November 2010 - Wisconsin Real Estate Magazine by Lauren Bizorik

RE License Renewals

Get the facts to renew yours by December 14.

Now What?

With election season behind us, the legislating begins.

MAGAZINE

November 2010 $5.00

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gadgets for the real estate professional

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table of contents

november

features 6

Gain the competitive edge with these nine must-have gadgets.

Real Estate License Renewals

Elections 2010: Looking Back and Forward

Get the facts on renewing your license by the December 14 deadline.

14 16

The 2010 elections were unique in many ways. Now that theyâ&#x20AC;&#x2122;re over, a new phase of legislating begins.

Now What? A pioneering report offers bold new ideas for sustained economic growth and improved quality of life in Wisconsin.

WRA Distance

Learning

Continuing EducationOn Demand

Key Features

vol.

27, no. 2

articles

Top 9 Gadgets for the RE Professional

2010 |

Notes Tool Take notes while you watch your videos.

Looking South

An overview of changes to the Illinois real estate license requirements.

Legal Hotline: Working Across State Lines This monthâ&#x20AC;&#x2122;s hotline addresses out-of-state purchases, reciprocity, and more.

Sales Tip: Mind Your Manners Sometimes the best sales advice is also plain good sense the way Mom told it.

New Disclosure Requirements Learn the ins and outs of the new regulations and how they will impact you.

Product Showcase Want to manage the volume of WRA email you receive? Follow these steps to take control of your inbox.

Members: $27/cou rse Nonmembers: $35/cou rse

Outline Tool Navigate and jump quickly to specific topics.

Practice Quizzes Sharpen your skills with review exercises.

Full Screen Video Watch in compact or full screen modes.

Powerful Controls Cue videos with pinpoint accuracy.

news.wra.org Distance Learnin

Distance Learning on Demand: A Convenient Way to Complete Your CE! See page 29. 1

News

inside the wra

with bill malkasian

Top News Stories in and Around the Industry

Top News Stories in and Around the Industry United Way Stark Family to Community

increase funding for rental assistance, month wesubstantially also feature the first y the time the you read this, the fall political ads will be a Honors Wisconsin Receives Millions toThis Ease installment of particularly our new monthly thing Service of the past and Foreclosure the votes will beCrisis cast. Now that help forhousing working families. for

Milwaukee Business Journala (WI) (09/30/08) statistics product, which will replace we know who the winners are, we enter period of our Newswire column in theFree magazine a 45-day stretch the start of 2011 NAR Releases FHA Toolkit The statebefore of Wisconsin is due to receive nearly $39 (Newswire will continue to be delivered to you when we turn from elections to action. It’s time for the candidates Wisconsin REALTORS® Association (10/30/08) million in federal funds to stabilize neighborhoods United Way of Dane County recognized the Stark electronically via email). Why are we offering won at the ballot boxes up stave their off sleeves make goodhomes. According a spateand of abandoned Family with the 2008who Tocqueville Society Award forto rolland NARstatistics? and the WRA helptoyou meet the Well,areit eager allowsto us onthe those campaign promises. And to theHUD WRAand is committed to being a aremonthly Gov. Jim Doyle, the funds separatehousing outstanding service to Dane County community current challenges of the troubledand economy. We from approximately $9.2 million the government release is data that is more in sync with the national partTocqueville of the process. and United Way. The Society Award awarding the city of Milwaukee, where the foreclosure celebrates and acknowledges people or families, knowand that you need that can help you regional numbers reflective of resources market conditions. Up tohave thismade point, the WRA has worked find the9.9 candidates who is awarding rate istocurrently percent. HUD such as the Starks, who a major impact We feelthe we can’t do transactions, enough to educate public and close and youthe need them at the little or no ® REALTOR issues. shift focus from support funds viaour its Neighborhood Stabilization media Program, on the quality of support life in Dane County throughNow we about the status ofhas thejust housing market. cost. NAR released an all-new FHA Toolkit under billiondays is being allocated to their exceptional service and Our commitment the to policy. staff and toleadership will bewhich busyalmost in the$4 coming online FREE tostory help this you get clients the financing localpolicymakers and state governments forcan the redevelopment Switching gears, ourforfeature month provides a Billcommunity. Malkasian meeting and getting to know the new so that we abandoned aand foreclosed need in a credit-strapped environment. It is WRA President breakdown of they top technology gadgets to help you maintain present the case for building and of maintaining strong real houses. estate City Housing Authority Receives your professional are some products youNAR might market throughout Wisconsin. oneedge. of theIncluded most comprehensive toolkits has Sites: Not Just for Personal already be familiar with, like the Droid Incredible and the Apple® 100-Unit Grant ever produced, and it’s available to all REALTORS Milwaukee Journal Sentinel Pabst, Georgia Our (09/25/08) current priorities include suchConnections ideas as those Anymore put forth in the iPad, as well as some might be to you,They such ashave The right nowthat by visiting the new link below. also Minneapolis-St. Paul Business Journal as (09/29/08) Grayson, pioneering report called “The Wisconsin Prosperity Strategy,” The city of Milwaukee’s housing authority is due Powermat and The Canon Powershot S95. Please let us know launched a new page called “NAR Helps You Navigate outlined in Mike Theo’s article thisKatharine month. The multi-author report to receive $6.7 million in federal Hope VI money what you think. ® St. Paul, Minn.-based REALTOR Teresa Boardman the Current Economy” where you can find dozens of is a collection boldunits ideaswill and recommendations ready for delivery to build 100 new housing units. Theof100 Flickr, Facebook and other social networking be constructed in a to2.5-mile areaelected and willstate include Also this month, Robproducts Uhrina and describes howlike to the update email our newly leaders. says It is squarely aimed at improving great resources, FHA your Toolkit, make it easy to meet people who might so that you can control the volume of WRA emails you 29 public housing economic and affordable units;of lifesites preferences growthrental and quality in Wisconsin. for free or at a steep discount. Visit www.Realtor. eventually become clients. While many professionals nine affordable housing units for income-eligible receive and Tom Larson explains new disclosure requirements for ® org/NARHelpsYou for links to these great programs are using these sites to make business contacts So what does thisopen-market 45-day period mean for REALTORS ? families; and 62 moderately priced, sellers and REALTORS® in 2011. Our Sales Tip walks you through key and companies use them to conduct background and products. condominiums. HUD Secretary Steven C. Preston sales practices that are also plain good manners. First, it means renewing your license so that you can continue to United Way of Dane

County transition,

checks or recruit new workers, many simply want comments, “Milwaukee’s housing authority has Your 18 to hours CE musttobeconnect completed by December 14,similar To with people who have interests. demonstrated it haspractice. the leadership leadofand Home Going Strong, Albeit a of the conclude, when youLoans read this, we’ll be right in the middle According Boardman, “The easy hard sell is dead. It revitalize neighborhoods lives. license. 2010 inand ordertransform to renew your Turn totopage 19 for four dues collectionBit period. While weinrealize that the focus lately has been Tighter, Area doesn’t work door-to-door, and it doesn’t work on Cities like Milwaukeeways change and grow your and need to complete CE. to on big picture decisions like Journal who will run state and local Wisconsin State (10/17/08) Balousek, Marvgovernment social networks.” On Flickr, Boardman connected revitalize housing to make sure many aren’t priced and which candidates are best for our industry, you are now facing a it marks the beginning 2010-2011 events calendar. out.” Milwaukee is Next, one of a half-dozen housingof ourwith a fellow photographer whoTwo eventually used her Despite the ongoing national credit crisis, property very personal decision to renew your membership. authorities nationwide receive neware Hope VI up: services to purchase a home. greattoopportunities coming professionals say mortgage money remains available grants. All of us here in Madison know this is a challenging market. We For managers/brokers, the Management Conference on December 9 throughout southern Wisconsin to home buyers Foreclosures Push Rents Higher,

make daily decisions about where to put your help you sort through challenges and best practices to effectively Housing Studywill Delay Frustrates Squeezing Low Income Familiesrealize that youwith solid credit. Ron Steinhofer, manager of funds and that these decisions are not to be taken lightly. Minnesota Radio (MN) (09/21/08) run your office. Several sessions will walk Public you through facts about Olson, Dan Advocates Marshall & Ilsley Bank’s regional home lending Milwaukee Journal Sentinel (10/07/08)economy Williams, Scott Wisconsin’s and ways

to refuel your marketing during In Minnesota’s Twin plan Cities, a wave With of home this said,group, I wantstates, to encourage you toofrenew. WRA “There’s plenty money The for home foreclosures has pushed more people into is thecommitted rental to helping represent you and your interests; loans out there. It is slightly more difficult to qualify area’s first major housing study in three decades, apartment sector. The result is an intensifying your voice and presence matter, and your commitment is For agents and brokers, Designation Week takes place February 8-11, two or three years ago, but if you have a good the Southeastern Wisconsin Regional Planning demand on Minneapolis and St. Paul’s rental housing thatthan something helps us help you. 2011. I realize that this conference is a ways out. However, if you plan challenging Two years after promising the times. Milwaukee metro

Commission (SEWRPC) is still struggling to get the stock, so much so that the vacancy rate is very low credit score, a good job and a down payment, money now to attend, up and invest the time come February, theturn, means loweffort launched. Proponents hope start the saving study will and rents are on the rise. This, in is available.” Steinhofer adds that banks still are return on investment be enormous. Designation Week isface a chance serve as a catalyst for improving affordablewill housing income working families higher monthly rents opportunities throughout city’s suburbs. But in one for youthe to take multiple courses week toward designations that at unchanging With very best making wishes, loans via such programs as Fannie Mae even though their income hovers and Freddie Mac. Furthermore, credit standards commissioners havecan yethelp to assemble an advisory levels. Since 2005, the Twin Cities apartment expand your breadth of knowledge. And for those interested committee to oversee or set a specific vacancy rate has trust dippedfund fromoffers 7 percent to closer to remain about the same as they were six months ago, in the theresearch GRI designation, the WRA’s educational timetable for conducting the survey. Phil you Evenson, 4 percent. rents over that same scholarships to help get there. See page 3Average for moremonthly information. meaning that qualified home buyers can get loans the commission’s executive director, said other issues time span are up more than $25, rising to more if they have the proper income verification. On the keep getting in the way. The delays have frustrated thanwe’ve $850.been The St. Paul-based Foundation Speaking of renewing your license, receiving lots Wilder of Bill downside, banks have been less willing to make housing advocates questions the most.about Bethany recently reviewed incomeaddressing data for several Twin Cities this. InSanchez, response, we have several articles vice president of theyour Metropolitan Milwaukee Fair counties. organization’s loans with higher loan-to-value ratios. In addition, questions. Debbi Conrad’s article walksThe you through keyresearch dates found that the Housing Council, laments, “It’s been a long time number people inthe those marketstopaying too much conventional financing without a down payment has and information, while Cori Lamont’s pieceofoutlines changes coming.” The Pewaukee-based commission has for their and rental housing double from around the Illinois real estate license requirements Tracy Ruckawill tackles indeed disappeared. However, 100 percent financing not conducted a comprehensive review of housing 70,000 currently to a whopping 140,000 by 2010. commonly asked questions about working across state lines in this is still available with Veterans Administration and patterns since the 1970s. Some say a partial solution would be for the U.S. month’s Legal Hotline. government to reverse course on housing policy and Rural Development home loans.

