May 2013 – Wisconsin Real Estate Magazine by Lauren Bizorik

Real Estate Wisconsin

A Publication of the Wisconsin REALTORS速 Association

magazine May 2013 Vol. 29 No. 8

Q1 2013 Report

How Wisconsin housing fared.

You, Doubled

Stay afloat as the market picks up.

Whew! Stinky!

A bat infestation case summary. Why it should be repealed.

FOCUS

Using Your Sales Skills ... Uniquely!

by M ela

A-FIRE Law

Lane Mc ie

contents

May 2013 | Vol. 29, No. 8

12 4 Do you smell that?! 12 Legal Hotline Q&A 14 28 Dreaming? Wake up! 17 28 A-FIRE law Health care reform 21 30 Roggensack win Proportionality You spoke, we listened.

The tale of a vacation home gone wrong.

Haunted houses, hunting shacks and more unique properties.

Learn how the new measures will impact small business.

Clearing up the confusion and reasons to repeal it.

A summary of Roggensa-ck’s victory over Fallone in last month’s election.

Duplicate Yourself The good news is that the market is picking up. The bad news might be that you’re busier — and more of you would make life easier. “Real estate road warrior” and motivational speaker Shannon W. King discusses how you can duplicate yourself — by hiring more of you — to keep up with all aspects of your business in the busy market. See the full story in this month’s REALTOR® Sales Tip column on page 26.

8 Cover Story Trout streams, snowmobile trails and game land. No, they’re not the upcoming specials on The Travel Channel — they’re the features of unique properties! Pennsylvania-based real estate guru Melanie McLane talks cabins, second homes, vacation properties and more, and how these properties and clients differ from the usual primary residential properties. See the full story on page 8.

WIREALESTATEMAG • MAY 2013

A regulatory reality check about waterfront property.

A Message from the President by Mike Theo

Proportionality

WIREALESTATEMAG • MAY 2013

wise mentor of mine back in my state capitol staffing days pointed out that we all have two ears and one mouth and we ought to use them proportionately. That’s sage advice. Over the past several months, we have been doing a lot of listening as part of a robust strategic planning process. This listening included five professionally facilitated member focus groups — including one with our entire board of directors, followed by an all-member electronic survey. For those of you who participated in the focus groups and the thousands who responded to the survey — thanks! The survey results aligned with what we heard in the focus groups, with both yielding fascinating insights into our marketplace, our membership and our association. Here are a few snippets of what you had to say. Eight out of 10 of you said your local real estate markets are stronger than a year ago, but that fundamental changes in the marketplace are making your jobs more complex and frustrating. These changes include the use and application of technology, the financing process, and accurate pricing and valuation of property. When asked if the changes are temporary or permanent, 73 percent of you said the changes were permanent, forever changing the way you do business. You said the biggest business challenges over the next year will involve consumer difficulties getting financing, shrinking inventories, difficulties with appraisals, and inaccurate information on the Internet. You said the greatest business opportunities were more consumers in the market for buying a home, better balance between seller prices and buyer expectations, and low interest rates and affordable prices.

The survey results aligned with what we heard in the focus groups, with both yielding fascinating insights into our marketplace, our membership and our association. You were also overwhelmingly satisfied with the WRA, with 83 percent of you saying the WRA helps the real estate industry in Wisconsin and 78 percent saying the WRA helps you in your personal real estate business. Seventy six percent of you said you were either very or somewhat satisfied with the WRA. Only 7 percent said you were either somewhat or very dissatisfied. So what’s the bottom line? Based on your input, here are the major themes we heard you wanted: Work to create more jobs and a growing economy. A healthy and dynamic economy will do more to help the real estate business

than anything. The WRA should, to the greatest extent possible, work for economic and job growth. Protect and empower the consumer. The WRA should work to protect consumers from excessive tax or regulatory policies that overly constrict access to financing by creditworthy buyers and/or hurt housing and real estate affordability. Promote the REALTOR® brand. • The WRA should work to establish REALTORS® as the “go to” source for accurate, timely and relevant information for buyers and sellers. • Moreover, we should help the media and general public better understand and appreciate the important roles REALTORS® play in the transaction and in the community. • And we should make sure REALTORS® are well trained and provide quality professional services to the public. So we have asked for your input and you have given it. Our challenge now is to take what we heard and create an organization that meets your needs, the needs of your customers and clients, and importantly, meets the needs of our local communities and neighbors. And as we move from strategic goals to tactical programming, our listening is not over. Your comments are always welcome. Proportionality between listening and talking demands nothing less.

real estate inside the wra

Real Estate Wisconsin

magazine

New Tax Credit for First-time Homebuyers

Editorial Staff: Publisher: Michael Theo Editor: Lauren Bizorik Designer: Lauren Bizorik Managing editor: Robert Uhrina

Wisconsin Housing and Economic Development Authority (WHEDA) recently unveiled a new program that offers a federal tax credit up to $2,000 every year to first-time homebuyers.

WRA Executive Committee: Renny Diedrich, Chairman Steve Lane, Chairman-Elect Dan Kruse, Treasurer Paul Schieldt, Vice President Peter Sveum, Vice President K.C. Maurer, Vice President Erik Sjowall, Vice President

A WHEDA-approved lender can provide the MCC to qualifying homebuyers on or after April 1, 2013, for loans closing on or after April 4, 2013. Qualifying individuals and families must meet income and purchase price limit requirements, must be first-time homebuyers, or must not have owned a home as a primary residence in the last three years, and must meet the qualifying requirements of the mortgage loan. Veterans who have served in active duty and were honorably discharged or released and who have not previously had a mortgage financed through a mortgage revenue bond program are exempt from the first-time homebuyer requirement. Individuals or families purchasing a home in an HUD-designated target area are exempt.

Contact Information: 4801 Forest Run Rd., Suite 201 Madison, WI, 53704-7337 608-241-2047 • 800-279-1972 e-mail: editor@wra.org website: www.wra.org POSTMASTER: please send address changes to the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201, Madison WI 53704-7337.

The WHEDA Tax Advantage is a Mortgage Credit Certificate (MCC) that allows a qualifying homebuyer to claim a tax credit for a portion of the mortgage interest paid per year. The tax credit is a dollar-fordollar reduction against the homebuyer’s federal tax liability.

The amount of the annual tax credit is a percentage of the annual interest paid on the mortgage. Individuals and families purchasing a home anywhere in the state of Wisconsin can claim 25 percent. Qualified military veterans as well as individuals and families purchasing a home in an HUD-designated area can claim 40 percent. The maximum amount of the credit is $2,000 per year. Lower taxes made possible by the MCC equate into lower housing costs — generating interest in homeownership. Borrowers see more of their payment applied to principal and less to interest. Those interested in applying for an MCC should contact a participating WHEDA Tax Advantage lender. Find a list of lenders and HUD-designated target areas at www.wheda.com.

Obama Renews Cap on Deductions Proposal

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. 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. 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.

President Obama’s latest budget proposal renews his call for capping the value of itemized deductions, including the mortgage interest and property tax deductions. The cap would limit the value of all deductions to 28 percent for households with higher incomes, (above $250,000 a year,) which means a loss of deductions for families in the tax brackets above 28 percent. The president has proposed this limit every year since assuming office. Budgets at the federal level only serve as fiscal guidelines for lawmakers and do not have the force of law. However, because the House, controlled by Republicans, and the Senate, controlled by Democrats, have different budget proposals pending, the likelihood of a single compromise budget seems remote. Whether in the context of the budget or in the context of separate tax reform legislation, Congress is expected to consider significant changes to the mortgage interest, property tax and other deductions this session.

WIREALESTATEMAG • MAY 2013

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wisconsin monthly housing report by David Clark

First Quarter Sales and Prices Increase by Solid Margins WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY — MARCH 2013 Statewide MAR 2013 MAR 2012 % Change YTD 2013 YTD 2012 % Change New Listings 10,025 11,804 -15.1% 26,615 29,615 -10.6% Closed Sales 5,058 4,911 3.0% 12,246 11,049 10.8% Median Sales Prices $134,900 $123,000 9.7% $126,000 $120,000 5.0% Median Price Existing Home Sales Region MAR 2013 MAR 2012 % Change YTD 2013 YTD 2012 % Change Southeast $145,000 $127,000 14.2% 1,971 1,829 7.8% South Central $159,900 $148,000 8.0% 971 964 0.7% West $135,000 $125,000 8.0% 506 441 14.7% Northeast $121,001 $112,338 7.7% 903 954 -5.3% Central $104,850 $93,250 12.4% 298 294 1.4% North $95,000 $105,000 -9.5% 404 420 -3.8%

View Online View all of the housing statistics at www.wra.org/housingstatistics.

