July 2011 - Wisconsin Real Estate Magazine by Lauren Bizorik

Legislature Completes Budget Early What changes will impact the real estate industry?

State Senate Recall Elections Historic recall efforts now underway in Wisconsin.

MAGAZINE

July 2011 $5.00

FACING CHANGE WRA 2011 CONVENTION

September 13-15, 2011

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Kalahari Resort & Convention Center - Wisconsin Dells

b owe r l e st ve

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table of contents

july

2011 |

WRA 2011 CONVENTION

featuresCHANGE FACING 16

2011 Annual Convention

Face the changing industry with a smile at the WRA’s 100th Annual Convention, offering top-name speakers, first-rate programs and entertainment that is second to none.

CHANGE

FACING10 Things You Should Know about E-mail Delivery

Eliminate the confusion of electronic consent and e-mail delivery with these 10 tips.

WRA 2011 CONVENTION

State Senate Recall Elections

Altering Landlord-Tenant and State-Local Relations

These political facts and figures can help guide you through the state’s historic and unprecedented Senate recall elections now underway.

New controversial legislation aims to improve the ability of landlords to screen potential tenants and standardize the residential rental marketplace in Wisconsin.

wisconsin real estate magazine

articles

WRA 2011 CONVENTION

27, no. 10

FACING CHANGE

vol.

july 2011

Both Home Sales and Median Prices Fall in May

As expected, Wisconsin existing home sales in May were below the sales figures recorded in May 2010.

Techhottips: Technology Tips & Tools Google Analytics, Panoramio and Roost offer tools to help real estate professionals make the most of their Web presence.

Legal Hotline: Employment Expectations Inclusive written agreements regarding employment expectations are crucial when defining the relationship between brokers and their agents and employees.

When the Bargain Home Needs Some Repairs The FHA’s Renovation Loan Program allows home buyers to transform a fixer-upper into a dream home with one mortgage loan.

Legislature Completes 2011-13 State Budget Early

Property tax caps and changes to the prevailing wage law are among the considerable changes in the new state budget that will impact the real estate industry.

News

inside the wra

with bill malkasian

Top News Stories in and Around the Industry vice president of the Metropolitan Milwaukee Fair counties. The organization’s research found that the United Way Honors the Stark Family Housing Council, laments, “It’s been a long time number of people in those markets paying too much for Service his monthtowe bring you The our annual “convention debate. was finally adopted coming.” Pewaukee-based commission has The budget for their rental housing will double from around

issue,” featuring the of programs the Legislature and signed into law not incredible conducted line-up a comprehensive review of by housing 70,000 currently to a whopping 140,000 by 2010. and speakers wepatterns have since planned for our annual by Gov. Walker on June 26. Tom Larson’s the 1970s. Some say a partial solution would be for the U.S. convention in September. But more about that later. article details the numerous budget provisions government to reverse course on housing policy and First, I’d like to take a momentWisconsin to talk about Receives a topic thatMillions is never toofEase interest to REALTORS®. substantially increase funding for rental assistance, Community Crisis far from our minds: the currentForeclosure real estate market. particularly help for working United Way of Dane County The conclusion of the budget debate families. allows us Milwaukee Business Journal (WI) (09/30/08) market continues to show volatility. Talking with to focus on the historic recall efforts that are now United The Way 2011 of Dane County The state of Wisconsin is due to receive nearly $39 ® Free FHA Toolkit REALTORS underway. TheNAR WRAReleases will keep members informed about state, I hear encouraging news of recognized the Stark from Familyaround with the million in federal funds to stabilize neighborhoods Wisconsin REALTORS® Association (10/30/08) our involvement and reaction to these unprecedented closings and increases onestave week, and then the next week the 2008 Tocqueville Societyin salesand off a spate of abandoned homes. According Award for outstanding service the Dane County Murray’s facts and you figures I heartoheartbreaking stories oftoconsumer problems and thearticle WRA offers are eager to help meet the HUD andfinancing Gov. Jim Doyle, the and funds are elections. separate JoeNAR Billcommunity Malkasian and United Way. TocquevilleofSociety to helpisguide current us through this very political We theThe devastation foreclosuresfrom andapproximately short sales. We aremillion living in challenges of non-traditional the troubled economy. $9.2 thea government WRA President Award celebrates and acknowledges people summer. Stayknow tunedthat for more updates from the very transitional periodorin theawarding real estate industry. This presents you need resources thatWRA. can help you the city of Milwaukee, where the foreclosure families, such as the Starks, who have made a major not only ® tremendous challenges, , but also for youris awarding the ratefor is REALTORS currently 9.9 percent. HUD close transactions, and you need them at little or no impact on the quality of life in Dane County through In other political news, a new bill that would allow landlords itsour Neighborhood Stabilization Program, state association as we beginfunds layingviaout strategic plan. The cost. NAR has just released an all-new FHA Toolkit their exceptional service and commitment to the to more screen prospective tenants is making its under which almost $4 billion is being allocated to effectively real estate market is going to take a long time to recover. That’s online for FREE to help you get clients the financing community. way through the Legislature. Michael Theo addresses this local and state governments for the redevelopment a reality. they need in a credit-strapped environment. It is legislation in his article this month. of abandoned and foreclosed houses. one of the most comprehensive toolkits NAR has City Housing Authority Receives July marks the time of year when the WRA plans for the next ® ever produced, it’s available all REALTORS 100-Unit Grant year’s annual operational budget. Additional articles that applyand to your businesstocover topics such Sites: Just for Personal TheNot fluctuations in the market Milwaukee Journal Sentinel (09/25/08) Pabst, Georgia right now by visiting the link below. They also have as the emergence of FHA rehab loans, tips to avoid mistakes Connections make it very difficult to predict where we’ll be Anymore a year from now. launched a new page called “NAR You Navigateof when using electronic communication, andHelps the importance The city of Milwaukee’s We housing authority is dueand market Minneapolis-St. Paul Business Journal Grayson, expect the industry to improve. However, we (09/29/08) will the Current Economy” where you can find dozens of Katharine to receive $6.7 million in federal Hope VI money written contracts in defining the relationships between brokers ® likely see a decrease in membership as more REALTORS leave great and products and resources, like the FHA Toolkit,an to build 100 new housing units. The 100 units will ® and their agents employees. This issue also includes St. Paul, Minn.-based REALTOR Boardman the business. We know that squeezing the dollar is going to be Teresa an be constructed in a 2.5-mile area and will include at a steepJohn discount. Visit article writtenfor by free WRAorChairman Horning on www.Realtor. the “American says Flickr, Facebook and other social networking even greater challenge. 29 public housing and affordable rental units; org/NARHelpsYou for links to these great programs Dream” of home ownership and how we can work to preserve that sites make it easy to meet people who might nine affordable housing units for income-eligible and products. eventually clients. While many dream, even in these complicated times. I’d like to put in a plug One way you can learn from and survivebecome in these unique times is professionals families; and 62 moderately priced, open-market are using these sites Resort to make contacts here about your WRA Chairman. John has led the ship through by attending our annual convention at the Kalahari in business the condominiums. HUD Secretary Steven C. Preston Loans Going Strong,commitment Albeit a to and companies use them is tochockconduct background thick and thinHome since last October. His relentless Wisconsin Dells September 13-15. This year’s schedule comments, “Milwaukee’s housing authority has checks on or how recruit new workers,these many simply want Bit Tighter, in Area the WRA is truly appreciated by me and the staff. full of programs and ideas focusing to get through demonstrated it has the leadership to lead and to connect have similar interests. Wisconsin State Journal (10/17/08) Balousek, Marv times andlives. reach another levelwith as people things who continue to revitalize neighborhoodschanging and transform According to Boardman, “The hard sell is In dead. the Itend, July is poised to be an interesting and hopefully evolve theand industry. Fulfill your CE requirements with the best Cities like Milwaukee change and in grow need to Despite the ongoing national credit crisis, property doesn’t work door-to-door, and it doesn’t work on prosperous month for REALTORS® as well as the WRA as we revitalize housing to makeinstructors sure many inaren’t priced take advantage of prime networking the industry, professionals say mortgage money remains available social networks.” On Flickr, Boardman connected do a lot of planning for next year’s budget. I hope to see many out.” Milwaukee is one of a half-dozenand, housing opportunities, of course,with havea fellow plentyphotographer of fun - whether it’s throughout southern Wisconsin to home buyers who eventually used her of you at convention. I cannot place enough emphasis on authorities nationwide toat receive Hope the golfnew outing, the VI icebreaker partytoor one of athe many other with solid credit. Ron Steinhofer, manager of services purchase home. the value and importance of this event. I encourage you to grants. exciting events. This year we are even offering a Real Estate Bar Marshall & Ilsley Bank’s regional home lending visit www.wra.org/Convention to learn more about what Camp where there is no schedule or agenda -Push just a Rents group ofHigher, Foreclosures group, states, “There’s plenty of money for home Housing Study Delay Frustrates this year’s convention has to offer. people sitting around talking about their favorite technologies. Be

Advocates

sure to read thisScott month’s Milwaukee Journal Sentinel (10/07/08) Williams,

Squeezing Low Income Families

loans out there. It is slightly more difficult to qualify

Minnesota Radio about (MN) (09/21/08) issue to find Public out more the 2011Olson, Dan than two or three years ago, but if you have a good See you in September! convention and register earlyInto Minnesota’s save and beat the last-minute credit score, a good job and a down payment, money Twin Cities, a wave of home Two years after promising the Milwaukee metro rush. foreclosures has pushed more people into the rental is available.” Steinhofer adds that banks still are

area’s first major housing study in three decades, apartment sector. The result is an intensifying the Southeastern Wisconsin Regional Planning opportunities Looking for educational beyond those offered at demand on Minneapolis and St. Paul’s rental housing Commission (SEWRPC) is convention? still strugglingThe to get the 2011-2012 stock, continuing education courses arerate is very low so much so that the vacancy effort launched. Proponents hope the study will now available as distance learning options from the WRA. Now and rents are on the rise. This, in turn, means lowserve as a catalyst for improving affordable housing you can complete the required CE credits when and face where it is monthly income working families higher Billrents opportunities throughout the city’s suburbs. But convenient Even though license even the though theirrenewal income deadline hovers at unchanging commissioners have yet to assemble for an you. advisory levels. Sincea 2005, the Twin Cities apartment not until 2012, it is definitely convenience to have committee to oversee the isresearch or Dec. set a 14, specific hasdo. dipped from 7 percent to closer to these courses not all rate states timetable for conducting the survey. Philavailable Evenson,early -vacancy 4 percent. Average monthly rents over that same the commission’s executive director, said other issues Moving individual focus to a are much one,$25, therising to more time span up broader more than keep getting in the way. The delaysfrom have an frustrated political scene in our state is certainly keeping things interesting than $850. The St. Paul-based Wilder Foundation housing advocates the most. Bethany Sanchez, recently reviewed income databudget for several Twin Cities this summer. The end of June signaled the end of the state

wisconsin real estate magazine

july 2011

making loans via such programs as Fannie Mae and Freddie Mac. Furthermore, credit standards remain about the same as they were six months ago, meaning that qualified home buyers can get loans if they have the proper income verification. On the downside, banks have been less willing to make loans with higher loan-to-value ratios. In addition, conventional financing without a down payment has indeed disappeared. However, 100 percent financing is still available with Veterans Administration and Rural Development home loans.

www.wra.org/wrem

Real Estate

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

notes from the wra

John Horning, Chairman jphorning@shorewest.com

Thank You to Convention Exhibitors, Sponsors & Advertisers

Robert Keefe, Chairman-Elect rkeefe@keeferealestate.com

The Wisconsin REALTORS® Association would like to give a special thanks to the following companies for their early support of the 2011 WRA Annual Convention.

