July 2010 - Wisconsin Real Estate Magazine by Lauren Bizorik

CUSTOMER LOYALTY How to earn it and how to keep it.

BUYER BEWARE

Wisconsin Supreme Court addresses breach of contract.

MAGAZINE

July 2010 $5.00

AND THE

WINNER IS... WRA 2010 CONVENTION

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table of CONTENTS

july

features

articles

Best of the Legal Hotline

Product Showcase

Advising Consumers About Foreclosures and Short Sales Unfortunately, foreclosures and short sales aren’t going away anytime soon. Here’s how to address consumer questions on these topics.

Wisconsin Supreme Court Rules on Unauthorized Practice of Law On June 1, 2010, the Wisconsin Supreme Court adopted legislation with major implications for real estate licensees.

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Use Elections to Debate the Big Stuff Elections can be daunting, but they’re also an opportunity to debate major issues facing the state.

Candidate Selection

2010 |

vol.

26, no. 10

With a focus on common closing issues, the hotline addresses questions of lenders and funding, walkthroughs and more.

A profile of two websites: one aiding REALTORS® and consumers in protecting home value, and the other offering resources for gulf oil spill relief.

Customer Loyalty: How to Earn It and How to Keep It

Buyer Beware

Customers are the life-blood of our business; here’s how to build and retain their loyalty.

A Wisconsin Supreme Court ruling underscores the importance of understanding all provisions in a contract before entering into the agreement.

Wondering how the WRA and NAR decide which candidates to support in fall elections? Read on.

news.wra.org

News

inside the WRA

with BILL MALKASIAN

Top News Stories in and Around the Industry

Top News Stories in and Around the Industry UNITED WAY STARK FAMILY TO COMMUNITY

substantially funding for rental assistance, his month’sTHE issue centers around RECEIVES one of theMILLIONS WRA’s information on how toincrease build your HONORS WISCONSIN TOwith EASE showcase events: ourFORECLOSURE annual convention. While social brand, maintain your home, research particularly help for working families. FOR SERVICE CRISIS

Business Journal (WI)and (09/30/08) media seems to be Milwaukee all the rage these days is financing, etc. Take some time to visit the key to ourThe businesses, nothing can replace site, pass try out the tools they NARand RELEASES FREE FHA TOOLKIT state of Wisconsin is due to receive nearly $39 it along, getting people together face-to-face for a couple of days. Convention offer. Wisconsin REALTORS® Association (10/30/08) million in federal funds to stabilize neighborhoods United Way of Dane County recognized the Stark the #1 industry event in the to meet colleagues,homes. According andopportunity stave off a spate of abandoned Family with the 2008is Tocqueville Society Award forstate, an Turning to the NAR political with legislative and arena, the WRA arethe eager to help you meet the finish up your CE requirements getHUD referrals by mouth. and Gov. Jim Doyle, the funds are separate outstanding service to the Dane County community andto session isnow over, wechallenges reset ouroffocus to the fall current the troubled economy. We from approximately $9.2 million the government and United Way. The Tocqueville Society Award If you haven’t attended conventionawarding yet, I encourage you to talk to the foreclosure election. From the July 13 you filingneed deadline, we will the city of Milwaukee, where celebrates and acknowledges people or families, know that resources thatbegin can help you someone in your officeimpact who has. We’ve it with the economy to learn all viable candidates in the run-up to rate is priced currently 9.9 percent. HUD is awarding the aboutclose such as the Starks, who have made a major transactions, and you need them at little or no offering a Two-Fer discountfunds that allows two to attend for the this fall’s elections. Correspondingly, we at the WRA will via its Neighborhood Stabilization Program, on the quality of in lifemind, in Dane County through cost. NAR has just released an all-new FHA Toolkit under which almost $4 billion being allocated their exceptional service and commitment to able the to fulfill price of one. And you’ll be your CE requirements withisthe start to towork with brokers, agents and local boards to find for FREE to helpyour you get clients the local andthere’s state governments Billcommunity. Malkasian best instructors in the industry. Of course, plenty of funfor to the be redevelopment the candidatesonline that best represent interests. Wefinancing have abandoned and foreclosed houses. they for needendorsements, in a credit-strapped It is WRA President had as well. You’ll have a chance toofgolf, bowl, attend the icebreaker a process in place and if environment. you are curious CITY HOUSING AUTHORITY RECEIVES event with live music and contests, and enjoy the Kalahari’s indoor about it, checkone outofJoe article. The feedback we’ve theMurray’s most comprehensive toolkits NAR has SITES:issue NOTtoJUST FOR PERSONAL 100-UNIT GRANTtheme park. Be sure to read this month’s find out more about received in focus groups indicates that members expect us to® ever produced, and it’s available to all REALTORS Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia ANYMORE this year’s convention and registerCONNECTIONS early to save and beat the last endorse candidates andbydovisiting a thoughtful compare/contrast right now the link below. They also haveof Minneapolis-St. Paul Business Journal (09/29/08) Grayson, The city of Milwaukee’s authority minutehousing rush. Rooms willisgodue fast so Katharine you’ll want to plan early. them with regard to their qualifications. United Way of Dane

County admittedly

launched a new page called “NAR Helps You Navigate to receive $6.7 million in federal Hope VI money ® St. Paul, Minn.-based REALTOR Teresa Boardman the Current where can find dozens of be July isunits. also The an important month internally here at the WRA as we As Mike Theo points out inEconomy” his article, the you election season can to build 100 new housing 100 units will says30, Flickr, Facebookwill andmeet otherand social networking be constructed in a prepare 2.5-milefor area willbudget. includeOn July theand 2011 the directors daunting and sometimes even frustrating for voters, but it is great products and resources, like the FHA Toolkit,also sites make might 29 public housing decide and affordable rental the units; how to allocate organization’s funds.it easy to meet people who an opportunity to engage candidates on important issues, a way to for free or at a steep discount. Visit www.Realtor. eventually become clients. While many professionals nine affordable housing units for income-eligible have an impactorg/NARHelpsYou on your industry.for Hislinks call to to these do ourgreat partprograms by helping to are using these Wisconsin sites to make business contacts For the past two months, we’ve traveled throughout to talk families; and 62 moderately priced, open-market define issues and encouraging candidates to debate them is a call ® companies use them conduct background and products. condominiums. HUD Secretary Steven C. Preston with REALTORS about the currentand state of the market. Our to budget we should listen to. checks or out recruit new workers, many simply want comments, “Milwaukee’s housing hasideas that priorities reflect authority some of the came of these talks. Every connect with people who have similar Finally, interests. demonstrated it hasfocus the group leadership lead and HOME note, LOANS STRONG, ALBEIT A heard we’vetospoken with, fortoexample, brought up technology on a personal as IGOING travel around the state I have According to Boardman, “The hard sell is dead. It revitalize neighborhoods and transform lives. as a driving force within the industry, specifically technologies that many of you say that with theINhomebuyer tax credit now expired, BIT TIGHTER, AREA doesn’t work door-to-door, and it doesn’t work on Cities like Milwaukee change and grow and need to directly help you and your business. To this end, we’ve set two goals: May and June sales have been challenging. I haveMarv also heard, on Wisconsin State Journal (10/17/08)But Balousek, social networks.” On Flickr, Boardman connected revitalize housing to make sure many aren’t priced To develop mobile apps designed to meet members’ needs; and to a bright note, that different types of properties are moving and that out.” Milwaukee is one of a half-dozen housing with a fellow photographer who eventually used her Despite the ongoing national credit crisis, property We increase our use of on-demand videos, online training and other buyers and sellers are being more sensible in their approach. authorities nationwide to receive new Hope VI services to purchase a home. sayhelping mortgage remains electronic delivery tools to help bring you what you need in a timely, will continue toprofessionals do our part in youmoney navigate this.available grants. convenient way. The bottom line? We’re coming to you. throughout southern Wisconsin to home buyers FORECLOSURES PUSH RENTS HIGHER,

to read our convention site online at HOUSING STUDY DELAY FRUSTRATES SQUEEZING LOW INCOME FAMILIESI encourage youwith solid credit. Ron Steinhofer, manager of In my travels around the state, I have been told that the #1 issue that www.wra.org/convention10 and check out all of its offerings. Minnesota Public Radio (MN) (09/21/08) Olson, Dan ADVOCATES Marshall & Ilsley Bank’s regional home lending ® REALTORS are dealingScott with right now is short sales and foreclosures. Milwaukee Journal Sentinel (10/07/08) Williams,

In Minnesota’s Twin Cities, a wave of home group, states, “There’s plenty of money for home So, beginning this month and moving forward on a quarterly basis, we Two years after promising the Milwaukee metro foreclosures has pushed more people into the rental loans out there. It is slightly more difficult to qualify will provide you with more coverage and education on this topic. This area’s first major housing study in three decades, apartment sector. The result is an intensifying is an ongoing issue and it is important to us. I hope that you will give than two or three years ago, but if you have a good the Southeastern Wisconsin Regional Planning demand on Minneapolis and St. Paul’s rental housing to seeing youa good there,job and a down payment, money us feedback on how to we’re doing. stock, so much so that the vacancy rate isI look Commission (SEWRPC) is still struggling get the very forward low credit score, effort launched. Proponents hope the study will and rents are on the rise. This, in turn, means lowis available.” Steinhofer adds that banks still are In other developments, several weeks ago you received an e-mail serve as a catalyst for improving affordable housing income working families face higher monthly rents making loans via such programs as Fannie Mae informing you of a key Wisconsin Supreme Court ruling directly opportunities throughout the city’s suburbs. But even though their income hovers at unchanging your use state-approved court’s and Freddie Mac. Furthermore, credit standards commissioners haverelated yet to to assemble an of advisory levels.forms. Since The 2005, the decision Twin Cities apartment onthe theresearch Unauthorized clearly enforces yourfrom ability to committee to oversee or set aPractice specific of Law vacancy rate has dipped 7 percent to closer to remain about the same as they were six months ago, continue to draftPhil such forms in real estate transactions. Thisrents also over that same timetable for conducting the survey. Evenson, 4 percent. Average monthly meaning that qualified home buyers can get loans the commission’s executive said issues marksdirector, the close of other a 7-year effort bytime the span WRA are andup a major more legislative than $25, risingBill to more if they have the proper income verification. On the keep getting in the way. The delays have that frustrated $850. The St. Paul-based Wilder Foundation success, a success exemplifiesthan one of the main reasons the WRA downside, banks have been less willing to make housing advocates exists: the most. Bethany to protect yourSanchez, interests. recently reviewed income data for several Twin Cities vice president of the Metropolitan Milwaukee Fair counties. The organization’s research found that the loans with higher loan-to-value ratios. In addition, Housing Council, laments, a longI’d time Moving “It’s on tobeen products, like to highlight resource called Housepaying too much number ofa people in those markets conventional financing without a down payment has coming.” The Pewaukee-based commission has forThrough their rental housing double from around Logic, online at www.houselogic.com. this site, NAR will provides indeed disappeared. However, 100 percent financing not conducted a comprehensive review ofwith housing currently to a whopping 140,000 by 2010. you and consumers one of the70,000 best tools out there; it is packed is still available with Veterans Administration and patterns since the 1970s. Some say a partial solution would be for the U.S. government to reverse course on housing policy and Rural Development home loans.

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wisconsin real estate magazine wisconsin real estate magazine

july 2010 october 2009

news.wra.org news.wra.org

REAL ESTATE

Wisconsin Real Estate Magazine™ is published by the WISCONSIN REALTORS® ASSOCIATION. Trademark issued pursuant to Wisconsin state statute; federal trademark is pending.

notes from the wra

John Flor, ABR, CRS, e-PRO, GRI, RRS, Chairman johnflor@sixlakesrealty.com

Thank you to Convention Exhibitors, Sponsors & Advertisers

John Horning, Chairman-Elect jphorning@shorewest.com

The Wisconsin REALTORS® Association would like to give a special thanks to the following companies for their early support of the 2010 WRA Annual Convention.