2013 home sales market,” said Diedrich. Median prices rose a solid 9.7 percent in March, up 5 percent in the first quarter of 2013 compared to the first quarter of 2012. Inventory reductions were a major factor in the recent growth in median prices, according to Michael Theo, WRA President and CEO. “Very low mortgage rates have certainly stimulated sales activity, and this combined with a decline in new listings has brought our unsold inventory levels down to just nine months of supply,” Theo said. Inventory levels are down from 12.1 months a year ago, and from approximately 18 months of unsold homes in July 2011. Every region of the state saw its median price increase in the first quarter. Median prices in the Central region were up 16.7 percent in Q1, due in large part to a shift in the mix of homes sold to homes with more desirable amenities. Also up by strong margins were the South Central region, up 10.1 percent; the West region, up 7.7 percent; and the Southeast, up 4.8 percent. Finally, median prices in the North and Northeast regions grew between 2.7 percent and 3.3 percent in the first quarter

of 2013 compared to the first quarter of 2012. The Wisconsin Housing Affordability Index shows the percentage of the median-priced home that a buyer earning the median family income can afford to buy, at current mortgage rates and a 20 percent down payment. The index was at 261 percent in March 2013 compared to 274 percent in March 2012. While Wisconsin housing remains very affordable, the trends of rising prices and rising mortgage rates will eventually erode affordability. “Buyers should consider these trends and take advantage of the current market conditions,” Theo said. “It’s an excellent time for both first-time homebuyers and homeowners who want to trade up, to consult an experienced REALTOR® with local market expertise. David Clark, Ph.D, is a professor of economics at Marquette University and serves as a consultant to the WRA in the analysis of existing home sales data as well as in the preparation of the monthly Wisconsin Housing Report. For more information, contact Clark at C3 Statistical Solutions, 414-803-6537. WIREALESTATEMAG • MAY 2013

isconsin existing home sales increased 3 percent in March, which is the 21st straight month of sales growth. Median prices grew 9.7 percent to $134,900 in March, compared to the same period last year, according to statistics released by the WRA. Sales during the first quarter were up 10.8 percent, and median prices rose 5 percent relative to the first quarter of 2012. “This is the highest sales volume we’ve seen in March since 2007, before the Great Recession began,” said Renny Diedrich, Chairman of the WRA board of directors. Noting that sales moderated somewhat from the double-digit growth rates of the past year and a half, Diedrich said, “It’s inevitable that the torrid pace of sales will moderate since the base we’re comparing to is a much improved market. Our markets remain strong and growing.” Looking at the first quarter, Diedrich noted that every region of the state saw increased sales, with four of the six regions increasing more than 10 percent compared to the first quarter of 2012. Three regions — the Central, West and Southeast — saw Q1 sales grow between 14.1 percent and 16.3 percent, whereas the South Central region was up 10.2 percent compared to Q1 2012. The North was up 6.2 percent and the Northeast grew 3.5 percent over the period. “With Wisconsin’s net job growth essentially flat over the past year, this is a very good beginning to the

by Melanie J. McLane

Using Your

Sales Skills ... Uniquely! A look at listing and marketing unique homes

Those who begin by selling primary homes are trained, or quickly discover, that they need to get their buyers to focus on: • Location • Size • Amenities • Urgency As a brand-new agent, the very first house I sold was to a young couple expecting their second child. They were living with a toddler in a two-bedroom, second floor walk-up apartment. They wanted my town because of its proximity to two good job markets; they wanted a three bedroom house; there were not a lot of amenities available in their price range; and their urgency was literally growing every day. The wife was eight and a half months pregnant at closing, which was cutting it pretty close! I was pretty much an “order taker” in that sale — they gave me their parameters, I found what they wanted, or close enough to satisfy them, and they bought it. I later found out that the wife had told the husband, “I’m not coming home from the hospital with a new baby to that apartment!” However, my market, because of geography — I’m in the mountains of Pennsylvania near streams, state land, bike trails, and hunting and fishing grounds — also serves and caters to

second-home buyers. Also as a brand-new agent, I discovered some characteristics fairly quickly about those buyers: • Location: Is tantamount. You can’t move the state game land or the salmon stream. In your market, the unique features might be the lakes, or the ski or snowmobile trails. The feature has to be there, or the property doesn’t suit. Those location attributes are the sum and substance of why these buyers are looking in your area. Other than asking how the taxes are, they don’t care about your school district or your local government — unless it gets too intrusive. • Size: Is flexible. You wouldn’t believe how many guys can fit into a hunting camp until you’ve seen the bunkroom! If the size isn’t right, they’ll fix it. In the past few years, my market has seen a marked number of “teardowns” — buyers completely demolishing the improvements and building new. • Amenities: Flexible again. Some of my second-home buyers specify that they don’t need inside plumbing. Some have been honest enough to admit that if they get a place “too nice,” then the “wives will want to come along.” They will buy with amenities, and if they want the wives to come along, and the wives want

inside plumbing — they will put it in. Because they don’t intend to live there year-round, these buyers can “rough it” with only one bathroom or a small kitchen. • Urgency: Second-home buyers generally have absolutely no urgency. This is a discretionary purchase. They could buy this house … or not. Maybe it’s between my listing of a log cabin in the mountains that the husband prefers and the beach house that the wife prefers. Or maybe the joker in the deck is that they might buy a travel trailer or a huge boat instead. Because again — this is a discretionary purchase. No one needs a second house! So, what does an agent do with listings for second homes? We all usually market homes by talking about the location, size and amenities. We try to insert urgency: “This won’t last!” But what is our best method for our second-home buyers?

Location First of all, know your market — in terms of how a prospective second-home buyer would see your market. In the RSPS course, we talk about being an “ambassador” for your area. That is so true! Being a good second-home agent

WIREALESTATEMAG • MAY 2013

Elling primary homes is something that most real estate agents do — if for no other reason than because primary homes are the biggest chunk of the residential market in the U.S. in most markets. But what about the “unique” home market with cabins, lakehouses and vacation homes?

feature

go in together to buy a camp. They are not looking for luxury, just a place to hang out after hunting. Size also means acreage. Many of my buyers are looking for acreage — until they find out how pricey that can be. My part of Pennsylvania is in the middle of the Marcellus Shale Gas Industry, and that has driven up land prices considerably. However, even before that happened, I would always point out to buyers that properties that adjoin state land give the owner all of the benefits of the land without the burden of taxes. Proximity to state land continues to be the driving force in my market.

WIREALESTATEMAG • MAY 2013

Amenities

in my area includes knowledge of trout streams, lakes, which streams are stocked, state game land and hunting seasons, ATV trail locations and snowmobile trail locations — as well as knowing the tax structure, the nearest hospital, and a variety of other things that buyers will ask. I’ve had secondhome buyers ask about everything from where the good restaurants are to who is a good veterinarian. If you don’t love the area you are in enough to be an ambassador for it, either fall in love or move to an area you can love like that! My buyers look regionally, so I have to be able to talk about other areas in Pennsylvania that they might consider — and have talking points about why my area is better. So, if they say they are looking at

the Poconos, I’ll point out my area is not nearly as commercialized and built-up. If they mention the counties immediately to my west, I’ll point out that they don’t have the bike/hiking trail. This also involves you knowing the good and bad about your area. Maybe you don’t have all the amenities of a Vail, Col., but you are also a ski resort area, and you are much more reasonably priced — that’s your selling point.

Size We do often advertise hunting cabins with the information about how many the cabin can sleep. In my market, it is still common to have groups of people

If our listings have amenities, of course we play them up! In my market, stream frontage and rail/trail access or frontage is highly desired. And, like lake frontage or ocean frontage, you either have it or you don’t. If you don’t, the price should reflect that. Of course, if the house has added amenities like a cozy fireplace, a sweeping deck or porch, or a master suite, we talk about those features. For all three of these features — location, size and amenities, I try to frame the house in terms of what it will provide to the buyer. Research from the National Association of REALTORS® shows that many buyers are looking for a family gathering place that will include more than one generation. The same research from NAR reveals that most second-home homebuyers buy a property within 200 miles of their primary home. So, I emphasize how they can get to their second home for a weekend without much difficulty (“just 90 minutes from Harrisburg, Pa.”); how it is large enough to allow the entire family to congregate (“bunk room for the buddies or the grandkids”); and how they’ll enjoy the amenities (“fish off the deck, walk to the rail/trail, and walk to state game lands”). You are always painting a picture of a lifestyle because that’s what they are buying. So: “Enjoy your morning coffee on the porch overlooking the stream. Later on, take the grandkids on a bike ride on the trail. Some fishing before dinner, and then gather around the fire ring to make ‘smores and tell stories.”

Because secondhome buyers do not have the urgency first-time buyers have, you have to possess a different mindset when working with these buyers.

Because second-home buyers do not have the urgency first-time buyers have, you have to possess a different mindset when working with these buyers. Rarely, in my experience, do they make one trip and buy a property. They will make several trips. They will look at properties over a long period of time — even years. They will want you to keep in touch with them and continue to supply them with market information. Urgency in some markets has actually been created by the financial meltdown. In places like Florida, cash sales are the norm, not the exception, and are being made by investors who understand that the prices they are seeing will not last. The same phenomenon has been reported by agents along the Eastern Atlantic Coast, from Maine on down. Their prices took a hit, but buyers who’ve been “looking” for years are now realizing that in some areas, the prices

are as low as they have ever seen them. What we need to couple with this to create urgency on the buyer’s part is an understanding of today’s low interest rates and how unlikely these rates are to last. The math of interest rates is pretty simple: as rates go up, buying power goes down, and the payment amount goes up. What many consumers do not realize is that the gap is much greater than the change in interest rates. Here’s an example: A loan for $100,000 at 3.5% over 30 years will cost $449.04 a month for principal and interest. If the interest rate goes up one percent to 4.5%, the payment goes up to $506.69. The payment has increased by 13%! If the buyer waits around until rates hit 6.5%, which is still lower than the historic average of around 7% to 8%, the payment is now $632.07, or 41% higher than it was at 3.5%. It’s up 25% from the cost of the payment at 4.5%. In other words, time is not on any buyer’s side. It is not a question of if mortgage interest rates will rise, but when. So, the urgency that we are using now is that at no other time in

my career, spanning 30 years, have we had this much inventory, and these low rates. They can buy now and lock in the cost of the second home for years to come ... or they can wait and perhaps never be able to realize that dream. So, you market this by telling your buyers that for now — and it won’t last — their dreams are affordable. Melanie J. McLane is a Pennsylvaniabased appraiser, associate broker and real estate educator. A veteran of 34 years in the resort and second-home and real estate industry, she has owned and operated a real estate brokerage and taught everything from pre-licensing through designation courses. She is the 2012 chair of the Resorts and Second Homes Forum for the National Association of REALTORS® and continues to practice as both an appraiser and an associate broker. McLane holds 11 designations and/or certifications, was inducted in 2008 into the REBAC Hall of Fame as a trainer, and was awarded the 2012 RSPS of the Year.