Renny Diedrich, Treasurer rdiedrich@coldwellhomes.com William E. Malkasian, cae, President wem@wra.org Editorial Staff:

William E. Malkasian

• Godfrey & Kahn

• RE/MAX North Central

• AmeriSpec Home Inspection Service

• Greater Milwaukee Association of REALTORS®

• REGIT Inc

• Archaelogical Consulting and Services Inc

• HEALTHPLANS123.COM

• Associated Bank

Publisher

Emily Zampardi Editor

Joe Leschisin Senior Designer

• Konica Minolta Printing Solutions U S A Inc

• SVA Plumb Financial

• Commercial Association of REALTORS® of Wisconsin

• Lake of the Torches Resort Casino

• Computer System Innovations, Inc.

• Lowen Sign Company • Lowe’s Companies Inc • M & I Bank

• Environmental Initiatives, LLC • Fairway Independent Mortgage Corp. • First American Title Insurance Co • First Fidelity Home Mortgage of Wisconsin LLC

• Universal Home Protection LLC • WHEDA • Wisconsin Association of Home Inspectors • Wisconsin CRS Chapter • Wisconsin Department of

• Magnets USA

• Dee 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.

• Superlative, Inc.

• Century 21 Real Estate LLC

• Cookie Lee Jewelry

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.

• Showhomes Southeast Wisconsin

• SUPRA

• Connecting You (SendOutCards)

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.

• Scarf It Up!

• Keefe Real Estate

• Centralized Showing Service

Managing Editor

• HMS National Inc • Insphere Insurance Solution

• Badger Basement Systems Inc

Robert Uhrina

Veterans Affairs

• MLS, Inc • Orion Communications Inc.

• Women’s Council of REALTORS® • WRA Real Estate School

• Pearl Insurance • Pillar To Post

• WRA Real Estate Store

• Platinum Printing and Packaging

• WRA Winter Convention

• Preferred Title LLC

= Gold Convention Sponsor ($10,000)

= Bronze Convention Sponsor ($2,000)

NAR’s REALTOR Benefits® Program

Take advantage of NAR’s REALTOR Benefits® Program. Choose from a variety of value-added offers and savings from industry leaders. Plus, every partner provides products and services that you can use every day, in your business and personal life. A detailed description of the member benefits is available online at www.realtor.org/realtor_benefits.

4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 (608) 241-2047 • (800) 279-1972

Marketing Entertainment® Book FedEx® New! FedEx OfficeSM Lowe’s REALTOR.com® REALTOR Team Store® New! Ifbyphone Technology Dell DocuSign® Hewlett Packard Lenovo relay®

legal hotline: (608) 242-2296 • (800) 799-4468 general fax: (608) 241-2901 products/education fax: (608) 241-5168 legal hotline fax: (608) 242-2279 president fax: (608) 242-2267 e-mail: editor@wra.org Website: www.wra.org

facebook: www.facebook.com/wisconsinrealtors twitter: www.twitter.com/wirealtors linked-in: www.wra.org/linkedin youtube: www.wra.org/youtube wisconsin real estate magazine

• American Home Shield

july 2011

SentriLock LLC Xerox zipForm® New! Ifbyphone Insurance New! Victor O. Schinnerer & Company Inc. E&O Insurance Liberty Mutual REALTORS® Core Health Insurance New! REALTORS® Dental Insurance

Financial Services & Personal Protection American Home Shield IdentitySecure® REALTORS® Federal Credit Union Educational Tools ABR SRES ePRO SFR Green

Office Solutions FedEx® FedEx OfficeSM New! OfficeMax® Travel Avis Budget Hertz

Subject to change.

Chairman’s Corner

John P. Horning

appy Fourth of July! Now is the time of year we gather with family and friends to celebrate our country’s independence. Written 235 years ago, the Declaration of Independence states: “We hold these truths to be selfevident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” I believe that “Liberty” implies the right to own a home and the freedom to do what you want with it (within local zoning laws, of course). In fact, owning one’s home has long been considered “the American Dream.” And despite what some in the media might say, I assert this is still true today.

tighter underwriting standards and regulation. One proposal would require down payments to be a minimum of 20 percent. So what can we do now to defend the number-one financial dream of many Americans? Consider the following three actions: 1.

Eight in 10 adults agree that owning a home is the best long-term investment a person can make, according to a recent nationwide Pew Research Center survey. This clearly highlights the value Americans continue to place on home ownership. A strong majority of renters indicated that they would prefer to buy a home one day. In addition, respondents rated the ability to own a home as their top long-term financial goal. However, home ownership has been under attack lately in the media and in Washington, D.C. Reporters decry falling home prices and bemoan the “double dip” in the housing industry. Homeowners are facing a potential increase in taxes to help offset the rapidly expanding national debt. Mortgage financing has tightened to the point of forcing future home buyers to bear the burden of repairing our financial system through

wisconsin real estate magazine

july 2011

Be informed by learning about the issues facing our industry. In addition to this publication, www.realtor.org and www.wra.org are rich with information and resources for REALTORS®. Learn the position of your elected officials on issues affecting real estate and property rights. Support RPAC (REALTORS® Political Action Committee) and the Direct Giver Program, which allow us to back political candidates who will work to pass legislation that protects property rights and benefits homeowners. Our unique Direct Giver Program provides the opportunity to support candidates at all levels of government, from a local alderperson to the President of the United States, and gives the donor total control over when and where the funds are dispersed. For more information about contributing to these programs, contact your local association or volunteer leadership. Communicate your position to your elected representatives. Responding to our Calls to Action literally take less than a minute. You receive an e-mail with a letter pre-addressed from you to your legislators. With your permission, via the

click of a button, the letters are e-mailed instantly for you. And brokers can be a part of the Broker Involvement Program, so the Call to Action that agents receive comes directly from their broker. The key is to write, e-mail, or call your congressmen and senators to let them know about important real estate issues and how those issues affect their constituents. There are many pressures on the housing industry today, but standing together we are a powerful organization that is respected both in Wisconsin and Washington, D.C. We are making a difference by being informed, contributing to Pro-REALTOR® candidates and communicating with our legislators. This year alone we helped pass legislation to eliminate the state tax on Health Savings Accounts, extended the pier registration deadline, fought for repeal of the farmland conversion fee and worked with legislators to create a new Real Estate Examining Board. Lastly, don’t forget to register for the Wisconsin REALTORS® Association’s 2011 Annual Convention. Another outstanding program of speakers, education, networking and entertainment is coming up September 13-15 at the Kalahari Resort in the Wisconsin Dells. Complete information is included in this issue of the magazine. Discounted rates expire August 1, so grab a few friends and register today! Keep enjoying the summer and I will see you in September at convention!

John P. Horning

www.wra.org/wrem

news monthly wisconsin housing report

Both Home Sales and Median Prices

Fall in May

View all housing statistics at www.wra.org/housingstatistics

By David E. Clark, Economist, C3 Statistical Solutions Inc.

> WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY - MAY 2011

% Change

YTD-2011

YTD-2010

% Change

+8.6% -22.6% -5.2%

51,071 18,357 $127,000

62,458 22,304 $138,500

-18.2% -17.7% -8.3%

Statewide

MAY-2011

MAY-2010

New Listings Closed Sales Median Sales Prices

11,982 4,885 $136,700

11,038 6,311 $144,200

Region

Median Price MAY-2011 MAY-2010 % Change

Existing Home Sales MAY-2011 MAY-2010

% Change

Southeast South Central West Northeast Central North

$143,950 $160,000 $130,000 $124,900 $112,900 $125,000

1,741 1,029 541 815 268 477

-21.2% -24.6% -28.0% -23.5% -36.0% -7.2%

$162,000 $165,000 $130,000 $125,000 $110,000 $120,000

s expected, Wisconsin existing home sales in May were below the sales figures recorded in May 2010 according to data released by the Wisconsin REALTORS® Association (WRA). Compared to May of last year, sales of existing homes fell 22.6 percent and the statewide median sale price was down 5.2 percent to $136,700.

Horning added recent increases in new property listings suggests sellers are now beginning to re-enter the market. In regional markets across the state, four of the six regions (i.e., southeast, south central, northeast and west regions) saw their sales volume drop between 21.2 percent and 26.1 percent over the May 2010 to May 2011 period. Sales in the central region fell 36 percent. In contrast, the north region, which has a solid mix of primary and second homes, was down 7.2 percent over the period.

“Sales in the first half of this year are expected to be lower than last year because of the impact of the federal home buyer tax rebate program,” said John Horning, Chairman of the WRA Board of Directors. “That program front-loaded sales last year because buyers had to close their homes by the end of June 2010 to qualify for the tax break,” said Horning. Year-to-date through May, Wisconsin sales fell 17.7 percent compared to 2010. “It’s going to be several months before we can reliably use monthly sales data to reflect market conditions,” said Horning.

Median prices statewide were down 5.2 percent in May 2011 compared to May 2010. The north and central regions of the state actually saw their median prices increase between 2.6 percent and 4.2 percent over the period, and they were essentially unchanged in the northeast and west regions. Prices fell 3 percent in the south central region, and 11.1 percent in the more urbanized southeast region over the course of the year.

While predicting June sales figures would also be well off the June 2010 pace, Horning said, “July and August should show the opposite effect and a much stronger market this year, but again that will result from the expiration of the federal program last year.” wisconsin real estate magazine

-11.1% -3.0% 0% -0.1% +2.6% +4.2%

“Local price data is difficult to interpret given the distortions introduced in last year’s tax rebate programs,” said WRA President Bill Malkasian. He noted that

july 2011

2,209 1,365 732 1,065 419 514

double-digit swings, up or down, are not uncommon at the county level. “This is driven by the shift in the mix of homes selling in these areas between last year and this year,” said Malkasian. “The good news is that, statewide, housing affordability remains high, driven by moderating prices and interest rates in the 4.6-percent range,” Malkasian said. The Wisconsin REALTORS® Housing Affordability Index measures the percent of the median-priced home that a buyer with the statewide median family income can buy, and stood at 221 in May, which is up from 203 a year ago. “For buyers with solid credit, this is an excellent time to get more value for your money,” said Malkasian, who noted that affordability has dropped slightly in the last couple of months. “It won’t be surprising to see this trend continue as the state economy strengthens,” he added. Wisconsin has added nearly 25,000 new jobs since January 2011 and as a result, the Wisconsin unemployment rate fell to a seasonally adjusted 7.3 percent in April. For more information, contact: David E. Clark, Economist, C3 Statistical Solutions Inc. Office phone: (414) 803-6537

FACING CHANGE WRA 2011 CONVENTION

September 13-15, 2011 Kalahari Resort & Convention Center - Wisconsin Dells After Party, Chairman’s Dinner, Continuing Education, Designation Courses, Exhibits, Golf Outing, Icebreaker Party, Keynote Speakers, Networking Events, Real Estate Bar Camp, Workshops and more!! Join us for the WRA’s 100th Annual Convention. With more than 1,200 attendees, the annual convention assembles top-name speakers from around the country to discuss important topics about the industry.

August 1st

to receive lowest pricing available!

