to the dues formula, it is the obligation of the designated REALTOR® to pay fair share dues for each agent who does not individually pay REALTOR® dues, either as a REALTOR® member or as a salesperson assessment. The agent’s access to the MLS is based on the MLS participant’s membership. In this case, that MLS participant is the broker. MLS fees are based on the number of licenses held with the MLS participant. Whether the agents are REALTORS® or not, the fee structure and access to the MLS remains the same. More information about dues is available on page 11 of the July 2005 Legal Update, “MLS and Professional Standards,” www.wra. org/LU0507, and “The REALTOR®’s Dues Formula - A Fair Share” at www.realtor.org/ mempolweb.nsf/pages/duesformulaarticle? OpenDocument&Login.
Referrals may be made to persons with either a sales license or broker’s license. If the licensee has his or her license held with a broker, the payment must be made through the employing broker. If the licensee is not affiliated with a broker, the referral fee may be paid directly to the licensee.
New Approaches to Referrals Can a broker pay a referral fee to a person with a sales license who does not have an employing broker?
It is important to have any referral agreement setting forth the details, in writing, to eliminate confusion and disputes later on. There is no state-approved form to document a referral agreement. Tips for creating referral agreements are available in the January 2002 Legal Update “Getting Paid Outside the MLS” at www.wra.org/
Wis. Stat. § 452.19 limits the payment of referral fees, finders fees and commission splits to persons licensed or registered in Wisconsin to practice real estate, or persons regularly and lawfully engaged in real estate brokerage in another state.
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An LFRO is not required in Wisconsin for an agent to receive a referral fee. Wis. Stat. § 452.19 permits a broker to pay referral fees and finders fees to other Wisconsin licensees as long as that person’s license is active and regardless of the fact that the person holds a salesperson license rather than a broker license. The fact that the person is not currently employed by a broker is not relevant. Pursuant to Wis. Stat. § 452.14(3) (f), any referral fee received by an employed salesperson, whether licensed as a broker or a salesperson, in connection with a real estate transaction may be received by the salesperson only from the salesperson’s employing broker. A non-employed or inactive salesperson can however make a referral and receive a fee. Tracy Rucka is Director of Professional Standards and Practices for the WRA.
www.wra.org/wrem
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Every so often, a product so ingenious comes along that can’t help but love even if it doesn’t increase your bottom line in real estate. Spotify provides you with your favorite music without the hassle of purchasing or downloading tracks to your electronic device(s). You’ll save wild bucks with Spotify if you are a serious music lover. Think of Spotify as your own personal jukebox – that’s free. You can set up personal playlists and automatically have them available to you from any computer and any device. Creating playlists is as easy as dragging and dropping. Each new playlist is saved to your Spotify account and is accessible from wherever you use Spotify, so your music follows you wherever you go.
If you’re looking to advertise your commitment to real estate, obtaining designations and certifications is a perfect way to do so. Carrying a real estate designation or certification instantly increases the perception of your credibility and commitment to the real estate profession. If you’re trying to find the best information on real estate designations and certifications, look no further than the WRA’s Designation Guide. Updated annually, the Designation Guide contains information on all the accreditations endorsed by the National Association of REALTORS® as well as those offered through franchise groups and proprietary schools. Nearly 30 different designations and certifications are listed. For each credential, the Designation Guide provides an overview of the credential, an outline for the requirements for obtaining the credential as well as a variety of other information, including governing council contact information, application fees and annual dues. REALTORS® holding designations and certifications see increased profitability over those without. Obtaining these accreditations demonstrates a commitment to the real estate profession and to upholding the industry’s professional standards. Whether you’re interested in specializing in a specific genre of real estate or looking to hone your skills, obtaining designations and certifications is a surefire way to increase your prestige to potential clients. Market yourself as a REALTOR® dedicated to your profession; obtain a real estate designation.
Think of Spotify as your new music collection … your library. But this time, your collection is filled with millions of tracks and counting. Spotify comes in all shapes and sizes, available for your PC, Mac, home audio system and mobile phone. And because the music plays live, you don’t need to wait for downloads and have no dent in your hard drive.