Robert Keefe, Treasurer rkeefe@keeferealestate.com William E. Malkasian, CAE, President wem@wra.org Editorial Staff:

William E. Malkasian Publisher

Robert Uhrina Managing Editor

Vanessa Merina 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. 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.

• AmericSpec Home Inspection Service

• Magnets USA

• Associated Bank • Axley Brynelson LLP

• Oakley Signs and Graphics

• Century 21

• Outstanding Signs

• Cookie Lee Jewelry

• Pearl Insurance

• Universal Home Protection LLC

• CUTCO Cutlery

• Pillar to Post Professional Home Inspection

• USDA Rural Development

AND THE

• MLS, Inc.

WINNER IS... WRA 2010 CONVENTION

• WHEDA

• First American Title Insurance Co.

• Platinum Printing and Packaging • Preferred Title LLC

• Wisconsin Association of Home Inspectors

• Godfrey & Kahn

• RE/MAX North Central

• Wisconsin CRS Chapter

• Greater Milwaukee Association of REALTORS®

• REGIT, Inc.

• Wisconsin Department of Veterans Affairs

• Homestead Realty Inc.

• Wisconsin Mortgage Corporation

• HYS Marketing Products LLC.

• Shorewest REALTORS® – Brookfield

• Johnson Bank

• SUPRA

• Wood Communications Group

• Landmark Credit Union

• Teuteberg, Inc.

• WRA Real Estate School

• Lowe’s Companies Inc.

• Tri Tech Corporation of American / Xerox

• WRA Real Estate Store

• Lowen Sign Company

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.

• Send Out Cards

• Women’s Council of REALTORS®

Check out the National Association of REALTORS® – REALTOR Benefits® Program

Contact Us: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972 legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279

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

• M & I Bank

• Dee Sign Company

Publication Editor

• American Home Shield

•

ABR® / ABRMsm

•

NEW - FedEx Officesm

•

American Home Shield

•

Hertz Corporation

•

Avis

•

Hewlett Packard

•

Budget

•

Infogroup

•

eNeighborhoods

•

Lenovo

•

Entertainment® Book

•

Liberty Mutual

•

Dell

•

Lowe’s

•

NEW - DocuSign

•

REALTOR.com

•

e-PRO®

•

FedEx®

REALTORS® Core Health Insurance

•

REALTORS® Federal Credit Union

•

REALTOR Team Store®

•

RELAY® Transaction Management

•

Sentrilock, LLC

•

SRES®

•

Xerox

•

ZipForm®

•

Coming Soon: REALTORS® Dental Insurance

For more information please visit www.realtor.org/RealtorBenefits. As of 6/10. List subject to change.

july 2010

Chairman’s Corner

John Flor

ABR, CRS, GRI, RRS, and e-PRO

ello, REALTORS®. This is my favorite time of year. The weather is warm, there is lots of activity and it feels great to spend some time outdoors and on the water. This year, July brings something else to our lives: elections and politics. We are now well into the election season as things ramp up toward the primaries in September and the general election in November. Many of our members can’t wait for it to be over, while others love the action that election season brings. No matter what category you fall into, I think it is important for all of our members to understand what a crucial role politics play in our businesses. Whether you are aware of it or not, the real estate business is heavily regulated and potentially changed every year by new laws, administrative rules and court decisions. The Wisconsin REALTORS® Association is deeply involved in every arena that can affect our businesses and private property rights. Over the years we have successfully defended attacks on shoreland zoning, waterfront piers, transfer tax increases and much more. Just recently, our talented staff defended your right to draft contracts in relation to real estate transactions. This last example is a wonderful illustration of how much impact these decisions can have on your everyday business life. Without the right to draft contracts, every listing contract, offer, counter offer, amendment, addendum, etc., would have to be drafted by an attorney. I am sure many of you can envision the delays and hardships this could cause each one of you as well as your customers and clients. This issue relates to the unlicensed practice of law and has been an ongoing battle with the State Bar of Wisconsin for seven years. On June 1, the Wisconsin Supreme Court agreed with the WRA and will be drafting their new rule with the included language that will uphold our right to draft real estate contracts. So what does this have to do with the elections? We have a very talented staff, but you, the members, bring their efforts to life. Without the support of the 14,500 REALTORS® in the state of Wisconsin, our effectiveness in the legislature, with the governor, or in the court house, would be significantly less. You are the muscle behind the highly talented team of lobbyists at the WRA. Your voices are listened to loud and clear when you take the time to respond to our

wisconsin real estate magazine

july 2010

Calls to Action. In the past, our team has actually been asked to “Turn it off” because of the flood of e-mails and phone calls to legislators’ offices. I want to thank you for your support of these calls to action, but now we need your help in other ways. The best way to ensure the right laws are passed is to ensure the right lawmakers are elected. This means we, all of us, need to support candidates who support our issues. This support comes in several forms. The first is monetary (that is, a financial contribution to RPAC – the REALTORS® Political Action Committee – or the Direct Giver Program) and the second is through personal involvement with a campaign. Both of these methods allow us as a group to endorse and monetarily assist candidates that support the real estate business and private property rights. I understand that many of you don’t vote on straight party lines and the WRA doesn’t endorse that way either. We support candidates that will help us pass good laws and defeat bad ones. It is my hope that when you vote, you will take this into consideration when selecting a candidate. Many local associations have already kicked off their RPAC fundraising for the year and the state Large Donor Council will kick off its fundraising year with a July event. I highly encourage you to take part in some of the events in your area and give what you can to RPAC. It doesn’t have to be a large sum—even $10 will help—but make a point of giving something. This is an investment in your business. I like to equate it to E & O Insurance, but this is insurance that you are paying to insure the future of your business. I hope in this short column I was able to show you why your contributions are important to your business. I hope you have a little more understanding about how real estate and government are connected and why it is so important to each of you that we are involved in the process as a group. For more information on how to give or for RPAC events in your area, contact your local association or volunteer leadership. We need your help now, so get involved, give what you can and show your REALTOR® Pride every day.

John R. Flor

news.wra.org

REALTOR NEWSWIRE ®

Top News Stories in and Around the Industry

VIDEO TIP: NEIGHBORHOOD VIDEO TOURS

and be referred to REALTORS® who will assist them with buying a Wisconsin home.

RISMedia (06/22/10) Schweickart, Stephen

DATA: MIDWEST HOME SALES JUMP 22 PERCENT IN MAY

In addition to creating home video tours, REALTORS® should consider neighborhood video tours. Taking into consideration privacy issues and obtaining permission before filming people, agents can focus on schools, shopping, entertainment, recreation, medical facilities, and other common areas of interest. They would be wise to also include the community’s unique features -- such as landmarks or architecture -- and showcase the lifestyle offered by the neighborhood, such as the climate, national or state parks, and nearby attractions and cities. REALTORS® should use a tripod, rather than shoot from a moving vehicle, and film on a bright day with the sun to their backs or sides. As for sound, a lapel microphone works better than the built-in camera mic.

Indianapolis Star (06/22/10)

The National Association of REALTORS® reports that Midwest home sales remained strong in May because the expiring tax credits helped drive sales nearly 22 percent higher than last year. Approximately 130,000 home sales were reported in the 11-state region in May, and the median home price increased more than 2 percent to $150,700. Meanwhile, the Associated PressRe/Max Monthly Housing Report showed home sales increasing in all but one of the dozen major Midwest cities tracked. Fargo, N.D., was tops in the region with a 66 percent sales gain, while Detroit recorded a 15 percent drop. Most of the other cities posted annual sales increases between 12 percent and 34 percent. The AP-Re/Max report includes sales by all REALTORS® in the metropolitan statistical area, regardless of company affiliation. Among the markets covered are Chicago, Cleveland, Detroit, Fargo, Indianapolis, Milwaukee, Minneapolis, and Wichita.

STATE MAKING DEALS WORTH $18.5 MILLION Milwaukee Journal Sentinel (06/22/10) Bergquist, Lee

The State of Wisconsin reports that it will start its new budget year with tens of millions of dollars in new funding for public land purchases. Officials will get a running start this week with five major deals covering 24,922 acres and valued at $18.5 million. The biggest, which costs $8.3 million, will allow public access to 18,438 acres of prime hardwood forest land in Forest County. Other major deals will protect forests in stretches of the Totogatic River in Washburn and Douglas counties, bluff and wetlands in Adams County, grasslands in Portage County, and forest and wetlands in Iron County. The funding comes from the State Stewardship Fund, which is set to start a new round of financing on July 1. Many of the latest transactions have been in negotiating stage for years and are possible now on account of the new funding, states Richard Steffes, real estate director of the Department of Natural Resources.

SINGLES FLOCK TO SUBURBS Inman News (06/18/10)

An April survey of 1,050 single home buyers indicates that 52 percent bought homes in the suburbs, and 53 percent decided to buy because it made more financial sense than renting. The Coldwell Banker Real Estate poll reveals that 68 percent purchased homes for less than the maximum amount they could afford, and 38 percent of men and 29 percent of women did not rule out purchasing foreclosed or short-sale properties. Work commutes were under 30 minutes for 55 percent of respondents, and parents or extended family live a similar distance from 40 percent of those polled. Of those making the purchase with another person, 49 percent did so with their parents. As for home features, the number of bedrooms was top priority for 27 percent of women and 18 percent of men.

MOVOTO.COM GIVES WISCONSIN RESIDENTS A HELPING HAND WITH SUMMER MOVES

MORTGAGE RELIEF TO BP OIL SPILL VICTIMS

PRWeb (06/22/10)

Movoto.com is a free online resource now available in Wisconsin that offers up-to-date access to listings of homes for sale in such cities as Madison and Milwaukee. Families planning to move this summer and out-of-state residents searching for vacation homes in the state can find all multiple listing service homes for sale on the site. In addition, Movoto.com features state test scores for schools, crime statistics, and such local market trends data as foreclosure rates. With the launch of Movoto.com in Wisconsin, homebuyers from across the country can now access up-to-date homes for sale listings throughout the state

DSNEWS.com, Carrie Bay (06/16/10)

On June 16, Fannie Mae issued an announcement suggesting its servicers immediately suspend or reduce mortgage payments for borrowers whose properties or income are negatively impacted by the Gulf oil spill. Under Fannie Mae’s “Special Relief Measures” policy, servicers may suspend or reduce a borrower’s payments for up to 90 days while the servicer determines the extent of the impact the disaster is having on the condition of the property or on the borrower’s financial condition. In addition, Citigroup

announced a foreclosure suspension program for CitiMortgage-owned first mortgages in coastal areas of the Gulf. In addition, the company says evictions on its REO properties will cease during this time. The company’s foreclosure moratorium for oil spill victims took effect June 17 and goes through September 17. CitiMortgage borrowers occupying residences in ZIP codes within approximately 25 miles of affected coastal areas will be eligible for the program.

HOUSE PASSES FHA REFORM BILL AUTHORIZING HIGHER PREMIUMS DSNEWS.com, Carrie Bay (06/10/10)

In a near unanimous vote of 406 to 4 on June 10th, the U.S. House of Representatives passed a bill intended to replenish the coffers of the federal agency that insures mortgages against default, the Federal Housing Administration (FHA). The FHA Reform Act (H.R. 5072) enables the agency to reform its current mortgage insurance premium structure by shifting some of the upfront cost to the annual premium—a move that HUD Secretary Shaun Donovan says will increase FHA’s capital reserves and reduce risks to the FHA insurance fund. The legislation grants FHA the authority to nearly triple borrowers’ annual premium cap, from the current rate of 0.55 percent, to as high as 1.50 percent. The federal mortgage insurer says this will generate an estimated $300 million a month in additional receipts, while costing the average FHA borrower $42 more in monthly premiums. The bill also strengthens FHA’s powers to withdraw its approval from lenders with high default rates and protect its insurance fund from losses when loans don’t meet the agency’s underwriting standards or are considered fraudulent.