FACING CHANGE www.wra.org/Convention For more information, please visit

WRA 2011 CONVENTION

Schedule Highlights

Convention is the perfect place to network with colleagues, get recharged about your business, complete Continuing Education courses or choose from more than 40 workshops across three days. Whether you are looking for new ideas, marketing tips, sales strategies or a primer on new technology, there’s something for everyone.

Tuesday

September 13

wednesday September 14

Thursday

September 15

8:30 a.m. - 4:30 p.m.

ABR Elective - Real Estate Marketing Reboot

8:30 a.m. - 4:30 p.m.

CRS Elective -Positioning Properties to Compete in the Market (Staging)

8:30 a.m. - 12 p.m.

Real Estate CE – Elective C – Other Approved Forms

10 a.m. - 4 p.m.

Golf at Wild Rock Golf Club

12:30 - 4 p.m.

Real Estate Bar Camp

1 - 4:30 p.m.

Real Estate CE – Elective D - Financing

4 - 6 p.m.

Exhibits Open

8:30 p.m. - 1 a.m.

Icebreaker Party - “Club Mojito...Where the Future’s so Bright...”

7:30 - 9 a.m.

RPAC Breakfast

8 a.m. - 5 p.m.

Exhibits Open

8:30 a.m. - 4:30 p.m.

CRS Elective - Real Estate Social Marketing Strategies

8:30 a.m. - 12 p.m.

Real Estate CE – Course 1 - Listing Contracts

9:30 - 11:30 a.m.

Opening Session - The Five Best Decisions the Beatles Ever Made

11:30 a.m. - 4 p.m.

WRA AE Lunch & Meeting

11:30 a.m. - 1 p.m.

WRA Past Chairman’s Lunch

1 - 4:30 p.m.

Real Estate CE – Course 2 Offer to Purchase

1 - 4 p.m.

Expanded Broker Track - Ten New Rules to Teach Old Dogs

1 - 4 p.m.

Expanded Sales Track - Leveraging Technology for Sales Success

1 - 2:30 p.m.

Workshops - Session 1

2:45 - 4 p.m.

Workshops - Session 2

5 - 6 p.m.

Women’s Council of REALTORS® Statewide Meet and Greet

7 - 9 p.m.

Chairman’s Installation Dinner

8 p.m. - 12 a.m.

The After Party: Indoor Theme Park

7:30 a.m. - 8:45 a.m.

Rotary Service Club Meeting

8 a.m. - 2:45 p.m.

Exhibits Open

8:30 a.m. - 12 p.m.

Real Estate CE Course 3 – New Developments

8:30 a.m. - 4:30 p.m.

Appraisal CE - Conventional, HUD/FHA and USDA Rural Appraisals

8:45 - 10 a.m.

General Session: Take the Stairs - Rory Vaden

9 a.m. - 12.p.m.

Expanded Broker Track - Management to Leadership in Five Steps

10:30 - 11:45 a.m.

Workshops - Session 1

11:45 a.m. - 1 p.m.

CRS Lunch & Silent Auction

1 - 4:30 p.m.

Real Estate CE - Course 4 Business Ethics

1:15 - 4:15 p.m.

Expanded Broker Track - Creating Momentum in Your Firm

Expanded Sales Track - How Many Who’s are in Your Whoville?

1:15 - 2:30 p.m.

Workshops - Session 2

2:45 - 4 p.m.

Workshops - Session 3

wisconsin real estate magazine

july 2011

welcome &

September 14 7 - 9 p.m.

Chairman’s Installation Dinner

Celebrate the installation of Rob Keefe as WRA Chairman, Renny Diedrich as WRA Chairman-elect and Steven Lane as WRA Treasurer. Enjoy an elegant evening of festivities, complete with dinner, wine, dessert bar and entertainment. A native of Lake Geneva, Rob attended the U.S. Naval Academy and served nine years in the U.S. Navy prior to returning to Wisconsin in 2000. After managing Keefe’s mortgage operations from 2001 to 2003, he was appointed as president of Keefe & Associates, Inc., Keefe Real Estate’s parent company, in 2004. In this role he oversees Keefe’s real estate brokerage, affiliate services and development activities.

Opening Session

Rob holds a bachelor’s degree from the U.S. Naval Academy, master’s degrees from the Massachusetts Institute of Technology and the Woods Hole Oceanographic Institution, and an MBA from Northwestern’s Kellogg School of Business. Rob and his wife, Sheila, live in Lake Geneva and have three children.

Wednesday, September 14 9:30 a.m.

The 5 Best Decisions the Beatles Ever Made Business the Beatles’ way? Why not? We’ve learned the success secrets of everybody from Bart Simpson to Attila the Hun. So why not take a few tips from the most notorious rock band in history? Internationally recognized Beatle expert Bill Stainton says their success wasn’t just a fortunate mix of genius and luck; it was a function of conscious decisions. This presentation focuses on five of those decisions – The 5 Best Decisions the Beatles Ever Made – covering areas from leadership to teamwork to managing change. These secrets will help energize you to become a more powerful marketer and stronger at building a base of fans. So get ready to laugh, play and

Speaker: Bill Stainton

learn. Here come the Beatles!

Paramount Pictures and the CIA.

Multiple Emmy Award-winning TV producer, writer and performer Bill Stainton blends the business smarts he learned from 20 years in corporate management with the show biz sparks he gleaned from working with people like Jerry Seinfeld, Ellen DeGeneres and Jay Leno to create riveting presentations. Bill has authored nine corporate training programs, which are currently being used by hundreds of organizations, including IBM,

general Session Thursday, September 15

8:45 a.m.

Take the Stairs: Success Means Doing Things You Don’t Want to Do Success is different for each of us, but the path to get there has the same obstacles: fatigue, rejection, failure, distraction, burnout, complacency and countless others. And yet there is one common characteristic and one

Speaker: Rory Vaden

universal trait virtually every successful person must

Co-founder of multi-million dollar international sales

have before adding anything else: the discipline to

company Southwestern Consulting™, Rory Vaden

do the things they don’t want to do. Self-discipline

is a business motivational speaker, author and self-

strategist and motivational speaker Rory Vaden shares

discipline strategist whose insights have been shared

key insights and erases common misconceptions about

on Oprah radio and in print media such as SUCCESS™

how to build lasting self-discipline.

Magazine.

Participate in the $500 drawing at the general session. wisconsin real estate magazine

july 2011

www.wra.org/wrem

rock’n & rolling

Tuesday, September 13

golf outing

Get your clubs ready, hop into a state-of-the-art GPS-enabled golf cart, have snacks and beer, network ,and relax and enjoy the weather - you’ll have a fantastic time. Join us for the WRA’s 2011 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.

wisconsin

Tuesday, September 13 12:30 - 4 p.m.

real estate bar camp

WISCONSIN

Whether you’re a novice when it comes to technology or a tech guru, picture this: a room filled with technology-crazed real estate professionals attending a conference with no agenda, no outlines, no booked instructors and just a big whiteboard. What a strange picture, right? Maybe not. Think about it... tech folks love to show off their latest gizmos and gadgets. Why not make a program out of it? We’re seeing people talk tech everywhere: in coffee shops, on street corners, at bus stops and in meetings – maybe it’s happening right now in your own office. So what makes this group tick? Is it their aspiration for having the best equipment at all times? Maybe. But one thing is for sure - today’s tech geek comes to the table with equipment in-hand, ready to talk about it.

icebreaker party

So there you have it – the concept of Bar Camp. Crash the party, brainstorm on topics, break into groups and join a conversation. There’s no agenda, no structure and no instructors. It’s just you, a moderator and your peers having an organic conversation about your favorite topics. Whether your bag is virtual tours, iPhones, Androids, cloud computing, blogging or social networking, you’re guaranteed to find others with similar interests. If you’ve read this far, you’re probably intrigued. So go for it!

September 13 8:30 p.m.-1 a.m.

club mojito...where the future’s so bright ’80s miami beach dance party The Brat Pack. Hair bands. An MTV generation. The material girl. Ferris Bueller’s Day Off. The brick phone. Hot pink sport coats. Acid-washed jeans. A TV actor president. These all describe the iconic 1980s. But at a time when young minds thought the future was so bright, ironically for some, the ‘80s were as bright as they could be. If you’re all about the ‘80s, grab your dancing shoes and a rad pair of shades and join us at Club Mojito – an outrageous throwback party where Miami Beach fashion meets MTV style. Club Mojito will have you celebrating in righteousness with an ‘80s D.J. and Miami’s ultimate party band, Hidden Agenda. So don’t miss out. Don’t be veggin’ around your hotel room. And absolutely DO NOT gag yourself with a spoon. That’s bogus! For wicked fun, killer tunes and a totally cool costume contest, crash the Mojito!

indoor theme park

September 14 8 p.m.-12 a.m.

the after party

Enjoy the indoor theme park, join in the bowling tournament, dance to music played by the DJ, show off your singing talent with karaoke, win valuable prizes and have a free beer on us! A shuttle will run between the indoor theme park and Kahunaville.

wisconsin real estate magazine

july 2011

FACING CHANGE

abr & crs

WRA 2011 CONVENTION

designation courses ABR Elective - Real Estate Marketing Reboot 8:30 a.m. – 4:30 p.m. - Tuesday, September 13

FACING CHANGE WRA 2011 CONVENTION

Do you think the marketing strategies you used at the height of the real estate boom work as well for you today as they did then? Think again. It’s time to reconsider how you promote yourself and attract new business. It’s time for a real estate marketing REBOOT.

two-fer

convention special FACING CHANGE

Instructor: Dwayne Carte, ABR

WRA 2011 CONVENTION

CRS Elective - Real Estate Social Marketing Strategies for Success Both Online and Offline 8:30 a.m. – 4:30 p.m. - Wednesday, September 14 You will learn how to: • •

Develop a social marketing plan to turn fans and followers into real estate transactions. Turn your social networking into a major profit center through Facebook, YouTube, LinkedIn and Twitter. Learn how to use the most effective tools to deliver information-rich content about your community to become more successful in the home buying and selling process. Leverage your visibility and credibility with a content-rich video. Build a WordPress blog people want to read Become an Agent Ambassador – Use the Web to build influence, improve your reputation and earn trust.

Register one WRA member for one full convention pass at regular price, and register a second WRA member at a special introductory price.

CRS Elective - Positioning Properties to Compete in the Market (Staging) 8:30 a.m. – 4:30 p.m. - Tuesday, September 13

•

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 full convention pass.

Positioning Properties to Compete in the Market offers you a chance to learn the skills necessary to position properties with the least amount of time, work and money. The course integrates marketing and staging to create a strategy for every seller in every market, to give REALTORS® an edge in the field.

•

Instructor: Martha Webb, CHMS

Instructor: Gee Dunsten, CRS

To receive the promotion code, you will be required to register using the Individual Registration button. At the completion of the registration process, you will receive a promotion code, which you will forward to the second WRA member.

• •

complete 18 hours of

continuing education

www.wra.org/conventionregistration

Reserve

Your Room

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 at convention. Four of the six courses are included in the full convention pass. Seating is limited so register early to secure your seat.

The WRA has reserved a block of rooms for convention attendees at:

Real Estate CE – Elective C Other Approved Forms

• • •

$99 - Standard Room $149 - Jacuzzi Suite $179 - Royal African Queen Suite

8:30 a.m. – 12 p.m. - Tuesday, September 13

Call Kalahari Reservations at 1-877-253-5466 or visit www.wra.org/ConventionHotel to reserve your room.

Real Estate CE – Elective D - Financing

Room rate expires August 13, 2011.

Instructor: Jon Sayas

1– 4:30 p.m. - Tuesday, September 13

did

you know?