More information on the Designation Guide can be found under the myResources section of the WRA’s website at www.wra.org. Look for the release of the 2012 Designation Guide in January!
Spotify allows you to share your music and playlists with your friends. Thanks to Spotify and Facebook, you can see and hear what your friends are listening to at any time. You can also share music with a flick of the wrist. Send a song to your friends or post tracks to social networks. Spotify is how music should be. Visit www.spotify.com today.
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education
Appraisal Conference 2012 March 13-14, 2012 Kalahari® Resort & Convention Center - Wisconsin Dells Join the WRA for the annual Appraisal Conference to complete your continuing education and pick up new skills for the industry. Whether you’re interested in the current 7-Hour USPAP Update Course or attending various workshops to improve your appraisal success, you’ll get it all here! Visit www.wra.org/AppraisalConference for more information.
Resort and Second Home Markets (RSPS Certification) January 25, 2012
Broker Pre-license Course January 30 - February 2, 2012
Lake of the Torches | Lac du Flambeau
Broker pre-license education will increase from 36 to 72 hours, effective July 1, 2012. Also on the horizon is a proposed change to job experience requirements to become a broker. Under the proposal, Wisconsin broker applicants would be required to show two years of documented experience as a real estate salesperson within the four years preceding application.
Greater Milwaukee Association of REALTORS®
ABR Elective and Core Course for RSPS Certification This one-day core course focuses on the knowledge and skill base that real estate professionals need in buying, selling or managing second homes in a resort, recreational and/or vacation destination as well as properties for investment or development. You’ll gain specialized skills and expertise to make informed decisions about buying and selling resort and second-home properties. This course is required to attain the Resort & Second-Home Property Specialist (RSPS) Certification and also meets the elective course requirement for the ABR Designation. Registration for this course also includes the registration for the Winter Convention. www.wra.org/WinterConv
Out-of-State Continuing Education March 5-7, 2012
BPO (Broker Price Opinion) February 9, 2012
Tuscany Suites and Casino | Las Vegas, NV
WICPA | Brookfield Earn the Broker Price Opinion Resource (BPOR) Certification! Whether you are experienced at preparing broker price opinions (BPOs) or are new to the business, this new NAR certification course will provide you with the know-how to produce professional and accurate BPOs. With your BPOR certification, you’ll be able to prepare accurate BPOs, evaluate market tools for productive preparation of BPOs, and identify and weigh all factors influencing the creation of a useful valuation. Upon completing this one-day course, you’ll be required to view a free webinar, submit the BPOR application and pay a one-time fee to earn the BPOR certification. The course also meets the elective course requirement for the ABR designation. www.wra.org/BPOR_overview
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wisconsin real estate magazine
This course covers contracts, trust accounts, escrow and closing statements, personnel business ethics, fair housing, specialty areas and more. Completion of Sales Pre-license education and passing the real estate sales exam are prerequisites. Completion of the Broker Pre-license Course, passing the broker exam and receiving the broker’s license fulfills the 2011-2012 Continuing Education credits. Fore more, visit www.wra.org/Broker_career.
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Grab your suitcase ... this isn’t your typical Continuing Education (CE) program! Break away from the winter blues, and join us for CE in sunny Las Vegas in March 2012! With many CE courses to choose from, the Las Vegas Strip and sunshine, this is an educational opportunity you won’t want to miss! Make plans now to join us in Viva Las Vegas. Visit www.wra.org/CEOut-of-State for more information.