MOBILE INTEGRITY FROM THE CONFERENCE: HAVE YOU SEEN YOUR SITE ON A MOBILE DEVICE? RISMedia (06/14/10) Kaplan, Seth

At RISMedia’s recent 2010 Leadership Conference and “The Real Estate Social Media Summit,” an Android emulator was used to show real estate professionals what their Web sites look like when accessed by a mobile phone. Many had never viewed their sites on a mobile device and were shocked to see that they provide a less-than-stellar user experience. However, REALTORS® have access to technology that converts their Web sites for viewing on a mobile device, making them easy to navigate and helping to better promote their brands.

REALTOR® Newswire is a monthly news service prepared exclusively for the Wisconsin REALTORS® Association by Information, Inc. Reproduction, use, or inclusion of this material in other publications, products, services or Web sites is not allowed without prior written permission from the Wisconsin REALTORS® Association.

wisconsin real estate magazine

july 2010

>>Technology Corner

Engaging Prospects Through the Facebook Community: Part 2 BY ROB UHRINA

Part one of this article appeared in May, covering the do’s and don’ts of Facebook and 10 tips on how to maximize your success. This month, we continue the story by giving you a technical roundup of 5 tools that are available to help you manage your Facebook presence online.

Facebook Fan Pages Forget about promoting your professional services on your personal profile and create a Fan Page specifically for your business. That way you are not mixing your personal life with your professional one. Fan pages work in a similar way to profile pages where your posts publish to news feeds and fans can get real-time updates. Fan Pages give you a suite of tools that allow you to better monitor, promote and engage Facebook users. You’ll get access to analytics, Facebook ads, SMS / text feeds, and more. You can even create easy-toremember aliases (or usernames) for your Fan page, such as facebook.com/ABCrealty or facebook.com/joetherealtor. Usernames allow you to easily promote your presence on Facebook with a short URL. This username can be used in your marketing communications, company website and business cards. All Pages are eligible to claim usernames once you have more than 25 fans.

Facebook Insights (for Fan Pages) Experienced Facebook users will tell you that engagement is where it’s at. A page without discussion, good return visitation or a regular flow

of engaged fans makes building awareness an uphill battle. Facebook Insights is an analytical package that gives you access to a variety of reports to identify trends and see how your Fan page is performing over time, ranging from post quality to interactions, page views, demographics and more. These statistics give you valuable insight into what is working and what is not. Monitoring your analytics daily, taking action and adjusting tactics will help you learn how best to engage your fans and keep them coming back. Insights requires no set-up and is automatically available after you create your fan page.

wisconsin real estate magazine

Facebook Marketplace

Google Reader

FIGURE 3 - Facebook Marketplace Homepage

FIGURE 2 - Google Reader Screenshot

Checking multiple news sources daily for housing industry stories can be time-consuming. Google Reader brings it all together through a process called news aggregation. In a few easy steps, you can subscribe to all of your favorite news feed sources via RSS and see them in one simple inbox. Scan the stories quickly and choose which ones you like. All of them are fed to the reader. If there’s one you want to share with your fans, copy the link and publish it to Facebook or look for the story’s “share” tool. Learn more about Google Reader by visiting www.google.com/reader.

HootSuite FIGURE 1 - Facebook Insights Page

HootSuite, you are able to manage multiple social networks such as Twitter, Facebook, LinkedIn or Ping.fm through a single interface. There is no need to log in to different accounts to post items. It allows you to schedule posts for a specific date/ time, search current trends, shorten URLs, track statistics and more! Learn more about HootSuite at Hootsuite.com.

We covered this tool back in April, but if you haven’t checked it out, do so this time around. With

july 2010

Thanks to a partnership with the e-commerce service Oodle, Facebook now has its own version of Craig’s List and eBay. In minutes, you can post items for sale and push them out to your newsfeeds, including real estate listings. Many marketers have dissuaded REALTORS® in recent years from publishing their listings to Facebook. However, doing so in the marketplace is a generally accepted practice and it’s free of charge. Although the marketplace is not an MLS, it is a great place to showcase your property listings to attract new prospects. Keep in mind, however, that Facebook is all about relationships. If you clearly demonstrate that you are trying to monetize your relationships, it could cause fans and friends to disconnect from you. To access the marketplace, visit apps. facebook.com/marketplace. Rob Uhrina is the Vice President of Marketing and Communications for the WRA.

news.wra.org

99th Annual

WRA Convention Join us for three days of seminars, workshops and main stage attractions, including industry experts from around the country who will provide real world solutions to stay ahead in your market.

September 26-28, 2010

. . . S I R E WINN

AND THE

ENTION 10 CONV Dells WRA 20 isconsin nter - W

Kalahari Resort & Convention Center Wisconsin Dells

www.wra.org/convention2010

Ce nvention sort & Co

Re Kalahari , 2010 | ntion er 26-28 10Conve 0 /2 Septemb ra.org

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Sunday, September 26 Designation Courses | Golf | A Night at the Awards | RPAC Reception | Exhibits The convention kicks off on Sunday with designation courses and continuing education running throughout the day. To get away and enjoy some action, participate in the WRA’s Annual Golf Tournament at Wild Rock Golf Club or take a plunge into Kalahari waters. As you make your way back to the resort in the afternoon, stop by the Exhibit Hall and check out the vendor exhibits from 4 p.m. to 6 p.m. It’s the perfect time to pick up freebies while they last – or enjoy a beer sponsored by one of your favorite vendors! In the evening, attend the RPAC Reception (invitation only), Hospitality Rooms and WRA’s Icebreaker “A Night at the Awards,” featuring karaoke, live photo ops and interviews, a celebrity look-alike contest and awards for best singers! Or turn in early to get a fresh start on the next two days of activities.

Wild Rock Golf Club Nationally Ranked #5 “Best New Course of 2008” - Golf Magazine

Pre-Convention Golf: “Rock On” Sunday, September 26 - 8:30 am Join us for the WRA’s 2010 Annual Convention Golf Scramble at Wild Rock Golf Club. The Rock is a stunningly unique championship golf course that blends three different landscapes into a challenging and breathtaking round of golf. From its woodland area with a beautiful natural stream to the Dells’ famous sandstone ridges combined with the rocky mounds of a former quarry, this course is so unlike any other, it is sure to be the talk of golf enthusiasts.

Icebreaker - “A Night at the Awards” Sunday, September 26 - 8:30 pm - 1:00 am We’re rolling out the red carpet for an evening of star-studded fun at the Icebreaker - A Night at the Awards. Who’s your favorite movie star? Dress like a celebrity for a chance to win prizes in the costume competition. Awards will be given for the Best “Look-Alike” Female and Best “Look-Alike” Male. Show off your vocals during the Karaoke contest with “awards” given for Best Female Vocalist, Best Male Vocalist, and Best Group.

wisconsin real estate magazine

july 2010

news.wra.org

AND THE Convention Highlights

WINNER IS... WRA 2010 CONVENTION

This year’s convention is held at the exclusive Kalahari Resort and Convention Center in the Wisconsin Dells. With a range of indoor and outdoor activities, the resort and water park is fun for the whole family. Coupled with the natural beauty of the Dells and a few days of education, networking and R&R, it will be a welcome and well-deserved trip.

Monday, September 27 Opening Session | Exhibits | Workshops | Chairman’s Dinner

Opening Session Monday, September 27 - 9:15 am This year’s opening session features a surprise event for all to participate in. You will not want to miss this – we’ve had nothing like it before!

Chairman’s Dinner Monday, September 27 7:00 pm - 9:30 pm Celebrate the installation of John Horning as WRA Chairman, Rob Keefe as WRA Chairman-elect and Renny Diedrich as WRA Treasurer. Enjoy an elegant evening of festivities, complete with dinner, wine, dessert bar and entertainment. This event requires a separate ticket.

Tuesday, September 28 General Session | Exhibits | Workshops

General Session: The Phoenix Factor Tuesday, September 28, 2010 - 8:45 am

“ A unique team building experience, unlike anything we’ve done before. Truly stimulating.” CNN News Source “It really helped to create an environment amongst participants where they felt comfortable and open to exchange ideas during the meetings that followed.” JP Morgan Chase “….was simply amazing. We’ve had nothing but good comments from the entire organization and are ready to do it again.” Rolls-Royce Corporation Following the exciting opening session, take your pick from more than 38 workshops covering sales, management, recruiting, pricing in a competitive market, social networking and more. In the evening, join us for the Chairman’s Dinner. If you can’t attend the dinner, join us for the after party in the Indoor Theme Park, starting at 7 p.m. and featuring no-charge rides and a bowling tournament. For those who prefer to sit back and relax, The Packers will be playing on a big screen T.V.!

wisconsin real estate magazine

july 2010

Tuesday is another big day for workshops and continuing education courses. First thing in the morning, the main stage welcomes John O’Leary to our General Session. As the result of a childhood fire, John O’Leary was burned as completely as a person could be without dying. This was a deeply painful trauma, both physically and emotionally, and he will carry its scars for the rest of his life. However, John survived the fire and in many ways feels as if he was reborn into another existence. The transformation was unwanted and painful, yet it has also brought genuine and lasting benefits. The Phoenix Factor proposes we can’t avoid tough times, but we can grow from challenges, change our direction, rise to new heights and soar in life.

A $500 door prize will be awarded at this session (must be present to win). 9

”The After Party” in the Indoor Theme Park Monday, September 27 - 7:00 pm - 1:00 am

Did You Know?

Cyber Center

The following are included in the registration fee:

The Kalahari Resort features a dedicated Business Center in the Convention Center. A fax machine, copier, computer access and more is available.

•

Join the bowling tournament, watch the Packer Game on a big screen, enjoy the indoor theme park, dance to music played by our D.J., win valuable prizes, and have a free beer. You must be registered to attend – name badges required.

Real Estate CE – Four of six courses included in Full Convention Pass, MUST register in advance - first come, first served!

•

Icebreaker Party “A Night at the Awards”

•

Access to Indoor Theme Park following Chairman’s Dinner

Wi-Fi Lounge - All NEW Stop by the Wi-Fi Lounge to gain blogging skills, learn about the online community and meet others!

Bowling Tournament Form your teams and sign up now to reserve your spot! 8:00 pm - 11:00 pm

Continuing Education Real Estate CE – Complete 18 Hours of CE! Don’t wait to complete your continuing education (CE). You’re at convention playing golf, going to workshops, meeting up with colleagues, dancing, eating, networking, and having a great time. So how about taking a little time to complete some of your CE requirements? Just think how great it will feel to check real estate CE off your to-do list! You will be able to complete the required 18 hours. Four of the six courses are included in the Full Convention Pass. Seating is limited so register early to secure your seat.