WIREALESTATEMAG • MAY 2013

Financing impacting secondhome buyer urgency

legal by Cori Lamont

Vacation: All I Ever Wanted Bat guano by any other name would smell like bat guano Wisconsin is a state of second homes — a place where people come to play in the snow by winter and water in summer, and the Hirschhorn family followed in this great tradition. Joel and Evelyn Hirschhorn have owned a scenic Lake Tomahawk, Wis., vacation home since 1981. The Hirschhorns live in Florida and vacation in Wisconsin. Each month when the Hirschhorns were not at the Wisconsin property, they arranged for neighbors or hired cleaners to inspect and maintain the home. From 1981 until 2007, the vacation home had no evidence of bats or bat guano. “Guano” is a pretty Spanish word to mean “dung”. Bat guano specifically is defined as being composed of bat feces and urine.

WIREALESTATEMAG • MAY 2013

Listing

In May 2007, the Hirschhorns decided to sell the home and listed the property with a real estate broker; at that time, there was no evidence of bats. However, in July 2007, the broker noticed both evidence of bats and bat guano and contacted the Hirschhorns. The broker, in a gallant effort, attempted to remove the bats and clean the home but did not succeed.

Smell The Hirschhorns attempted to stay at

their vacation home in August 2007 but noticed an overpowering and offensive odor coming from the home. A contractor conducted a more thorough inspection and determined that the cause of the odor was the accumulation of bat guano between the siding and walls of the home and could not guarantee that the remediation would eliminate the odor from the home.

Demolition The Hirschhorns, under the impression that the loss would be covered by their homeowner’s insurance policy, demolished the vacation home and decided to build a new one because it was more financially practical than spending the money to make it habitable again in November 2007.

Homeowner’s insurance policy and claim The home was covered by a homeowner’s insurance policy issued by Auto-Owners. The policy insured the home, structures and personal property located on the insured premises. In addition, the policy

included a pollution exclusion clause that excluded from coverage any “loss resulting directly or indirectly from: … discharge, release, escape, seepage, migration or dispersal of pollutants…” The policy also contained the definition of pollutants. Three months after the demolition, AutoOwners sent the Hirschhorns a denial letter based on the additional ground that “[bat] guano is considered a pollutant” within the policy’s pollution exclusion clause.

Lawsuit In May 2008, the Hirschhorns filed suit against the insurance company for the total loss of their vacation home. The crux of the complaint alleged that the home “became uninhabitable and unsalable due to the penetrating and offensive odor” and “the drapes, carpets, fabrics and fabric furnishings in the home were rendered unusable as a result of the absorption of the bat guano odor” due to the bat guano collected between the walls and siding of the home. The insurance company argued the coverage was excluded under

Court’s decision The circuit court held that the pollution exclusion clause excluded coverage after determining bat guano qualified as a pollutant and ruled against the Hirschhorns. The Court of Appeals reversed the circuit court and held that the pollution clause in the policy was ambiguous. The court determined that in the policy’s definition of “pollutants”, the term “waste” was the only word that suggested bat guano. The court stated, “[W]hen a person reading the definition [of ‘pollutants’] arrives at the term ‘waste,’ poop does not pop into one’s mind.” Therefore the court held that the policy covered the loss. The main issue before the Wisconsin Supreme Court was whether the pollution exclusion clause in the policy excluded coverage for the loss of the home resulting from the accumulation of bat guano. In a 5-2 decision, the court ruled that the policy doesn’t cover losses from bat guano, which is a pollutant as defined under the pollution exclusion clause.

What this means for REALTORS® When the seller says, “don’t tell anyone” In Hirschhorn, the broker appropriately notified the sellers of the existence of the bats and bat guano as soon as the broker became aware of the issue. However, what would the broker be required to disclose if the seller said, “don’t say anything”? Wis. Stat. § 452.133(1)(c) requires real estate licensees to disclose material adverse facts in writing to all interested parties in a timely manner. Wis. Stat. § 452.133(1)(c) applies to material adverse facts the party does not know about

and cannot discover through reasonably vigilant observation. “Adverse fact” and “material adverse fact” are defined in Wis. Stat. § 452.01(1e) & (5g). Wis. Admin. Code § REEB 24.07(2) also requires the licensee to timely disclose information in writing to all parties to the transaction. The listing broker’s client is the seller and therefore owes the duty of loyalty to

The listing broker’s client is the seller and therefore owes the duty of loyalty to the seller. the seller. However, whenever there is a conflict between duties owed to a client and duties owed to all parties, duties to all parties trump. If a seller is asking a broker or their agent to keep information confidential and the broker believes it to be a material adverse fact, the law requires the broker disclose the information to all interested parties in writing in a timely manner. Such information is not limited to the condition of the property; it also includes other information, for example, and that the transaction is going to be a short sale. In addition, Wis. Admin. Code § REEB 24.07(2) requires the licensee to timely disclose information in writing to all parties to the transaction, even if the client would direct the licensee not to disclose. There is not a state-approved form to make such a disclosure. In an effort to help facilitate the written disclosure required by law, the WRA has created the Disclosure of Material Adverse Fact form (WRA-DMAF), which is available in hard copy and in zipForm. In W.E.D. Development v. A.B.C. Insurance (No. 2008AP977, Ct. App. 2009) a buyer first sued the seller and listing broker claiming they both had knowledge about the existence of a bat infestation and failed to disclose its existence to the buyer. The lawsuit was mediated and settled for $40,000. The seller then sued the buyer’s broker for failing to tell them

about the bat the home inspector saw in the attic. The circuit court jury found the broker liable and awarded a $57,000 judgment to the seller. The judgment was affirmed by the Court of Appeals. A more in-depth summary of this case is in the May 2009 Legal Update, “Case Law Update” at www.wra.org/LU0905. Use your senses According to Wis. Admin. Code § REEB 24.07(1)(a), a licensee shall conduct a reasonably competent and diligent inspection of accessible areas of the structure and immediately surrounding areas to detect observable, material adverse facts. Wis. Admin. Code § REEB 24.07(1) (d) does state that a “reasonably competent and diligent inspection of real estate improved with a structure does not require the operation of mechanical equipment; the opening of panels, doors or covers for access to mechanical systems; or the moving of furniture, boxes or other property; nor does it require a licensee to observe areas of the property for which entry presents an unreasonable risk of injury or areas accessible only by ladder, by crawling or other equivalent means of access.” I like to say when you walk through the property, look at it through buyer’s eyes, ears and nose. Look around, listen and take a deep breath. But as evidenced in Hirschhorn, it may not require too deep of a breath. Check with your broker to understand the policy on disclosing facts including those that are readily observable, such as odors, railroad tracks or high voltage lines, for example. Some companies assume that buyers visiting the property will notice everything around them, while others are not so confident in the buyers’ senses and have a practice that their agents disclose in writing to reinforce the existence of the information to the buyer. See the October 2009 Legal Update, “Diligent Disclosure,” at www.wra. org/LU0910 and the July 2002 Legal Update, “Duty to Disclose,” at www. wra.org/LU0207, for further discussion of licensee disclosure obligations. Cori Lamont is Director of Regulatory Affairs for the WRA.

WIREALESTATEMAG • MAY 2013

three separate exclusions: 1 The loss resulted from “faulty, inadequate or defective maintenance,” specifically the inability of the Hirschhorns to maintain the siding. 2 The loss resulted from “vermin,” which reasonably included bats. 3 The loss resulted from the discharge of “pollutants” as defined in the policy to reasonably include bat guano.

best of legal hotline by Tracy Rucka

Best of the Legal Hotline: Cabin Life Thinking of buying a cabin in the woods? Don’t let it become your horror story Is it really haunted? The broker has a listing for a cabin that was recently featured on a TV show that indicated it may be haunted. What is the broker’s disclosure obligation? Wis. Stat. 452.23(2)(a) states that a licensee is not required to disclose that a property “was the site of a specific act or occurrence, if the act or occurrence had no effect on the physical condition of the property or any structure located on the property.” This statute is intended to apply to “stigmatized properties” that have been or are the site of a murder, suicide, a haunting or another notorious event that does not physically damage the property.

Stigmatized properties For more information about stigmatized properties, see these resources:

WIREALESTATEMAG • MAY 2013

NAR’s recently updated Field Guide to Dealing With Stigmatized Properties www.realtor.org/field-guides/field-guideto-dealing-with-stigmatized-properties.