CRS 202: Sales Strategies February 6-7, 2012 Plaza Hotel and Suites | Eau Claire Co-Sponsored by the Wisconsin CRS Chapter Learn how to tap into the motivations of today’s qualified homebuyers and help them achieve homeownership! You’ll learn about identifying buyers and gaining their trust and loyalty. Earn 16 credits toward your CRS designation with CRS 202. Don’t miss this course - and don’t miss prime networking opportunties with other REALTORS® ! Visit www.wra.org/ CRSCourses for more information. Instructor: Jackie Leavenworth, CRS
www.wra.org/wrem
Course Schedule
Visit www.wra.org/CourseSchedule for full schedule. Sales & Marketing Management Date Course Location Thru 1/10
*Plus books January 25, 2012 Resort & Second Home Markets Lac du Flambeau $195 ** early registration applies two weeks prior to the (Includes convention) Thru 1/23 start of the course. February 6-7, 2012 CRS 202: Sales Strategies Eau Claire $199 CRS Members receive a $20 discount ***Wisconsin Febrary 9, 2012 BPO Broker Price Opinions Brookfield $110 # Appraiser section members receive a discount Conference and Conventions Date Event/Course Location
January 25-27, 2012 March 5-7, 2012 March 13-14, 2012
Real Estate Continuing Education
Date
Winter Convention Out-of-State Continuing Education Appraisal Conference Course
March 6, 2012 March 7, 2012
Location
2011-12 Electives: Elective A – Short Sales & Foreclosures Elective C – Other Approved Forms
Appraisal Continuing Education
Date Course
March 13-14, 2012
Pre-License Available online!
Date
QuickStart
2011-12 Courses 3 & 4 2011-12 Electives A & C
$205 After 1/23 $210 $120
$225 A.T.D. $230 $140
Price (800) 279-1972 Register for Winter Convention (included in registration fee) Register for Winter Convention (included in registration fee) Call 800-279-1972 $27/m; $40 nm (920) 553-6227 Call 800-279-1972 $27/m; $40 nm (715) 735-0547 Call 800-279-1972 $27/m; $40 nm Call 800-279-1972 $27/m; $35 nm Call 800-279-1972 $27/m; $35 nm Call 800-279-1972 $27/m; $35 nm
Las Vegas Las Vegas
Elective B – Environmental Matters Elective D – Financing
Appraisal Conference
January 30 - February 2, 2012
A.T.D.
Lake of the Torches, Lac du Flambeau Tuscany Suites and Casino, Las Vegas, NV Kalahari Resort, Wisconsin Dells
The 2009-2010 real estate continuing education is still January 25, 2012 2011-12 Electives A & C Lac du Flambeau available through On Demand, DVD and Self-Study January 26, 2012 2011-12 Courses 1 & 2 Lac du Flambeau Booklets: Course 1 – Listing Contracts January 27, 2012 2011-12 Courses 3 & 4 Lac du Flambeau Course 2 – Offer to Purchase 3 – New Developments February 2, 2012 2011-12 Courses 1 & 2 (Commercial) Milwaukee Course February 8, 2012 2011-12 Electives A & C Maintinowoc Course 4 – Buyer Agency Agreements February 9, 2012 2011-12 Courses 3 & 4 (Commercial) Milwaukee Elective A – Risk Reduction February 14, 2012 2011-12 Courses 3 & 4 Marinette Elective B – 1031 Exchanges and Exchange Opportunities February 16, 2012 2011-12 Elective A & D (Commercial) Milwaukee Elective C – Condominiums March 1, 2012 2011-12 Courses 1 & 2 Woodruff Elective D – Landlord/Tenant and Property Management March 2, 2012 2011-12 Courses 3 & 4 Woodruff Elective E – Financing March 5, 2012 2011-12 Elective A & C Woodruff F – Broker Supervision March 5, 2012 2011-12 Courses 1 & 2 Las Vegas Elective
After 1/10
Course Broker Pre-License Course
Location
Kalahari Resort, Wisconsin Dells
Location Milwaukee
Member price $260*
Non-Member price $280*
* Plus books
sales training program
www.wra.org/QuickStartOnDemand
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2012 Winter
Convention
January 25-27, 2012 Lake of the Torches Resort Casino & Convention Center
Wednesday, January 25
Thursday, January 26
8:30 a.m.-4:30 p.m.
8:00 a.m.-5:00 p.m. Exhibits Open
Resort and Second Home Markets - ABR Elective and Core Course for the RSPS Certification
10:00 a.m.-11:45 a.m. Opening Session “New Year, New You” presented by Terry Watson Two lucky winners will receive a $150 WRA credit. Must be present to win.