”Two-Fer” Convention Special! Register one WRA member for one full convention pass at regular price and register a second WRA member at a special introductory price. The second guest must be a member of the WRA who has NEVER attended the Fall Convention or has NOT attended in the past five years. Limit one discounted registration per registration. To receive the promotion code, you will be required to register using the Individual Registration button (see below). At the completion of the registration process, you will receive a promotion code. www.wra.org/convention2010reg

Elective B – 1031 Exchanges and Exchange Opportunities Instructor: Michael Tobin

Course 3 - New Developments Instructor: Mel Check

Tuesday, September 28 - 8:30 am - 12:00 pm

Sunday, September 26 - 8:00 am - 12:00 pm

Elective E - Financing the Sale

Course 4 - Buyer Agency Agreements

Instructor: Michael Tobin

Instructor: Mel Check

Sunday, September 26 - 1:00 am - 4:30 pm

Tuesday, September 28- 1:00 pm - 4:30 pm

Course 1 - Listing Contracts Instructor: Cori Lamont

Monday, September 27 - 8:30 am - 12:00 pm

Course 2 - Offer to Purchase

Appraisal CE - 7 hours Foreclosures and Short Sales… Dilemmas and Solutions Instructor: Melanie McLane

Instructor: Cori Lamont

Tuesday, September 28 - 8:30 am - 4:30 pm

Monday, September 27 - 1:00 pm - 4:30 pm

Submitted for Wisconsin, Michigan & Minnesota Appraiser CE. Approved for Assessor CE.

wisconsin real estate magazine

july 2010

news.wra.org

Exhibits

Reserve Your Room

Can You Believe It?

Visit the Exhibit Hall at this year’s convention and support numerous exhibitors showcasing products and services that can make your life easier!

$119 for a Standard Room, Jacuzzi Suite or Royal African Queen Suite!!

Attend Convention and a Short Sales & Foreclosures Designation Course for only $169!

Sponsored beer will be served!

Call Kalahari Reservations at 1-877-253-5466 or visit www.wra.org/reservations.

You won’t want to miss out on these fantastic deals! Your full convention pass is included when you sign up for a designation course...all for one great price!

If you are interested in exhibiting, contact Debbie Thacker at 800-279-1972.

Room rate expires August 25, 2010.

www.wra.org/shortsalesandforeclosures

Designation Courses Short Sales and Foreclosures: What Real Estate Professionals Need to Know

CRS 111: Short Sales & Foreclosures: Protecting Your Clients’ Interest

Instructor: Jonathan Sayas

Instructor: Chandra Hall, CRS

Sunday, September 26 - 8:30 am - 4:30 pm

Monday, September 27 - 8:30 am - 4:30 pm

The sharp increase in real estate foreclosures and pronounced lag in home sales have fundamentally changed from concerns and needs to today’s real estate buyers and sellers. Do you know how to help protect your buyer-clients from foreclosure? Do you understand the process of short sales? Do you know how to counsel a buyer-investor in purchasing an REO property?

This program was created to provide REALTORS® with sufficient information to provide competent counsel and service to homeowners in the challenging time of foreclosures and short sales. It will in turn create another profit center for you by increasing your potential to sell and list distressed properties and better protect client’s interests.

Completes the core course requirement for the SFR Certification and qualifies as an ABR elective!

Designation and completes the core course requirement for the SFR Certification!

CRS Elective: Ninja Selling – Part 1 Instructor: Terri Johnson, CRS Sunday, September 26 - 8:30 am - 4:30 pm Ninja Selling Part 1 (Sunday, September 26) is a powerful one-day seminar that teaches you a system of selling based on building relationships, listening to the customer and then helping them achieve their goals.

CRS Elective: Ninja Selling – Part 2 Instructor: Terri Johnson, CRS Monday, September 27 - 8:30 am - 4:30 pm Builds upon the career-and-life-changing ideas from the number one real estate company nationwide in average agent production.

wisconsin real estate magazine

july 2010

CCIM Course - Intro to Commercial Investment Real Estate Analysis Instructor: Brian Nelson, CCIM

Sunday & Monday, September 26-27 - 8:30 am - 5:30 pm This updated introductory course provides an overview of the key aspects of commercial investment real estate. In two days you will be introduced to the many facets of the dynamic commercial investment real estate field. Course requires an HP10BII calculator. Fulfills 9 credits of the 2009-2010 Continuing Education (Courses 1, 2 and 4).

Tuesday, September 28 9:00 am – 12:00 pm »»

Workshops

Broker Track: Strategies in Running a Top Office, Rich Casto

10:30 am – 11:45 am

Monday, September 27 1:00 pm – 2:30 pm

»»

Pro-Active Prospecting in a Do Not Call World, Joe Meyer

»»

Regulatory Update…Know What Can Kill You, Michael Theo & Tom Larson

»»

Short Sales & Foreclosures, Steven David

»»

Taming the Mortgage Monster: Insider Tips for Financing, Troubleshooting and Closing the Sale, Julie Garton-Good

»»

E Contracts and 2K10, Kevin King

»»

iPhone: Is It Really For Real Estate?, Terry Donahue

»»

Lights, Camera, Action, Rob Uhrina

»»

Today’s Hottest Smartphones & iPhone Applications, Brian Copeland

»»

Power Selling in Any Market, Ralph Roberts

»»

Yes, You Can Still Blog and Sell Real Estate!, Brad Koenig

»»

Pricing in a Competitive Market, Melanie McLane

»»

ZipForm 6.0...New and Improved!, Chris Dregne

»»

Revolutionizing the Way You Do Business: 20 new tools and technologies that will make you look bigger, better and smarter, Marc Davison

1:15 pm – 2:30 pm

»»

The Top 10 Money Making Tools in Real Estate, Verl Workman

»»

The Top 10 Most Creative and Effective Agent Web Sites, Randy Eagar

1:00 pm – 4:00 pm »»

»»

Android in Action, Charlie Wills

»»

Closing Through the Power of Persuasion, Joe Meyer

»»

Facebook Best Practices for Real Estate Professionals, Joe Leschisin

»»

From Spam to Ham: Making Your E-mail Outbox a Profit Machine, Brian Copeland

»»

Super Star Panel, Shawna Alt (Moderator)

»»

Transaction Troubleshooting: Seven Surefire Steps to Help Cement the Sale, Julie Garton-Good 12 Strategies to Success in Today’s Market, Steven David

Broker Track: The Manager’s Recruiting Tool Box, Rich Casto

2:45 pm – 4:00 pm »»

Driving Prospects to Your Web Site, Randy Eagar

»»

Getting to Yes, Melanie McLane

»»

iPad vs. Tablet PC, Terry Donahue

»»

Out of the Cockpit and Into the Cabin Using Technology, Brand Power and Common Sense To Connect with the Market in New Ways, Marc Davison

1:15 pm – 4:15 pm »»

Broker Track: The Best Recruiting Interview, Rich Casto

2:45 pm – 3:45 pm

»»

Poke, Buzz and Tweet: Social Networking That Pays, Verl Workman

»»

The Social Media Revolution: How Has it Affected Me as a Real Estate Agent and How Can I Use it to Increase my Business?, Bill Kessler and Carey Pierson

»»

Overcome the FSBO Factor and Flourish, Joe Meyer

»»

Pump Up Your Business With Real Estate Video, Brian Copeland

»»

Understanding the World of Titles: Current Title Topics Every REALTOR® Should Be Aware Of, Paul Duerst

»»

The Accidental Property Manager, Steven David

»»

Walking Like a Giant…Selling Real Estate Like a Madman, Ralph Roberts

»»

Who Moved My Mortgage? Insider Tips to Finance and Troubleshoot the Sale, Julie Garton-Good

Sponsorship Sponsoring an event at the WRA Annual Convention provides refreshments, entertainment and/or speakers that are greatly appreciated by WRA members and convention attendees. In return for your contribution, you receive exposure and recognition. All convention sponsors will be credited in the convention program, on convention signage, on the convention Web site under “Sponsors,” and in Wisconsin Real Estate Magazine. If you are interested in exhibiting or sponsoring an event, contact Debbie Thacker at 800-279-1972 or 608-241-2047 Ext. 256.

wisconsin real estate magazine

july 2010

news.wra.org

AND THE

WINNER IS... September 26-28, 2010

REGISTRANT ONE INFORMATION:  Check here if you are an Association Executive Name_ ___________________________________________ Firm Name ________________________________________ Address_ __________________________________________ City_ _______________________State_______ Zip__________ Phone (W) (

)____________________________________ (H) (

) _______________________________________

E-mail Address_ ______________________________________ WRA member # _____________________________________

*TWO-FER Convention Special: Register one WRA member for one full convention pass at regular price and register a second WRA member at a special introductory price. (see details at www.wra.org/convention2010fees) Your second guest must be a member of the WRA who has NEVER attended the Fall Convention or has NOT attended in the past five years. Limit one discounted registration per order. Register using this form or by visiting www.wra.org/convention2010reg. After you have registered you will receive a promotion code. Give this promotion code to a WRA member and tell that member to visit the Web site to register and redeem the discounted pricing.

TWO-FER: 2nd WRA MEMBER INFORMATION: Name___________________________________________ Firm Name_______________________________________ Address__________________________________________ City ______________________ State _____ Zip ________ Phone (W) ( )_ _________________________________ (H) ( ) _______________________________________ E-mail Address_ ___________________________________ WRA member # ___________________________________ Member

Thru 7-31

Thru 8-23 After 8-23 ATD

 1-Day Pass ( Sun/Mon/Tues ) circle one $ 84 $ 94 $ 104 $ 124  Full Convention Pass $ 114 $ 124 $ 134 $ 154  TWO-FER: 2nd WRA Member* $ 54 $ 64 $ 74 $ 94  Unlicensed Spouse/Sig. Other $ 35 $ 35 $ 35 $ 55 Name of Spouse or Significant Other:____________________________________________. Non-Member

Thru 7-31

 1-Day Pass ( Sun/Mon/Tues ) circle one  Full Convention Pass

Real Estate Continuing Education

$ 114 $ 154 Thru 7-31

Thru 7-31

 Intro to CCIM 9/26-9/27 w/conv  ABR Elective – Short Sales & Forecl. 9/26 w/conv  CRS 111 – Short Sales & Foreclosures 9/27 w/conv  ABR & CRS – Short Sales & Forcl. 9/26-9/27 w/conv  Ninja – Part 1 – 9/26  Ninja – Part 2 – 9/27  Ninja Part 1 & 2 – 9/26-9/27 w/conv

$ 330 $ 169 $ 169 $ 229 $ 185 $ 185 $ 330

$ 124 $ 134 $ 154 $ 164 $ 174 $ 194

• Access to Indoor Theme Park following Chairman’s Dinner - 9/27

Thru 8-23 After 8-23 ATD

$ 340 $ 350 $ 179 $ 189 $ 179 $ 189 $ 239 $ 249 $ 195 $ 205 $ 195 $ 205 $ 340 $ 350

$ 370 $ 209 $ 209 $ 269 $ 225 $ 225 $ 370

Two-Fer Pricing

 2nd WRA Member* .....$ 276  2nd WRA Member* .....$ 115  2nd WRA Member* .....$ 115  2nd WRA Member* .....$ 175

 2nd WRA Member* .....$ 276

Appraisal CE Courses - 9/28 WRA Appraisal Section Member  Class Only  Class w/ Convention

$ 134 $ 144

$ 144 $ 154 $ 174 $ 154 $ 164 $ 184

 2nd WRA Member* .....$ 90

WRA REALTOR® Member  Class Only  Class w/ Convention

$ 144 $ 154

$ 154 $ 164 $ 184 $ 164 $ 174 $ 194

 2nd WRA Member* .....$ 100

Non-Member  Class Only  Class w/ Convention

$ 154 $ 164

$ 164 $ 174 $ 194 $ 174 $ 184 $ 204

Thru 7-31

Thru 8-23 After 8-23 ATD

Room Rates Standard Room: $119 Jacuzzi Suite: $119 Royal African Queen Suite: $119 Release Date: August 25, 2010

• Real Estate Continuing Education – Four of Six courses included in Full Convention Pass - MUST register in advance - first come, first served!