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wisconsin real estate magazine wisconsin real estate magazine

november 2010 october 2009

news.wra.org news.wra.org

Real Estate

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

notes from the wra

John Horning, Chairman jphorning@shorewest.com

WRA Nominating Committee Seeks Candidates

Robert Keefe, Chairman-Elect rkeefe@keeferealestate.com

Are you interested in serving in a leadership role for your state association? The WRA Nominating Committee is seeking candidates for the positions of 2011-2012 Chairman-elect and Treasurer. Applications are available from the WRA website or by contacting Sandy Bolgrihn at sandyb@wra.org. The deadline for submitting an application is December 31, 2010.

Renny Diedrich, Treasurer rdiedrich@coldwellhomes.com

In addition, the Nominating Committee is seeking applications for the positions of 2011-2010 Executive Committee Vice President, NAR Director and WRA Board of Director Regional Representative (note: the number of openings for Regional Representative is determined by the membership as of February 28, 2011). The application deadline is March 15, 2011.

William E. Malkasian, cae, President wem@wra.org Editorial Staff:

William E. Malkasian

GRI Scholarships Available in 2010-2011

Publisher

Robert Uhrina

A membership benefit of the Wisconsin REALTORS® Association is the GRI scholarship. The Wisconsin REALTORS® Foundation Board of Directors of the Association will award the scholarships to Association members during 2010-2011. Available scholarships include:

Managing Editor

Vanessa Merina Publication Editor

Joe Leschisin

Al Petrie GRI Scholarship – Al Petrie Served as a member of the Wisconsin REALTORS® Association from 1962-1990. This scholarship is in recognition of his many contributions to organized real estate. Applicants must be a licensee and a member of one of the following Board/Associations: REALTORS® Association of Northeast Wisconsin, Door County Board of REALTORS®, or the Marinette Board of REALTORS®.

Senior Designer Wisconsin Real Estate Magazine, USPS 597-850, ISSN 1548-0526, is published monthly by the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Road, Ste. 201, Madison, WI 53704. Periodical postage paid in Madison, WI and additional mailing offices. An annual subscription rate of $5 is included in membership dues and a copy is mailed to every paid REALTOR® and affiliate member of the association. Nonmember subscription rate: $60. POSTMASTER: please send address changes to the WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201, Madison WI 53704-7337.

Darwin D. Scoon GRI Scholarship – Darwin D. Scoon served as the Executive Vice President of the Wisconsin REALTORS® Association from 19601978. This scholarship is in recognition of his many contributions to organized real estate in Wisconsin. Applicants must be members of the Wisconsin REALTORS® Association.

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.

Otto Bytof Coldwell Banker The Real Estate Group GRI Scholarship – This scholarship was established in 1997. Applicants must be an independent contractor of the Coldwell Banker The Real estate Group Company.

Otto Bytof REALTORS Association of Northeast Wisconsin. This scholarship was also established in 1997. Applicants must be a member of the REALTORS® Association of Northeast Wisconsin. ®

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

Ozaukee REALTORS® Shirley Hansen GRI Scholarship – This scholarship was established in 1996 in memory of Shirley Hansen. Applicants must be a licensee and a member of the Ozaukee REALTORS® Association or Coldwell Banker Premier Office.

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

3 wisconsin real estate magazine

Kettle Moraine Association GRI Scholarship – This scholarship was established by the Association in 1992. Applicants must be a licensee and a member of the Kettle Moraine Association of REALTORS®.

november 2010

Waupaca Shawano GRI Scholarship - This scholarship was established by the Board in 1996. Applicants must be a member affiliated with an office or with a place of business in Waupaca Shawano counties or the New London community and must also be a member of a local Board of REALTORS®. Western Wisconsin Sue Alt Scholarship – This scholarship was established by the Board in 1993. Applicants must be a member of the Western Wisconsin Association of REALTORS®. Donald Hovde – This scholarship was established in 2001 in memory of Donald Hovde. This scholarship is in recognition of his many contributions to organized real estate in Wisconsin. Applicants must be a member of the Wisconsin REALTORS® Association. Arline Beyer Scholarship – This scholarship was established in 2003 in memory of Arline Beyer. This scholarship is in recognition of her many contributions to organized real estate in Wisconsin. Applicants must be a licensee and a member of the Ozaukee REALTORS® Association. Wisconsin CRS Chapter GRI Scholarship Applicants must be a member of the Wisconsin REALTORS® Association. Mail completed applications to: Wisconsin REALTORS® Foundation, 4801 Forest Run Road, Suite 201, Madison, WI 53704 no later than January 21, 2011.

Chairman’s Corner

John P. Horning

t is my honor and privilege to serve as your WRA Chairman for 2010-2011. We have a talented slate of officers this year, including Rob Keefe of Keefe Real Estate in Lake Geneva as Chairman-elect, and Renny Diedrich of Coldwell Banker The Real Estate Group as Treasurer. Together, we will work with the Board to uphold WRA’s mission: “To promote the advancement of real estate in Wisconsin and provide cutting edge tools to help REALTORS® enjoy a successful career.” I would like to start by offering a heartfelt “Thank You” to John Flor for his leadership. In a challenging year, John has led our association to a number of successful achievements through his passion and dedication to the membership. I have enjoyed working with and learning from John. By the time you read this, our fall elections will be over and we will have a new leader preparing to serve as Governor of our great state. Wisconsin is facing some big challenges, including unemployment and a large budget deficit. Your involvement in making the REALTOR® message heard is critical. Thank you to all who took THE time to learn about the issues, who got involved in campaigns, and who contributed to RPAC. Most importantly, thank you for exercising your right to vote. You have made an impact on the future of Wisconsin. We were delighted to welcome over 1,000 of you at the 2010 WRA Convention in the Wisconsin Dells. What an action-packed three days of education, networking, and enjoyment! We gave out numerous awards, heard from motivating speakers, granted over 3,000 CE credits, enjoyed “An Evening at the Awards,” and even had a visit from Scott Walker. But what I found most amazing was being a part of 700 REALTORS® literally drumming in unison to the same beat during the opening session. Talk about teamwork! Fall is the time for new leaders to step into their roles in local boards across the state. It has been a pleasure for the officers and me to be able to travel to many of those installations around Wisconsin.

wisconsin real estate magazine

november 2010

We appreciate the opportunity to visit with our members and hear your ideas and concerns. We have heard concerns about the foreclosure freeze, health care, and the negative attitude toward home ownership in the media. But we have also heard success stories of people who see their local markets improving, and a few touching stories of local associations who have rallied together to support a member who is bearing a personal hardship. Your officer team is leading a delegation of Wisconsin REALTORS® to the 2010 National Association of REALTORS® Convention in New Orleans, the city of rebirth and renewal. This will be an opportunity for us to meet with other association leaders around the country to share the challenges and successes we are seeing in our markets. While we are there, Fred Prassas, CPM, GRI of La Crosse will receive NAR’s Distinguished Service Award for his endless contributions to NAR over the years. Please join me in congratulating Fred on this prestigious honor! Lastly, I need to remind you of two upcoming dates. On December 9 in Pewaukee, we are holding the 2010 Management Conference: Out of the Dark and Into the Light. What a great time for brokers to network and learn new leadership techniques from both local and national presenters. And December 14 is the date all Continuing Education hours need to be completed for this biennium. Before renewing your real estate license, you will need to list where and when your continuing education was completed. So don’t procrastinate. Complete your CE today. To quote NAR’s theme for 2011, “Get Ready to Seize the Day in 2011!”

John P. Horning

news.wra.org

monthly wisconsin housing report news

Home Sales and Prices Fall in September By David E. Clark, Economist, C3 Statistical Solutions Inc.

> WISCONSIN HOUSING STATISTICS MONTHLY ACTIVITY - OCTOBER 2010

% Change

YTD-2010

YTD-2009

% Change

-20.7% -30.9% -1.8%

103,021 39,470 $142,000

102,489 41,116 $144,000

+0.5% -4.0% -0.8%

Statewide

SEPT-2010

SEPT-2009

New Listings Closed Sales Median Sales Prices

8,526 3,673 $138,500

10,746 5,314 $141,000

Region

Median Price SEPT-2010 SEPT-2009 % Change

Existing Home Sales SEPT-2010 SEPT-2009

% Change

Southeast South Central West Northeast Central North

$151,900 $165,000 $135,000 $125,000 $109,000 $120,000

1353 717 382 653 271 314

-26.4% -31.8% -32.5% -35.7% -22.3% -35.7%

$158,000 $155,000 $131,750 $124,900 $116,000 $111,850

-3.9% +6.5% +2.5% +0.1% -6.0% +7.3%

eptember 2010 home sales in Wisconsin were well off pace from a year ago but prices fell only slightly, according to data just released by the Wisconsin REALTORS® Association (WRA). Sales of existing homes in September were down 30.9 percent from September 2009, whereas median prices fell just 1.8% to $141,000 over the same period. The drop in sales was expected, in part, due to the now-expired federal home buyer tax credit program that incentivized many “would-be” buyers to purchase a home earlier in the year.

half of 2009 was abysmal for housing in the state, but with the help of the federal tax credit, in the second half of the year, sales spiked,” said Horning. By contrast, Horning said, the first half of 2010 was strong but with the expiration of the tax credit, the market experienced “a hangover effect.” Horning continued, “Anytime you have a temporary program like this, it will always borrow sales from the future, and we are now seeing the flip side of that coin.” “While new listings have declined from their peak in March 2010, this is a typical seasonal pattern,” he noted.