8:30 a.m.-12:00 p.m. CE Elective A Short Sales and Foreclosures 1:00 p.m.-4:30 p.m.
CE Elective C Other Approved Forms
2:00 p.m.-5:00 p.m.
Snowmobile outing, snowshoeing, cross country skiing, ice fishing (make your own reservations)
4:30 p.m.-6:00 p.m.
Exhibits Open
4:30 p.m.-6:30 p.m.
Welcome Party, DJ + Karaoke
4:15 p.m.-6:30 p.m.
Chili Cook-Off: Enter your favorite recipe and you may win a prize! Sponsored by Northwoods Association of REALTORS®
1:00 p.m.-4:30 p.m. Course 2 - Offer to Purchase 1:15 p.m.-2:45 p.m. Workshops • • • •
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Killer Apps - Free or Darn Near Free Grow Your Business on a Shoestring Budget Paperless Transaction Psychology of Prospecting – How to Make it Virtually Impossible for a Prospect to Tell You No
3:00 p.m.-4:15 p.m.
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Workshops
Still Standing – Life Support for REALTORS ® in Changing Markets Expired Mastery – 3 “Outside the Box” Marketing Strategies That Will Have Sellers Begging You to Take Their Listing Surf and Turf Create Your Own Listing Videos Using SONY Vegas
4:15 p.m.-7:00 p.m. Reception and DJ
Register by Phone: (800) 279-1972 Local: (608) 241-2047 Fax: (608) 241-5168 wisconsin real estate magazine
11:45 a.m.-1:00 p.m. Broker Lunch (ticketed event)
• •
Register by Mail: Wisconsin Realtors® Association 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337
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8:30 a.m.-12:00 p.m. CE Course 1 - Listing Contracts
december 2011
www.wra.org/wrem
Friday, January 27 7:30 a.m.-8:30 a.m. Rotary Club Meeting Rotarians Meet and Greet 8:00 a.m.-1:15 p.m.
Exhibits
8:30 a.m.-11:30 a.m. CE Course 3 New Developments 9:00 a.m.-10:15 a.m. Workshops • • •
What You Don’t Know Can Hurt You Real Estate Warrior Delivering “Knock Your Socks Off” Web Content Using Google Analytics
10:30 a.m.-11:45 a.m. Workshops • • •
Change, Change & More Change Home Inspection: Defect or No Defect? Making Social Media Work For the Busy Agent
11:45 a.m.-1:00 p.m. CRS Lunch (Ticketed Event) 1:00 p.m.-4:30 p.m. CE Course 4 - Business Ethics 1:15 p.m.-2:45 p.m. Workshops • • •
Roadside Video Safety & Self-Defense for Real Estate Professionals REO Buying - Diamond in the Rough or Just Rough?
www.wra.org/winterconvention wisconsin real estate magazine
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Realtor® sales tip
Stop Learning and You’ll Stop Earning!
E
“Those with at least one designation had a median gross annual income in 2010 of $49,300. Those who did not have a designation had a median gross annual income in 2010 of $26,900.”
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wisconsin real estate magazine
ducation is defined as acquiring skills. There are many different ways to receive education and many different subjects to study. School is not the only place where we study or get an education. Sometimes the best knowledge is gained by continuing education and especially if we find something that we are passionate about. That excitement and willingness to become better can take us far in life. Just like in any other career path you’ve chosen, education is an important factor in your success. Taking additional coursework to earn recognized designations is no different from going to law school or medical school, except that real estate is less complicated and easier to apply! I have always been an advocate for becoming the best at what I am doing at the moment. And learning is my driving force to succeed. The problem with most beginners is that they are afraid to take action. A lot of people invest thousands of dollars on real estate education
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only to watch their books gather dust on the shelves. All of us have good intentions, but it is action that I am most interested in. The most critical element is the act of doing - not saying. In order to protect the public, most states require salespeople and brokers to meet specific licensing requirements, typically in the form of classroom instruction and/or successful completion of an examination at the local and state level. However many real estate brokers frequently require their sales staff to undertake education that exceeds these minimum requirements. Bringing in outside experts to increase the team’s knowledge base is one of my top priorities. My successful brokerage firm is the product of continuous education that exceeds legal minimums. This additional knowledge combined with increased experience increases staff productivity, reduces litigation risks and perhaps raises and/or maximizes the expected value of our company. I calendar my guest speakers almost a year in advance www.wra.org/wrem
By marcus wally
to make sure I have a cross section of experts coming to share their knowledge and talents.
that I have cultivated over the years. And the largest source comes from fellow students I sat next to while earning a new designation.