Real Estate CE – Course 2 - Offer to Purchase 1 – 4:30 p.m. - Wednesday, September 14 Instructor: Cori Lamont Real Estate CE – Course 3 - New Developments 8:30 a.m. – 12 p.m. - Thursday, September 15 Instructor: Rob Sayas

Real Estate CE – Course 1 - Listing Contracts

Real Estate CE – Course 4 - Business Ethics (fulfills NAR QET requirements)

8:30 a.m. – 12 p.m. - Wednesday, September 14

1 – 4:30 p.m. - Thursday, September 15

Instructor: Cori Lamont

Instructor: Rob Sayas

The following are included in the convention registration fee: •

• • •

seven hour

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 Real Estate Bar Camp

wisconsin real estate magazine

appraisal ce Convention, HUD/FHA and USDA Rural Appraisals: UAD Standards Update and HOME INSPECTION ... From an Appraiser’s Perspective – (7 hrs.) 8:30 a.m. - 4:30 p.m. - Thursday, September 15 Instructor: Steve Tadevich

july 2011

www.wra.org/wrem

Thursday

convention

workshops

September 15

9 A.M. - 12 P.m.

wednesday

10:30 - 11:45 a.m.

September 14

1 - 2:30 p.m.

Next Generation Marketing – Making Social Media Work in 30 Minutes a Day, Rory Vaden

Credit Ramifications in a Mortgage Crisis, Patrick Ritchie Creating Value in the Client’s Eyes, Nelson Zide

Pricing the Home Right from the Beginning is 95 Percent of the Selling Process, Alexis Bolin

Social Media Strategy for REALTORS®, Stacey Harmon

The Android Savvy REALTOR®, Charlie Wills

Open Houses: What No One Told You to Do to Succeed, Joe Marovich

Target, Aim, Shoot, Elizabeth Ward Small 1:15 - 4:15 p.m.

Know the FHA Appraisal Requirements...No Problem, Steve Tadevich

SEO for Your Website- 10 Tips to be Found on Google, Jeff Corbo

Expanded Broker Track: Creating Momentum in Your Brokerage Firm, Jack O’Connor Expanded Broker Track: How Many Who’s are in your Whoville?, Gee Dunsten

Using Facebook for Fun & Profit, Beth Jaworski

2:45 - 4 p.m.

Out with the Old and In with the Sold!, Joe Meyer Short Sales, REOs, HUD and VA Repos – What Every Agent Should Know, Frank Mears

Work Smarter, Not Harder, Ellen Boyle Friendly Persuasion: First You Connect, Then You Convince, Ed Hatch

1 - 4 p.m.

Expanded Broker Track: Going from Management to Leadership in Five Steps, Jack O’Connor

1:15 - 2:30 p.m.

Expanded Broker Track: Ten New Rules to Teach Old Dogs New Leadership Tricks, Jack O’Connor

Getting Your Listings Sold Before They Get Old, Joe Meyer Getting to Yes in the World’s Second Oldest Profession, Frank Mears

Expanded Sales Track: Leveraging Technology for Sales Success in 2011 and Beyond, Jim Casey

Outrageous, Contagious Scripts and Dialogues, Alexis Bolin

Mojo on the Go!, Ellen Boyle

Getting Into the DNA of Generation X, Terry Watson

EXTRA-ordinary Service: Creating & Implementing an Ongoing “Service Package,” Ed Hatch

100 Marketing Tips and Tools to TRIUMPH!, Elizabeth Ward Small

Rebuilding and Qualifying After a Financial Crisis, Patrick Ritchie

For Your Eyes Only, Mike Theo, Tom Larson, Joe Murray

My Bat, My Balls, My Playing Field, My Rules, Nelson Zide

A REALTORS® Guide: iPad Apps and Solutions, Charlie Wills

Mobile Mojo: Top Technologies for REALTORS® on the Go!, Stacey Harmon

2:45 - 4 p.m.

Have Your Buyers Saying “Good Buy” Rather Than “Good Bye,” Joe Meyer

Converting Expired Listings to a Selling Product, Joe Marovich

DISC Personality Training: Sell Them the Way They Want to Be Sold, Alexis Bolin

Fresh Faces in Real Estate...Next Generation Superstars, Charlie Wills

The Top 10 Technology Mistakes that 99 Percent of Salespeople Make, Terry Watson

Real Estate Photography...Creating a Lasting First Impression, Mike Pfammatter

Market Madness: What Lil’ Susie Did Not Know, Elizabeth Ward Small

Lights, Camera, Action: Creating Amazing Listing Videos, Rob Uhrina

Vacant Foreclosures: Let the Adventure Begin, Cindy Ulsrud

convention

sponsorship opportunities

FSBOs, Expired and Other Dirty Words, Frank Mears

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 website 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 2011

FacingChange FACING CHANGE WRA 2011 Convention

Registrant One INFORMATION:

 Check here if you are an Association Executive Name___________________________________________ Firm Name __________________________________________ Address_ ________________________________________ City_______________________ State_ _____ Zip____________ Phone (W) ( )___________________________________ (H) ( ) __________________________________________ WRA 2011 E-mail Address_____________________________________ WRA member # _______________________________________

September 13-15, 2011

Kalahari Resort & Convention Center

CONVENTION www.wra.org/2011convention

*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/convention2011fees) 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/convention2011reg. 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 website to register and take advantage of 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 8-1 Thru 8-22 After 8-22 ATD  1-Day Pass ( Tues/Wed/Thurs ) 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

 1-Day Pass ( Tues/Wed/Thurs ) circle one  Full Convention Pass

Real Estate Continuing Education

Thru 8-1 $ 114 $ 154

Thru 8-1

Thru 8-22 After 8-22

Thru 8-1 $ 185 $ 185 $ 185 $ 330 $ 330

Thru 8-22 After 8-22 $ 195 $ 205 $ 195 $ 205 $ 195 $ 205 $340 $ 350 $ 340 $ 350

Thru 8-1

Thru 8-22

After 8-22

Room Rates Standard Room: Jacuzzi Suite: Royal African Queen Suite: Release Date: August 13, 2011

$99 $149 $179

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

ATD

• Access to Indoor Theme Park following Chairman’s Dinner - 9/14

ATD

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 C – Other Approved Forms - 8:30 – 12:00 (9/13)  Course 1 – Listing Contracts – 8:30 – 12:00 (9/14)  Elective D – Financing – 1:00 – 4:30 (9/13)  Course 2 – Offer to Purchase – 1:00 – 4:30 (9/14)  Course 3 – New Developments – 8:30 – 12:00 (9/15)  Course 4 – Business Ethics – 1:00 – 4:30 (9/15) Designation Classes  ABR Elective - Real Estate Marketing Reboot (9/13)  CRS Elective - Positioning Properties (9/13)  CRS Elective - Real Estate Social Marketing (9/14)  Both CRS Electives (9/13 & 9/14) w/convention  ABR & CRS Electives (9/13 & 9/14) w/convention

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 – 9/13

$ 124 $ 134 $ 154 $ 164 $ 174 $ 194 Thru 8-22 After 8-22

Hotel information:

Event Fee – Per Person: Golf (9/13) ��$98 Wild Rock Golf Club - Wisconsin Dells  Member One  Member Two Real Estate Bar Camp (9/13 @ 12:30p.m.) �� FREE  Member One  Member Two

ATD $ 225 $ 225 $ 225 $ 370 $ 370

Two-Fer Pricing

ATD

Two-Fer Pricing

CRS Luncheon (9/15) ��$20  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 13, 2011 and will be refunded, minus a $25 administration fee. Registrations cannot be transferred from person to person.

Chairman of the Board’s Dinner (9/14) ��$49  Member One  Member Two  2nd WRA Member* .....$ 276  2nd WRA Member* .....$ 276

Appraisal Course - 9/15/2011 WRA Appraisal Section Member  Class Only  Class w/ Convention

$ 134 $ 144

$ 144 $ 154 $ 154 $ 164

$ 174 $ 184

 2nd WRA Member* .....$ 90

WRA REALTOR Member  Class Only  Class w/ Convention

$ 144 $ 154

$ 154 $ 164 $ 164 $ 174

$ 184 $ 194

 2nd WRA Member* .....$ 100

Non-Member  Class Only  Class w/ Convention

$ 154 $ 164

$ 164 $ 174 $ 174 $ 184

$ 194 $ 204

After Party Bowling Tournament (9/14) �� FREE Sign up on site! 8:00 - 9:00 pm 9:00 - 10:00 pm 10:00 - 11:00 pm

Payment Register by Mail: Wisconsin Realtors® Association 4801 Forest Run Road, Suite 201 Madison, WI 53704-7337

Total amount $__________________  Enclosed is my check made payable to the WRA  Charge my VISA / MasterCard (circle one) Card Number ��Exp. Date___________

techhottips

View more posts at www.techhottips.com

Technology Tips & Tools for the Real Estate Professional

Understand Web Analytics Anyone who starts a website or a blog, understands that analyzing their data is crucial. We recommend that you start with adding Google Analytics to your website. It is easy to do and within a few weeks you will be able to watch the activity on your site. Theses stats will help you work towards your business goals. Follow this link to get Google Analytics: www. google.com/analytics. Some of the metrics you will see include: •

Page views: the numbers of times a page on your site has been viewed, including multiple views by the same person.

•

Visitors – the number of unique visitors you have. This includes where they live geographically, what browser they use and what key word they used to find you.

•

Bounce rate – the percentage of visitors entering the site and leaving without viewing any other pages. It it is higher than 50%, you need to work on your sites “stickiness.”

•

Organic search volume – the number of visits or visitors from unpaid searches

We recommend you start reading these numbers and it will help you see trends. For example when we post about a certain topic we see an increase in views. That helps us see that is a popular topic with our clientele. Understanding web analytics helps us listen to the consumer. Isn’t that what it is all about?

Panoramio Google has some pretty incredible products. One I stumbled across lately is Panoramio that allows you to upload images to the location they were taken. How fantastic for real estate agents! We, as real estate agents are expected to be local experts, and buyers and sellers appreciate as much lifestyle information their agent canprovide. One of the ways to help establish your expertise is through photographs. Snap some photos as you are out and about in your community and get them onto Google Maps. They don’t have to be professional quality – but remember, your name is attached, so leave out the blurry ones. You can sign up for a free account at Panoramio.com and begin uploading your photos. Don’t forget to title them with a catchy-keyword rich phrase, tag, and map the location. They will walk you through the steps. Then Presto! after your entry has been reviewed, it will be placed on Google Maps.

Using Roost to Create Social Media Campaigns One request we receive often is to provide a list of products to our students that allows them to schedule Facebook and Twitter posts. Although we don’t recommend the same posts to be put on all sites, all the time it can be a real time saver to schedule some posts. A newcomer to the product line is Roost. Roost has some unique features that I want to share. First of all you can have up to 3 accounts to post to for free. We recommend scheduling a few posts on a Sunday night so if you get busy during the week, at least you have a few points of contact. Roost allows you to post one post or a campaign. You can choose the length of the campaign, and then Roost recommends the number and types of posts. This is for guidance – you may add as many or few posts as you’d like. This includes status updates, questions, quotes, links and photos. Roost also includes a library of real estate online magazines and gives you the latest links to articles that may be of interest to your group. Try Roost, you will be pleasantly surprised!

wisconsin real estate magazine

july 2011

legal

best of the legal hotline

with tracy rucka

Employment Expectations The following questions have been asked about how brokers classify their agents for tax purposes, the use of personal assistants, broker supervision rules and independent contractor agreements. The time to clearly negotiate and set forth the relationship between the broker and the agent is at the outset of the affiliation. Comprehensive office policies, independent contractor agreements and compensation agreements will provide protection for both the broker and the agent when it comes to tax purposes, litigation, dispute resolution, commissions, etc. Having inclusive written agreements regarding employment expectations will pave the way to a successful long-term relationship and will guide the process for termination of the relationship when the time comes.