“Borrowers Will Buy Haunted Houses, But Expect Discount,” Housing Wire at www.housingwire.com/content/ consumers-will-buy-haunted-houseexpect-discount. October 2009 Legal Update, “Diligent Disclosure,” at www.wra.org/LU0910.

If the event resulted in physical damage, the seller would normally be required to disclose the defect on the Wis. Stat. § 709.03 Residential Real Estate Condition Report (RECR) form unless the buyer had waived the report or the transaction was exempt from Wis. Stat. Chapter 709. Even if there is no physical damage, there may be a sort of psychological damage present. Most agents realize that the buyer will probably find out about the event or occurrence anyway, typically from a neighbor. For that reason, real estate agents may encourage sellers to let them disclose problems in the home’s history in order to avoid potential disputes. The question of whether the seller must disclose a murder or a haunting that leaves no physical damage is less clear. On the RECR, the seller is asked to disclose conditions that would have a significant adverse effect on the value of the property. Although it is not easily quantified, it is possible that a brutal murder or a haunting could significantly affect property values or an owner’s ability to resell a property. The broker may refer the seller to private legal counsel with any questions relating to the seller’s obligation to disclose.

Broker’s duty to disclose lot line issues in an “as-is” sale The agent listed an REO property, a small cabin in the woods. There is a good chance this house is encroaching on an adjacent lot because it appears from the county aerial map that the lot line runs right through the middle of the house. The asset manager confirmed the people who

lost the property owned the adjacent lot, but the lot was not included in the foreclosure. The listing agent suggested that the bank have a survey done, but the asset manager has refused because the property will be sold “as-is.” The broker heard that because this is REO, and will be sold “as-is,” the broker does not need to disclose. Is that true? No. The broker is not relieved of the duty to disclose material adverse facts just because there will be an “asis” sale. The duty to disclose material adverse facts and information suggesting material adverse facts is the broker’s duty in all transactions according to Wisconsin law and Administrative Code rules. The duty is independent of any seller disclosure or choice to sell with an “as-is” clause in an offer. If the listing agent has reason to believe the structure is encroaching on the adjacent property, the licensee may be required to disclose this information as a material adverse fact. The licensee is not expected to interpret the aerial photos and conclude if the building is encroaching because, per Wis. Admin. Code § REEB 24.03(2)(d), licensees are not required to have the technical knowledge, skills or training possessed by competent third-party inspectors and investigators of real estate and related areas. The agent may disclose the possible encroachment and recommend the seller obtain a survey contingency or a buyer draft an offer subject to a survey as appropriate. Wis. Admin. Code § REEB 24.07(2) requires the licensee to timely disclose the facts in writing to all parties

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to the transaction, even if the client would direct the licensee not to disclose or the property will be sold “as-is.” More information about disclosures and a sample material adverse fact disclosure letter is available on page 26 of the October 2009 Legal Update, “Diligent Disclosure,” at www.wra.org/LU0910. The material adverse fact disclosure form is also available on zipForm.

Listing the hunting shack If a hunting shack sits on an area of hunting land of 40 to 80 acres, should the broker use a vacant land listing contract or a residential listing contract? Would the new Vacant Land Disclosure Report (VLDR) be used

or a Real Estate Condition Report? For the listing and offer to purchase, the licensee should use whichever department-approved form best matches the transaction with the fewest number of changes or modifications. There is no right or wrong answer. It is a matter of the licensee’s judgment as to which form best fits the individual circumstances. In a situation where there is a hunting shack, it is possible that a RECR would be used if the hunting shack is a dwelling unit. A “dwelling unit” is a structure or part of a structure used or intended to be used as a home, residence or sleeping place by one person or by two or more persons maintaining a common household, to the exclusion of all others. The seller would not be required to use a

VLDR presuming the shack was considered a building because the VLDR does not have to be used unless there is land with no buildings. The term “building” is not defined in Chapter 709 of the statutes, but in the dictionary, “building” is defined as “a structure that has a roof and walls and stands more or less permanently in one place” or “a usually roofed and walled structure built for permanent use.” The VLDR is required to be used for offers accepted on or after July 1, 2012, if the property is land with no buildings. The seller could certainly use a VLDR on an optional basis in this transaction, if desired. For additional information, see the May 2012 Legal Update, “Vacant Land Disclosure Report,” online at www.wra.org/LU1205.

WIREALESTATEMAG • MAY 2013

legal hotline

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Listing cabin with no city sewer The buyer is looking at purchasing a cabin located miles from municipal water and sewer services. Who regulates private onsite wastewater treatment systems (POWTS), and what should the buyer consider before buying? Education is the key when it comes to purchasing properties with POWTS and private wells. The WRA Addendum B has been designed to address many well and septic requirements for rural property sales. In addition, brokers working with buyers on rural property must be aware of any local requirements for POWTS. Many municipalities are beginning to enact their own rules and ordinances regulating POWTS and other property features, so it is best that the parties check with county and municipal zoning authorities to see if there might be additional septic and well requirements that may apply to the property. For instance, in a few counties, POWTS inspections are required when a property is sold and the inspector is required to submit a copy of his or her report to the municipality. Educational information about POWTS is available at www.wra.org/dsps_powts.

WIREALESTATEMAG • MAY 2013

Landlocked hunting property

The buyer is looking at a hunting cabin and hunting land. When the buyer asked about access to the property, the broker said it may be landlocked. When buying or selling land, doesn’t the parcel legally have to have an access point for ingress and egress? There are lots that do not have legal access and are considered landlocked. These parcels may be sold; the valuation of the property may be problematic if there is no legal access. Landlocked parcels may not, however, be created by land divisions. When considering the purchase of a landlocked parcel, the offer may be drafted contingent upon either the buyer or seller obtaining a means of legal access. Generally the adjacent property owners are contacted in an attempt to negotiate an easement, which would be drafted by an attorney. If none of the adjacent property owners are willing to grant an easement, Wis. Stat. § 82.27 sets forth a procedure for owners of landlocked property to seek access from the town. This requires an affidavit from the property owner, then notice and a public hearing, with the costs of the notice paid by the applicant. The town is not obligated, however, to provide access if it determines construction of a road is not in the public interest. Frequently a private settlement in these matters can be more beneficial to property owners than the process under the statute. If the town lays a road, anyone will be able to travel on that road. On the other hand, a private agreement could limit traffic by limiting access. Further, the town road is likely to involve more land than would be necessary for private access. The owner across whose land the town road will be placed will receive “damages” from the town, but this price may be less than that price the landlocked property owner would be willing to pay for private access. From the landlocked property owner’s view, the laying of a town road also means considerable expense. The town not only can recover the expenses of its attorney (whether or not a road is ordered), it can also charge back for surveyor expenses and appraisal fees,

and “advantages” to the landlocked property owner. Advantages are deemed to occur because the property should now be worth more with access. The town normally will build the expense of the road construction into the total advantages charged. The town is not required to perform any roadwork until the fees are paid. Read more about this in the article, “Landlocked Parcels: A Way Out?” in the June 2004 issue of Wisconsin Real Estate Magazine at www.wra.org/WREM/Jun04/LandlockedParcels. Tracy Rucka is Director of Professional Standards and Practices for the WRA.

WRA Legal Hotline The Legal Hotline is a members-only service in which WRA members can submit a real estate-related legal question and receive information and feedback from WRA legal department staff. Have a question? Visit www.wra.org/Hotttline to fill out the online question form, or call 1-800-799-4468. Not a WRA member? Visit www.wra.org/Membership to learn more.

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legal

Dreaming of Waterfront Property

by Debbi Conrad

A dose of regulatory reality

The moving boundary line: ordinary high water mark According to the state constitution, Wisconsin lakes and rivers belong to the public, and the Department of Natural Resources manages these waters for the benefit of all citizens. The state owns title to lakebeds, but not streambeds or flowed lands, and the Ordinary High Water Mark (OHWM) — where the regular action of water against the bank leaves a distinct mark — establishes the

boundary between public lakebed and private waterfront property. The public has the right to canoe, fish, ice skate, snowmobile or wade in public navigable waters as long as access can be legally obtained from a public road or boat landing and as long as they avoid trespassing on the surrounding private shoreline. This OHWM boundary also establishes the baseline from which measurements are made regarding shoreland setbacks and when permits must be obtained for certain activities. Through natural forces, the OHWM

may fluctuate or move over the years. A property owner’s actual lot size based upon the OHWM may be a bit different than the legal description in the local tax and assessment records.

Piers please Wisconsin’s pier rules in Wis. Stat. § 30.12 now automatically grandfather most piers constructed before April 17, 2012. As long as the owners did not receive notice from the DNR that their pier is “detrimental to the public interest” and their pier does

WIREALESTATEMAG • MAY 2013

The buyer dreams of the clear water gently lapping on the shore next to the picturesque little cottage, or maybe it is the quiet solitude of ice fishing in a shanty just a short walk from the rustic cabin with a fire raging in the fireplace. The serenade of songbirds and the chorus of frogs are enticing, but anyone entertaining these visions must also be ready to embrace the idiosyncrasies the water brings and contend with the rules regulating waterfront properties. The following overviews some of the issues that may come into play when a buyer seeks riparian ownership.

legal

not interfere with the rights of other riparian owners, the pier is legally conforming as long as the owners do not enlarge it. If there is no pier on the property but the buyer would like to install one, new piers can be placed without obtaining a permit from the DNR if the pier meets the Pier Planner requirements: • No wider than six feet. • No longer than the greater of: (a) what is necessary to moor the owner’s boat or use a boat lift, (b) the point of three-foot water depth as measured at summer low levels, or (c) the municipal pierhead established by local ordinance. • A loading platform no bigger than 200 square feet. The owner may have two boat slips/lifts and two personal watercraft for the first 50 feet of water frontage, plus one more boat slip/lift and one more personal watercraft for each additional 50 feet of frontage.