“The federal tax credit was a great incentive and drove many buyers to purchase in the spring, which resulted in lower home sales volume during the months of July through September,” said John Horning, Chairman of the WRA Board of Directors. Horning noted that the year-to-date picture through the first nine months is less dramatic, with home sales down 4.0 percent compared to last year, and median prices down just 0.8 percent.

Despite decreasing sales, the underlying market fundamentals are strong, according to WRA President Bill Malkasian. “We still have historically low mortgage rates, very healthy inventories, stable prices and as a result, high levels of affordability,” added Malkasian. He also noted the WRA has launched a new monthly “Housing Affordability Index” designed to measure how much of a median-priced home a median-income family can afford in Wisconsin. The REALTORS® will release this new measurement tool of housing

“The market is shaping up to be a mirror image of last year,” said Horning. “The first

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affordability starting in October on a monthly basis. “Our housing affordability index stands at 212 in September,” said Malkasian. “That means at the current interest rates, assuming a 20% down payment, a family with the median state income can afford to buy a house valued at 212% of the median home price in Wisconsin. Clearly, this is a great time to buy a home in Wisconsin for credit-worthy buyers,” said Malkasian. While good news, Malkasian cautioned that a robust recovery in the housing market will require healthy job growth. “Despite the fact that we added 23,000 jobs in Wisconsin since January 2010, we need to see unemployment improve before consumers are confident enough to get back into the housing market in large numbers,” Malkasian added. “There are some amazing opportunities available to consumers for when they decide to enter the market.” For More Information Contact: David E. Clark, Economist, C3 Statistical Solutions Inc. Office phone: 414-803-6537

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gadgets for the real estate professional by Rick Broida

As another year winds to a close, it’s time to sit back, relax, and try to figure out how it went by so quickly. It’s also time to think about presents–especially the ones you’re considering buying for yourself. Think about it: a newer, faster, smarter phone will help you get more done while you’re out and about. A tablet PC will lighten your load and make you look like the hippest REALTOR® on the block. A network hard drive will keep your data safe and secure, reducing the fallout from a cataclysmic computer failure. Here’s a look at those and other awesome gadgets for the tech-minded gift shopper.

Apple iPad

Droid Incredible

When Apple first introduced the iPad tablet earlier this year, many wondered if it could possibly take the place of a laptop or netbook. After all, it has no physical keyboard, no out-of-the-box compatibility with Microsoft Office, and no camera. Then came the apps, and all (well, most) doubts were erased.

What’s so incredible about the Droid Incredible smartphone? Well, it offers all the power of an iPhone--and then some--but on Verizon’s network. While you’re chewing on that, there’s an important distinction to be made between “Droid” and “Android.”

The latter refers to the Google-created operating system (OS) designed to run on mobile devices--like the Incredible. In an effort to confuse people as much as humanly possible, Verizon Wireless decided to use the name “Droid” in branding many of its Androidpowered phones--even those manufactured by different companies. Thus, you have the Motorola Droid 2, Motorola Droid X, HTC Droid Incredible, and so on. Why should you care about your phone’s operating system? If you’ve ever tried an iPhone, you know the answer to that question. The Android OS is the first offering to truly rival the iPhone OS, which ultimately means that with a phone like the Incredible, you’re able to get an iPhone-style interface, iPhone-style apps, and better-thaniPhone hardware--all on Verizon instead of AT&T.

Stocked with the right apps, the iPad (which starts at $499) can be a real-estate professional’s best friend. For example, there’s Zosh, an app for filling in, signing, and sending documents. For something a little more robust, check out iForm, a soup-to-nuts solution for creating custom forms and using them on the go--like when you’re walking through a property or signing a client. The iPad can upload your collected data, signatures, etc. right on the spot (assuming you have the 3G iPad--if not, it can work offline as well). Of course, the iPad isn’t the only game in Tablet Town. Competing models are now available or coming soon from the likes of Dell, HP, RIM, and Samsung. However, if you’re holding out for a Windows-powered tablet, don’t hold your breath: the Dell and Samsung models are based on Google’s Android operating system, while RIM’s BlackBerry PlayBook runs--you guessed it--a modified BlackBerry OS. And HP’s webOSpowered tablet will borrow from the Palm Pre smartphones.

As for the Incredible itself, its noteworthy features include a razor-sharp 3.7-inch touchscreen, an 8-megapixel auto-focusing camera with dual-LED flash (which can also record video), and a wealth of interface features designed to make Android both powerful and accessible. At press time, it was selling for $199.99 with a two-year Verizon contract.

wisconsin real estate magazine

november 2010

news.wra.org

Powermat

Western Digital My Book World Edition A hard drive may not sound like the sexiest gadget in the world, but the Western Digital My Book World Edition might just change your mind. This external drive (available in one-terabyte and two-terabyte capacities) plugs directly into your network router, meaning it’s a lot more versatile than one that merely plugs into your PC. Best suited for the home and small offices, the My Book can perform back-up chores for any or all the computers on your network. This happens automatically: every time you save something, it’s instantly backed up to the drive. This works even when you’re out of the office, because the My Book is accessible over the Internet. It “lives” online (but in a totally secure and protected fashion).

In the future, our phones, headsets, cameras, and other gadgets will recharge using a combination of body heat, solar energy, and tiny retractable windmills. (Okay, one of those is just a guess on my part.) In the present, the closest we’ve come to freedom from power cords is the Powermat, a ridiculously convenient charging station that makes recharging your gizmos as simple as putting them down. The Powermat relies on a technology called inductive charging, which uses an electromagnetic field to transfer energy between two objects. That’s geek-speak for “short-range wireless electricity.” It is, quite simply, the coolest thing since the Foreman Grill. Now for the bad news: the Powermat itself works only with Powermat-enabled devices. Current number of those? Zero. To make your gizmos work with the Powermat, you have to add a “receiver”--a special case or replacement battery door that includes the necessary circuitry for wireless charging. iPhone 3G/3GS and iPod Touch users, for instance, need the Receiver Case ($29.99 and $39.99, respectively), while BlackBerry Bold, Curve, Pearl, and Tour users can opt for the Receiver Battery Door ($19.99). The actual Powermat comes in a variety of sizes and styles. I recommend the $79.99 Home & Office Mat, which can charge up to three devices at a time and includes a Powercube--a kind of universal receiver that works with most mobile devices (but does require you to plug it in).

In fact, you can access the drive remotely from your PC, your phone, or pretty much any device with a Web browser without needing special software. That’s great for those times when you need a contract or other document and realize you left it back at the office. You can even show photos of listings remotely! The My Book comes with a three-year warranty. The 1TB model sells for $199.99; the 2TB model, for $259.99.

Canon PowerShot S95

A REALTOR® without a digital camera/camcorder is like a magician without a hat. Ah, but which hat will produce the most photographic magic? That’s a tough call, especially considering the number of choices you have. Let’s start with a big question: whether to buy a camera that has video-recording capabilities or a camcorder that can also take snapshots. The Canon PowerShot S95 makes a strong case in favor of the former. It’s a compact, pocket-friendly camera that shoots not only 10-megapixel photos, but also 720p (i.e. high-definition) video. It sports a wide-angle lens for capturing big lots and rooms, an optical image-stabilizer for blur-free photos, special circuitry that compensates for low-light environments (all too common when you’re inside), and a spacious 3-inch LCD for previewing and reviewing your shots. The S95 is definitely a higher-end camera, with lots of manual controls for photographers who like to set their own white balance, exposure, and the like. Consequently, it’s also a bit on the pricey side ($399.99). However, it might be the last camera you ever need to buy—at least until engineers come up with a model that can actually do magic.

wisconsin real estate magazine

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feature

LaCie XtremKey flash drive Most flash drives are pretty fragile. Step on them or knock them off a table and they’re done for. Boil them in one pot of water and poof, data gone. Wusses! The LaCie XtremKey ultra-rugged flash drive can withstand fire, water, freezer, pavement, gamma rays, and other rigors usually encountered by real estate superheroes. Credit for this indestructability goes to features like a 2-mm metal pipe casing sealed with wear-resistant screw threads and a rubber O-ring. This flash drive can survive a five-meter drop and withstand temperatures from -50 to 200 degrees. Admittedly, not everyone needs a flash drive as rugged as this one--but if your daily travels include harsh environments (like, say, construction sites), the XtremKey might be just the thing. It comes in capacities of 8-64GB, with prices starting at $49.99.

Zomm If you’re the forgetful type who tends to leave your phone behind when you go out, the Zomm keychain accessory is just the gadget for you. This “wireless leash” keeps you from forgetting your phone at home, the office, or anywhere else you might leave it lying around. You can’t get a dozen yards away before feeling, seeing, and/or hearing a reminder.

Kodak Pulse

Specifically, it sounds an alarm—first vibrating, then flashing, and finally beeping loudly— whenever it loses the Bluetooth link with your phone (usually at around 30 feet). It also vibrates, flashes, and beeps whenever a call comes in. That’s awesome if you routinely miss calls because you can’t feel or hear your phone ringing.

I can think of few gadgets that would look better adorning your desk than the Kodak Pulse. Why choose this digital photo frame over another? In a nutshell: It has its own e-mail address, a custom one that you get to pick.

This means that you, friends, co-workers, and even clients can e-mail photos right to the frame, where they’re automatically added to your existing slideshow.