Independent Contractor or Employee? The broker has heard the IRS is auditing companies to determine if employees are properly classified as independent contractors. What can the broker do to assure compliance with IRS rules? The classification of agents as independent contractors or employees dictates whether the broker withholds for income tax purposes, pays social security and pays unemployment taxes on wages. Brokers can take affirmative steps to ensure that their real estate agents’ status as independent contractors (statutory non-employees per IRS terminology) is protected if an audit occurs. The time to make sure that company policies and independent contractor agreements are in good order is before the IRS conducts an audit of your company. The Internal Revenue Code §3508(B) classifies real estate agents as statutory independent contractors if the following three criteria are met: licensure, compensation based on sales or output, and a written agreement with the person for whom the service is performed. Per IRS audit training materials, the auditor will look for these elements. Brokers entering into a well-written agreement that specifies the method of compensation and the rights and obligations of the parties with respect to work performed should be in good shape.

wisconsin real estate magazine

july 2011

For more information about statutory independent contractors, see the March 2008 Legal Update, “Running a Real Estate Office,” at www.wra.org/LU0803.

Workman’s Compensation If the agent is classified as an independent contractor, doesn’t this exempt the broker from paying workman’s compensation? The Wisconsin Worker’s Compensation Act requires most employers to maintain worker’s compensation insurance for all workers classified as employees. Covered employers include every employer who usually employs three or more employees or who has paid wages of $500 or more per calendar quarter. The Department of Workforce Development maintains that all real estate agents working for a broker/company are employees because of the broker/company’s supervisory duties. Generally speaking, all real estate brokers, salespeople and personal assistants working for a broker/company are considered employees for worker’s compensation purposes. The DWD’s interpretation of the relationship between a broker/company and its agents appears online at www.dwd.state.wi.us/wc/employers/realestate.htm. More

www.wra.org/wrem

information may be obtained from the DWD’s Worker’s Compensation Division at 608-266-1340, 608-267-0394 (fax) or www.dwd.state.wi.us/wc.

due. The agent may request mediation or arbitration from the local association; however the former broker’s participation would be voluntary.

Unemployment Insurance

Personal Assistants

What obligation does the broker have to pay unemployment insurance for agents?

The broker has an agent selling and listing with the company. Another broker in the company would like to hire the person to be a personal assistant. How should payment be handled? Can the assistant get an hourly salary and a commission?

Brokers are generally not required to pay Wisconsin Unemployment Insurance contributions for their real estate agents. A UI law exemption in Wis. Stat. § 108.02(15)(k)7 for services provided by a real estate agent or salesperson who is paid solely by commission for his or her services will make real estate agents exempt.

Broker Supervision What written polices or procedures are required between an employing broker and licensees? A broker is required by license law to provide written policies regarding the handling of leases, listing contracts, offers to purchase and other transaction documents. According to the broker supervision rules contained in Wis. Admin. Code § RL 17.08, this is technically the only written policy that must be provided. However, a comprehensive office policy also spells out the lines of authority and the process for dispute resolution, and otherwise lays out the expectations and obligations of each of the parties. An agent should make sure to request a written copy of these policies and a written independent contractor agreement that delineates the compensation agreement, which is crucial if there are issues about the payment of commission post-termination. The Wisconsin REALTORS® Association Office Policy Manual Guide may be used as a template. The Guide is available online at www.wra.org/officepolicymanual.

Commission Post-Termination The agent has left his former broker and the broker has not paid the agent for a pending transaction. How can the agent pursue commission? Wisconsin real estate statutes and administrative rules do not address commission policies between an employer/ broker and a salesperson. The agent’s right to commission(s) in each transaction depends upon the compensation agreement entered into between the agent and the former broker (i.e., independent contractor agreement, company policy and procedures manual). If the contract does not cover the situation, prior actions of the broker in this regard will be considered. Generally, each transaction creates an independent claim for commission where an agent may bring a separate action in small claims court for each commission

wisconsin real estate magazine

july 2011

Licensed personal assistants (personal assistants who perform licensed activities) must be employed by the salesperson’s broker. When a licensed personal assistant is being compensated for performing a service that requires a license, he or she may only be compensated by the broker. Pursuant to Wis. Stat. § 452.14(3)(f), any commission or other compensation for licensed real estate services paid to the licensee, and any referral fee paid to the licensee, must only be received from the employing broker. Licensed personal assistants will be treated much like any other salesperson for purposes of the Department of Regulation and Licensing and the local board of REALTORS®. Brokers have reported the IRS conducting audits and challenging whether a licensee can be engaged to provide services as an independent contractor for the broker while also being an employee. Before entering into such a situation, the broker should consult with a tax advisor to ensure that the structure of the relationship and commission complies with accounting principles, tax law and other employment law. See the January 1998 Legal Update, “New Personal Assistant Rules & Forms,” at www.wra.org/LU9801 for more information about personal assistants.

Unlicensed Personal Assistants The broker is thinking of hiring an unlicensed assistant. What services would the assistant be able to provide? What would the assistant be prohibited from doing? An unlicensed assistant of a licensee may not perform the following activities for which a real estate license is required. This list is intended to be illustrative and declarative of existing law and is not intended to increase or decrease the scope of activities for which a license is required. An unlicensed personal assistant of a licensee may not: 1) Host open houses, kiosks, home show booths or fairs, except that an unlicensed personal assistant may assist a licensee at such locations; 2) show property; 3) interpret information on listings, titles, financing contracts closings, or other information relating to a transaction; 4) explain or interpret a contract, listing, lease agreement or other real estate document with anyone outside the licensee’s firm; 5) negotiate or agree to any commission, commission split, management fee or referral fee on behalf of a licensee; or 6) perform any other activity for which a license is required. Tracy Rucka is Director of Professional Standards and Practices for the WRA.

legal

By cori lamont

Things You Should Know about E-mail Delivery

We all know the look – the “I am looking at you but not listening to you because it does not apply to me” look. We have all given this look. Unfortunately, over the last few years this look has been frequently used when electronic consent and e-mail delivery were discussed. This is not a new issue. In fact, this topic has been heavily covered in Legal Updates, Hottips, magazine articles, continuing education courses and the Legal Hotline. Not an easy topic to wrap your mind around, this issue involves an interaction of laws that most agents describe as challenging and counter-intuitive. Today, the look is gone. Hands are raised and questions are coming fast. Whether the sudden interest is driven by consumers now requesting e-mailed documents, or whether agents have a better understanding of how the law applies to the transaction, more questions are being asked and confusion is on the rise. We are revisiting the topic due to the mandatory use of the WB-11 Residential Offer to Purchase, WB-13 Vacant Land Offer to Purchase and WB-14 Residential Condominium Offer to Purchase going into effect on July 1, 2011. First let’s get the unpleasant legal stuff out of the way. There are two laws at play: E-Sign, the federal law addressing electronic commerce and requiring consumer electronic consent, and E-Commerce, the Wisconsin law addressing electronic commerce. Both of these laws must be followed in consumer transactions. Generally these laws apply to residential transactions where the property or the sale proceeds will be used for personal, family or household purposes.

wisconsin real estate magazine

july 2011

The federal law respects the fact that federal, state and local laws may require that consumers receive information, notices and disclosures in writing. Thus federal E-Sign law allows the electronic version of such paperwork, but only if consumer transactions meet the special requirements under the federal E-Sign law for electronic notices and disclosures. The federal law mainly focuses on the protection of consumers in residential transactions. Basically, the federal law wants to confirm that a consumer can receive an electronic consent that includes federally mandated language advising them of their rights if they choose to receive, by e-mail, documents that are otherwise required to be in writing. The general concern is that consumers are able to receive e-mails, open up attachments, receive specific federal disclosures, agree to and confirm system requirements, provide e-mail addresses and send back the consent electronically.

10 THINGS REAL ESTATE AGENTS NEED TO KNOW ABOUT E-MAIL DELIVERY 1. Two Steps for Every Contract.

Step #1: Consumer electronic consent

Step #2: Inclusion of e-mail delivery language

2. Electronic Consent Must Be Achieved Electronically.

A signed hard copy or faxed consent from the consumer would not

www.wra.org/wrem

be sufficient. The electronic consent must make an entire roundtrip from agent to consumer electronically. For a step-by-step example of how to achieve electronic consent, read the June 2010 Wisconsin Real Estate Magazine article, “Behind the Curtain: E-Commerce and E-Sign Exposed,” at www.wra.org/WREM/Jun10/BehindCurtain.

10. The Listing Broker Is Not Required to Request PROOF Of Electronic Consent from the Cooperating Broker.

The listing company may find it beneficial to confirm on behalf of the seller that the buyer electronically consented

3. If You Cannot Receive Electronic Consent from Your Consumer, Then You Cannot Include E-mail Delivery in a Contract.

to e-mail as a form of delivery and the use of electronic

4. The Law Is Concerned About Consumers; Agent-to-Agent Electronic Consent Is Not Required.

is drafting the offer as a subagent of the listing company.

5. Consumer Electronic Consent Is Required Regardless of the E-mail Address Inserted in the Offer to Purchase.

signatures. This may be a greater priority for the listing broker if the transaction involves a buyer-customer since the agent

Additional Resources: •

In essence the federal law is saying it does not matter who the e-mail address belongs to; if there is an e-mail address included in the offer, then electronic consent must have first been achieved. Review lines of 51-52 of the WB-11, which state, “[E]ach consumer providing an e-mail address below has first consented electronically to the use of electronic documents, e-mail delivery and electronic signatures in the transaction, as required by federal law.”

6. Addendum D Includes E-mail Delivery Language; It Is Not Electronic Consent.

•

The listing contracts, buyer agency agreement and non-revised offers to purchase do not include e-mail as a form of delivery. To achieve step #2, agents must add e-mail delivery language either by incorporating Addendum D, or a similar addendum, or language into the additional provisions of the form.

9. Do Not Check the E-mail Delivery Box and Insert an E-mail Delivery Address When Writing or Accepting the Offer Unless You Have First Received the Consumer’s Electronic Consent.

A licensee drafting a consumer’s offer that includes an e-mail address in the offer is affirmatively stating or representing that the consumer has previously provided electronic consent. A party who signs an offer that includes an e-mail address is also affirmatively stating and representing that the he or she has provided proper electronic consent and is committing fraud if this is not true. It is arguably incompetent practice to include an e-mail address without first obtaining the consumer’s electronic consent.

wisconsin real estate magazine

july 2011

May 2008, “E-Mail Delivery: Working with Consumer Consents to Deliver Electronic Documents,” at http://news. wra.org/story.asp?a=922

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November 2008, “Best of the Legal Hotline Electronic Delivery,” at http://news.wra.org/story.asp?a=1005

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Legal Updates •

7. Addendum D Includes E-Mail Delivery Language and Is Not Required with the Revised Offers to Purchase. 8. Addendum D, or Similar Language, Is Needed with the Listing and Buyer Agency Agreements and Non-revised Offers to Purchase.