Did you know about those dams? A dam owner must maintain a dam in safe and reasonable condition, and liability can be imposed upon a dam owner for failure to maintain, repair or operate the dam in a safe and proper manner. Both the seller of the property on which a dam is located and the buyer of the property must complete a dam transfer application. An inspection is required prior to transferring the property and dam, as well as any repairs needed to bring the dam into compliance with safety standards. The buyer must show financial capability to maintain the dam and a permit may be required. Often decisions regarding dams can be controversial and lengthy because of the potential impacts on public safety, water rights and the local landscape. If dam transfer requirements are not met, the real estate transaction may be nullified.

County zoning imposes shoreland safeguards More online General Resources Choosing the Right Waterfront Property: clean-water.uwex.edu/ pubs/pdf/waterfrontprop.pdf. UW Extension publications: www4.uwsp.edu/cnr/uwexlakes/ publications/default.aspx. Dams Dams FAQ: dnr.wi.gov/topic/Dams/FAQ.html. Dam permits: dnr.wi.gov/topic/Dams/permits.html. Waterway activities and zoning DNR Waterway Protection page: dnr.wi.gov/topic/waterways. September 2010 Legal Update, “County Shoreland Zoning Rules” at www.wra.org/LU1009.

WIREALESTATEMAG • MAY 2013

Floodplains WRA floodplains information: www.wra.org/floodplains.

Under Wisconsin law, all counties are required to adopt shoreland zoning ordinances that meet or exceed the minimum requirements established in Wis. Admin. Code chapter NR 115. The shoreland zoning ordinances must be applied to all land in unincorporated areas within 1,000 feet of a navigable lake, pond or flowage, and within 300 feet of a navigable river or stream. Chapter NR 115 establishes minimum regulatory standards for building setbacks, cutting trees and shrubs, lot sizes and nonconforming structures. This means that counties may adopt more restrictive standards. The current regulations limit the amount of impervious surfaces, such as concrete, blacktop or footprint of structure for new construction and expansions of existing homes and buildings within 300 feet of the water to no more than 15 percent of the lot area, 30 percent if the property owner agrees to mitigation measures. Under current law, homes and buildings located between 35 feet and 75 feet may expand vertically, but are not allowed to expand laterally or toward the landward side of the property, unless the entire expansion occurs behind the 75-foot setback. The DNR is proposing new changes to chapter NR 115, which was revised in 2009 and will become binding on January 1, 2014 unless the effective date is extended. The key for the buyer, however, is to learn the rules adopted — and under consideration — by the county where the property is located.

Flood insurance: www.floodsmart.gov.

Floodplains mean flood insurance

Wisconsin Office of the Commissioner of Insurance Flood Insurance Information: www.oci.wi.gov/employers/flood.htm.

Floodplains are typically found near rivers, lakes and streams. Properties in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. These areas have a 1 percent or greater chance of flooding in any given year, equivalent to a 26 percent chance of flooding during a 30-year mortgage. Flood insurance rate maps identify a property’s flood risk, and many have been recently revised. Homeowner’s policies do not cover flooding. Information about flood insurance coverage is available from the Wisconsin Office of the Commissioner of Insurance.

Wetlands WRA Wetlands Addendum: dnr.wi.gov/topic/wetlands/ documents/AddendumW_2008final.pdf. DNR Wetlands: dnr.wi.gov/topic/wetlands.

Wetlands require DNR permits A wetland is defined in Wis. Stat. § 23.32(1) as, “an area where water is at, near or above the land surface long enough to be capable of supporting aquatic or hydrophytic vegetation, and which has soils indicative of wet conditions.” Stereotypical wetlands have cattails, water lilies and wet soil, but not all wetlands are actually wet throughout the year. Anyone planning a project that impacts wetlands may need a permit from the DNR. The envisioned wooden walkway and bird-watching bench may seem harmless, but wetland standards can be quite restrictive.

the past for one of these special purpose districts, they’ll probably remember. Property sellers on or near a lake should be asked if there is a formal lake district. By all means, do not diminish or kill the buyers’ dreams of waterfront bliss, just be sure that they realize that the world that abuts Wisconsin’s waters is more closely guarded and regulated than properties situated in other locales, and that they are ready to learn and respect the additional layer of rules as they pursue that dream. Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.

Can we build it or fix it?

Join the club: lake districts and lake organizations Special purpose districts such as public inland lake protection and rehabilitation districts (lake districts — there are various kinds), sanitary districts and sewer districts may overlay the property. If an owner has been assessed in

Additional resources Ordinary high water mark DNR OHWM page: dnr.wi.gov/topic/waterways/general_info/ohwm.htm. February 2007 Legal Update, “Water’s Edge: Floodplains & the Ordinary High Water Mark”: www.wra.org/LU0702. Piers Exemption checklist: dnr.wi.gov/topic/waterways/checklists/checklist_ pier_wharf_082012.pdf. DNR Pier Planner: dnr.wi.gov/topic/Dams/permits.html. Lake districts Special districts in Wisconsin: www.revenue.wi.gov/slf/cotvc/08spdis.pdf. Lake districts/organizations: www4.uwsp.edu/cnr/uwexlakes/lakelist.

WIREALESTATEMAG • MAY 2013

Hopefully, yes, but you may need a permit! DNR water regulation programs protect public rights and interests in the waterways and allow projects that will not cause harm. Many activities affecting navigable waters require permits or approvals from the DNR. For example, a permit may be required to engage in lakeshore erosion control, whereas a seasonal boat shelter may or may not require a permit, and a swimming raft placed within 200 feet of shore and removed from the water each night probably is exempt from a permit. Any activities possibly impacting Wisconsin waterways and wetlands should be first researched, starting with the DNR Waterway Protection website, to make sure no DNR permission or paperwork is required.

membership resources

Exclusive Member Benefits We wish you success in your career and hope you take advantage of the many benefits we offer.

Save on Telecommunications and Information Technology with AMI Communications

ince 2000, AMI Communications, Inc. has been an exclusive member benefit partner of the WRA. AMI offers reliable telecommunications services with first-line support on all products. AMI is a privately held telecommunications company headquartered in St. Charles, Ill. Established in 1993 having first started out exclusively as a provider of long distance services, AMI has diversified into a fullservice network solutions company offering a complete line of voice, data, IT services and enterprise solutions that manage, optimize, secure and transport mission-critical applications. AMI has continued to expand its supplier base. Whether customers require basic local and long distance voice service or more sophisticated products such as MPLS, Ethernet VPN and Internet, IP Telephony, Managed IT or cloud based/hosted solutions, AMI can provide the solution. Services are available for business and/or residence! The long distance

phone program has no term or volume commitments involved, no monthly plan fee and no time-of-day restrictions. Take advantage of this benefit of your WRA membership! Contact AMI today to begin saving on your office technology needs. Call AMI toll-free at 800-254-3202 or visit www.ami.net.

Member Benefit Programs

As a WRA member, you can enjoy discounts on products and services to enhance your business Office Supplies

Business Furniture

Shipping Discounts

Save on office supplies with Wisconsin-based Office Supplies 2U (OS2U). OS2U’s mission is to be the single-source premier supplier of business products. For more information, contact Bob Brooks at 608-441-8900, ext. 26, or by e-mail at bobb@os2u.com. Visit OS2U online at www.os2u.com.

Established in 1940, Emmons Business Interiors (EBI) markets and distributes quality office furnishings across Wisconsin. Through several statewide locations, EBI provides quality new, used and refurbished office furniture products. Also available are interior design services, installation, and project and moving management. For more information, contact Tod Dean at 800-324-1691 ext. 424 or by e-mail at todd@ebiweb.com. Visit online at www. ebiweb.com.

WRA members currently enrolled in the UPS Savings Program must re-enroll to take advantage of this new exclusive offer. Just take a few minutes to fill out the short application form available at www.savewithups.com/enroll. To enroll, use promo code NCR308. If you have any questions, call UPS at 800-325-7000.

WIREALESTATEMAG • MAY 2013

Long-Distance Program

Call long distance and save with AMI Communications! Enjoy low rates with no monthly fee, no time-of-day restrictions, and no term or volume commitments. AMI also offers teleconferencing and toll-free service.

Health, Dental & Life Insurance Save on health insurance premiums with REGIT Inc. without compromising coverage. REGIT’s program provides access to customizable insurance plans to meet your needs. Call 800537-9786 or visit www.regitinc.com.

Website Development Interested in creating your own website? WRA members can design and maintain their own websites through Real Estate Home Pages. Software templates and easy-to-use tools for adding images and formatting text provide a professional look, usually only attained by a graphic artist or Web designer. Visit www. realestatehomepages.com for more information. You’ll be amazed at how easy and inexpensive having a website can be!