This feature not only greatly simplifies adding new pictures to the frame, but also creates the surprise factor of seeing unexpected additions. The frame relies on Wi-Fi, of course, as all photo frames should. Set-up requires just a few taps of the 7- or 10-inch touchscreen ($129.95 and $199.95) and a visit to the Kodak Pulse website. That’s where you’ll choose your e-mail address, tweak the frame settings and start adding photos.

The flipside, of course, is that unless your keys go everywhere you and your phone go, you’ll get potentially unwanted alarms. Thankfully, one press of the Zomm’s single function button cancels an alarm—but this could prove annoying. The Zomm doubles as a Bluetooth speakerphone and comes with two personal-safety features: a panic alarm and an automated call for help. The latter dials 911 and even plays an emergency message if you don’t say anything. This cute, multi-talented gizmo sells for $79.99.

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Notice I didn’t mention anything about plugging the frame into your PC. With the Kodak Pulse, it’s not necessary: it slurps up pix wirelessly via e-mail, Facebook, Kodak Gallery service, and/or selected folders on your hard drive–all with blissful ease. Or, in more traditional photo-frame style, you can pop in your digital camera’s memory card or a USB flash drive.

news.wra.org

9 Wirex WIREX stands for the WIsconsin Real Estate EXchange. Created in 2008, it is the cooperative effort of the Metro MLS, the REALTORS® Association of Northeast Wisconsin MLS and the South Central Wisconsin MLS. The purpose of WIREX is to create a facility for all Wisconsin MLSs to share and combine their content into a single supplemental database for the use and benefit of all MLS Participants. Today, the WIREX database is comprised of participating MLSs from Central Wisconsin, Metro, Northeast Wisconsin, Northwest Wisconsin, South Central Wisconsin, and contains more than 93,000 active listings. Several additional MLSs are under contract and hopefully will become part of the database in 2011. In the near future, it is the goal to have all MLSs in Wisconsin involved with WIREX.

Rick Broida, a technology writer for over 20 years, is the author of more than a dozen books. In addition to writing CNET’s The Cheapskate blog, he oversees BNET’s Business Hacks.

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november 2010

Looking South

Changes to the Illinois Real Estate License Requirements

n less than 580 days, significant change is coming to the land of Lincoln for real estate licensees. For those of you who have an Illinois salesperson or broker license or are considering becoming a licensed salesperson or broker in Illinois, this article is an overview of those changes. With the intent to ensure consumers that the Illinois real estate practitioner has both comprehensive and current training, The Illinois Real Estate License Act of 2000 (Act) was modified. The modifications removed the salesperson category as the entry-level license, created a new managing broker category with increased education hours and modified continuing education requirements. Under the new Act, Illinois has two main license categories: 1) managing broker and 2) broker. As of April 30, 2011, the Illinois Department of Financial and Professional Regulation (IDFPR) will no longer issue new salesperson licenses. In addition, as of April 30, 2012, the category of salesperson licensee will cease to exist altogether. Therefore, licensed salesperson swill need to transition to a broker license and licensed brokers who are managing brokers will need to transition to a managing broker license. Beginning May 1, 2011, individuals converting their license from one category to another will be offered a one-time opportunity to take a proficiency exam to transition their license. The state of Illinois is currently working on the administrative rules that will further clarify the transition process. The transition period is from May 1, 2011 through April 30, 2012.

Overview of the Changes and Transition Process Salesperson: Individuals may still achieve a salesperson license before April 30, 2011. After that time, Illinois will no longer issue salesperson licenses. Transition to Broker (prior to April 30, 2012): An individual may take a 30-hour transition course, pass the exam and complete the application OR may pass the one-time-only proficiency exam. Broker: Individuals licensed as a broker on or before April 30, 2011 are not required to become managing brokers if they are in a non-management position. If individuals are licensed after April 30, 2011, they are required to complete 30 hours of post-license education,

wisconsin real estate magazine

of which 15 hours must be completed in the classroom before the April 30, 2012 deadline. Sole proprietor brokers must transition to managing broker. Transition to Managing Broker (prior to April 30, 2012): Individuals must take a 45-hour transition course, pass the exam and complete the application OR pass the one-timeonly proficiency exam, complete 12 hours of continuing education and the 12-hour broker management course.

By cori lamont

For a copy of the Illinois Reciprocity Application, go to www.idfpr.com/dpr/re/Forms/recip.pdf. Note the following requirements: a.

You must be currently licensed by examination in the state from which you are applying.

Illinois must have a written reciprocity agreement with the state in which you currently reside/are licensed.

You must take and pass the Illinois portion of the licensure examination.

Your sponsor must have an active broker license in Illinois.

For Broker Applicants only: your broker license must have been in an active status during the immediately preceding two years.

Continuing Education Requirements The Illinois Real Estate License Act of 2000 requires brokers to complete 12 hours of continuing education every two years and requires 24 hours of continuing education from managing brokers. Depending on the time frame and type of license the individual achieves, the individual may be completing anywhere from 12 to 18 hours of continuing education and possibly a 12-hour broker management course. The renewal deadline for all Illinois brokers and managing brokers is April 30, 2012. For more information regarding the continuing education requirements, visit www.illinoisrealtor.org/ brokerce.

License requirements after May 1, 2011 Broker: Individuals must complete 90 hours of pre-license work including 15 hours of “situational” offerings in a classroom or interactive setting, meet all broker requirements and pass the state license exam. Managing Broker: Individuals must complete 165 hours of pre-license work including hours of “situational” offerings in a classroom or interactive setting, meet all managing broker requirements, be licensed in real estate for two of the last three years and pass the state license exam.

Reciprocity The Wisconsin Department of Regulation and Licensing has entered into a reciprocal agreement with the state of Illinois. Currently under this agreement, Wisconsin licensees holding an active real estate salesperson or broker license are exempt from the education requirement and may take the Illinois license exam directly. Wisconsin licensees seeking to become licensed in Illinois should contact the IDFPR.

november 2010

How these changes affect Wisconsin’s reciprocity with Illinois after May 1, 2011 is not fully known at this time. However, the WRA will continue to monitor this and keep you informed. If you have been on the fence as to whether you should become licensed in Illinois, you may want to seriously consider the option prior to April 30, 2011. For Illinois reciprocity requirements, visit: http://www.goamp.com/DOCUMENTS/ pdf/HANDBOOKS/ILREP-handbook.pdf. For more information on the Illinois licensing modifications and requirements, see the following resources: •

Illinois Association of REALTORS®: http://www.illinoisrealtor.org/iar/ newsreleases/licenselaw

•

Illinois Association of REALTORS® FAQs: http://www.illinoisrealtor.org/ licenselawFAQ

•

IDFPR: www.idfpr.com

•

Act: http://www.idfpr.com/DPR/RE/ REALEST.asp. Select the Real Estate License Act of 2000 link.

Cori Lamont is Director of Brokerage Regulation and Licensing for the WRA. news.wra.org

legal

Real Estate License Renewals By debbi conrad

eal estate license renewal applications must be filed with the Department of Regulation and Licensing (DRL) no later than December 14, 2010. The DRL sent out renewal information on October 18. Individuals who do not meet the December 14, 2010 deadline will be unlicensed as of December 15, 2010 and CANNOT PRACTICE REAL ESTATE until they complete the renewal process.

Online Renewal Licensees may renew their real estate licenses over the Internet at https:// online.drl.wi.gov/UserLogin.aspx?renewafter=true. In order to renew online, licensees will need their credential number and a credit card to pay the $82 renewal fee. The PIN number can be looked up using the credential number and other licensee information. Waiting until the last day may be unwise because there can be maintenance issues or other reasons for an outage of the online service. If a renewal payment is received on time, the credential holder is eligible to practice while the license is being processed. The DRL considers a license renewed as soon as the DRL website shows that the renewal license has been printed. For online renewals, the license should print on the second business day following confirmation of successful payment. Renewal application status may be checked using the DRL Credential Application Lookup feature at https://online.drl.wi.gov/

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ApplicationStatus/CredentialApplicationStatus.aspx. This Web site is updated daily.

Continuing Education Requirements The DRL requires all real estate licensees to complete 18 hours of Continuing Education (CE) each biennium. As a condition of renewal, licensees must list the date of the course, the course title, the course sponsor and the number of hours for each course completed to satisfy their CE requirements. Renewing licensees must complete the four mandatory courses: Course 1 Course 2 Course 3 Course 4

Listing Contracts Offer to Purchase New Developments Buyer Agency Agreements

Plus two of the following electives: Elective A Elective B Elective C Elective D Elective E Elective F

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

news.wra.org

Each course must be at least three hours in length and approved by the DRL. Persons granted an original broker or salesperson license between December 15, 2008 and December 14, 2010 need not complete CE during the 2009-2010 licensing period. The CE requirement may be met either by having passed the “test-out” exam, which was given between July 1, 2009 and June 30, 2010, or by taking 18 hours of DRL-approved CE and passing the respective course examinations. Individuals failing CE course examinations (70% correct is passing) may retake the courses and examinations for credit. A licensee may attend live classes, watch classes on DVD, work through the self-study courses and/or use the Distance Learning on Demand on the computer. Go to http://www.wra.org/Education/ContinuingEd/ RECE.asp for the WRA 2009-2010 CE course schedules or to order distance learning materials. Individuals who complete their CE with the WRA can log into the WRA website, go to MyWRA, select Education History and select Real Estate CE 09/10 Biennium and see all of their completed WRA CE courses. This is a handy way to track the CE course information required on the renewal application this year: the date of each course, the course title, the course sponsor and the number of hours completed. Licensees do not need to submit any course certificates with their renewals, but these may later be requested by the DRL for their random license renewal audit. Making a false statement in connection with any application for licensure is grounds for revocation and denial of that license.

Renewal Fees The renewal fee for a real estate salesperson, a real estate broker, a timeshare salesperson or a real estate business entity (such as a corporation, partnership, or LLC) is $82.