According to the National Association of REALTORS® (NAR), many REALTORS® have designations in the field to help them stand apart from their colleagues. If you think about it, there are still over a million members out there vying for a piece of pie. What are you doing to make sure you get the business that is available in your market?
Knowledge and skill are key ingredients in real estate investing success. In order to acquire knowledge, you need education. And to develop skill, you need experience. The more you learn, the more you earn! Aim for a higher degree of excellence today!
Currently, there are 17 designations in the field of real estate, and 36 percent of members hold at least one designation. The most common designation is the Graduate, REALTOR® Institute (GRI); 21 percent of members hold this designation. The Accredited Buyer Representative (ABR) and Certified Residential Specialist (CRS) are also common designations. I am most proud of the designations that I have earned over the years. I wear my pins proudly. But increasing my knowledge base is only part of my desire to learn. Income also differs among those who have a designation and those who do not. Those with at least one designation had a median gross annual income in 2010 of $49,300. Those who did not have a designation had a median gross annual income in 2010 of $26,900. This income trend is not new. This is a historical fact. If you want to raise the bar of professionalism and make a difference, choose to learn more about your industry and hone your skills in a certain market segment. Become a specialist and starting marketing yourself to earn that edge. NAR and its affiliated institutes, societies, and councils provide a wide range of programs and services that assist members in increasing skills, proficiency, and knowledge. Designations and certifications acknowledging experience and expertise in various real estate sectors are awarded by NAR and each affiliated group upon completion of required courses. Visit www.realtor.org/education/realtor_university/designation view all of the recognized designations.
to
One of the fun aspects of learning is traveling to take the courses. And my secret here is that I try to avoid taking the courses locally. A huge part of singing up for a course is my ability to increase my sphere … my network in which I generate referrals. I tell my team that no one sitting next to you in a local classroom is going to refer you business. But traveling to another city outside your market area gives you the opportunity to meet new folks and develop new friendships. Take lots of business cards with you and create new business partnerships. Eat lunch each day with a new set of fellow students. Invite classmates to dinner and to study with you. And before you know it, you have returned home and your referral network has increased. The amount of referrals I generate each year is in large part due to the relationships
wisconsin real estate magazine
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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 marcus@ newworldrealty.com.
$68 per month plus a small closing fee
Join us anywhere in Wisconsin, or create your own independent office Low Cost • High Earnings
Call Bill at Homestead Realty, Inc. 1-800-339-4444 • bill@homesteadrealtyinc.com
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legislative
Proposed Legislation Seeks to Modify Pier Regulations . . . Again As part of Gov. Walker’s special session on jobs, legislation was introduced that seeks to streamline the permitting process and simplify regulations related to activities near navigable waterways. This legislation, SS AB 24/ SS SB 24, makes a number of modifications important to waterfront property owners, including simplifying the pier grandfathering standards, protecting the ability of waterfront property owners to place a pier, and allowing unlimited maintenance and repair to wet boathouses.
By tom Larson
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wisconsin real estate magazine
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www.wra.org/wrem
Simplifying Pier Grandfathering Standards Since the Pier Protection Act (2007 Wisconsin Act 204) was enacted into law in 2008, waterfront property owners have been confused about the pier grandfathering standards. The following is a list of pier regulations that have caused the most confusion: •
Location of platforms: If the platform is located near the shore, in the middle of the pier, five feet from the end of pier or anywhere else except at the very end of the pier, the platform is illegal and the pier cannot be grandfathered.
•
Size of platforms (existing piers): If the platform is 12-by20 feet or 240 square feet, the pier cannot be grandfathered. However, if the platform is 10-by-30 feet or 300 square feet, the pier can be grandfathered.