Thru 8-23 After 8-23 ATD

Kalahari Resort and Convention Center 1305 Kalahari Dr. | Wisconsin Dells, WI Phone: 877-253-5466 or 608-254-5466

Included in Registration Fee: • Icebreaker Party “A Night at the Awards” – 9/26

CE - Attend All 6 (4 FREE – You pay for 2) $15 per $20 per $25 per $45 per (You may select up to FOUR courses for free included in a Full Convention Pass; each additional course pricing above.  Elective B – 1031 Exchanges & Exchange Opp. 8:30 – 12:00 (9/26)  Course 1 – Listing Contracts – 8:30 – 12:00 (9/27)  Elective E – Financing the Sale – 1:00 – 4:30 (9/26)  Course 2 – Offer to Purchase – 1:00 – 4:30 (9/27)  Course 3 – New Developments – 8:30 – 12:00 (9/28)  Course 4 – Buyer Agency Agreements – 1:00 – 4:30 (9/28) Designation Classes

Hotel information:

Two-Fer Pricing

Event Fee – Per Person: Golf (9/26) ��$98 Wild Rock Golf Club - Wisconsin Dells  Member One  Member Two Chairman of the Board’s Dinner (9/27) ��$49  Member One  Member Two After Party Bowling Tournament (9/27) �� FREE  Member One  2nd WRA Member*  Spouse/Sig. Other  8:00 - 9:00 pm  8:00 - 9:00 pm  9:00 - 10:00 pm  9:00 - 10:00 pm  10:00 - 11:00 pm  10:00 - 11:00 pm CRS Luncheon (9/28) ��$22  Member One  Member Two  Special Services: Check here if you require special needs to attend. Attach written description of needs. CANCELLATION POLICY: The WRA reserves the right to cancel courses if not filled. Cancellations must be made in writing prior to September 26, 2010 and will be refunded, minus a $25 administration fee. Registrations cannot be transferred from person to person.

PAYMENT: Register by Mail: WISCONSIN REALTORS® ASSOCIATION 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337

Total amount $__________________

 Charge my VISA / MasterCard (circle one)

 Enclosed is my check made payable to the WRA Card Number �� Exp. Date___________

EDUCATION QuickStart Distance Learning – Available On Demand The QuickStart program is designed to assist agents in learning the business of real estate. QuickStart Distance Learning – On Demand is the most convenient method available to complete the QuickStart program. The program begins with building relationships with buyers and sellers including prospecting, pricing properties, responding to concerns and making presentations to buyers and sellers. The course includes contract issues, agency relationships and negotiating strategies. The QuickStart program also discusses various methods of communication, goal setting, time management and incorporating technology into a real estate agent’s business plan. The program is designed to help agents become confident in their practice as well as focused on their personal business plan. Offered in video format reinforced with independent exercises, On Demand offers the same great quality education found in the classroom setting but in the comfort of your own home, office or wherever there is a broadband connection. You will learn from the same experts who teach the classroom courses. The instructors are real estate professionals who teach with energy and enthusiasm. Together with their experience and training, you’ll learn from the best. How does QuickStart On Demand work? It’s simple! 1.

Watch the course (each course is broken into five video chapters varying in length from forty minutes to one hour).

Take a short quiz at the end of each chapter.

Take a 15-question multiple choice exam after passing all chapter quizzes.

Print your certificate after passing the exam.

Print your GRI Course 1 certificate after passing all four course exams.

Upon completing the four modules and passing the exam, agents can receive credit for the completion of GRI Course 1. Fee is only $240; however, the WRA offers a New Member Discount of $40 – Cost of this course is only $200. Fantastic price for 4 days of instruction for your new agents.

Sales Pre-License Course July 19-22; 26-29, 2010

ABR Course August 4-5, 2010

WRA Headquarters - Madison

To obtain a real estate license in the state of Wisconsin, you must first complete 72 hours of approved education courses such as our sales and prelicense course. Second, you must pass a state-administered exam. The WRA will be offering an 8-day Accelerated 72-Hour Sales program on July 19-22; 26-29, 2010. Brokers can purchase a $50 discount coupon for only $10, which entitles your new recruit to a $50 discount on the registration fee. Your new recruits can be ready to take the exam as soon as they complete the class. Ask them to call and register today: 1-800-279-1972! This program is also available through self-study DVD, DVD, On-Demand, or online programs.

GREEN (2-Day) Course August 18-19, 2010 WRA Headquarters - Madison NAR’s GREEN designation gives you the tools you need to guide clients through buying, selling, or building in the sustainable marketplace. You will learn how to explain to your clients what makes a home, building or property green; list and market green properties; determine the energy efficiency of a property, and more. For more information, visit: www.wra.org/Green

wisconsin real estate magazine

july 2010

The Accredited Buyer Representative (ABR) designation is the benchmark of excellence in buyer representation. The overall goals of the ABR Designation courses are to educate and prepare buyer representatives to provide the kind of service and fidelity to buyers that seller have always enjoyed, and to offer methods for building your buyer representation business. Visit: www.wra.org/ABRcourses

GREEN Residential Elective August 20, 2010 WRA Headquarters - Madison NAR’s GREEN Designation Residential Elective Course gives you the knowledge and awareness of green building principles applied in residences so that you can guide buyerclients in purchasing and retrofitting green homes as well as help sellers by listing and marketing green properties. For more information, visit: www.wra.org/Green

news.wra.org

Course Schedule

Visit wra.org/CourseSchedule for full schedule.

Sales & Marketing Management Date Course Location

*Fulfills core education for NAR new Short Sales and Foreclosure Resource (SFR) certification ** Early registration applies two weeks prior to the start of the course. ***Includes Convention Registration.

August 4-5, 2010 August 18-19, 2010 August 20, 2010 September 26-27, 2010 # Appraiser section members receive a discount. September 26-27, 2010 September 26, 2010 September 27, 2010

Early Reg.** $Reg.

ABR Course (2-day) Madison 260 GREEN (2-day) Madison 285 1-day GREEN Residential Elective Madison 130 Ninja Selling 1 and Ninja Selling 2 Wisconsin Dells ***330 CI Intro to CCIM Wisconsin Dells ***330 *1-day ABR Elective: Short Sales & Foreclosures Wisconsin Dells ***169 *CRS 111: Short Sales & Foreclosures: Protecting Wisconsin Dells ***169 Your Clients Interests (CRS Core 1-day class ) Event

ATD

270 290 295 315 140 160 340 370 340 370 179 209 179 209

Conference and Conventions

Date

Location

Real Estate Continuing Education

Date

Course

Location

Classroom offerings of the 2009-2010 Approved for Minnesota Real Estate Credit.

July 26, 2010 July 26, 2010 July 28, 2010 August 6, 2010 August 12, 2010 August 13, 2010 August 18, 2010 August 19, 2010 August 25, 2010 August 26, 2010 September 1, 2010 September 1, 2010 September 8, 2010 September 8, 2010 September 9, 2010 September 15, 2010 September 15, 2010 September 16, 2010 September 16, 2010 September 22, 2010 September 22, 2010

2009-10 Course 4 DVD 2009-10 Elective A DVD 2009-10 Elective C 2009-10 Courses 1 & 2 2009-10 Courses 1 & 2 2009-10 Courses 3 & 4 2009-10 Elective A & E 2009-10 Courses 3 & 4 2009-10 Elective A & E 2009-10 Elective A & E 2009-10 Courses 2 & 1 2009-10 Courses 1 & 2 2009-10 Courses 4 & 3 2009-10 Courses 3 & 4 2009-10 Courses 2 & 1 2009-10 Commercial 1 & 2 2009-10 Electives D & E 2009-10 Courses 4 & 3 2009-10 Course 1 & 2 2009-10 Commercial 3 & 4 2009-10 Electives A & C

Mosinee 715-693-7325 Mosinee 715-693-7325 Sheboygan 920-457-7908 Madison 800-279-1972 $27/m; $35/nm Brookfield 800-279-1972 $27/m; $35/nm Madison 800-279-1972 $27/m; $35/nm Stevens Point 800-279-1972 $27/m; $35 nm Brookfield 800-279-1972 $27/m; $35/nm Madison 800-279-1972 $27/m; $35 nm Brookfield 800-279-1972 $27/m; $35 nm Madison 800-279-1972 $27/m; $35 nm West Bend 262-338-8114 Madison 800-279-1972 $27/m; $35 nm West Bend 262-338-8114 Brookfield 800-279-1972 $27/m; $35 nm Brookfield 800-279-1972 $30/m $35 nm Madison 800-279-1972 $27/m; $35 nm Brookfield 800-279-1972 $27/m; $35/nm Lake Geneva 262-723-6851 Brookfield 800-279-1972 $30/m $35 nm West Bend 262-338-8114

Appraisal Continuing Education Check out the Appraisal Continuing Modules available by DVD and Online. Pre-License * Plus books

Date

September 26-28, 2010 WRA Annual Convention

Elective A: Elective B: Elective C: Elective D: Elective E:

Wisconsin Dells - Kalahari Resort

Risk Reduction 1031 Exchanges and Exchange Opportunities Condominiums Landlord/Tenant and Property Management Financing the Sale Course

Location

September 28, 2010 Foreclosures and Short Sales 8:30 â&#x20AC;&#x201C; 4:30 Challenges and Solutions (submitted for approval) Date

Course

Location

Thru 7-31/2010

Wisconsin Dells $134 - Section Member $144 - WRA Member $154 - Non Member $

July 19-22; 26-29, 2010 Sales Pre-License Course 8:00 - 5:00 Madison August 9-12, 2010 Broker Pre-License Course 8:00 - 5:00 Madison

Early Reg.** 325* 260*

Regular Reg.

325* 280*

Available online!

QuickStart sales training program

www.wra.org/QuickStartOnDemand

wisconsin real estate magazine

july 2010

LEGAL

ADVISING CONSUMERS ABOUT FORECLOSURES AND SHORT SALES BY DEBBI CONRAD

Unfortunately, foreclosures and short sales don’t appear to be going away anytime soon. The wise REALTOR® will make sure that he or she is prepared to answer consumer questions about these topics.

•

After judgment there is a period of redemption of anywhere from two months (if the property is abandoned) to 12 months (typical if the property is owner-occupied and the lender seeks a deficiency judgment).

•

At the end of the redemption period there will be a sheriff’s sale and anywhere from 10 days to three weeks after that there will be a court hearing to confirm the sale – if confirmed, a sheriff’s deed will be given to the successful purchaser from the sheriff’s sale.

•

Be sure to review the Wisconsin Foreclosure Assistance Resource Center and the foreclosure timeline at www.wisconsinforeclosurekit. org/survival_timeline.html.

2. What can be done if a sheriff’s sale is scheduled after there is an accepted offer, but before the scheduled closing date? •

1. What is the time frame from the time I stop making house payments until foreclosure? What is the legal process? •

The beginning through the confirmation of the sheriff’s sale in court can run anywhere from approximately four to 18 months.

•

Stopping mortgage payments is a serious step because it will have an immediate adverse affect on your credit score.

•

Many lenders will begin the foreclosure process by sending a letter warning that they intend to file for foreclosure and then file in court once three to six monthly mortgage payments have been missed. Some lenders may wait a bit longer because of the glut of foreclosures. After a few months, the court will hold a hearing and enter a judgment of foreclosure – how much time passes until this happens depends upon whether the owner answers the lender’s complaint, raises defenses or does nothing.

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A seller in foreclosure still owns his or her property and may list, market and sell his or her property up until the court has a hearing confirming the sheriff’s sale (at which time the seller loses the right of redemption). Only then will the title to the property vest in the purchaser from the sheriff’s sale. A seller redeems his or her property by paying the total amount of the mortgage plus interests and costs to the lender before the confirmation hearing.

3. Can I negotiate with my lender to make up payments past due? •

You should always try to talk to your loan servicer and see what can be worked out!