Broker Responsibility Wis. Admin. Code § RL 17.07 requires each broker/brokerage company to confirm that each agent in the company has renewed his or her real estate license by December 14, 2010 and is properly licensed. If an individual’s renewal application has not been filed with the DRL in a timely fashion, a broker/company may not permit the individual to practice real estate after December 14 until the license is renewed. The broker should also make sure that any former employees sent a Form #766 Notice of Termination of Employment to the DRL.

Late Renewals Licensees who do not fulfill the CE requirements by December 14, 2010, may complete the CE courses after that date and file a late renewal application. Applications received by the DRL after December 14 must include the renewal application form, the $82 renewal fee and the $25 late fee. The DRL may grant an extension of time for completing CE and may grant a renewal license if it receives a written request from the licensee and a physician’s statement that verifies that a licensee’s health prevented him or her from satisfying the requirement. An extension may also be granted to a licensee on active duty in the military service with assignment to a duty station outside Wisconsin, or an extension may be granted for other compelling reasons beyond the control of the licensee.

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Tax Delinquencies and Support Obligations The DRL uses a licensee’s Social Security number or a company’s FEIN to check with the Department of Revenue (DOR) and determine whether the renewing licensee has any delinquent state tax payments. Those with delinquent taxes (excluding property taxes) are given 10 days to pay the amounts due, or enter into a payment agreement with the DOR. If this is not done, the DRL will deny the license renewal, and the applicant will have 30 days to file a written request for a hearing. A licensee will be given considerable time to exercise due process rights; however, a licensee may continue to practice during this time only if the licensee has filed a timely and complete application for renewal. Those with questions about their state tax status may contact their local DOR office, the Madison Central Collection Unit at 608-266-7879 or The Occupational License Specialist at 608-267-0833. Social Security numbers and FEIN numbers will also be used to determine whether licensees have failed to pay family support or failed to comply with a warrant or subpoena related to paternity or support proceedings. Upon receiving a certification from the Department of Workforce Development (DWD) that the licensee is delinquent in making court-ordered support payments or has failed to comply with a related subpoena or warrant, a renewal license may be restricted or denied.

Privacy Concerns All licensees should be aware that the name and address information submitted to the DRL is available to the public. Some licensees may wish to substitute a business address in place of a home address. Licensees may also wish to check the “Please do not disclose my street address and/or P.O. Box # on lists” box on the renewal application. This ensures that your address is not disclosed on any list of ten or more individuals that the DRL may provide to others.

Reporting Convictions A licensee who is convicted of a felony or misdemeanor in this state or elsewhere must notify the DRL in writing of the date, place and nature of the conviction within 48 hours after the entry of the judgment of conviction. Notice shall be given by mail (the licensee must have proof of the date of mailing) and shall include a copy of the judgment of conviction and a copy of the complaint or other information which describes the nature of the crime and the conviction so that the DRL may determine whether the circumstances of the crime are substantially related to real estate practice. Wis. Admin. Code § RL 4.09(2). Please also be aware that when the DRL screens complaints, they can investigate whether a licensee has been arrested, charged with or convicted of a crime and determine if this substantially relates to real estate practice. As part of an investigation, the DRL may require a licensee to be photographed and fingerprinted if necessary to determine the licensee’s identity and whether he or she has any criminal record in various locations. Wis. Admin. Code § RL 4.09(1) & (3). A crime is conduct which is prohibited by state law and punishable by fine or imprisonment or both. A crime punishable by imprisonment in the Wisconsin state prisons is a felony. Every other crime is a misdemeanor. Conduct punishable only by a forfeiture is not a crime. Wis. Stat. §§ 939.12 & 939.60. Debbi Conrad is Senior Attorney and Director of Legal Affairs for the WRA.

legal

Legal Hotline: Working Across State Lines

Reciprocity The broker has heard Wisconsin has licensing reciprocity agreements with other states; does that allow the broker to list and sell property in those states? The Wisconsin Department of Regulation and Licensing has entered into reciprocity agreements with the states of Illinois and Indiana. See http://news.wra.org/story.asp?a=257 for further information. What Reciprocity is NOT… Reciprocity does not allow a person with a Wisconsin license to practice in Illinois or Indiana without an Illinois or Indiana license. Nor does reciprocity allow a non-Wisconsin licensee to practice in Wisconsin without a Wisconsin license. What reciprocity IS… Per the reciprocity agreements, it is easier for licensees to obtain a credential in the other states. Fewer licensing requirements must be met based on the fact that the individual already has a real estate license in another state. For example, Wisconsin licensees need only take the prelicense exam in order to obtain a sales license in these states. Wisconsin brokers need only take the brokers exam in order to qualify for a broker’s license (no prelicense education requirements). See an explanation of the Illinois requirements at http://www.idfpr.com/dpr/default.asp and for Indiana

wisconsin real estate magazine

november 2010

with tracy rucka

information, visit http://www.in.gov/pla/2788.htm. A Wisconsin broker considering obtaining an Illinois credential may review Cori Lamont’s article in this issue, “Looking South,” regarding the upcoming changes to Illinois license law.

Out-of-state Licensees The Wisconsin listing broker received a call from an Illinois agent wanting to show a Wisconsin property. The Illinois licensee does not have a Wisconsin license. How does the listing broker proceed? Showings: Per the listing agreement, the broker has agreed to cooperate with other brokers and has agreed to give access to the property to buyers and persons assisting buyers for showing purposes. However, the Illinois licensee, once he or she crosses into Wisconsin, is, according to Wisconsin law, an unlicensed person and cannot legally engage in real estate brokerage services in Wisconsin. A licensee from another state may not conduct showings or negotiate face-to-face in Wisconsin without a Wisconsin license. Therefore, the listing broker should not allow the Illinois agent to show the property and may offer to conduct the showing for the Illinois prospect. Offers: Once the showing has occurred, the Illinois licensee may follow Illinois law regarding drafting offers on out-of-state properties. If an offer is produced, the listing agent should follow normal procedures and present the offer to the seller. If the offer news.wra.org

is on any form other than the Wisconsin (WB) state approved forms, the listing broker may discuss in general terms the differences between the submitted offer and the WB form that would have been used in Wisconsin. If necessary, the listing agent may suggest that the seller talk with his or her legal counsel if they have any specific questions. The seller’s questions should obviously be resolved before they accept any such offer. Commission: Wis. Stat. § 452.19 limits the payment of referral fees, finders fees and commission splits to persons licensed or registered in Wisconsin to practice real estate, or persons regularly and lawfully engaged in real estate brokerage in another state. Before entering into a commission agreement or referral agreement with an out–of-state broker, it is prudent practice to ask for a copy of the agent’s license and a statement confirming that the licensee is regularly and lawfully engage in real estate brokerage in his or her licensing state. MLS offers of compensation: In some markets, the MLS offer of compensation extends to brokers who are licensed in other states. In such circumstances, the cooperating broker would earn the offered commission if he or she is the procuring cause of the sale, just like in other MLS transactions.

Out-of-state purchases The agent is a buyer’s agent for someone who lives in Wisconsin. The buyer has asked the agent if he can represent him in a large purchase of land in another state. Can the agent do this? It has been the understanding of the WRA that a Wisconsin real estate license permits an individual to negotiate with another for a commission, money or other thing of value, the sale, purchase, rental or exchange of an interest in real estate. According to the National Association of REALTORS®, Wisconsin and 23 other states are classified as physical location states. This means that a licensee may work on a transaction involving property outside their state of licensure, Wisconsin, and receive commission as long as the licensee remains physically in Wisconsin. Authority to provide real estate brokerage services. First, per Wisconsin license law, a Wisconsin real estate licensee must have agency authority granted in an agency agreement to engage in real estate brokerage: either a listing contract with the seller or a buyer agency/ tenant representation agreement with the buyer/tenant. A broker who negotiates without agency authority may be engaged in the unlicensed practice of law and in violation of Wisconsin license law. Authority to practice in another state. Second, the agent needs to review the other state’s laws, perhaps with the assistance of the agent’s attorney. Each state’s laws specify the real estate activities that may lawfully occur within that state. NAR’s recent report regarding license portability provides at least a starting point for this review (see www.realtor.org/rmomag.NSF/pages/lawjuly05?OpenDocument). If permitted, all of the Wisconsin licensee’s work in negotiating the sale typically would have to take place in Wisconsin. Out-of-state work (for example, showings) generally need to be conducted by a licensee from the state where the property is located if the broker is not also licensed there. Commission. The terms and conditions of the broker’s agency agreement will indicate the commission earned for providing real estate brokerage services. The broker might always be able to receive a co-

wisconsin real estate magazine

november 2010

broke commission form the listing broker in the other state, depending upon that state’s laws. If this is available, it would be best to enter into a written compensation agreement with the listing broker before submitting any offer to purchase. A recent unpublished Wisconsin Court of Appeals District IV decision has indicated that one would have to be licensed in the state where the property is located to engage in a transaction for the sale of the property (at least as it relates to Wisconsin and Iowa, the states that were involved in the case). The Court noted that the Iowa law that the parties presented to the Court did not relieve a broker working in a transaction for the purchase of an Iowa property from needing an Iowa real estate license, even if the Wisconsin broker’s actions might be allowed under Wisconsin law. To read the case, see Restaino Bunbury & Associates, Inc. v. Assisted Living Concepts, Inc. (Ct. App. No. 2008AP2334, 2009) at http://www.wisbar. org/res/capp/2009/2008ap002334.htm. Get Licensed/Reciprocity. Depending on the transaction and the probability that the buyer will want the broker to continue providing services in the other state, the broker may consider applying for a license in the other state. A broker may more readily obtain a license in Illinois and Indiana due to reciprocity. For each state, the broker may check with the local licensing authority to find out licensing requirements. For further information, see the “NAR Field Guide to License Reciprocity” at http://www.realtor.org/library/library/fg709. Tracy Rucka is Director of Professional Standards and Practices for the WRA.

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Realtor® sales tip

Sales Tip: Mind Your Manners

Mother always told us to “mind our manners” and to remember that if we can’t say something nice, not to say anything at all.

T By marcus a. wally

he National Association of REALTORS® feels the same way. According to article 15 of the Code of Ethics, we are never to say anything that would discredit a fellow professional. As professionals, we are deemed to have good manners.