•
Size of platforms (new piers): To add even more confusion, platforms on new piers have no overall square foot limitations. The only limitation is that they can be no wider than eight feet and cannot interfere with your neighbor’s riparian rights. As a result, a new pier can have a platform that is larger with more square footage than an existing grandfathered pier.
•
Registration requirement: Requiring property owners to register their piers with the DNR to be grandfathered has been unsuccessful. During the last three years, less than half of the estimated 8 to 10,000 piers required to register with the DNR actually did. Those owners that did register often experienced significant processing delays, up to nine months, and experienced confusion regarding where the form can be filed. The law allows the form to be filed with the DNR or local registers of deeds.
SS AB 24/SS SB 24 clarifies the law by: 1.
Grandfathering all piers placed before the effective date of the bill.
2.
Allowing new piers to be placed without a permit if the surface area of the platform does not exceed 200 square feet, with no dimensional requirements or limits as to where the platform may be located on the pier.
3.
Eliminating the registration requirement.
Right to Place a Pier For over 140 years, Wisconsin courts have recognized that waterfront property owners have a right to place a pier. This right to place a reasonably sized pier without a permit has been codified in the Wisconsin Statutes. However under current pier regulations, this right does not apply if the pier is located in an area of special natural resource interest (ASNRI). If a property is located in an ANSRI, the owner must obtain a general permit in order to place a pier, which means that the property owner is not guaranteed the right to place a pier.
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•
The definition of ASNRI is overly broad. The definition of ASNRI includes any “area that possesses significant scientific value, as identified by the DNR.” This definition is vague and gives the DNR the discretion to designate any area to be an ASNRI. In fact, the term has been interpreted to mean not just a specific area in a lake, but the entire lake in some cases. As a result, property owners are being forced to go through a general permit process and are uncertain as to whether they can place a pier.
SS AB 24/SS SB 24 clarifies that the DNR may impose conditions on the location, design, construction and installation of a pier located in ASNRI waters, but the DNR may not prohibit the owner from placing a pier. This provision is intended to allow the DNR to determine the size, location and design of a pier to avoid any adverse impacts to sensitive areas like fish spawning areas and other sensitive habitats, but also protects the right of waterfront property owners to place a pier to access the waterway.
Unlimited Maintenance and Repair of Boathouses Under current law, a limit is placed on the ability of property owners to maintain and repair boathouses located below the OHWM. The limit is equal to 50 percent of the assessed value of the boathouse, which is intended to eventually eliminate these boathouses by forcing them to fall into disrepair. The “50 percent rule” has been unfair to property owners because it applies retroactively to existing boathouses that were legal when originally constructed. Moreover, the rule has proven difficult to enforce because it is almost impossible for county zoning administrators to keep track of each dollar spent on necessary paint, boards and roofing shingles. As a result, it encourages property owners to be dishonest about what they have spent on repairs and maintenance. SS AB 24/SS SB 24 eliminates the 50 percent rule and allows unlimited maintenance and repair to these existing boathouses that were constructed before 1979. This would allow property owners to “keep what they have” but does not allow the boathouses to be expanded. Moreover, allowing unlimited maintenance and repairs to existing, nonconforming boathouses would make these regulations consistent with recent changes to Wisconsin’s Shoreland Zoning Regulations (Wis. Admin. Code Ch. NR 115) which eliminated application of the 50 percent rule to nonconforming structures and now allows unlimited maintenance and repairs to these structures. The WRA supports this legislation and will be working with members of both houses in the legislature, as well as the Governor’s administration, to enact it into law. If you have questions, please contact Tom Larson (tlarson@wra.org) at (608) 240-8254. Tom Larson is Vice President of Legal and Public Affairs for the WRA
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Wisconsin is Presidential Battleground State By joe murray
A
ccording to a Smart Politics analysis of all 50 states, Wisconsin ranks as the number one “quintessential battleground state� in presidential elections since 1968. The Smart Politics comparison found that Wisconsin and Pennsylvania lead the country with the largest number of presidential contests decided by singledigits over the last 11 election cycles dating back to 1968, with nine each. What separates Wisconsin from Pennsylvania is that seven of the nine races in the Badger State were decided by less than five points: Nixon in 1968: 3.6 points; Carter in 1976: 1.7 points; Reagan in 1980: 4.7 points; Dukakis in 1988: 3.6 points; Clinton in 1992: 4.4 points; Gore in 2000: 0.2 points; and Kerry in 2004: 0.4 points. In Pennsylvania, only five of nine races were decided by less than five points.