Errors & Omissions Program Pearl Insurance, the WRA-endorsed carrier for errors and omissions (E&O) insurance, offers insurance designed specifically for the real estate industry and the risks you face. Pearl provides coverage for claims of regulatory complaints, personal injury, lockbox liability or allegations of discrimination. For more information and a free quote, call 800-2898170 or visit www.pearlinsurance.com.

If you have questions about one of the WRA member benefits, contact Debbie Thacker at dthacker@wra.org or by calling 800-279-1972.

membership resources

Health Care Reform

Insurance executive explains the impact on small business

approximately $44,000 and a family of four with an income of $92,000 will qualify for tax credits to reduce the premiums of health insurance purchased in the Exchange. The subsidy is based on the premium for the next lowest cost Silver plan available. If a person is eligible for a subsidy, they must purchase coverage through the Exchange in order to receive the subsidy. The Exchange is an online comparison of the various plans available, and it will also calculate the amount of the subsidy available to an individual or family. In addition to subsidies, individuals and families with incomes up to 250 percent of the federal poverty level are also eligible for cost-sharing credits. This will help cover the cost of deductibles, co-pays and co-insurance. In order to receive the cost-sharing credits, an individual will be required to enroll in the Silver plan. The credits would in effect reduce the 30 percent an individual would normally be responsible for in a Silver plan. will be assessed on your tax return. Insurance companies will be offering coverage in the Exchange as well as outside. While insurance companies are not required to offer plans in all four tiers, they must offer at least one Silver and one Gold plan in the Exchange. Because the tiers are based on actuarial value, the carriers will likely offer different deductibles, co-pays and co-insurance to meet the required actuarial percentage. This makes it important for an individual to compare the different plans offered by the carriers to determine which plan best fits how they use their health benefits. The ACA also provides assistance to low- and moderate-income individuals whose income is between 100 percent and 400 percent of the federal poverty level. An individual with an income of

Donna Freestate is the president of REGIT, Inc. In addition to managing the overall direction of the company and maintaining industry and association relationships, Donna also remains involved in the service of individual and small group clients. Donna has worked with REGIT since 1972. REGIT, the WRA’s insurance partner, is available to assist you when the Exchanges open in October 2013. If you have questions or would like a quote for coverage now, visit the website at www.regitinc.com/ aspwra, call 800-537-9786, or send an e-mail to regit@regitinc.com. REGIT’s licensed professionals are available to assist with all your insurance questions.

WIREALESTATEMAG • MAY 2013

ealth care reform will become effective in January 2014. WRA member benefit partner REGIT, Inc. is exploring the various provisions and the impact they will have on individual purchasers of health insurance; this will review the provision of The Patient Protection and Affordable Care Act (ACA) that establishes four different tiers of health insurance. The purpose of these tiers is to: • Establish the minimum amount of coverage most people will be required to have to avoid a penalty for not purchasing health insurance. • Standardize the levels of coverage offered to individuals and small employers through the Exchanges. • Set benchmarks for premium and costsharing subsidies that will be provided to eligible individuals who purchase their coverage through the Exchange. Rather than define specific deductibles, co-pays and co-insurance for each tier, the coverage tiers are based on actuarial value. This actuarial level measures the percentage of health costs that a health plan would pay for an average person. The four tiers are Bronze, Silver, Gold and Platinum. For example, under the Silver plan, insurance would cover 70 percent of all health care costs on average with the insured responsible for 30 percent through some combination of deductibles, co-pays and co-insurance. The minimum amount of coverage that an individual must purchase in order to avoid a penalty is Bronze. Bronze plans will cover 60 percent of an average individual’s health costs, Silver will cover 70 percent, Gold covers 80 percent, and Platinum 90 percent. If an individual does not purchase coverage at the Bronze level, a federal penalty will apply except in very limited cases. The penalty

by Donna Freestate

product showcase

by Nichole Mickelson

Need a Niche?

Churches, Jails, and Gold Mines Answering the question, “How’s the real estate market?” is not as simple as many think. Which market? Residential, commercial, retail, industrial? Churches,

Reaching Out: the Financial Power of Niche Marketing

WRA Designation Guide Another way to distinguish yourself from competitors is by earning designations and certifications. There are a variety of credentials available, including specialized areas such as commercial real estate, property management, relocations and luxury homes as well as resorts and second homes. You can find all NAR-endorsed credentials listed in the WRA’s Designation AMO CBR GRI GRE EN CPM -CREC CCIM CIPS C CLHMS GAA CR E

B CR

When referring to people, a “niche” is a group that shares a commonality, such as culture, work experience or lifestyle, for example. The goal of “niche marketing” is to reach out and connect with customers by being knowledgeable about a desired

power of teamwork as well. This book is a declaration to the value of close analysis and creative thinking to aid in profiting from investment property. Churches, Jails, and Gold Mines demonstrates how persistence and long-term relationships are key when it comes to building a business strategy. Real estate auctions worked for Steven L. Good as his niche — use his knowledge in Churches, Jails, and Gold Mines to make your niche work for you! To learn more and to order, visit www.wra.org/PUB115.

build upon it, and develop successful marketing programs appealing to that group. Niche market prospecting can provide the ability to overcome cyclical changes in the market, changes in your organization or brokerage firm, and even the natural tendency to stop prospecting once you have reached a certain income level. Gain more control of your financial destiny with Reaching Out: the Financial Power of Niche Marketing! To learn more and to order, visit www.wra.org/PUB247.

e-P

It’s said that people don’t buy a product; they “buy” a person. Great sales people are those who have mastered selling not only their product, but themselves as well. Ask yourself why a buyer would work with you versus the agent down the street. What makes you stand out from your competition? In today’s real estate industry, marketing who you are is important. People want to work with someone they can relate to; someone who will “get” them. Making a connection through similar interests can create a sense of comfort and trust within a relationship. Not to mention how enjoyable working with a client can be for you when you share common interests! So when creating your business plan, consider how you can carve out a unique niche for yourself. These resources will help you get started.

C AL

2013

Wisconsin REALTORS® Association

Designation MAI GRI Guide SIOR

PMN

RAA

RA AMO S

SRE

ACoM SFR

ARM CCIM C-CREC A GRE SR EN CLHMS CRS

PMN

CRP

B CR

ABR

ALC

SFR

ACoM

I MA

M CP

CRS

CRE M

group’s wants and needs. Reaching Out: The Financial Power of Niche Marketing teaches you how to select a niche group,

SIOR

GAA

WIREALESTATEMAG • MAY 2013

ABR

Jails, and Gold Mines captures the essence of valuing and selling every variety of real estate. Author Steven L. Good’s unique vision for maximizing returns through a disciplined approach of preparation, marketing and execution is detailed as he shares how his company, Sheldon Good & Company, sold more than 40,000 properties valued in excess of $8 billion since opening in 1965. The ideas in this book can be applied to any level of business. Real-life examples are used to illustrate successful strategies and the

RSPS

PMN

GRI

SRE

CIPS RSPS

e-PRO

Guide. The 2013 edition of the guide is now available as a downloadable PDF at www.wra.org/2013DESHANDBK. More information is also available at www. wra.org/Education/Designations. Nichole Mickelson is the Products Coordinator for the WRA.

IT TO THE W I S C O N S I N R E A LT O R S ® A N N U A L S TAT E C O N V E N T I O N

REGISTRANT ONE INFORMATION:

 Check here if you are an Association Executive Name __________________________________________ Firm name __________________________________________ Address ________________________________________ City ______________________ State _____ Zip____________ Phone (W) ( ) ________________________________ (H) ( ) ________________________________________ E-mail address ____________________________________ WRA member # _______________________________________

SEPTEMBER 15-16, 2013

*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/Convention. Your second guest must be a member of the WRA who has NEVER attended the annual 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/Convention. 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.

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WWW.WRA.ORG/CONVENTION Hotel information:

To see a complete list of overflow hotels, visit www.wra.org/ConventionHotel

WRA Member and/or Affiliate Before 7/31 Before 8/15 After 8/15  1-Day Pass (Sun., Mon.) circle one $59 $69 $79  Full Convention Pass $89 $99 $109  TWO-FER: 2nd WRA Member* $45 $55 $65  Unlicensed guest $30 $30 $30 Name of unlicensed spouse or guest:____________________________________________.

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Event Fees – Per Person: Real Estate Continuing Education — select up to three CE courses included for free in your full convention pass!

Golf (9/15) .................................................................................$98 Trapper’s Turn Golf Club  Member One  Member Two

 Elective C: Wisconsin Property Management I 9:00 a.m. – 12:30 p.m. I Sept. 15  Course 1: Wisconsin Listings I 8:30 a.m. – 12:00 p.m. I Sept. 16  Course 2: Wisconsin Offers I 1:00 p.m. – 4:30 p.m. I Sept. 16 Appraisal Course — 9/16/2013 WRA Appraisal Section Member  Class only  Class w/ Convention

Before 7/31 Before 8/15 After 8/15

ATD

Two-Fer Pricing

5k Run/Walk (9/15) Adult participants 16 and over...........................................$25 Ages 10–15............................................................................$10 Under 10............................................................................*Free

$109 $119

$119 $129

$129 $139

$149 $159

 2nd WRA Member* .....$74

CRS/CRB Luncheon (9/16) ........................................................ $22  Member One  Member Two

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

$119 $129

$129 $139

$139 $149

$159 $169

 2nd WRA Member* .....$84

 Special Services: Check here if you require special needs to attend. Attach written description of needs.