•

Review the Action Steps for those going through foreclosure at www. wisconsinforeclosurekit.org/survival_action.html.

4. What are the HAFA and HAMP programs and how do they affect me? Which program should I consider? •

HAMP is the Home Affordable Modification Program and HAFA is the Home Affordable Foreclosure Alternatives program for short sales and deeds in lieu of foreclosure. Both are U.S. government news.wra.org

programs to provide relief to homeowners experiencing difficulties with their mortgages. •

You have to be considered first for a HAMP loan modification before you can be considered for a HAFA short sale or deed in lieu.

•

To be eligible for HAMP, your home must be your primary residence, you must owe less than $729,750 and be experiencing trouble paying the mortgage (must have taken out your mortgage before January 1, 2009) and the payment amount must be more than 31% of your current gross income.

•

HAFA won’t apply to loans owned or guaranteed by Fannie Mae, Freddie Mac, FHA or VA but Fannie Mae and Freddie Mac do have similar programs (please see below):

•

Fannie Mae HAFA: www.efanniemae.com/sf/guides/ssg/annltrs/ pdf/2010/svc1007.pdf.

•

Freddie Mac HAFA: www.freddiemac.com/singlefamily/service/ hafa.html.

•

HAFA should help short sales run on a more timely schedule because it provides uniform procedures, forms and timelines.

5. How can I tell if my loan is eligible for HAMP or HAFA or if it is a Freddie Mac or a Fannie Mae mortgage? •

The test for eligibility for a HAMP/HAFA is at http:// makinghomeaffordable.gov/eligibility.html.

•

The test for eligibility for a Fannie Mae loan is at: www.fanniemae. com/loanlookup/ or call 1-800-7FANNIE (8 a.m. to 9 p.m. Eastern Time).

•

The test for eligibility for Freddie Mac loan is at https://ww3. freddiemac.com/corporate/ or call 1-800-FREDDIE (8am to 8 p.m .EST).

cnn.com/2010/04/22/real_estate/foreclosure_credit_score/index. htm •

8. Will I have to pay any money to the lender if I short sale my home or go through foreclosure? •

That depends. In a short sale, the lender may forgive the remaining amount owed on the mortgage after the short sale or they may still try to collect this amount with a promissory note, etc. In HAFA, the deficiency must be forgiven. The amount forgiven may be taxable on your income tax returns but the Mortgage Forgiveness Debt Relief Act of 2007 may allow you to avoid those taxes. Visit the Internal Revenue Service website at www.irs.gov/individuals/ article/0,,id=179414,00.html to learn more.

•

In a foreclosure, the lender may elect to pursue a deficiency judgment, which means a 12-month redemption period. If they do not, then there is only a six-month redemption period.

9. I heard that filing for bankruptcy will stop the foreclosure. For how long? What happens if I get an offer after I file? Can I still sell the house? •

Filing for bankruptcy does not mean that homeowners can necessarily save their homes. Generally, it is just a temporary stall tactic. Homeowners can stop a foreclosure by filing a Chapter 7 bankruptcy, but the lender soon receives permission to continue with the foreclosure. It may still be possible to sell your home with the consent of the bankruptcy trustee who takes control of your assets.

•

Homeowners who file for Chapter 13 bankruptcy may be able to save their house. Homeowners with equity in their homes but who are unable to pay their mortgage because of other debt derive the most benefit from a Chapter 13 bankruptcy. Under Chapter 13, a homeowner follows a debt reorganization and payment plan approved by the court. The plan eliminates interest payments and schedules affordable principal payments to eliminate all nonmortgage debts within three to five years. Homeowners make one monthly payment to a court-appointed trustee, who in turn pays the various creditors, and must continue making mortgage payments. Any arrears in mortgage payments when a homeowner goes into Chapter 13 will be added to the other debts that are consolidated. This is so even if the lender is foreclosing, as long as the house has not been sold. Entering Chapter 13 stops the foreclosure process, but the homeowner must make regular mortgage payments.

•

See Bankruptcy Basics at www.uscourts.gov/FederalCourts/ Bankruptcy/BankruptcyBasics.aspx.

6. If I am doing a short sale, should I accept any offer and let the bank come back with a price or should I negotiate with the buyer and risk losing them? •

The listing agent should determine the lender’s policy regarding offer submissions and price.

•

In HAFA short sales the loan servicer lets the seller and listing broker know what price would be required before marketing begins.

•

Your broker should be able to help you and the lender decide if an offered price is a good one by providing comps and local market conditions.

7. Will a short sale affect my credit? •

•

The impact of a short sale may be no different than a foreclosure or a deed in lieu of foreclosure because in the eyes of the lender the end result is the same: you missed several payments and you are being released from your mortgage without paying the full balance due. Once you are more than 90 days behind in your mortgage payments, your credit score will likely take a steep drop. There are so many variables involved, including what your credit score is to begin with, that predicting a specific number of points by which a given credit score might drop is purely speculative. One report explaining possible impacts can be found at http://money.

wisconsin real estate magazine

july 2010

You may be able to get another mortgage sooner with a short sale as compared to a foreclosure, depending upon the loan program and factors such as loan-to-value ratios and extenuating circumstances.

10. What is the impact of a bankruptcy on my credit? •

Bankruptcy causes the most dramatic drop in your credit score and will remain on your credit report for 10 years

Consumer Tip: Each homeowner should get help from a reputable counselor or advisor and then take action to do what is best in his or her particular circumstances. Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.

LEGAL

best of the legal hotline

SMOOTH CLOSINGS: Overcoming Common Closing Issues

BY TRACY RUCKA

The following questions were asked recently about closing issues.

Lenders and Funding What can real estate agents do to ensure that there will be funds at closing? A continuing problem in Wisconsin real estate transactions is the failure of buyers to have mortgage funds available at closing. Preventive measures that can be taken include: •

• •

•

Alert the buyer and seller that these problems may occur and make certain that they understand the possible consequences of no purchase money at closing. Collect the names of lenders who have a track record of funding at closing and make this list available to buyers. Contact the closing office to ask if they are aware of funding issues with the lender in the specific transaction and schedule the closing accordingly. Scheduling closings early or late in the day may increase the chance of funding delays.

If the parties cannot reach an agreement, the broker may suggest that they review the default provisions in the offer to purchase and confer with private legal counsel. As is explained at lines 281-300 of the WB-11 Residential Offer to Purchase (2010), the parties have a variety of remedies if one party defaults. If the buyer defaults, the seller may: 1.

sue for specific performance and request the earnest money as partial payment of the purchase price; or

Consider including additional language in the offer to purchase – for example, “Buyer is obligated to have the total purchase price, including mortgage loan proceeds, available at the time of closing. Buyer agrees to determine when Buyer’s loan proceeds will be funded to ensure that the funds will be available at the time of closing.”

terminate the offer and have the option to: a) request the earnest money as liquidated damages; or b) sue for actual damages.

sue for specific performance; or

The parties could agree in the offer to purchase to a liquidated damages provision – a dollar amount per hour/partial day/day that the buyer will pay if the mortgage funds are not available within ___ hours of the completion and execution of the closing documents.

terminate the offer and request the return of the earnest money, sue for actual damages, or both.

Recognize that back-to-back closings should only be scheduled if the lender in the first closing has guaranteed that funds will be available at the scheduled time for closing.

Other suggestions may be found in the article “Are No funds ‘Good Funds?’” in the October 2006 edition of the Wisconsin Real Estate Magazine available at http://news.wra.org/story.asp?a=571.

No Funds at Closing The broker has a transaction set to close today. The lender is saying they cannot fund the loan even though the buyer had a pre-approval and a loan commitment. If the transaction does not close today, is the offer null and void? The buyer submitted an amendment to extend the closing but the seller may not agree. The offer to purchase does not automatically become null and void simply

because the closing date passes. The broker should present the buyer’s amendment for the seller’s consideration. If the parties do not perform as stated in the offer, the parties have a variety of options. Whether the seller elects to terminate the offer, amend the offer per the buyer’s request or offer a different amendment is the seller’s decision. If the parties reach a compromise, the broker may draft an amendment to implement the new agreement.

wisconsin real estate magazine

july 2010

If the seller defaults, the buyer may:

In addition, the parties may seek any other remedies available in law or equity.

HUD-1 Review How soon before closing does a buyer need to receive their closing statement? The HUD-1 Settlement Statement lists all the charges and credits to the borrower and seller in the transaction. The borrower may ask to see the HUD-1 one day before closing. The HUD-1 should clearly compare the buyer’s estimated and final costs. If there are discrepancies, they should be addressed before the closing. “Shopping for your Home Loan, HUD’s Settlement Cost Booklet” contains step-by-step guidance for buyers in the home buying process and reviews the Good Faith Estimate and the HUD-1 in some detail. The booklet is a good resource for agents as well, and is available online at www.hud.gov/offices/hsg/ramh/res/ Settlement-Booklet-January-6-REVISED.pdf. news.wra.org

Closing Costs

Broker Incentive for Repairs

The offer provides the seller will pay up to $1,800 of the buyer’s prepaids and closing costs. What can the buyer use these funds for?

After the home inspection, the buyer wanted some items fixed and the seller said no. No one wants the transaction to fail, so the co-broke and listing offices have agreed to split the costs. How should the paperwork be handled to keep the deal together?

One frequent area of disagreement is whether prepaids and closing costs include a buyer’s loan points. Prudent brokers who draft contract provisions referring to “closing costs” should also define “closing costs” in the offer. This definition may be inclusive or exclusive. An inclusive definition lists permissible closing costs; an exclusive definition includes all fees and costs paid at closing except for those listed. If an amount is given for a closing cost allowance or credit, specify clearly if the amount is a maximum (closing costs not to exceed a certain amount or closing cost up to a certain amount) and what will happen to the balance if actual costs do not reach the maximum credit or allowance. It is also wise to check with the lender in advance to make sure the provision will not violate the lender’s underwriting standards.

Walk-Through The selling agent has an out-of-town buyer. The buyer wants the selling agent to do the final walk-through before closing. Is this the proper thing to do or does it expose the agent to possible pre-closing or post-closing issues? Alternately, the buyer wants his home inspector to conduct another inspection. In the new WB-11 Residential Offer to Purchase, instead of being referred to as the “Pre-Closing Inspection,” this section was renamed the “Buyer’s Pre-Closing Walk-Through.” This change was designed to eliminate buyer misconceptions about having the home inspector accompany them during that final “inspection.” This section does not give buyers the authority to conduct a new home inspection or a follow-up inspection. Rather, the buyer may simply walk through the property to make sure that there have been no major changes in the condition of the property and that the seller has repaired the property in the manner agreed in the contract, most often in connection with the Inspection Contingency. It would be preferable for the buyer or someone acting on the buyer’s behalf to conduct the pre-closing walk-through. Should the agent miss a problem in the walk-through, the buyer may sue the broker. It is best to have the buyer or another representative of the buyer do the walkthrough to avoid broker liability.

Buyer Incentives Disclosed to Secured Lender Is there any reason why a broker could not offer to pay closing costs for a buyer as an incentive to purchase? Brokers may offer incentives to buyers, however the broker should consider the implications of giving cash or another incentive to a buyer with regard to the buyer’s ability to qualify for and obtain financing. Any incentive should be documented in advance of closing and included on the HUD-1 to avoid any accusations of fraud. The broker must make sure the incentive is disclosed to the buyer’s lender. Brokers offering incentives may find it prudent to instruct the buyer to fully disclose the incentive when applying for a loan so the lender can avoid placing the buyer in a loan program where the incentive payment would pose an obstacle. More information about incentives is available in the October 2006 Broker Supervision Newsletter at www.wra.org/bsnoct06. wisconsin real estate magazine

july 2010

If the buyers are willing to proceed with the transaction, so long as the brokers pay for the repairs, this can be documented in a buyer incentive agreement. Incentives may be offered to sellers or buyers to induce them to sell or purchase real estate. Such party incentives should be clearly documented in advance – prior to closing – to establish the payment is not a fee-splitting arrangement with a non-licensee. The brokers could draft an agreement between themselves and the parties and incorporate it into the offer to purchase via an amendment. Although the offer to purchase is a contract between the buyer and the seller, such an amendment would ensure the parties’ consent and memorialize the incentives so that the buyer’s lender is aware and the title company properly reflects these payments on the closing statements. Tracy Rucka is Director of Professional Standards and Practices for the WRA.