Rasmussen Reports
Because 2012 is a presidential election cycle, a look at recent polling in Wisconsin and election results from 2011 can provide hints as to what we might expect from swing state voters in Wisconsin with the presidential race that is now less than one year away.
Polling For comparison purposes, we will use three different polling firms to get a sense of where Wisconsin voters are 11 months out from the November 2012 election.
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wisconsin real estate magazine
Public Policy Polling
500 Likely Voters October 26, 2011
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1,170 Wisconsin Voters October 20-23, 2011
Rick Perry (R) Barack Obama (D) Other Not Sure
46% 42% 6% 6%
Barack Obama (D) Mitt Romney (R) Other Not Sure
45% 41% 7% 7%
Barack Obama (D) Herman Cain (R) Other Not Sure
47% 42% 5% 7%
december 2011
Barack Obama (D) Rick Perry (R) Undecided
50% 39% 11%
Barack Obama (D) Mitt Romney (R) Undecided
46% 42% 11%
Barack Obama (D) Herman Cain (R) Undecided
49% 42% 0%
www.wra.org/wrem
is a Democratic firm, and the Wisconsin Policy Research Institute polling is nonpartisan, conducted by University of Chicago Professor Will Howell. The margin of error ranges from plus or minus 2.9 to 5.2 percentage points.
Elections In addition to the polling that suggests a close presidential contest in 2012, the April 2011 statewide race for Supreme Court between JoAnn Kloppenburg and David Prosser was extremely tight. Prosser won but not by much. Prosser’s 7,004 vote margin of victory out of 1.5 million votes was the narrowest margin of victory in any Supreme Court race in Wisconsin’s history. He won by less than half a percentage point. The closeness of the 2011 Supreme Court race, coming on the heels of the 2010 GOP blowout across Wisconsin, illustrates how quickly the statewide political dynamic can change.
Wisconsin Policy Research Institute
These three survey firms indicate that the presidential race in Wisconsin is likely to be another close one, at this point. For the most part, President Obama is under 50 percent, a key metric for any incumbent running for re-election, and all three major GOP challengers remain within striking distance. With 11 months to go - a lifetime in political terms - before the November general election, the political dynamic could easily change to favor one side or the other. But as a general rule, pollsters tend to agree that political trends one year out from the election are often fairly reliable indicators where voters are heading. These numbers suggest a difficult and close election for Obama in Wisconsin.
605 Wisconsin Adults October 2011 Barack Obama (D) Rick Perry (R) Don’t Know
48% 30% 22%
Barack Obama (D) Mitt Romney (R) Don’t Know
46% 35% 20%
Barack Obama (D) Herman Cain (R) Don’t Know
50% 31% 19%
Rasmussen Reports is viewed as a conservative pollster, Public Policy Polling
wisconsin real estate magazine
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If the 2012 election evolves into the forth consecutive “wave” election, favoring one side or the other dramatically, than all predictions for a close race in Wisconsin will vanish. If the election is more competitive, the Kloppenburg-Prosser outcome may very well signal that Wisconsin is returning to its status as the number one “quintessential battleground state” it’s been since 1968. Professor John Coleman of the University of Wisconsin-Madison made this point after the April Supreme Court race between Kloppenburg and Prosser: “Wisconsin is a 50/50 state and has been for a while. People lost sight of that with Obama’s big win in 2008 and the Republicans’ sweeping in 2010. But overall, this is a state on a partisan knife-edge that can be mobilized to produce victories for conservatives and victories for liberals.” Looks like we’re in for another nail-biter election in 2012! Joe Murray is Director of Political and Governmental Affairs for the WRA.