Wisconsin Real Estate Magazine Articles

February 2008, “Electronic Commerce and E-Mail Delivery,” at www.wra.org/LU0802

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November 2009, “WB-11 Residential Offer to Purchase – 2010 Edition,” at www.wra.org/LU0911

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WRA E-Commerce Resource Page at www.wra.org/ecommerce

ONE LAST THING - ZIPFORM IS GOING DIGITAL INK In August 2011, Wisconsin REALTORS® Association members will receive access to a new ZipForm product – digital Ink. Designed to also work with the Main Street Platform, this product will give members the ability to have a completely paperless transaction, offering secure digital signatures, automatic routing of documents to each signer and accessibility to mobile users. And if that is not enough, it will have the federal electronic consent requirement built right into the system. Basically the program is designed to prevent the process from moving forward until the electronic consent has been obtained. For those who are not ready for this technology, it is optional – you don’t have to use it until you are ready. To learn more about this future member benefit, take a look at this month’s Product Showcase. Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA.

legal

§ 203(k) Rehab Loans: When the Bargain Home Needs By debbi conrad

An abundance of REO homes on the market presents some good buying opportunities. Purchase of these homes by owner occupants helps spur community and neighborhood revitalization. Homes needing renovation are often the best buys available, but most buyers have no idea how to finance both the purchase of the home and the needed renovations. The Federal Housing Administration § 203(k) Renovation Loan Program offers a means for turning a fixerupper into a dream home.

What is the FHA § 203(k) Renovation Loan Program? The § 203k is a unique mortgage loan that offers the benefits of FHA financing along with the ability to provide funds for both the purchase and renovation of a home – or to refinance a current home and fund a needed rehab project. The loans are beneficial for persons or families

wisconsin real estate magazine

with low or moderate income, offering a single, long-term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property in a single mortgage loan. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of the rehab, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less. The cost of the rehabilitation must be at least $5,000, and the total improved value of the property must fall within the FHA mortgage limits for the area (see the mortgage limits tool at https://entp. hud.gov/idapp/html/hicostlook.cfm).

july 2011

What are the typical loan terms and conditions? A § 203(k) loan will be either a 15- or 30-year fixed rate or adjustable rate mortgage with a dual purpose, single closing. At least the first $5,000 in improvements and repairs should be devoted to eliminating building code violations, modernizing the home or the garage, or performing upgrades for the health or safety of the occupants. Once basic necessities have been addressed, minor or cosmetic repairs may be added. The funds may not be used, however, for commercial features or luxury items like gazebos or swimming pools.

How can the program be used? The extent of the rehabilitation covered by a § 203(k) loan may range from relatively minor repairs ($5,000 minimum) to virtual reconstruction. A home that has been www.wra.org/wrem

Some Repairs

demolished or will be razed is eligible if the existing foundation remains in place. § 203(k) loans can finance the rehab of the residential portion of a mixed-use property that includes retail or commercial space, or a one- to fourfamily dwelling provided it is owner-occupied, or can cover the conversion of a property of any size to a one- to four-unit structure. An existing house (or modular unit) on another site can be moved onto the mortgaged property and then rehabilitated. A § 203(k) loan may be used for interior repairs to an individual condominium unit provided the unit is in a one- to four-unit building. These rehab loans are offered to owner-occupants only and are not available for investors.

Make structural alterations or reconstruct a deteriorating property.

must be qualified to do the work, and do it in a timely and workmanlike manner.

•

Modernize and make functional improvements such as remodeling bathrooms or kitchens and installing new built-in appliances.

What steps should a homeowner take to obtain § 203(k) financing? 1.

The buyer finds a property.

•

Eliminate health and safety hazards such as lead-based paint or mold.

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Improve appearance and eliminate obsolescence with, for example, new siding or a covered porch.

The buyer works with his or her real estate agent to conduct a preliminary feasibility analysis that assesses the extent of the work needed, gives a rough cost estimate and projects the market value of the property after completion of the work.

•

Upgrade plumbing, heating, conditioning or electrical wiring.

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Connect to public water or sewer systems.

If the repairs would be worthwhile, the buyer enters into an offer to purchase, contingent upon the buyer receiving a § 203(k) loan.

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Install a well or septic system (property must be one acre minimum).

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Add or replace roofing, gutters and downspouts.

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Add or replace flooring.

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Add a family room, bedrooms or bathrooms.

The buyer finds a HUD-approved lender (use the search tool at www.hud.gov/ll/ code/llslcrit.cfm or call the HUD Field office at 414-297-3214). It may be wise for the buyer to talk with the lender first about § 203(k) loans before writing the offer.

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Perform major landscape work and site improvements such as grading or adding patios, decks and porches.

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Make the property accessible for a person with disabilities, for example, provide wheelchair access with wider doorways and an exterior ramp.

The lender likely will assign a § 203(k) consultant to assist with the buyer’s planning and cost estimates (particularly if the work will exceed $35,000). These consultants typically will be general contractors or home inspectors. See the information about § 203(k) consultants at www.hud.gov/offices/hsg/ sfh/203k/203khow.cfm.

•

Make energy conservation improvements such as installing new windows, insulation, doors or solar panels.

The buyer enlists the assistance of professionals to help prepare the work description and cost estimate, including architectural exhibits (plot plan if structural additions, proposed interior plan showing contemplated changes, etc.). (See the worksheets and forms in the HUD Handbook for § 203(k) at www.hud.gov/offices/adm/hudclips/ handbooks/hsgh/4240.4/index.cfm).

The property is appraised. The appraiser must provide an opinion of the “afterimproved” value and in some cases the lender may direct the appraiser to also provide the “as-is” value. If the lender decides an “as-is” appraisal is not feasible or necessary, the lender may use the sales price on a purchase transaction, or

air

The Department of Housing and Urban Development requires that properties financed under this program meet certain basic energy efficiency and structural standards and have smoke detectors. All improvements must comply with HUD’s Minimum Property Standards (HUD Handbook 4905.1) and all local codes and ordinances. A property owner may also qualify for income tax credits for some § 203(k) projects, depending upon the nature of the repairs and improvements performed.

What kinds of repairs and improvements are eligible?

Is a contractor required to do the work? No. However, if the buyer wants to do any work or be the general contractor, the buyer

Buyers using § 203(k) financing can: wisconsin real estate magazine

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july 2011

the existing debt on a refinance transaction, if this does not exceed a reasonable estimate of value. 8.

The lender issues a conditional commitment and statement of appraised value.

The lender pulls a credit report on the buyer, verifies employment, confirms deposits, etc., to establish the buyer’s ability to pay.

10. The lender issues a firm loan commitment, stating the maximum mortgage amount that HUD will insure. 11. The lender prepares the Rehabilitation Loan Agreement for the lender’s and buyer’s signatures. This agreement establishes the conditions under which the lender will release funds from the Rehabilitation Escrow Account. 12. At closing, a portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in the Rehabilitation Escrow Account. Construction may then begin. The new owner has up to six months (depending on the lender) to complete the work. 13. After closing, the lender submits the mortgage documents to the HUD office for mortgage insurance endorsement. If acceptable, HUD issues a Mortgage Insurance Certificate to the lender. 14. As construction progresses, funds are released after the work is inspected by a HUD-approved inspector. Up to four draw inspections plus a final inspection are allowed. 15. When the work is done in accordance with the work plans and any change orders, the new owner provides a letter saying the work has been done satisfactorily. If the HUD inspector agrees, the final draw is released minus a required 10-percent holdback.

August 8-9, 2011

Two-Day CRS210 Course Building Exceptional Customer Service Referral Business (Recently Revised)

www.wra.org/CRS

Other FHA Repair and Rehab Loan Programs For less extensive repairs/improvements, FHA’s Streamlined § 203(k) program permits home buyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this loan, home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. For housing rehabilitation activities that do not also require buying or refinancing the property, consider HUD’s Title I home improvement loan programs described at www.hud.gov/offices/hsg/sfh/title/ti_home.cfm. •

REALTOR® Practice Tips: Brokers working with buyers interested in properties needing basic rehab work and brokers listing properties in disrepair may be wise to have § 203(k) informational materials on hand. You never know when that may be just what is needed for a successful transaction!

Section 203(k) Resources For additional information about the HUD repair and rehabilitation loan programs, see the resources at www.hud.gov/offices/hsg/ sfh/203k/203kmenu.cfm. Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.

wisconsin real estate magazine

july 2011

What a strange picture, right?

WISCONSIN

Whether you’re a tech novice or tech guru, picture this: a room filled with technology-crazed real estate professionals attending a conference with no agenda, no outlines, no booked instructors and just a big whiteboard.

www.wra.org/ConventionCamp

www.wra.org/wrem

Four Ways to Complete Your Mandatory Continuing Education

education

www.wra.org/cecourse LIVE The Wisconsin REALTORSÂŽ Association is the top provider of real estate education in Wisconsin. Complete your 2011-2012 Continuing Education requirements by attending one of our live courses. The WRA hosts Continuing Education in all corners of the state. Course dates and locations vary. Visit www.wra.org/cecourse for a complete listing of course options.

Continuing Education Distance Learning Options Now Available! You can now order your 2011-2012 continuing education courses On Demand and on DVD to be completed at your convenience and at your own pace. Distance leaning options provide busy real estate professionals with the convenience of completing the required continuing education courses outside of a classroom.

On Demand On Demand is the newest method for completing your CE requirements on your own schedule, at your own pace. Using a Web browser with a broadband connection, watch top-notch teachers deliver the material and the final exam â&#x20AC;&#x201C; all online. Package pricing is available for the On Demand CE. $27/members | $35/non-members

Save Even More with Four-Pack and Six-Pack Discounts (Residential On Demand Only) Save up to 22 percent on CE costs by purchasing On Demand education as a six-pack or four-pack.

Six-Pack Discount The six-pack option allows you to take the four mandatory classes and two elective courses of your choice. Get the courses and electives for only $126/members and $180/non-members.

Wisconsin real estate licensees must complete 18 hours of CE before renewing their real estate licenses. Licenses must be renewed by December 14, 2012. To complete the 18 hours, licensees complete six three-hour courses and successfully pass the corresponding exams. The six courses consist of four mandatory courses and two elective courses.

Four-Pack Discount Choose any combination of the mandatory and elective courses for only $92/members and $128/non-members. Pricing applies to residential Continuing Education On Demand ONLY. Package pricing is not available in other residential formats or commercial courses.

Mandatory Courses (All licensees must take courses 1-4.)

Self-study Booklet

Course 1 - Listing Contracts Course 2 - Offer to Purchase Course 3 - New Developments Course 4 - Business Ethics

Self-study guides allow you to study the material at your own pace and then take the corresponding exam online when you are ready. These will be available in August 2011. $27/members | $35/non-members

Elective Topics (Licensees must take two of the following.)

DVD

Elective A - Short Sales and Foreclosures Elective B - Environmental Matters Elective C - Other Approved Forms Elective D - Financing

This program involves watching a DVD and reading the accompanying booklet before taking the corresponding exam online. $27/members | $35/non-members

wisconsin real estate magazine

july 2011

education

Sales Pre-License Course July 18-21; 25-28, 2011 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 licensing course. Second, you must pass a state-administered exam. The Wisconsin REALTORS® Association will be offering an eight-day Accelerated 72 Hours Sales program July 18-21 and July 25-28. Brokers can purchase a $50 discount coupon for only $10, which entitles your new recruits to a $50 discount on the registration fee. They can be ready to take the exam as soon as they complete the class. Ask them to call 1-800-279-1972 to register today! This program is also available through self-study video (DVD), a self-study Online program and via the recently released On Demand Program.