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LEGAL

Wisconsin Supreme Court Rules on Unauthorized Practice of Law BY KEVIN KING AND CORI LAMONT

n June 1, 2010, the Wisconsin Supreme Court unanimously voted to adopt SCR Chapter 23 Regulation of Unauthorized Practice of Law. You may be sitting there thinking, “What does this have to do with me?” Frankly, it has everything to do with you. Imagine waking up tomorrow in a world where a real estate licensee is no longer able to draft forms on behalf of customers or clients, a world where the court decided only those authorized to practice law in Wisconsin and/or the consumer would be able to draft a contract relative to a real estate transaction. If this event did occur, clearly your day, your career, your life would be very different. More than seven years ago, the State Bar of Wisconsin initiated a petition requesting the Supreme Court create a definition for both the lawful practice and unauthorized practice of law. Under the language of this original petition, the ability of the real estate licensee to draft forms on behalf of consumers would have vanished. The WRA had serious concern that if the original petition was granted, absent specific language, the rule had the potential to take away a great portion of the role of the real estate licensee in a real estate transaction. This is not the first time the role of the real estate licensee has been challenged. In the early sixties, the Attorney General for Wisconsin brought action against what is known today as the Department of Regulation and Licensing (DRL) and the WRA, contesting the ability of real estate licensees to use forms incidental to their practice. By a narrow 4-3 decision, the Supreme Court confirmed the real estate licensee’s limited right to practice law in a real estate transaction. In State ex rel. Reynolds v. Dinger (1961) the Supreme Court held that when a licensee uses the state-approved forms

wisconsin real estate magazine

to accomplish the intent of the consumer, it is the practice of law and provides a useful benefit to the public. For almost 50 years, Dinger has afforded real estate licensees the right to draft stateapproved forms on behalf of consumers. Over the last two decades, the State Bar collected complaints alleging the unauthorized practice of law in many different areas and industries such as: real estate, financial planning, medical powers of attorney, title companies, insurance and more; however, the State Bar does not have any authority over these matters. Therefore, the State Bar petitioned the Supreme Court to create a rule defining the unauthorized practice of law and the creation of a new enforcement process. In recent months, the State Bar declared it was not looking to change the role of the real estate licensee in transactions. In a State Bar article published March 9, 2010, Tom Zilavy, chair of the State Bar’s Unauthorized Practice of Law (UPL) Policy Committee, stated, “The REALTORS® seem to be concerned that what the State Bar is proposing would somehow have a negative impact on the holding in the ruling in the Dinger case,” Zilavy said. “The State Bar has no interest in disturbing Dinger. There is no intention to reverse or go backward on that ruling. I hope these comments give the REALTORS® some feeling of solace that we are not trying to cause trouble for them in that area.” (Adam Korbitz, Supreme Court Unanimously Votes to Proceed With Draft UPL Rule, Rotunda Report, March 2010). Even with this public assurance by the State Bar, the WRA was still extremely concerned about the outcome of the petition. Our main concern was the creation of a rule that limited the role of the licensee in a real estate transaction. The WRA acknowledged that if the court

july 2010

adopted SCR 23, certain language would need to be included allowing licensees to continue their practice. And on June 1, 2010, the court adopted a rule that incorporated the language supported by the WRA. The adopted rule also rejected the State Bar’s request to create a third-party enforcement entity to penalize SCR 23 violations. Rather, the court left the enforcement to civil and criminal statutes Wis. Stat. §§ 100.18 and 757.30, respectively. In addition, the court established a five-year sunset provision, meaning the court will review the matter again in five years to address any needed modifications to the rule or possibly remove the rule altogether. Real estate agents were not the only ones at risk had the State Bar’s proposed rule been passed. Other industries and professions were also watching this petition closely. For example, the court’s adopted rule also provided exclusions for other professions such as CPA’s, lobbyists and members of the insurance industry. While the court voted to adopt SCR 23 on June 1, 2010, it withheld release of the rule in its final format. However, the court indicated an anticipated effective date of January 1, 2011. Once effective, the ability to draft real estate contracts on behalf of consumers will have the support of both Dinger and SCR 23, solidifying the real estate licensee’s role in the transaction. Now that’s a world to wake up to. As of the date of this article’s publication, the court had not released the final version of the adopted rule. The most current version of SCR 23 is available at http://wicourts.gov/supreme/ docs/0709upldraft.pdf. Kevin King is the Executive VP of the REALTORS® Association of South Central Wisconsin. Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA. news.wra.org

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wisconsin real estate magazine

july 2010

REALTOR® SALES tip

CUSTOMER LOYALTY How to Earn it and How to Keep it BY MARCUS A. WALLY

Loyalty. It’s what each of us longs to have, dies to earn, and would give anything to keep. Our customers are the life-blood of our business, and so much of the real estate business is about building relationships. That begs the question, how do you achieve the kind of relationship with your clients where they would never think of choosing anyone else? Customer loyalty is the tendency of a customer to choose one business or product over another for a particular need. In the packaged goods industry, customers may be described as being “brand loyal” because they tend to choose a certain brand of soap more often than others. Note the use of the word “choose,” though; customer loyalty becomes evident when choices are made and actions taken by customers. Customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. Loyalty is demonstrated by the actions of the customer; customers can be very satisfied and still not be loyal. Customer loyalty is the result of well-managed customer retention programs. All customer retention programs rely on communicating with customers, giving them encouragement and reasons to remain active and choose to do business with a particular company. You want customers to do something, to take action. You want them to visit your website, make a purchase, sign up for a newsletter. And once they do it for the first time, you want them to continue doing business with you, especially since you probably paid big money to get them to do business with you in the first place. You want to create a “loyal” customer who engages in profitable behavior.

wisconsin real estate magazine

july 2010

Customer data and models based on this data can tell you which customers are most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you present it to the customer. The data will tell you who to promote to, and how to save precious marketing dollars in the process of creating customers who are loyal to you longer. But earning a consumer’s loyalty is closely related to our ability to offer exceptional customer service (ECS) to everyone we serve. Exceptional service can lead to life-long loyalty. Most consumers have been bitten by the luxury bug at some time or another through high-end restaurants and hotels, traveling first class on an airline, owning and driving a luxury vehicle, etc. So today’s customers have probably tasted the good life and use it as a point of comparison. For us, that means we must constantly be aware of the level of superior service we give each customer each day. Every contact is an opportunity to create customers for life and this is the breeding ground for teaching customers about loyalty. Notice I say “teaching.” Most folks are not aware of how the real estate business operates, so each time I meet a new customer/client, I take the time not only to introduce myself, but to share a little bit about our business and how it works. I combine this with following our code of ethics, which requires me to find out, up front, if a relationship currently exists with a buyer or seller. While adhering to our code of conduct, I take the time to ask whether or not a relationship with a broker is current and also share how I get paid. I look at each person as a potential cheerleader for my business, so they must be aware of what I do and the role they can play in helping grow my book of business. I guess you could say it this way: “If you don’t ask, you don’t receive!” To recap, I try to: share how we work, explain how I get paid, ask for their news.wra.org

commitment, and then teach them how to refer me. They know right up front that my ability to help them depends on their ability to help me by referring their friends and family. I only have so much time in a day and I would rather spend my time dedicated to an individual’s needs than working on marketing materials and spending $$ trying to develop new customers. Think of the amount of time, effort and money we spend to generate “new business” and what a burden it can be to constantly be trying to meet new buyers/ sellers. It is exhausting. So why not allow others to help facilitate this task? Which brings me back to LOYALTY. When a current customer is satisfied with our performance, we are in the prime position to ask them to tell their circle of friends about the transaction. Furthermore, while they are reeling from their experience, they have the solid ability to steer their circle of family, friends and neighbors to us. Hence, qualified leads and more net dollars into our wallets due to the fact that we are not spending advertising $$ and working with prospects that may never buy/sell. And who wouldn’t like to have a rock-solid pipeline of qualified referrals from folks who love us? Not to mention, these new prospects are already partially “sold” on us and our abilities because a third party just gave them a personal testimonial on our skill set! It’s a win-win for all involved. For the folks who refer us, knowing that we will do a superior job makes them look wonderful to the people they send to us. And then the new customers go back and tell their friends how grateful they are that they were put in touch with us. Everyone is happy…What a terrific business we are in when we know how to work it!

Now, all this takes training and practice on our part because we must learn how to teach our current customers how to refer us. Education is our friend and practice, as they say, makes perfect. Here are 4 good practices to keep in mind: •

•

Always give two business cards. And when you are asked why two, say, “One for you to keep and one to give out.” In general, most people will never give away your business card as that is their lifeline to you. Well, we want them to give away the card, so give them the tools to help promote you! In most every form of correspondence, “ask” for a referral. I always thank them for their loyalty to me and my firm. This is nothing more than constantly reminding folks of the type of business I am in and how valuable they are to me. Pull them into your success and allow them to contribute. Contribution makes all humans feel needed, valued and appreciated.

•

Thank them for their loyalty. In every note card I write (I’m a big believer in the power of personal notes) I always end by thanking them for their loyalty to me. This is my habit…just like brushing and flossing my teeth.

There’s no getting around the fact that we only have 24 hours in a day and our time is our most valuable asset, so notch up your LOYALTY approach and get your networks to help you increase your volume of business. Not only will you find a higher net worth; the reward you receive by working by referral brings a whole new meaning to finding the perfect home! Marcus A. Wally, MBA, is an active Florida REALTOR® in St. Augustine, Florida. Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. He can be reached at (904) 669-1081 or by e-mail at marcuswally@ comcast.net.

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july 2010

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USE ELECTIONS TO DEBATE THE BIG STUFF BY MICHAEL THEO

wisconsin real estate magazine

july 2010

news.wra.org

any citizens view elections with disdain, particularly all those ads about irrelevant issues and personal attacks. But elections and electioneering present an opportunity to engage candidates – incumbents and challengers alike – in a dialogue about the important issues challenging our nation, state and local communities. I’m talking about the policy-related issues, big and small, that impact and often define our quality of life, including taxes, education, infrastructure, government services, business and job development, crime, the environment, and much, much more. In short, elections should be used to debate the big stuff. The elections this November offer us, as citizens and REALTORS®, just such an opportunity. All of us voters should use this opportunity to insist that candidates discuss important, relevant issues and tell us clearly how they plan to address these issues if they are elected. I plan on using these pages over the next few months to discuss some of these big issues, and invite you to comment and offer your own ideas. Here are two biggies to consider:

Transportation Fund Integrity A coalition of interest groups, led by the Transportation Development Association, is pushing counties to place advisory referendums on the ballot this fall in support of a state constitutional amendment prohibiting the use of transportation funds for anything but transportation-related expenses like building or maintaining roads. The integrity of the transportation fund became a big policy issue after Governor Doyle and the legislature took money from this “segregated fund” and used it to help balance the past several state “general fund” budgets. They made up for the lost cash with spending reductions and increased bonding. (To the tune of about $1.2 billion in transfers out of the fund, and replaced with about $434 million in spending reductions and $800 million in new bonding.) The referenda are no-brainers to support, right? The state gas tax, vehicle registration fees and federal transportation funds should be used only for transportation related expenditures, right? But with large state budget deficits, Governor Doyle used these funds to pay for schools and aids to local governments, protecting these funds from deeper cuts. His logic was our priority should be education, not roads. But therein lies the dilemma. While in pure policy terms it may seem simple to support constitutionally-protecting the transportation fund from such raids in the future, to do so means other taxes may have to be raised, deeper cuts have to be made or more borrowing has to occur. For example, prohibiting the use of transportation funds for schools could lead to increased property taxes, if the state fails to find other funding sources and/or spending cuts. Is that what voters want if they vote “yes” on the transportation referenda?

wisconsin real estate magazine

july 2010

Whether you agree with those who then supported the fund transfers or those who now support forever fencing off those funds, the debate is worthy of asking candidates where they stand because the referenda are not self-executing. The new governor and lawmakers elected in November will have to decide. Let’s ask them what they will do.