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techhottips
View more posts at www.techhottips.com
Technology Tips & Tools for the Real Estate Professional
Tech Hottips writers are Amy Chorew, a nationally acclaimed real estate technology trainer and Kim Wood, a Philadelphia-area REALTOR® involved in both real estate and technology coaching.
Have an Interest? Try Pinterest. access of people who follow you or your board. How can we use this for real estate? First don’t forget that it’s okay to have personal interests there as some of these ideas. People want to know a little bit about you and your interests. How about some additional boards that focus on housing and real estate ? Please don’t only focus on business boards since you won’t gain as many people following you as you will if you focus on personal interest as well as business focused.
Sometimes certain websites pop up and I immediately dismiss them as “time suck,” but I’m totally wrong this time! Pinterest is one of them for me. When I first signed up a number of months ago, I loved the idea although I thought it was just a place for fun sharing and I wasn’t sure how I could use it for business. Don’t get me wrong – Pinterest is still a great place to share recipes, DIY projects, crafts, homeschooling ideas and more … but I ask the question again: “Are your clients, locals, and potential clients hanging out on Pinterest?” The answer is most likely “yes,” or it will be when they find it. So you need to think about having a presence there as well. Pinterest allows you to create “Boards,” or a topic of interest to you, then add links to your board for easy
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Your listing links
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Do-it -ourself home projects
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Home maintenance tips
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Local places of interest
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Affliliates’ blogs/sites/articles
The options are endless! Go be creative and get started with your Pintrest account at www.Pinterest.com.
New Remote Access to Files on Your Android
Facebook Buttons and Boxes for Your Website.
If you want secure, remote access to your personal files through your Android phone, download Wuala for Android at www.wuala. com. For security, the application encrypts files directly on your phone to ensure the data is safe before it leaves the phone. The app also includes automatic backup, syncing and sharing features.
Back in February, I wrote about How to Get a Like Box for Your Website. I’m sure you know that Facebook likes to change things, so with Facebook’s recent changes, I’ll update you on how to now put the “Like” box on your website.
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Recommendations
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Like Box
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Log in Button
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Registration
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Facepile
There are several buttons you can put on your website or blog with some code that Facebook gives you. This way, when readers are on your page, they can quick -click to Facebook “Like,” it and it will link to their Facebook Wall. Psst … people like this, too!
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Live Stream
Understanding Widgets
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Real Estate News Sources
What’s a widget? It is a small program that you can easily put on your website or blog. Widgets add functionality, aggregate your content and enhance your customer experience. Many sites offer widgets; you simply choose the widget you want to install and the site provides the code. Simply copy and paste the code into your blog or website. You must have administrative access to do this.
Visit the “Facebook Social Plugins” page in the “Help” section to get your Plugin for your site. They have many available to use:
The most common widgets are for social media, RSS feeds, bookmarks and advertisements, but you can add real estate-specific widgets to your site. Many companies, like YouTube, have their own widgets.
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Like Button
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Send Button
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Comments
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Activity Feed
And you know as well as I do – they’ll be sure to add more!
www.wra.org/wrem
WHAT MAKES A CENTURY 21 AGENT? IT’S lIKE THAT SToRY AboUT THE ENGINE THAT CoUld. ExCEpT THESE ENGINES CAN. ANd THEY do. WHICH IS ExACTlY THE ATTITUdE IT TAKES To MAKE THINGS HAppEN. THEY KNoW THEY CAN. CENTURY 21 AGENTS. SMARTER. boldER. FASTER. ®
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How did they become successful homeowners?
Thanks to Realtors like you. ÂŽ
T
hank you for your commitment to home ownership in Wisconsin. There is much more to be done in the coming year and together we can strengthen Wisconsin’s housing market, build strong communities and create new economic opportunities for
people across the state. To learn more, go to www.wheda.com/Realtors.
Wisconsin Housing and Economic dEvElopmEnt autHority 201 West Washington Ave n Madison, WI 53703 800.334.6873 n www.wheda.com