Article 15 specifically states that REALTORS® shall not knowingly or recklessly make false or misleading statements about competitors, their businesses or their business practices. Keeping this ever-present in our minds allows us to offer Exceptional Customer Service (ECS) to all of our customers and clients. And since service is one of the most critical ways for us to distinguish ourselves from our competition, I feel it’s a good idea to revisit, refresh and remind ourselves how to properly behave in today’s competitive environment. A few of my most important guidelines to being on my best behavior are listed below. 1. No smoking. Recently, I met a local broker at one of my listings to open the property. As soon as his customers entered, I noticed him step outside and light up a cigarette. I could not believe my eyes. Many people are highly allergic to any type of smoke and I think it best not to smoke in front of customers. If you have recently smoked, take the necessary steps to ensure that you and your clothing do not smell of smoke. This is a fast way for a customer to drop you as their agent. 2. No eating/drinking. It is in very poor taste to eat or drink in front of a customer. This includes eating and drinking while on the telephone with a prospect, customer and/or client. We are

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november 2010

constantly being evaluated by our customers, and to be chewing food or gum is in poor taste. It is permissible to have bottled water for yourself and your customers, but do not eat snacks or meals while on duty. This includes when working at the office. When a customer walks into the office, we want their first impression to be one of professionalism first and foremost. 3. Always wear your name badge. One of our most valuable marketing tools is our name badge. I just re-ordered a brand new one as my current badge was scratched up and I always want to look professional. Wearing an old, beat-up name badge hurts the image I am trying to convey. My shiny new badge will make me feel top-notch! Also, don’t forget to wear your smile. 4. Wear clean, professional and appropriate clothing. Never allow your customers/clients to look better than you. Or, as mother used to say, “You never get a second chance to make a good first impression.” One of the benefits of dressing professionally is the way it makes you feel. Dressing correctly boosts your self-image and if you want to be successful, you must dress and act professionally. As we go through our daily travels, we are always on display for the general buying/ selling public. The person looking at us at the grocery store or at the bank just may be our next customer! Check yourself prior to leaving the house to ensure that you are clean and neat. 5. Arrive early. Being prompt shows respect for those you are meeting. Make it your practice to always arrive a few minutes early so that you can greet your customers. Never allow the customers to beat you to the property. By arriving early you can open the property and make sure it is in show order. Our news.wra.org

sense of comfort that their property was shown and they know it is safe to return. It also saves us an aggravating phone call from the homeowner inquiring whether or not the agent showed up.

customers’ time is just as important as our own, so never keep them waiting. Sometimes we run late, so have manners and call and let them know of your situation. They will be able to tell right away that you were brought up correctly and will respect you for this courtesy. This elevates you in the minds of the customers and they will treat you accordingly.

9. Share feedback willingly. We all know how frustrating it can be trying to track down an agent who showed our listing to get that critical feedback. Make the commitment to voluntarily offer feedback on each property you show. My practice is to immediately return to the office (or my home) and call each of the listing agents and share my thoughts on the property just viewed. I call right away while I have all the information fresh in my mind and I give honest feedback and not just fluff. We all know how critical it is to hear the truth and not just that the home shows well.

6. Preparation is key. Being prepared is the first sign of a true professional. I greet my customers by having all of my appointments made and confirmed in advance. No last-minute scrambling because this makes me look like a novice. I bring an extra copy of each property data sheet, as my customers may not have brought the copy I emailed them. If a property is not on lockbox and I need a key, I have already done this so that I am ready to roll and my customers are not subjected to me stopping to run errands. This advance planning shouts “courtesy” to our buyers and sellers. Every small detail adds up to making me look like the top producer I consider myself to be.

Tell the truth so that the property can sell: Did the listing smell of animals? Is the curb appeal lacking? Does the home show dark? Is it priced correctly? BE HONEST!! We are here to help each other and holding back is not the correct approach.

7. Take responsibility. Never allow a customer to help you lock up a property. Or, if they do, make sure you follow them and double check all the doors. Securing the property is our responsibility and should never be delegated to our customers, no matter how tempting this may be. Too many homes have been vandalized by a prospect leaving a sliding glass door unlocked. Make sure all the lights are turned off and that any special showing instructions have been followed. And don’t let the cat out!

10. Have respect. Showing respect to all we come into contact with is the first sign of good manners. Each time I call a real estate office, I take the time to greet the person who answers the phone. In my town, I know most of the secretaries and I try to speak with them and ask how they are before I request to be transferred to the agent. They always seem to appreciate my acknowledging them instead of just asking to speak directly with the person I need. These guidelines are so important to our business and working with them can add to our success. Showing respect sets us up to receive respect. Best of luck to you! Marcus A. Wally, MBA, is an active Florida REALTOR® in St. Augustine, Florida. Marcus is the founder and broker of New World Realty, which also manages coaching and facilitation of education classes around the world. Marcus earned his MBA from the University of North Florida in Jacksonville. He can be reached at (904) 669-1081 or by e-mail at marcuswally@ comcast.net.

8. Always leave a business card. Remember to carry lots of business cards so that you can leave a card in each property you view. I keep extras in the glove box of my car. When the property owner returns, seeing the card gives them a

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Serving Clients on Both Sides of the Mississippi

november 2010

A conference designed specifically for Brokers, Owners and Managers!

December 9, 2010 | Country Springs Hotel | Pewaukee, WI General Sessions Ten Things You Might Not Know About Wisconsin’s Economy Richard Green, Ph.D. Professor, School of Policy, Planning & Development, University of Southern California Director, University of Southern California Lusk Center for Real Estate

The Future of Housing: Out of the Dark and Into the Light…Preparing for the Calm After the Storm Ron Peltier Chairman and Chief Executive Officer, HomeServices of America

Workshops The Base Is the Middle Howard “Hoby” Hanna, IV, Howard Hanna Real Estate Services

Looking to Newer Operation Models for Success in 2011 Jack O’Connor, RE/MAX Professionals

Mortgage Lending – Past, Present, Future Don Lickel, M&I

Reality Real Estate...the Bob and Dan Show Bob Weber, President - First Weber Group Inc. Dan Lee, Vice President - First Weber Group Inc.

Your Path

Success

Seven Leadership Tips to Retain Top Producers Jack O’Connor, RE/MAX Professionals

Branding: It Should Speak For Itself Howard “Hoby” Hanna, IV, Howard Hanna Real Estate Services

Regulatory Boot Camp Michael Theo and Tom Larson, Wisconsin REALTORS® Association

Where Your Listings Are Going: Let’s Be Strategic Matt Cohen, Chief Technologist, Clareity Consulting

A $500 airline travel certificate sponsored by Travelog will be given away at the end of the conference. You must be present to win!

wra.org/management

REGISTRATION Fees

thru 11/24 $ 69

Members

after 11/24 $ 79

ATD $ 99

Non-Members $79 $ 89 $ 109 Rolls and coffee, lunch, afternoon break and course materials are included in your fee. Single/Double Rate: $105 Standard Room $155 Executive Suite $229 Governor’s Suite

Reservations: 262.547.0201 or 800.247.6640 (11/9/2010 release date)

800.279.1972

Four Ways to Complete Your Mandatory Continuing Education

education

www.wra.org/cecourse LIVE The Wisconsin REALTORS® Association is the top provider of real estate education in Wisconsin. Complete your 2009-2010 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.

THREE DISTANCE LEARNING OPTIONS If attending a live course does not fit your schedule, complete your CE through the WRA’s Continuing Education Distance Learning program. Courses are available in three formats: On Demand, DVD and self-study booklets.

On Demand Continuing Education – On Your Schedule! Distance Learning On Demand gives you the autonomy to take courses on your schedule – at your own pace – anytime – anywhere – from your own computer. Using a Web browser, watch “on-demand” education from the comfort of your own home, office or wherever there is a broadband connection. Best of all, there’s no need to travel or experience sales downtime to meet your CE requirements. $27/members | $35/non-members

Save Even More with Four-Pack and Six-Pack Discounts (Residential On Demand Only) All real estate licensees must renew their license before December 14, 2010. The Department of Regulation and Licensing requires all real estate licensees to complete 18 hours of continuing education each biennium, an increase from 12 hours. There are four mandatory courses and a list of six electives. Licensees must complete the four mandatory courses and two DRL-approved electives. At the time of renewal, licensees will now need to provide the following information for the 18 CE hours they have completed: Course Date, Course Title, Sponsor, Number of Hours.

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.

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 - Buyer Agency Agreements

These comprehensive, preparatory study guides allow you to study your CE curriculum at your own pace and then take the corresponding exam online when you are ready. Courses 1, 2, 3, 4 and Elective A and C are available in this handy format. It’s easy to use, and covers the material required to pass the exam. $27/members | $35/non-members

Elective Topics (Licensees must take two of the following.) Elective A - Risk Reduction Elective B - 1031 Exchanges and Exchange Opportunities Elective C - Condominiums Elective D - Landlord/Tenant and Property Management Elective E - Financing the Sale Elective F - Broker Supervision

wisconsin real estate magazine

DVD Complete your CE requirements in the comfort of your home with the WRA’s DVD distance learning education option. This program involves watching a DVD and taking the corresponding exam online All the 2009-2010 CE courses are available through this program. Simply watch a video, take an online exam, score and print your certificate. $27/members | $35/non-members

november 2010

February 8-11, 2011 Kalahari Resort & Convention Center Wisconsin Dells, WI

Statement of Ownership

Wisconsin REALTORS® Association

NEW!

3 Easy Payment Plan

Designation WEEK Many Courses...One Location!