CRS 210 - Building an Exceptional Customer Service Referral Business August 8-9, 2011 WRA Headquarters - Madison

This highly interactive course has been updated to deliver all the essentials for refocusing your business plan to a customer service-centered, repeat and referral business. Information provided in the course will help identify the expectations of the new consumer and new behaviors necessary to meet those expectations. Co-sponsored with WI CRS Chapter.

Real Estate Marketing Reboot - ABR® Elective September 13, 2011

For appraisals with an effective date (date of inspection) on or after September 1, 2011, the appraisal report must be completed in compliance with the UAD for conventional mortgage loans sold to Fannie Mae or Freddie Mac. These include all appraisals completed on forms: •

Uniform Residential Appraisal Report (1004 and 70)

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Individual Condo Unit Appraisal Report (1073 and 465)

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Exterior-Only Inspection Individual Condo Unit Report (1075 and 466)

Wisconsin Dells

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Exterior-Only Inspection Residential Report (2055)

Do you think the marketing plans and strategies you used at the height of the real estate market boom work as well for you today as they did then? Think again. It’s time to reconsider how you promote yourself and attract new business, or a real estate marketing REBOOT. In this one-day course, you will revisit marketing fundamentals, branding, relationship marketing with an emphasis on electronic tools, social media, blogs, Twitter, podcasts, really simple syndication (RSS) feeds and website search engine optimization (SEO), among other technologies. Practical tips and examples of agents leveraging these tools in the field make this course a must for all real estate professionals.

Real Estate Social Marketing Strategies for Success Both Online and Offline - CRS Elective September 14, 2011 •

Develop a social marketing plan to turn fans and followers into real estate transactions.

Positioning Properties to Compete in the Market (Staging) - CRS Elective September 13, 2011

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Harness the power of thought leadership.

•

Turn social networking into a major profit center through Facebook, YouTube, LinkedIn and Twitter.

Staging is receiving national attention as an established trend in real estate. Now is the time to develop the knowledge and skills to integrate staging into your business. This course is an in-depth study of the staging process designed to integrate staging and pricing and develop strategic marketing skills. Created by Martha Webb, author and producer of Dress Your House for Success, this course will help you take control of the staging movement. Building new skills to offer sellers a proven method of optimizing price and minimizing market time will add value to your services.

wisconsin real estate magazine

Wisconsin Dells This course will focus on how to:

ABR® Course September 26-27, 2011

Wisconsin Dells

Uniform Appraisal Dataset (UAD) Program Course August 3, 2011 - Turtleback Golf - Rice Lake August 11, 2011 - WRA Headquarters - Madison August 17, 2011 - WICPA, 235 North Executive Drive - Brookfield August 25, 2011- REALTORS Association of Northeast WI - Appleton

july 2011

Northwoods Association - Woodruff Are you focused on working directly with buyerclients? Then this is a course for you. You’ll learn how to represent buyer-clients with the same level of service sellers have enjoyed as well as ideas and methods for building your buyer representation business. Complete two of the three days required for the ABR® designation and fulfill nine hours of 2011-2012 Continuing Education (Courses 1, 2 and 4; no QET credit) with one course. Take advantage of the REBAC special discount of $30 off the registration fee! www.wra.org/wrem

Course Schedule

Visit wra.org/CourseSchedule for full schedule.

Sales & Marketing Management Date Course

August 8-9, 2011

* Plus cost of books. ** Early registration applies two weeks prior to the September 26-27, 2011 start of the course. *** Wisconsin CRS members receive a $20 discount.

CRS 210

***285 (Thru 7/25) ***295 (Thru 8/7) ***315 (After 8/7)

2-Day ABR Designation Course *260 (Thru 9/12) *270 (Thru 9/25) *Deduct $30 from registration fee due to Special Offering by REBAC.

Conference and Conventions Date Event

Location

*290 (After 9/25)

Thru 8/1 Thru 8/22 After 8/22 ATD

Early registration applies two weeks prior to September 13-15, 2011 WRA Annual Convention Wisconsin Dells the start of the course

September 13, 2011 September 13, 2011 September 14, 2011 September 13-14, 2011 September 13-14, 2011

ABR Elective: Real Estate Marketing Reboot CRS Elective: Positioning Properties to Compete in the Market CRS Elective: Real Estate Social Marketing Strategies for Success both Online and Offline Both CRS Electives includes convention ABR and one CRS Elective includes convention

Real Estate Continuing Education

Date

Course

Location

2009-2010 real estate continuing education is still The available by: On Demand – DVD – Self-Study Booklets Course 1 – Listing Contracts Course 2 – Offer to Purchase Course 3 – New Developments Course 4 – Buyer Agency Agreements Elective A – Risk Reduction Elective B – 1031 Exchanges and Exchange Opportunities Elective C – Condominiums Elective D – Landlord/Tenant and Property Management Elective E – Financing Elective F – Broker Supervision

July 27, 2011 August 4, 2011 August 10, 2011 August 11, 2011 August 18, 2011 August 18, 2011 August 24, 2011

2011-12 Elective A 2011-12 Courses 2 & 1 2011-12 Courses 2 & 1 2011-12 Courses 4 & 3 2011-12 Courses 4 & 3 2011-12 Electives B & A 2011-12 Electives B & A

Sheboygan Brookfield Madison Brookfield Madison Brookfield Madison

QuickStart

$195 $195

$205 $205

$225 $225

$185

$195

$205

$225

$330

$340

$350

$370

$330

$340

$350

$370

920-457-7908 800-279-1972 800-279-1972 800-279-1972 800-279-1972 800-279-1972 800-279-1972

$27/m;$35nm $27/m;$35nm $27/m;$35nm $27/m;$35nm $27/m;$35nm $27/m;$35nm

2011-12 Electives: Elective A – Short Sales & Foreclosures Elective B – Environmental Matters Elective C – Other Approved Forms Elective D – Financing

Appraisal Continuing Education Date August 3, 2011 August 11, 2011 August 17, 2011 August 25, 2011 September 15, 2011 Pre-License * Plus books Available online!

$185 $185

Course

Uniform Appraisal Dataset (UAD) Program Course Rice Lake Uniform Appraisal Dataset (UAD) Program Course Madison Uniform Appraisal Dataset (UAD) Program Course Brookfield Uniform Appraisal Dataset (UAD) Program Course Appleton HUD/FHA & USDA Rural Appraisal Standards Wisconsin Dells Approved for Wisconsin Appraiser and Assessor CE. Submitted for Michigan and Minnesota Appraiser CE.

Date Course Location Member July 18-21; 25-28, 2011 Aug. 1-4, 2011 Oct. 3-6; 10-13, 2011 Oct. 31-Nov. 3, 2011

Location

Sales Pre-License Course Broker Pre-License Course Sales Pre-License Course Broker Pre-License Course

Madison Madison Madison Madison

$325* $260* $325* $260*

Non-Member $325* $280* $325* $280*

sales training program

www.wra.org/QuickStartOnDemand

wisconsin real estate magazine

july 2011

product showcase

Broker-in-a-Box

Jing: Free Version

Open an Office with These Tools

Instant Screenshots and Callouts Many consumers prefer electronic communication, but sometimes using just words in an e-mail can be inefficient, even awkward, especially when you are trying to point out something on the screen quickly. Jing is a fun and easy way to capture images and videos, then add visual elements to your screen shots, such as arrows, text and highlights, to enhance your message.

If you are looking to open a new brokerage firm, but don’t know where to begin, the Wisconsin REALTORS® Association’s Broker-in-a-Box is the perfect place to start. Full of valuable products, this box is a consolidation of specialty items designed to assist a broker in opening an office. The included items will provide direction on securing loans, establishing a business entity, establishing a trust account, determining insurance needs and trademarks, plus more! Box Contents: •

Broker Desk Reference – This completely updated reference binder contains checklists, websites and sample pages with the latest resources on: business entities and business name/trade name, licensing information, employment law, accounting/trust accounts/ payroll, insurance, membership and trademark/copyrights, as well as an appendix on office practice issues including risk reduction and dispute resolution.

•

Office Policy Manual (2011 edition) - Designed as a tool to assist brokers who are drafting or revising an office manual, this guide identifies areas and topics to consider for inclusion regarding office policies and the type of language that may be used in developing a written office policy.

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Wisconsin Real Estate Clause Manual

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Wisconsin Real Estate Law Manual (2010 edition)

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Jing’s minimal feature set keeps the focus on instant sharing. It’s the perfect companion to the casual, fast-paced online conversations we all have every day. Jing is free for everyone and includes 2GB of free storage and bandwidth at screencast.com.

Selected Wisconsin Statutes and Administrative Codes – This current edition covers statutes and rules relevant to the regulation and practice of real estate in Wisconsin.

•

CD Containing Issues of Legal Update and Broker Supervision Newsletter

For more information, visit www.techsmith.com.

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Real Estate Trust Accounts in Wisconsin – This handbook explains the duties of a broker to account for money received or disbursed on behalf of a party in a real estate transaction.

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Trust Account Journal

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Trust Account Ledger

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WRA Consumer Brochures

•

ZipForm User Manuals

•

Sample Forms Pack – This pack includes a sample of every form the WRA has available for real estate.

With Jing, explaining ideas, giving feedback, collaborating on projects and just sharing information becomes so much easier. Jing sits conveniently on your desktop so that you can capture something on your screen quickly, and then add arrows, text and highlights. Are you still finding it hard to explain something on the screen? If so, create a short narrated video. The Pro version will even let you capture your message on a webcam. When done, upload your captures to screencast.com, save them to your computer, or upload them to Flickr or YouTube.

Purchase this consolidation of products at www.wra.org/broker-in-a-box.

wisconsin real estate magazine

july 2011

www.wra.org/wrem

legislative

Legislature Completes 2011-13 State Budget Early On June 15, 2011, the state Legislature finalized its work on the 2011-13 Wisconsin State Budget, marking one of the earliest completion dates for the state budget in recent years.

to approve educational curriculum and state approved forms (currently performed by the department secretary). Prevailing Wage – The budget makes significant changes to the prevailing wage law, including:

Faced with a deficit of $3.6 billion, Governor Walker and the Wisconsin Legislature made significant spending cuts and reduced the structural deficit into a budget surplus of approximately $300 million while maintaining their campaign promise not to raise taxes. Moreover, property taxes will be virtually frozen over the next two years, saving the average homeowner approximately $700, according to some reports. As reported last month, the state budget contains numerous provisions of interest to REALTORS® and property owners. Following is a brief summary of the major budget provisions impacting the real estate industry. Property Taxes – The budget places a 0-percent property tax cap on local levies for the next two years, but would allow increases based upon net new construction and gives local governments the power to carry forward up to 0.5 percent of unused levy authority to the next year. Additionally, the budget implements a permanent 1.5-percent cap for future years. Farmland Conversion Fee – The budget eliminates the farmland conversion fee, which applied anytime land zoned exclusively for agriculture was rezoned to another zoning classification. In addition, the budget (a) maintains the Purchase of Agricultural Conservation Easements (PACE) program, but eliminates the bonding and funding for the program; (b) funds the 12 PACE applications that had been submitted for this year; (c) deletes the requirement for DATCP to solicit PACE applications in the future; and (d) requires DATCP to study PACE and report back to JFC by June 30, 2012. These changes went into effect on January 1, 2011. Real Estate Examining Board – The budget changes the Real Estate Board to a new Real Estate Examining Board, adds greater real estate licensee representation to the REEB (five real estate licensees, rather than four), and provides the REEB with more autonomy

wisconsin real estate magazine

By tom Larson

•

Reporting requirements. Repeals the monthly wage reporting requirements for contractors, subcontractors, or contractors’ or subcontractors’ agents enacted in the 2009-11 state budget.