Appraisal Non-Member  Class only  Class w/ Convention

$129 $139

$139 $149

$149 $159

$169 $179

CANCELLATION POLICY: The WRA reserves the right to cancel courses if not filled. Cancellations must be made in writing prior to September 15, 2013 and will be refunded, minus a $25 administration fee. Registrations cannot be transferred from person to person.

*Race participants under 10 years of age may purchase a race t-shirt for $10 and must pre-register. All other race participants automatically receive race t-shirt when pre-registering. Race t-shirts not guaranteed day of race.

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___________

education

Top-Notch Classroom Education Whether your goal is to become a real estate sales licensee, enhance your career with a designation, or renew your license with continuing education, this section offers you the key courses you will need.

2013 Annual Convention September 15-16, 2013 — Wisconsin Dells Mark your calendar for the 2013 WRA annual convention, the WRA’s showcase event of the year where hundreds of REALTORS® gather from all corners of the state! What tools will you use? What new marketing strategies will you adopt? What’s your plan for the next year? At this year’s convention, you’ll learn practical tips that you can “take to the street” to maximize your potential and your business! Convention this year is in a new format. You’ll enjoy the same workshops, energizing speakers, networking opportunities and more — in two days! In addition to the new two-day schedule, the 2013 convention will include the first-ever WRA 5K Run/Walk. Other features return this year such as the golf outing, convention photo contest, Icebreaker Party, and a chance to win $500 at General Session! For complete convention details and to register, visit www.wra.org/Convention.

QuickStart Learn the business of real estate! QuickStart helps you become confident in your practice and focused on your personal business plan. Broken into learning modules, you’ll be ready to start your new career! The four modules include: Module 101: Sellers as Clients Module 102: Working with Buyers Module 103: Contracts and Negotiating

WIREALESTATEMAG • MAY 2013

Module 104: Effective Communication and Business Planning

Completing the modules and passing the exams fulfill the requirement for GRI Course 1, plus you will receive access to two free bonus modules: Facebook Best Practices and Real Estate Technology. Visit www.wra.org/QuickStart for more.

Broker Pre-license Course

Real Estate Sales Pre-license

Real estate broker? Yes — that can be you! Mark your calendar for the eightday Broker Pre-license Course in Milwaukee this August.

July 15-19; 22-24, 2013 — Madison

This course satisfies the DSPS requirements for broker license education and will aid in preparation for the state-administered broker exam. Content includes topics such as contracts, consumer protection, duties to other brokers, alternative transfers, business ethics, business management, and much more.

1-800-279-1972

To obtain a real estate license in the state of Wisconsin, you must first complete 72 hours of approved education courses, such as the WRA Sales Pre-license Course, and next, you must pass the state-administered exam. The WRA will offer an eight-day accelerated 72-hour sales program this summer in Madison. For more information, visit www.wra.org/SalesPL.

www.wra.org/ceondemand

August 12-15, 19-22, 2013 — Milwaukee

Completion of the Broker Pre-license education, passing the broker exam and receiving the broker’s license fulfill the 2013-2014 continuing education requirement. Visit www.wra.org/BrokerPL for more information.

WRA CE Schedule Visit www.wra.org/CourseSchedule for full schedule and details. Conferences and Conventions Date September 15-16, 2013

Event/Course WRA Annual Convention

Location Wisconsin Dells

Real Estate Continuing Education Date Course Location Phone May 7, 2013 2013-2014 Course 3 Racine 262-884-7833 May 7, 2013 2013-2014 Courses 3 & 4 La Crosse 608-785-7744 May 8, 2013 2013-2014 Course 2 Sheboygan 920-457-7908 May 23, 2013 2013-2014 Electives A & D La Crosse 608-785-7744 May 29, 2013 2013-2014 Course 1 Racine 262-884-7833 July 24, 2013 2013-2014 Course 3 Sheboygan 920-457-7908

Pre-License Date Course July 15-19; 22-24, 2013 Sales Pre-license Course Aug 12-15; 19-22, 2013 Broker Pre-license Course

Location Madison Milwaukee

Member N/A $325

Non-Member $325* $345*

ATD $345* $365*

*Plus books

More than $26 million back to customers......

Bonus! You won’t find many lenders today who pay money back to their customers. this year alone, greenStone is giving more than $26 million back to its members. Share the difference with your clients today!

800-444-3276 www.greenstonefcs.com

WIREALESTATEMAG • MAY 2013

More than financing–

realtor sales tip by Shannon W. King, ABR, GRI

You Times Two The secret to success in a busy market

WIREALESTATEMAG • MAY 2013

We’ve all heard the old saying, “work smarter, not harder.” But what exactly does that mean? It sounds reasonable to think that if you can work fewer hours and make more money, you’ve accomplished your goal. But with an increase in the marketplace, it’s hard to do unless you find other ways to get your job done.

Outsource Why spend time focusing on tasks when you can focus on career goals?! One way to reduce your workload is to outsource the task-oriented pieces of your job. Creating more time to generate business, or even finding more “me” time to spend with family, is important. If you can find a way to outsource the mundane tasks associated with your work, you will be able to sustain a long and prosperous selling season year after year.

Hire a transaction coordinator Those who are natural sales people are typically not very detail-oriented, so many agents get bogged down juggling all the hurdles that come with a transaction. The good news is that paperwork is one of the easiest pieces to outsource and easily manage without your clients realizing that you’re not the one taking care of the business details ... or you can keep your clients in the loop and let them think they are just part of your team! Transaction coordinators are generally inexpensive compared to the value of your time. Most coordinators charge between $200 to $400 per transaction. And they are easy to find — just ask the top-producing agents in your office or search online for one.

Hire a showing agent If you find yourself working with a lot of buyers, you might be spending more time these days showing houses than you have in the past, not only due to an uptick in the amount of business you have, but also due to the multiple-offer market we

realtor sales tips

are faced with today. To save time, or to allow yourself some time off, you may want to consider hiring a showing agent. Showing agents are different from buyer’s agents. A buyer’s agent is part of your team, while a showing agent is someone you hire on an hourly basis. You can be a solo agent and still hire a showing agent from time to time. Usually, showing agents are newer to the business and have more time on their hands. You can negotiate with a showing agent to show houses during the evenings or on the weekends for you for a set amount per hour. This will allow you to keep the majority of the commission, but still have the flexibility to have time off when you need it.

Embrace technology There is no time like the present to hone in on your technology skills. More specifically, you should begin to utilize smartphone apps. Phone apps, such as HelloFax, allow you to “scan” documents by taking photos and inserting digital signatures, freeing you from having to be at your office to scan and e-mail documents. Also consider downloading apps to access your computer remotely, or to access your online documents. For example, I use an app called Godocs to access my Google Drive documents. Using apps will allow you to do your business from the palm of your hand. No more wasting time going back to the office to complete tasks!

Hire an intern

Shannon W. King is known as the “Real Estate Road Warrior” because her Naval Officer husband’s job requires frequent relocations. When she’s not selling real estate you can find her speaking internationally for companies and associations about her first-hand experience of moving into new markets, creating a unique brand, building a client base from scratch and utilizing mobile technology to create a streamlined process. King is an active voice for the real estate industry, serving NAR as the 2012 Vice Chair for Strategic Planning.

Providing Service To Metro Milwaukee Area, 262.798.4274 Metro Madison Area, 608.824.8041 Janesville Area, 608.359.9544 Green Bay Area, 920.621.8198 16871 W. Greenfield Ave., New Berlin, WI 53151 1600 Aspen Commons #240, Middleton, WI 53562

Mortgages without obstacles.

© 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in WI.

WIREALESTATEMAG • MAY 2013

If you find you spend a lot of time in the office creating marketing material such as property fliers, monthly client e-mails, or updating your blog and social networking statuses, you may want to consider getting an intern to do this for you. Typically interns are high school or college age and are looking for work experience ... and you can usually find them for free. The good news is that younger generations understand social media, and crafting marketing pieces comes easy to them. If you may feel challenged in the area of social media marketing and/or creating marketing collateral, the intern option can work wonders for your business! There are many ways to duplicate yourself. When you’re deciding if you need a little extra time in your life or know you need help in your business, track your daily work routine. After a week of writing down everything you do, you’ll be able to see where you spend the majority of your time, and this would be the area to target for buying back some of your day.

legislative by Tom Larson

Making the Case Why Wisconsin’s anti-foreign investment in real estate law should be repealed As part of the 2013-15 Wisconsin state budget, Gov. Walker included a provision that would repeal Wisconsin’s Anti-Foreign Investment in Real Estate Law (A-FIRE Law), which appears to prohibit foreign investors and corporations from owning more than 640 acres of Wisconsin land. This proposal has received a lot of media attention, and critics have inaccurately claimed that the repeal of this law will, among other things, allow foreign corporations to purchase large quantities of Wisconsin’s farmland. This article provides an overview of Wisconsin’s A-FIRE Law and some of the reasons why the WRA supports the proposed repeal.