This Year’s Designation Courses: GRI Course 2 | February 8-11, 2011 (submitted for CE)

Instructors: Jackie Leavenworth, CRS; Mark Porter, CRS; Doug Hoffman; Cori Lamont

GRI Course 3 | February 8-11, 2011 (submitted for CE)

Instructors: Tom Lundstedt, CCIM and Frank Serio, CRS

New for 2011! 3 – Easy Payment Plan This plan allows designation week attendees to register for any course and pay in three installments. Plan Details: • Must call to register. • Deadline to register for this payment option is December 7, 2010. • First payment is due upon enrollment; subsequent payments charged on the 1st business day of the following two months and must pay by credit card. • Standard cancellation policy

CRS 201: Listing Strategies Included in GRI Course 2 February 8-9, 2011 Instructor: Jackie Leavenworth, CRS

CRS 202: Effective Buyer Sales Strategies Included in GRI Course 3

February 10-11, 2011

Instructor: Frank Serio, CRS

CRS111 – Short Sales and Foreclosure Course (CRS and SFR Core Course) (submitted for CE) February 9, 2011 Instructor: Frank Serio, CRS

Microsoft Outlook – E-Marketing Strategies for Real Estate (CRS Elective) February 10, 2011

wra.org/DesWeek

Instructor: Mark Porter, CRS

You may qualify for a Scholarship! GRI Scholarships are available to WRA members. Contact your local board/association, the Wisconsin CRS Chapter, the WRA or visit www.wra.org/GRIscholarship for application information. This year’s deadline is January 21, 2011. 20

wisconsin real estate magazine

november 2010

Statement of Ownership, Management, and Circulation. Publication Title: Wisconsin Real Estate Magazine. Publication Number: 1096-9829. Filing Date: October 1, 2010. Issue Frequency: Monthly. Number of Issues Published Annually: 12. Annual Subscription Price: $9 Members, $60 Non-Members. Complete Mailing Address of Known Office of Publication: Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 53704-7337. Contact Person: Rob Uhrina. Telephone: (608) 241-2047. Complete Mailing Address of Headquarters: Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 53704-7337. Full Names and Complete Mailing Addresses of Publisher, Editor and Managing Editor: Publisher, William Malkasian; Editor, Vanessa Merina; Managing Editor, Rob Uhrina; Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 537047337. Owner: Wisconsin REALTORS® Association, 4801 Forest Run Road, Suite 201, Madison, WI 53704-7337 (same address for all). Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None. Tax Status: Has Not Changed During Preceding 12 Months. Publication Title: Wisconsin Real Estate Magazine. Issue Date for Circulation Data Below: September 2010. Extent and Nature of Circulation (first number gives average number of copies of each issue during preceding 12 months; second number gives actual number of copies of single issue published nearest to filing date): Total Number of Copies (14,885; 14,900); Paid/Requested Outside-County Mail Subscriptions (14,679; 14,694); Paid In-County Subscriptions (0; 0); Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution (0; 0); Other Classes Mailed Through the USPS (0; 0); Total Paid and/or Requested Circulation (14,679; 14,694); Free Distribution by Mail; Outside-County (33; 33); In-County (8; 8); Other Classes Mailed Through the USPS (0; 0); Free Distribution Outside the Mail (15;15); Total Free Distribution (56; 56); Total Distribution (14,735; 14,750); Copies Not Distributed (150; 150); Total (14,885; 14,900); Percent Paid and/ or Requested Circulation (98.6 percent; 98.6 percent); Publication Statement of Ownership: Publication Required. I certify that all statements made by me above are true and complete. Rob Uhrina, Managing Editor, September 30, 2010.

Course Schedule

Visit wra.org/CourseSchedule for full schedule.

Sales & Marketing Management Date Course Location

*Fulfills core education for NAR new Short Sales and Foreclosure Resource (SFR) certification registration applies two weeks prior to November 12, 2010 CRS 111: Short Sales & Foreclosures: Protecting ** Early the start of the course. Your Clients Interests (CRS Core 1-day class ) # Appraiser section members receive a discount.

Conference and Conventions Date Event December 9-10, 2010 Managment Conference February 8-11, 2011 Designation Week

Lake Geneva

Course

Location

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

November 9, 2010 November 9, 2010 November 9, 2010 November 10, 2010 November 10, 2010 November 10, 2010 November 10, 2010 November 10, 2010 November 11, 2010 November 11, 2010 November 11, 2010 November 11, 2010 November 12, 2010 November 12, 2010 November 12, 2010 November 12, 2010 November 15, 2010 November 16, 2010 November 16, 2010 November 17, 2010 November 17, 2010 November 17, 2010 November 18, 2010 November 18, 2010 November 18, 2010 November 19, 2010 November 19, 2010 November 22, 2010 November 22 & 24, 2010 November 23, 2010 December 1, 2010 December 1, 2010 December 1, 2010

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

La Crosse Brookfield Appleton Appleton Sheboygan Brookfield Madison Racine Appleton Madison Racine Woodruff La Crosse Madison Brookfield Woodruff Brookfield La Crosse Brookfield Hudson Brookfield Madison Hudson Sheboygan Madison La Crosse Hudson La Crosse Mosinee La Crosse Brookfield Madison Appleton

Appraisal Continuing Education

Date

Course

Pre-License * Plus books

Location

608-785-7744 800-279-1972 920-739-9108 920-739-9108 920-457-7903 800-279-1972 800-279-1972 262-637-4426 920-739-9108 800-279-1972 262-637-4426 715-356-3400 608-785-7744 800-279-1972 800-279-1972 715-356-3400 800-279-1972 608-785-7744 800-279-1972 651-772-6344 800-279-1972 800-279-1972 651-772-6344 920-457-7903 800-279-1972 608-785-7744 651-772-6344 608-785-7744 715-693-7325 608-785-7744 800-279-1972 800-279-1972 920-739-9108

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Date Course Location

Available online!

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Pewaukee To register call 800-279-1972 Wisconsin Dells To register call 800-279-1972

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November 29, 2010 November 30, 2010

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Real Estate Continuing Education

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Early Reg.** $Reg.

January 4-7; 10-13, 2011 Sales Pre-License Course 8:00 - 5:00 Madison

Member 325*

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wisconsin real estate magazine

november 2010

wisconsin real estate magazine

november 2010

news.wra.org

Elections 2010: Looking Back and Looking Forward

y the time you read this article, the elections will be over and we will be starting to prepare for the next legislative session in Madison and congressional session in Washington. Before we transition from politics to public policy, I thought I would share a few observations from election year 2010. For a variety of reasons, the 2010 election cycle will be remembered for its intensity as well as its outcome. Voters made a statement about the direction of our government and now our newly elected legislators need to respond. The first dynamic that struck me was REALTOR® member involvement. I spoke to a member meeting of the Jefferson County Board on January 14th, and I was pleasantly surprised by the turnout. The room was full and it was clear to me that REALTORS® were more than a little interested in what was going on in Madison and Washington. I found this same enthusiasm everywhere I traveled. REALTORS® showed up for political and legislative updates in large numbers in Beaver Dam, Delavan, Superior, La Crosse, Kenosha…you name the place, members were there. You wanted information on what was going on and why. There were 23 open legislative seats this year. That’s the largest group of retirements I’ve seen in one election cycle in my 23 years with the WRA. When the newly elected Legislature arrives in Madison in January 2011, nearly 20 percent will be freshman legislators. And given the issues that drove the 2010 elections (deficits, jobs, taxes and economy), it’s very likely the legislative priorities of the new Governor

wisconsin real estate magazine

By joe murray

and Legislature will center on these issues almost exclusively. Candidates from both parties ran on “creating jobs,” “reducing spending,” and “holding the line on or reducing taxes.” These lawmakers must now deliver on those promises or there may be another large freshman class after the 2012 elections. Wisconsin, perhaps more than any other state this year, was a true “battle ground” state in every way. From the top of the ticket down, Wisconsin political races were hard-fought and expensive. The open race for Governor, the U.S. Senate race, three competitive congressional races (the 3rd, 7th and 8th Congressional Districts) and both houses of the Wisconsin Legislature were all up for grabs. The outcome will not only influence legislation in Washington and Madison; the political dynamic will be felt for years to come. Governors and state legislatures are required to redraw congressional and legislative districts every ten years, and this task will take place over the next two years. The party in power controls this process and they will surely attempt to draw the lines to give them an electoral advantage for the next decade. REALTOR® involvement in the political process and individual campaigns was the

november 2010

best I’ve seen in many years. Members were involved in candidate fundraising, recruitment, and a record number of REALTORS® ran for office this year. That energy and enthusiasm boosted RPAC fundraising and made it possible for the WRA to provide an unprecedented amount of financial support for RPAC-supported candidates. You clearly understand the need for staying involved through RPAC despite challenging economic conditions. Now that the 2010 elections are history, the next phase of legislating begins. Congress and the state Legislature must address the issues that voters elected them to work on. Huge budget deficits, the need for job creation, and a lack of consumer confidence are top issues for most voters across the board. On top of that, the National Association of REALTORS® and WRA will work on a wide variety of real estate-specific issues that will directly impact your everyday ability to succeed in the market. Our goal in both the political process and legislative process remains the same: passing good laws and defeating bad ones. In this quest, we need your help. Please maintain that energy and enthusiasm for the legislative cycle that begins in January of 2011. Your direct participation by responding to “Calls for Action” and contributing to RPAC or the Direct Giver makes all the difference! Thanks for your support and keep up the good work! Joe Murray is Director of Political and Governmental Affairs for the WRA.