Public Employee Pensions and Benefits Can revenue-ravaged states fulfill past promises to public employees to fund their robust pensions and benefits? This question is being raised in many states across the nation and is one that the gubernatorial and legislative candidates in Wisconsin must also debate. While this question is being raised at the state and municipal levels across the country, California and New Jersey seem to be at the center of this debate. Although the public has historically supported their teachers, police, state workers, fire fighters and other public servants, the current economic downturn has many private sector workers asking why public sector job security, pay, benefits and pensions have largely escaped the cuts they’ve had to endure. Unions have long argued their comparatively more generous benefits have been bargained for, often times in exchange for lower salaries than their private sector counterparts. However, as private employees have seen their jobs slashed and salaries and benefits cut, it seems unfair to them that public employees somehow argue their salaries, pensions and benefits should be exempt from current market realities – especially since these same income-strapped private sector employees pay ever-increasing taxes necessary to pay, in part, for those public sector benefits. Regardless of which side you support, this issue has a substantial impact on government spending at all levels. The current fiscal realities of lower government coffers and higher health care and pension costs, combined with the demographic reality of longer-living retired public employees, creates the “perfect fiscal storm” that simply can no longer be ignored. The new governor and lawmakers elected in November will have to decide. Let’s ask them what they will do.

As Voters and REALTORS®, Let’s Do Our Part In a flourishing democracy, we voters have as much of a responsibility to define the issues in an election as the candidates do. Let’s take that responsibility seriously and use these elections to debate the big stuff. Share with us what you think those issues should be by emailing them to mtheo@wra.org. Remember, the new governor and lawmakers elected in November will have to decide. Let’s ask them what they will do. Michael Theo is Vice President of Legal and Public Affairs for the WRA.

public AFFAIRS

wisconsin real estate magazine

july 2010

news.wra.org

BUYER BEWARE

Wisconsin Supreme Court Upholds Specific Performance As An Available Remedy to Sellers When Buyers Breach the Contract BY TOM LARSON

n June 3, 2010, the Wisconsin Supreme Court, in Ash Park, LLC v. Alexander & Bishop, Ltd., held in a unanimous decision that sellers of real estate may seek specific performance of the contract and interest on the purchase price without first pursuing other remedies when buyers breach the contract. This case underscores the importance of understanding all provisions in the contract, namely the available remedies, before entering into the agreement.

essentially wanted the court to re-write the contract, which the court was unwilling to do. Specifically, the court held: •

A seller may seek specific performance of the contract when the contract specifically provides that specific performance is an available remedy.

•

A seller is not required to demonstrate that other remedies are inadequate as a prerequisite to an order for specific performance. Although a judicial sale and deficiency judgment may be a means of effectuating an award of specific performance, the court concluded that this procedure is not mandatory. Rather, it depends on the facts and equities of the case.

•

A seller does not have a duty to mitigate damages when asking for interest in addition to specific performance. Because a duty to mitigate would be contrary to an award of specific performance and would pose practical difficulties for the non-breaching seller, the court declined to require mitigation when a seller asks for interest in addition to specific performance.

Facts of the Case In this case, Alexander & Bishop (“the Buyer”) entered into a contract to purchase vacant land to develop into a shopping mall from Ash Park, LLC (“the Seller”). The contract specified that the Buyer could terminate the contract by a certain date if the Buyer could not find an anchor tenant. Under the contract, the Buyer could extend the notice date by two months if the Buyer paid a fee for the extension. Ultimately, the Buyer was unable to secure an anchor tenant. However, rather than notifying the Seller in writing before the notice date, as required by the contract, the Buyer notified the Seller of this information after the notice date. The parties were unable to negotiate a compromise and the sale did not close as set forth in the agreement. The parties used the WB-13 Vacant Land Offer to Purchase, which authorizes the seller to sue for specific performance if the buyer fails to perform under the contract. Accordingly, the Seller sued for specific performance and interest calculated from the date the property was to close to the date of the court’s ruling. The circuit court ruled in the Seller’s favor, awarding both specific performance and interest. The court of appeals affirmed the circuit court’s decision.

The Supreme Court’s Ruling On appeal to the Wisconsin Supreme Court, the Buyer made several arguments as to why the Seller should not have been awarded specific performance and interest. First, the Buyer argued that specific performance should not be awarded in cases where monetary damages are an available remedy. Second, the Buyer maintained that the Seller was first required to pursue other legal remedies (e.g., a judicial sale of the property) before seeking specific performance of the contract. Lastly, the Buyer argued that the Seller should not be entitled to interest on the purchase price or, in the alternative, should be required to attempt to sell the property to another party after the breach has occurred as a way to mitigate damages and offset any interest owed on the purchase price. The supreme court rejected these arguments and upheld the circuit court’s decision to award specific performance of the contract and interest on the purchase price. While the court cited various reasons for rejecting these arguments, the primary reason was that the contract identified specific performance as an available remedy and the Buyer

wisconsin real estate magazine

july 2010

Why This Case Is Important to REALTORS® According to REALTORS® around the state, buyers often believe that they can enter into a contract and walk away from the deal without incurring any penalty. Apparently, some buyers believe that sellers, in such situations, will not go through the hassle of pursuing any legal recourse because of the related time and expense. In a strong real estate market, this may be true. This case, however, serves as a strong reminder that contracts often contain severe penalties for those who are in breach. In addition to the WB-13 Vacant Land Offer to Purchase, specific performance is an available remedy to both buyers and sellers in almost all state-approved real estate forms if the other party defaults under the contract (e.g., WB11 Residential Offer to Purchase (lines 281-300), WB-12 Farm Offer to Purchase (lines 268-287)). When a buyer or seller refuses to perform a contractual obligation, REALTORS® should continue to encourage both parties to seek advice from legal counsel regarding their rights and obligations under the contract. Because the outcome of this case had a direct impact upon the real estate industry and the interpretation of state-approved real estate forms, the WRA filed an amicus brief in this case arguing that sellers should be able to seek specific performance and interest when a buyer breaches the contract. For more information, please contact Tom Larson (tlarson@ wra.org) at (608) 240-8254. Tom Larson is Director of Regulatory and Legislative Affairs for the WRA.

public AFFAIRS

CANDIDATE SELECTION BY JOE MURRAY

t’s another election year and that means I will get the following question many times:

How does the Wisconsin REALTORS® Association (WRA) and the National Association of REALTORS® (NAR) decide which candidates to support? Given that our Association spends a lot of time and effort to raise money in support of real estate friendly candidates, this is a logical question. In reality, by the time we are deciding which candidates to support, we are well into the “political cycle of life.” The cycle includes raising money through RPAC, interviewing candidates, compiling a detailed voting record, getting involved in campaigns and, ultimately, working with these lawmakers once they get elected. Then the cycle starts all over again two years later. So let me answer the endorsement question by explaining the process your organization uses to decide which candidates will receive REALTOR® support at the federal, state and local level.

Federal Candidates Let’s use U.S. Senator Russ Feingold as an example, since he is running for re-election this year. Feingold is opposed by first-time Republican candidate Ron Johnson of Oshkosh. Feingold is the incumbent finishing his third six-year term and Johnson, a 55-year-old plastics manufacturer and company owner, has never held political office. Feingold has a longestablished voting record on REALTOR® issues and Johnson has no record at all. With incumbents running for re-election at the federal level, NAR will review their voting record on important REALTOR® issues and several other factors important to our industry, such as key committee votes, access by NAR staff, etc. If the legislative record is good and NAR believes the incumbent deserves REALTOR® support, they work with the state Association (WRA) to review the record and make a joint recommendation for support to the REALTORS® Political Action Committee Trustees in Washington, D.C. If the NAR and WRA decide to support a challenger over the incumbent, it’s because the incumbent’s record on NAR and WRA issues is

wisconsin real estate magazine

not very good. If this is the case, the WRA and NAR will ask a challenger to fill out a detailed questionnaire on critical REALTOR® issues, hold a face-to-face candidate interview and make a recommendation to the NAR Trustees. The NAR Trustees have the final say. In either case, a decision to support or oppose a candidate is made with great attention paid to two important factors: for an incumbent, what is the candidate’s record; and for a new person, how would they likely vote on real estate issues? The process to reach a decision is very thorough.

State Candidates First, statewide races. For Governor, U.S. Senate, Lieutenant Governor and Attorney General, the WRA Board of Directors must take a formal vote to support a candidate for statewide office. Prior to the official vote of the WRA Board, the vetting process to reach a decision is very rigorous. Decisions on statewide candidates start with the “Political Strategy Group,” a formal committee of the WRA that includes current leadership, past leadership and RPAC committee members. This committee reviews the record of incumbents, compares that record with required information on potential challengers, and provides a critical in-depth evaluation of all the facts surrounding a candidate and the race. Every facet of the candidate(s) is reviewed, discussed, and ultimately voted on by this committee first. The next step involves the REALTORS® Political Action Committee and ultimately the Board of Directors. By the time a final decision is made on any statewide race, at least three major committees of your organization, including the WRA Board of Directors, have been fully educated on the merits of the candidate(s) and the possible consequences of their election. Each committee must vote to approve the decision/ recommendation of the previous committee. In individual legislative seats, the REALTORS® Political Action Committee (RPAC) Trustees have final authority, but even these decisions are reviewed by the other committees (Political Strategy Group and Board of Directors) to ensure sound decision making by the RPAC Trustees.

july 2010

In legislative seats with no incumbent running (open seats), a local committee of board leaders conducts a formal face-to-face candidate interview with all candidates running in a specific district with recommendations going to the RPAC Trustees. More often than not, the Trustees accept the local Board’s recommendation. With incumbents, it starts with their record. If the incumbent has a record of support with the WRA, they receive REALTOR® support. If the incumbent’s record is poor, challengers are interviewed for possible support.

Local Races Each local Board may do it a little differently, but for the most part the process of supporting candidates for local office such as county board, city council or mayor is similar to the federal and state process. If the incumbent has a good record, and the local Board has a formal process, the local Board supports the incumbent. If not, the challengers are vetted and a decision made on the merits of the candidates running. The bottom line: at each level, the candidates, their records, their responses to specific questions, and their philosophy and approach to business and real estate issues are key. Candidates who deserve our support often receive it; those who don’t must look elsewhere for support.

Conclusion While you may or may not always agree with the recommendations of your Association, the vetting process for candidate selection is both thorough and logical. Candidates, both Democrat and Republican, who support the “REALTOR® Party” are recommended for support. Vote for the candidate of your choice, but factor in the work of your Association when you decide. It’s not an arbitrary process. Your local, state and national REALTORS® Associations care about your ability to succeed in the real estate business and that’s why they put in the time and effort to offer suggestions on which candidates are the most real estate friendly. Joe Murray is Director of Political Governmental Affairs for the WRA. news.wra.org

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