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Effective date. January 1, 2012.

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Publicly funded private construction projects. Makes a full repeal of all changes made in the 2009-11 state budget related to publicly funded private construction projects, which applied the prevailing wage law to private construction projects that receive direct financial assistance from a local governmental unit in the amount of $1 million or more.

Housing Impact Statement – Restores the requirement for a housing impact statement to be prepared by the Department of Administration (previously prepared by the Department of Commerce) any time a state agency proposes an administrative rule that directly or substantially affects the development, construction, cost or availability of housing in the state.

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Residential projects. Exempts from the prevailing wage law projects of state or local public works involving residential property containing two dwelling units or less.

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Turnkey infrastructure for residential development projects. Exempts “turnkey infrastructure” (paid for by the developer and dedicated to a municipality) for residential subdivisions from the prevailing wage law. “Residential development” means any development where 90 percent of the lots contain or will contain one- to two-family dwellings. This will allow mixed-use developments to be eligible for the exemption.

Storm Water Management Rules (Wis. Admin. Code Ch. NR 151) – Repeals the Department of Natural Resource’s Storm Water Management Rules (NR 151) and directed the DNR to recreate the rules in a manner such that the rules do not contain requirements more stringent than the federal Clean Water Act. The rules are to be recreated within the next six months.

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Local preemption. Prohibits local governmental units from enacting and administering local prevailing wage ordinances. Specifies that existing ordinances are void.

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Project thresholds. Eliminates the current provision specifying that prevailing wage laws for municipal and state public works projects do not apply to projects for which the estimated cost of completion is below $25,000. Instead project thresholds are $48,000 for single-trade projects, $234,000 for multiple-trade construction projects conducted by townships or by cities and villages with populations of less than 2,500, and $100,000 for all other multiple-trade municipal and state public works projects.

july 2011

Shoreland Zoning (Wis. Admin. Code Ch. NR 115) – Requires the DNR to perform an economic impact analysis of NR 115 on the economic effect of NR 115 on specific businesses, business sectors, public utility ratepayers, local governmental units and the state’s economy as a whole. Requires the DNR to prepare the report by December 31, 2011, and submit the report to the governor, to the chairperson of the appropriate standing committees in each house of the Legislature and to the co-chairpersons of the Joint Committee for Review of Administrative Rules. Eminent Domain – Places new restrictions on the ability of landowners to use appraisals to challenge condemnations, and limits on the amount of attorneys fees a court can award landowners, making it more difficult for property owners to hire attorneys to represent them in eminent domain proceedings. For more information on the provisions in the 2011-13 State Budget, please contact Tom Larson (tlarson@wra.org) at 608-240-8254. Tom Larson is Chief Lobbyist and Director of Legal and Public Affairs for the WRA.

legislative

State Senate Recall Elections

By joe murray

The historic state Senate recall elections are now well underway in Wisconsin. Why are these elections historic? Who is running and where are they running? What are the voting habits of these districts? These are all important questions. Here are a few facts to help guide you through these unprecedented elections as they progress.

Incumbent Senators Facing Recall - 3 Democrats, 6 Republicans

Rob Cowles (R) Green Bay

Alberta Darling (R) Milwaukee

Randy Hopper (R) Fond du Lac

Sheila Harsdorf (R) River Falls

Robert Wirch (D) Kenosha

Jim Holperin (D) Conover

Dave Hansen (D) Green Bay

State Supreme Court Race 2011

Luther Olsen (R) Ripon

Dan Kapanke (R) La Crosse

Holperin (D)

The candidates facing recall and their campaign staff have spent a lot of time reviewing the results of the hotly contested and nearly tied 2011 state Supreme Court race for possible clues to the outcome of the recall elections. They are wondering if the Kloppenburg-Prosser numbers in each of the nine districts facing state Senate recall elections will predict the outcome of these elections in August. (As you recall, Prosser won this race by only 7,004 votes.) Itâ&#x20AC;&#x2122;s almost impossible to know the answer to this question. However, here are visual and numerical breakdowns of the Kloppenburg-Prosser April results.

Hansen (D)

Cowles (R) Harsdorf (R)

Olsen (R) Hopper (R)

Kapanke (R)

Prosser (the conservative candidate) received the majority of votes in the red counties, and the blue counties were carried by Kloppenburg (the liberal candidate). The next chart breaks down how each of the nine districts with state Senate seats up for recall voted in three high-profile races: the 2010 gubernatorial election, won by Walker; the 2008 presidential election, won by Obama; and the April 2011 Supreme Court race, won by Prosser.

wisconsin real estate magazine

july 2011

Winner By County Darling (R)

Kloppenburg Prosser

Wirch (D)

www.wra.org/wrem

Senator

Needed Signatures

•

Obama %

Prosser %

Robert Cowles (R)

15,960

57.4%

52.4%

57.8%

Alberta Darling (R)

20,343

54.2%

51.4%

57.6%

Sheila Harsdorf (R)

15,744

58.2%

50.1%

48.7%

Jim Holperin (D)

15,960

57.4%

52.7%

55.3%

Luther Olsen (R)

14,733

57.3%

51.8%

54.8%

Randy Hopper (R)

15,269

57.2%

51.3%

53.4%

Robert Wirch (D)

13,537

52.6%

57.1%

48.7%

Dave Hansen (D)

13,852

53.5%

56.5%

52.4%

Dan Kapanke (R)

15,588

49.5%

60.8%

42.3%

What do these numbers mean? •

Walker %

In the 2010 gubernatorial race where the GOP enjoyed a significant “enthusiasm gap,” Scott Walker carried eight of the nine recall districts: Cowles, Darling, Harsdorf, Holperin, Olsen, Hopper, Wirch and Hansen. Walker nearly carried all nine, but came up just short in Kapanke’s district. In the 2008 presidential race where Barack Obama crushed John McCain in Wisconsin, Obama carried all nine recall districts, illustrating his electoral strength on the eastern side of Wisconsin, which trends more Republican than the western half of Wisconsin, which is normally more Democratic. In the April 2011 Supreme Court race where voter turnout set an all-time record (1.5 million) for a court race, Prosser carried six of the nine recall districts, came close to winning in two districts (Harsdorf and Wirch) and lost one district (Kapanke) by a large margin.

The take away is this: all nine districts are susceptible to the prevailing political winds. If Democrats are hot (Obama 2008) these districts will

History of Recalls

vote Democratic. If the GOP is hot (Walker 2010), the districts will vote Republican. Prosser carried six districts and nearly one more. So, is this good news for Republicans or Democrats? It’s risky to rely too heavily on the Kloppenburg-Prosser election model when predicting a potential outcome in the state Senate recalls, but consider this: •

Democrats and their union allies had the perfect storm of enthusiasm and outrage, and still lost.

•

Prosser’s overall percentage of the vote was only 2 percent smaller than Scott Walker’s or Ron Johnson’s in 2010 (52.3 percent).

•

Kloppenburg’s 49 percent of the vote was less impressive than first impressions. Kloppenburg started with 45 percent of the vote, not 25 percent. She won a left-of-center three-way primary.

•

A very closely divided state may not give Democrats enough muscle to flip three state Senate seats and retake the majority they held before last November because Republicans control the Senate by a healthy 19-14 majority.

Year

State

In the entire history of all 50 states, only 13 state legislators have ever been successfully recalled, including two from Wisconsin (George Petak in 1996 and Gary George in 2003).

2003

Wisconsin

Gary George

Democrat

1996

Wisconsin

George Petak

Republican

1995

California

Doris Allen

Republican

It is possible that the unique circumstances and historic nature of the current Wisconsin recall elections could render these facts and figures irrelevant. Perhaps the political power of angry unions and equally motivated Democrats will be able to create the tsunami of rage and disappointment that will deliver a stinging rebuke to the GOP.

1995

California

Paul Horcher

Republican

1988

Oregon

Bill Olson

Republican

1985

Oregon

Pat Gillis

Republican

1983

Michigan

David Serotkin

Democrat

1983

Michigan

Phil Mastin

Democrat

1971

Idaho

Arden Hyde

Republican

1971

Idaho

Fisher Ellsworth

Republican

1935

Oregon

Harry Merriam

Republican

1914

California

Edwin Grant

Democrat

1913

California

Marshall Black

Republican

It didn’t happen in the Supreme Court race between Kloppenburg and Prosser, but the race was extremely tight. The state Senate recalls represent round two. My guess? There will be several very close elections in August. Joe Murray is Director of Political and Governmental Affairs for the WRA.

wisconsin real estate magazine

july 2011

Legislator

Party

legislative

Altering Landlord-Tenant and State-Local Relations Proposed Legislation Seeks to Standardize Landlord-Tenant Rules

By Michael theo

New legislation that would significantly improve the way landlords can screen potential tenants is making its way through the Legislature. Perhaps more importantly, the legislation (Senate Bill 107 and Assembly Bill 155) would also standardize the residential rental marketplace in Wisconsin by having state law preempt local ordinances governing landlord-tenant relations. The bill has the strong support from apartment associations and landlord organizations across the state, but is intensely opposed by tenant rights organizations and municipalities that support local control over such matters. The Wisconsin REALTORS® Association supports the legislation because it provides needed authority for property owners and managers to fairly review a prospective tenant’s financial, rental and legal background to protect themselves as well as other tenants. The legislation prohibits a municipality from placing limitations on a landlord’s use of important information when reviewing the background of prospective tenants, including: Tenant’s Financial Condition – Monthly household income, occupation and credit information are important indicators of a prospective tenant’s ability to meet the monthly rent obligation along with other expenses (water, electric and gas). If a prospective tenant has a poor history of paying bills or meeting financial obligations on a consistent basis, the landlord should be aware of this fact before entering into a lease. Quality screening necessitates this basic information. Legal Issues – Court records are equally important indicators of a prospective tenant’s suitability for a specific rental property. In Wisconsin, landlords have the ability to check on the prospective tenant’s rental history through CCAP (the Consolidated Court Automation Programs).

wisconsin real estate magazine

july 2011

If the applicant has a record of failing to pay rent, utilities or other issues related to rental property, especially eviction, the landlord should know this in advance of any lease agreement. Tenants may also use CCAP to review prospective landlords as well. Prospective Tenant Showings – The legislation would allow landlords and property managers to show property to a prospective tenant and enter into a lease agreement with new tenants while the current tenant is living in the property. Any such arrangement must be acceptable to the current tenant and the landlord, and both sides must cooperate to allow the owner to find and sign new tenants. If landlords are not allowed to show a property before a lease expires, the end result is an empty apartment. This provision allows for an orderly transition between the current occupant and a new occupant. The legislation does not impact existing federal, state and county fair housing laws dealing with discrimination. The WRA believes SB 107 and AB155 remove unnecessary limitations some Wisconsin communities have placed on the ability of residential landlords and property managers to properly screen prospective tenants. Many, if not most, landlords and property owners are small “mom and pop” operations that tend to operate on very small profit margins. One bad tenant or an unnecessarily empty unit can seriously jeopardize their financial situation in any given property. While this legislation is controversial, in the end, good screening is an essential ingredient for a successful residential lease agreement between a property owner and a renter. The legislation has passed the state Senate and will be taken up by the state Assembly soon. Michael Theo is Senior Vice President of Legal and Public Affairs for the WRA. www.wra.org/wrem

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