Now What? New Ideas for a New Governor and Legislature

here will come a private moment (if it hasn’t already happened), when newly elected candidates say to themselves, “Now what?” Or perhaps more accurately, “What have I gotten myself into?” This moment will be particularly poignant for our newly elected governor and state lawmakers, who must address a substantial state budget deficit in 2011 with little prospect of help from federal stimulus money – which covered a sizable chunk of our last state budget crisis. So, how will our new leaders answer this question? In the short run, the options are few and they’re all bad. Significant cuts in state spending are inevitable. But in the long run, Wisconsin will need more systemic tax and spending reforms if we are to realize sustained economic growth and an improved quality of life. The WRA has been working with other major trade associations, unions, the University of Wisconsin, and private corporations for over two years to develop a set of innovative recommendations for creating this Wisconsin economic revival.

wisconsin real estate magazine

This effort culminated in a Blueprint for Change from the Wisconsin Way coalition we helped create. But we weren’t alone in the effort. Other organizations like Competitive Wisconsin have engaged in similar, idea-generating processes resulting in other inventive ideas for fixing and redirecting Wisconsin’s economy. The ideas generated by these similar but separate efforts, along with ideas from other Wisconsin-based world-class thinkers, were the subject of three economic summits held in Appleton, LaCrosse and Milwaukee over the past three months. The upshot of these efforts has been captured in a pioneering report called “The Wisconsin Prosperity Strategy,” written by Tom Stills (president of the Wisconsin Technology Council), Tom Hefty (former CEO of Blue Cross & Blue Shield United) and John Torinus (chairman of Serigraph, Inc.). The report is a compilation of bold ideas and recommendations from these various efforts, organized and ready for delivery to our newly-elected state leaders. Following are just a few of the innovative ideas from the Wisconsin Prosperity Strategy.

november 2010

Michael Theo is Senior Vice President of Legal and Public Affairs for the WRA.

news.wra.org

Innovative Governance

Innovative Economy •

Create a $1 billion Wisconsin Prosperity Fund for matching investments strictly focused on innovative technologies and highgrowth start-up companies.

•

With the approval of voters by referendum, tap unused state bonding authority to support the fund.

•

Encourage the State of Wisconsin Investment Board to aggressively pursue a “catalyst portfolio” to attract top tier venture capital companies to Wisconsin and the upper Midwest region.

•

Restore Wisconsin capital gains tax exemption to 60%.

•

Create and execute a strategy for fostering industry clusters, including a “knowledge cluster” like freshwater technology in the university system.

wisconsin real estate magazine

Streamline and align regulations and tax irritants to promote industry clusters.

•

Improve university-to-business ideas and innovations.

Replace the current Department of Commerce with a Job Creation Board to oversee state job creation strategies and initiatives.

•

Capture a greater share of federal dollars by vastly improving the state’s office in Washington, D.C. and become the leader for Midwest states to form political coalitions to improve the region’s share of federal funds.

•

Invest in a more balanced energy generating portfolio including nuclear, wind, and solar power, to satisfy noncarbon energy mandates.

•

Expand and improve high-speed Internet, broadband and cell phone access to all areas of Wisconsin.

•

Articulate a clear plan to eliminate the state budget deficit and eliminate the GAAP deficit by 2025.

•

Make education, economic development and infrastructure investments within the context of fiscal stability.

•

Approve comprehensive tax reform with greater reliance on consumption taxes and fees and reduce our current over-reliance on the property tax and personal income tax.

•

Shift the balance of state spending away from property relief and toward job creation.

•

Create a powerful gubernatorial commission to consolidate and improve state and local government services.

•

Adopt successful consumer and marketdriven reforms in the delivery of health care in public sector plans.

Innovative Education •

•

Make and brand Wisconsin as the best state for innovation and for starting a company.

•

Raise the percentage of four-year degree holders in Wisconsin to a top tier level of states based on the number of working adults with at least a baccalaureate degree. Encourage educational institutions to more closely align degree offerings and academic research with export driver industries on a regional basis throughout the state.

•

Provide the UW system with greater administrative flexibility to make the best use of scarce dollars in areas such as purchasing, contracting, construction, etc.

•

Enhance the state’s pre-college pipeline by increasing investments in K-12 science, technology, engineering, mathematics, etc.

november 2010

In all, the report offers over 100 ideas for changes large and small to innovate our economy, education and state government. As our newly elected state leaders contemplate how to fulfill all those campaign promises to fix Wisconsin’s slumping economy, they would do well to seriously consider the reform proposals put forth in the Wisconsin Prosperity Strategy. And REALTORS® should be proud of the leadership role we’ve played in proposing solutions for them to consider. Now that the elections are over, the real work begins.

New Disclosure Requirements for Sellers and REALTORS® in 2011

ach year, real estate transactions become more complicated due, in part, to new regulations adopted by state and local governments. These new regulations often affect the use, tax treatment, or some other aspect of property ownership.

Tom Larson is Chief Lobbyist and Director of Legal and Public Affairs for the WRA.

To ensure that buyers have more accurate information about the property they are buying, the Wisconsin legislature has created several new disclosure requirements for sellers. Some of these new disclosure requirements are required to be added to Wisconsin’s Real Estate Condition Report (RECR), which is generally required in real estate transactions involving 1 to 4 family dwellings. Some of the other disclosure requirements are not required to be added to the RECR, but will be added to some of the applicable WRA-produced forms (e.g., RECRFARM, Seller Disclosure Report, Vacant Land, Seller Disclosure Report– Commercial) to ensure greater compliance. REALTORS® should become familiar with these new disclosure requirements so that they can adequately advise sellers and buyers about their meaning.

By tom larson

Shoreland zoning (2009 Wis. Act 211) – Beginning January 1, 2011, the Wisconsin RECR and the WRA RECRs and Seller Disclosure Reports will contain a new provision requiring sellers to disclose whether their

wisconsin real estate magazine

november 2010

news.wra.org

law requires property to be enrolled for 25 or 50 years;

property is subject to any shoreland zoning mitigation plans. Under the Wisconsin’s new shoreland zoning regulations (Wis. Admin. Code Ch. NR 115), a property owner wishing to exceed the 15% impervious surface limit or expand a nonconforming structure within the 75-foot setback must agree to perform some form of mitigation as determined by the county where the property is located. Mitigation may include activities such as restoring the primary buffer (the area between the water and 35 feet from the water) to its natural state, removing another nonconforming structure, or reducing some existing impervious surfaces. In most cases, the mitigation activity agreed to by the property owner is required to be filed with the local register of deeds and will apply to all future owners of the property. Managed forest land program (2009 Wis. Act 365) – Beginning January 1, 2011, a property owner who is selling property enrolled in the managed forest law (MFL) program must provide a written disclosure to the buyer no later than 10 days after the acceptance of the offer. The disclosure must contain: a.

A statement indicating that the property will continue to be enrolled in the MFL after the property is sold and that the MFL wisconsin real estate magazine

A statement indicating that the Division of Forestry in the Department of Natural Resources monitors plan compliance under the MFL program and contact information for the division of forestry; and The following statement: “Changes you make to the property that is subject to an order designating it as managed forest land, or to its use, may jeopardize your benefits under the program or may cause the property to be withdrawn from the program and may result in the assessment of penalties.”

To ensure greater seller compliance with this law, this information will be added to the applicable WRA versions of the RECR and Seller Disclosure Reports.

Piers In 2007, Wisconsin adopted new pier regulations that grandfathered 99% of the existing piers from future enforcement action. To be grandfathered, a pier must meet certain size requirements and, in some situations, be registered with the DNR or with the local register of deeds by April 1, 2011. (For more november 2010

information on the pier grandfathering standards, please see http://news.wra.org/ story.asp?a=1316.) Because a pier could be considered illegal and thus subject to a DNR enforcement action if it does not meet the size and registration requirements established by state law, a prospective buyer will likely want to know this information prior to purchasing a waterfront property with an existing pier. Accordingly, the WRA will add a disclosure provision to the applicable WRA versions of the RECR and Seller Disclosure Reports asking the seller to indicate whether they are aware if any pier does not meet the state or local pier regulations.

Carbon Monoxide Detectors Beginning February 1, 2011, state law requires all homes with fuel appliances and/or attached garages to have carbon monoxide detectors installed in each floor. (For more information, see http://news.wra.org/story.asp?a=1302.) Accordingly, the Wisconsin RECR and the WRA RECRs and Seller Disclosure Reports will be updated to include a disclosure related to carbon monoxide detectors. For more information on any of these new disclosure requirements, please contact Tom Larson (tlarson@wra.org) at (608) 240-8254.

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WRA Website Tip: How to Tailor Your Email Correspondence from the WRA By rob uhrina

Every so often, we’ll hear from members that they receive too much email from the WRA. Typically, this question is posed by members who have not yet visited the myWRA email preferences page and unsubscribed from emails that they do not wish to receive. So, how do you tailor your WRA email preferences to your specific needs? Customizing your email preferences is easy. It takes 30 seconds or less and you can change your preferences as much as you wish throughout your membership with the WRA. The default configuration will “opt” you in to receive all emails from the WRA. This allows you to view our subscriptions and determine if you wish to continue receiving them. If you decide at any point to change this default setting, simply follow these steps to customize your email preferences: 1.

Open your web browser and type www.wra.org/email preferences in the address bar.

On the myWRA Email Preferences page, uncheck the subscriptions you do not wish to receive. Check the ones you want to receive.

If you are unsure of the content in a particular email, click the “Click for Sample” link next to each subscription to view a sample of that email.

Press the “Save Preferences” button.

The process is now complete. You will now only receive the emails to which you have subscribed.

Please note that these settings affect only WRA email preferences and will not impact your email preferences with your local or National Association of REALTORS®.

wisconsin real estate magazine

november 2010

news.wra.org

WRA Distance Learning On Demand

Key Features

Continuing Education

Members: $27/course Nonmembers: $35/course

Notes Tool Take notes while you watch your videos.

Outline Tool Navigate and jump quickly to specific topics.

Practice Quizzes Sharpen your skills with review exercises.

Full Screen Video Watch in compact or full screen modes.

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Distance Learning On Demand gives you the autonomy to take courses on your schedule – at your own pace – anytime – anywhere. All you need is a web browser and broadband connection. Online education means no travel and no sales downtime. Be ahead of the curve and get education in the most convenient way possible. Ask today about our four and six pack specials.

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What is our WHEDA® Advantage? Down payment assistance to get into a home sooner.

ith a WHEDA Advantage mortgage, your borrowers may qualify for the Easy Close Advantage. This $3,000 down payment assistance loan has a low-cost, ﬁxed interest rate for 10 years and is designed to help your borrowers get into a home

sooner with a mortgage they can afford long-term. Discover the WHEDA Advantage! Income and purchase price limits apply and home buyer education is required. Interest rates are subject to change daily. To learn more, go to wheda.com/Realtors/. WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY 201 West Washington Ave ■ Madison, WI 53703 800.334.6873 ■ www.wheda.com