WIREALESTATEMAG • MAY 2013

Background

Wisconsin’s A-FIRE Law specifically exempts foreign investors whose rights are protected by a federal treaty. Originally adopted in 1887, Wisconsin’s A-FIRE Law, on its face, appears to prohibit foreign individuals and corporations from owning more than 640 acres of Wisconsin land. However, the law specifically exempts foreign governments and subjects of foreign governments whose rights are secured by the treaty. See Wis. Stat. § 710.02(2)(b). The federal GATS Treaty prohibits

states from treating foreign investors and corporations differently than U.S. investors and corporations. In 1995, the U.S. joined other World Trade Organization members and signed the General Agreement on Trade in Services Treaty (the “federal GATS Treaty”) to remove barriers to trade and investment between countries. The federal GATS Treaty applies to over 150 countries, including China, Russia and most European countries, leaving very few countries’ citizens who are subject to the prohibition today. Among other things, the federal GATS Treaty prohibits countries from treating foreign citizens

and corporations differently than their own citizens and corporations. See federal GATS Treaty, Article XVII, Section 1. Wisconsin’s A-FIRE Law creates confusion because most people are unaware of the federal GATS Treaty. Although most foreign individuals and corporations are not subject to the 640 acre limit, Wisconsin’s A-FIRE Law continues to scare off many investors because: 1 Wisconsin’s A-FIRE Law is still found in the current Wisconsin Statutes (see Wis. Stat. § 710.02). 2 Most people are unaware of the federal GATS Treaty or how it relates to Wisconsin’s A-FIRE Law.

Reasons why the law should be repealed Wisconsin’s A-FIRE Law is not enforceable against most foreign investors because of the federal GATS Treaty. Since the U.S. entered into the federal GATS Treaty in 1995, Wisconsin has been prohibited from treating the vast majority of foreign citizens and corporations differently than U.S. citizens and corporations with respect to services and regulations. Moreover, Wisconsin’s A-FIRE Law specifically does not apply to foreign governments or subjects of foreign governments whose rights are secured by the treaty. Accordingly, most foreign investors are not subject to Wisconsin’s 640 acre limit.

Wisconsin’s A-FIRE Law applies to U.S. corporations with foreign investors too. While it applies to foreign individuals and corporations, Wisconsin’s A-FIRE Law also applies to U.S. companies that have more than 20 percent of their stock owned by foreign individuals or corporations, whether or not such foreign ownership is those companies’ own choice or the result of trades made on the stock market. Whether we like it or not, Wisconsin is part of the global economy with investors from Wisconsin and the U.S. owning stock in foreign companies, and foreign investors owning stock in Wisconsin and U.S. companies. Wisconsin’s A-FIRE Law is not being enforced. Despite being on the books for over 125 years, there is no recent record of any enforcement actions by the attorney general of Wisconsin, district attorneys or any law enforcement officials. However, according to the federal Farm Service Agency, foreign investors own over 118,000 acres of privately owned land in Wisconsin. Repealing Wisconsin’s A-FIRE Law will not allow foreign corporations to purchase large amounts of farmland in Wisconsin. Wisconsin has other laws that specifically prohibit U.S. and foreign corporations

Removing barriers to investment Even before the treaty was entered into, the law’s definition of foreign entities covered many venerable “Wisconsin” companies with sizable landholdings like Frigo Foods, Saputo Cheese, Stella Foods, Kikkoman Foods, Shell Oil Company, Northrup King Seed Company, Purina Mills, Appleton Papers, and Giddings & Lewis, just to name a few, which were listed in DATCP’s last report. Do we really want to prevent these and other “foreign companies” from investing in Wisconsin? To help grow our state’s economy and encourage greater investment in Wisconsin real estate, the WRA will be working closely with legislators and others to repeal this law or seek clarity as to its application in light of the federal GATS Treaty. For additional information, please contact Tom Larson at tlarson@wra.org or at 608-240-8254. Tom Larson is Vice President of Legal and Public Affairs for the WRA.

WIREALESTATEMAG • MAY 2013

3 The penalties for violating Wisconsin’s A-FIRE Law are stiff — ownership of land exceeding the 640 acre limit is subject to forfeiture. See Wis. Stat. § 710.02(6). 4 Despite numerous requests, Wisconsin state officials have been unwilling to issue a formal opinion indicating that the foreign countries and investors who are protected by the federal GATS Treaty are not subject to Wisconsin’s A-FIRE Law.

from owning farmland if the corporation has more than 15 shareholders and meets several other requirements. See Wis. Stat. § 182.001. Because it does not treat foreign corporations differently than U.S. corporations, Wis. Stat. § 182.001 does not violate the federal GATS Treaty and thus can be enforced to prohibit these foreign and domestic corporations from owing farmland. Repealing Wisconsin’s A-FIRE Law will help Wisconsin prosper in the global economy. Wisconsin’s law is outdated and incompatible with our global economy and projects us an unsophisticated place to do business. The law has a repelling effect on new foreign businesses looking to move to Wisconsin and create jobs here, because each such foreign business has to satisfy itself that the federal GATS Treaty overrides the law’s enforcement.

legislative by Joe Murray

Roggensack Defeats Fallone On April 2, incumbent Supreme Court Justice Pat Roggensack defeated Marquette law professor Ed Fallone by a 125,447 vote margin: Roggensack received 482,696 votes, 57.5 percent of the vote; Fallone 357,249 votes, or 42.5 percent of the vote. The WRA’s Political Strategy Group, RPAC trustees and board of directors voted unanimously to support Justice Roggensack.

WIREALESTATEMAG • MAY 2013

he low-key 2013 election comes two years after a contentious and highly partisan Supreme Court race between Justice David Prosser and attorney JoAnn Kloppenburg. The 2011 Supreme Court race quickly escalated into a proxy fight between Gov. Scott Walker and the public employee unions over collective bargaining changes. This year’s race minus the recall dynamic was more typical of past Supreme Court races in terms of voter turnout, money and statewide visibility. Here’s a few interesting facts on the 2013 race and Supreme Court election trends over the last 13 years. • With Roggensack’s win, conservative-leaning Supreme Court candidates have now won six of the past seven contested races going back to 2000. Roggensack’s victory preserved the 4-3 property rights majority on the court. The next two sitting justices to face re-election are liberal Justice Ann Walsh Bradley in 2015 and swing vote Justice Pat Crooks in 2016. Court watchers anticipate a possible Crooks retirement rather than a run for a third term on the bench. • Roggensack’s victory is another reminder of how difficult it is to defeat incumbent justices. Incumbents running for re-election to the court win 94 percent of the time. Since 1852, only six incumbents — four appointed and two elected justices — in

state history have been defeated. The last time an elected incumbent photo by Lauren Bizorik lost a re-election bid was Justice Roggensack spoke at REALTOR® & 1967, when Chief Justice Government Day on March 20, 2013. George Currie lost after casting a vote that allowed the Milwaukee Braves to move to Atlanta. • Voter turnout on April 2, 2013 was typical for a low-intensity spring election in Wisconsin. Statewide turnout of 19.2 percent of voting-age adults, or 839,945, was far lower than the extremely large turnout of 1.5 million voters in the 2011 KloppenburgProsser showdown. The 2011 turnout shattered old records going back to the 1960s. Without the momentum of recall elections, voter turnout returned to a more predictable number. • Figures compiled by the Brennan Center for Justice show that Fallone was outspent by Roggensack and her allies on broadcast television by a five-to-one margin. Television spending in the 2013 race topped $1.1 million, with 70 percent coming from proRoggensack outside groups. As of March 18, 2013, Roggensack’s campaign had raised $572,244; Fallone’s raised $314,269, according to figures reported to the Wisconsin Government Accountability Board. Roggensack and her supporters raised and spent significantly more than challenger Fallone. • The WRA’s involvement in state Supreme Court races began in 1996. Since that time, the WRA has been involved in eight contested court races with a record of seven wins and one loss, or 88 percent. The WRA board of directors and RPAC trustees clearly understand the need to support candidates for the bench that understand the importance of private property rights, the environment, eminent domain and contracts. All eight candidates supported by the WRA board have been supportive of homeowner and property owner issues. Joe Murray is Director of Political and Governmental Affairs for the WRA.

WHAT MAKES A CENTURY 21 AGENT? GUTSPAH. IT’S LIKE CHUTZPAH. BUT WITH EVEN MORE GUTS, MOXIE AND METTLE. LIKE THE KIND OF METTLE THAT’S STRONGER THAN STEEL. WITH NERVES TO MATCH. THAT’S GUTSPAH. AND GUTSPAH DELIVERS EVERY TIME. ®

CENTURY 21 AGENTS. SMARTER. BOLDER. FASTER.

C21.COM U.S. SOCCER IS A TRADEMARK OF THE UNITED STATES SOCCER FEDERATION, INC. ALL RIGHTS RESERVED. ©2012 Century 21 Real Estate LLC. All rights reserved. CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC. An equal opportunity company. Equal housing opportunity. Each office is independently owned and operated.

What is our WHEDA Advantage ? ®

The WHEDA Tax Advantage. The WHEDA Tax Advantage is an exclusive program that provides a special tax credit to qualified home buyers that saves money and makes home ownership more affordable. This special tax credit reduces a first-time home buyer’s federal income tax liability over the life of the mortgage. To learn about the WHEDA Tax Advantage and all the advantages WHEDA has to offer, visit www.wheda.com/Realtors. Income and purchase price limits apply and home buyer education is required. WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY 800.334.6873 ■ www.wheda.com