Commercial - Wisconsin REALTORS® Association

Transcription

3rd quarter stats
Median price rose 2.4 percent.
legal hotline
Issues in Commercial Transactions.
December 2007
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Cover Story
WISCONSIN
December 2007
VOL. 24, NO. 3
®
A PUBLICATION OF THE WISCONSIN REALTORS ASSOCIATION
6
Features
12
Commercial
Association of
REALTORS®
MAGAZINE™
Bulk Transfers Law
How can you help protect a buyer who is purchasing the assets of
an existing business? Make sure you follow the steps for complying
with the bulk transfers law.
14 Technology Corner: Gifts under $100
Looking for technology gifts but don’t have a big budget? This
month’s Technology Corner highlights eight great products under
$100 that you may want to give … or receive!
28 New Sprinkler Rules Adopted
The Wisconsin Legislature approved new administrative rules related
to regulation of sprinklers in multifamily buildings. Here are the new
requirements and why you should be familiar with them.
Articles
9
10
Curious about what’s happening with
Wisconsin Home Sales Outperform
Most States
21
Third quarter statistics are in and
Wisconsin’s housing market is still
strong compared to markets in many
other states. Get the details here.
Best of the Legal Hotline
22
Legal Hotline attorneys answer questions
about confidentiality, compensation,
environmental assessments and more
concerning commercial transactions.
You may find your answer here!
Sales Tip
24
Product Showcase
Are you interested in commercial
real estate? Would you like a better
understanding of the commercial
market? If so, here’s an invaluable
resource.
Real Estate Issues in the State Budget
Wisconsin finally has a biennial budget.
Here we outline those issues affecting
homeowners, property owners and
REALTORS® and whether they made it
in the budget or not.
the commercial market in Wisconsin?
WRA President Bill Malkasian
interviewed recently installed
Commercial Association Chairman
Andrew Jensen to discuss the goals
15
Now is the time to get back to basics in
business. Get a fresh start on the New
Year to stay focused and motivated in
‘08!
The Political Year Ahead
Get ready for the 2008 election cycle.
Here is a quick overview of the political
year ahead, outlining the presidential race
and statewide races and candidates.
and objectives of the association and
the status of the market.
news.wra.org
1
Inside
the wra
with Bill Malkasian
AW
hat a difference a year or two makes in describing
fter returning from the National Association of
the status of the real estate industry. This month’s
REALTORS® Convention in Las Vegas (the largest ever
issue focuses on customer retention. A year ago, this
with over 30,000 people in attendance), I’ve come to the
topic would
have
called
forour
a different
set of stories
realization
very
quickly
that
housing market
is darn
than
we
feature
this
month
in
the
current
market.
It’s
good compared to the rest of the country. If you wanta different
evidence,
market,
so third
whether
you’re
newstatistics
to the report
field or
refer
to our
quarter
housing
on you’ve
page 9.been
There
around
for
a
while,
these
articles
are
worth
a
quick
read.
are very few markets in which the median price actually
rose, as it
did
in Wisconsin
by 2.4 percent!
Talking
about the– market,
the WRA’s real estate statistics for the
Bill Malkasian
Bill Malkasian
WRA President
WRA President
second
quarter
canHousing
be found
on page
4. The market
is down 7.2
The
bottom
line?
sales
in Wisconsin
are outpacing
the
percent
from
the
same
quarter
a
year
ago,
however,
mostin
nation, and although many look on these as “interestingthe
times”
important
point
that estate
Wisconsin
is stillI think
outpacing
the rest the
of
the
mortgage
andis real
business,
we’ll weather
the Midwest
and the nation
as a whole. Considering the flurry
storm
in fine Wisconsin
tradition.
of news about the financial markets you’ve been reading and
Moving
single-family
housing
market
to the
commercial
hearing from
aboutthe
we’re
quite pleased,
as we
told the
press,
to have
market,
I’m
proud
to
say
that
this
month
our
feature
story is on
a stable real estate market here in Wisconsin.
commercial real estate, particularly in southeastern Wisconsin. I
As we
the corner
quarter of 2007,
youtowill
want
had
theturn
pleasure,
alonginto
withthe
ourlast
communications
staff,
interview
to take aJensen,
look at Mike
Theo’s
article on
page 22ofonthe
theCommercial
Wisconsin
Andrew
recently
installed
chairman
Way Project.of The
WRA ®isofworking
with
other
organizations
Wisconsin.
Take
a peek
at what he
Association
REALTORS
on property
tax issues,
and theremarket
are some
progressive
has
to say about
the commercial
in Wisconsin
andand
the
innovative
suggestions
on educating
the public
aboutofthe
goals
and purpose
of the association.
My guess
is that many
you
challenges
elected
face withwhich
these works
issues.hand
I’m inproud
are
not familiar
with officials
this organization,
hand
with
the WRA
on legislative
that we’re
at the
forefront ofinitiatives,
this effort.legal issues and more. The
association has around 500 members.
Speaking of politics, Joe Murray wrote a piece about the likely
In
the education
I want Steve
to encourage
brokers
to attend
the
rematch
betweenarena,
incumbent
Kagen and
former
Speaker
New
Broker
Training
Program
recently
developed
for
the
WRA.
The
John Gard in the 8th Congressional District. If you thought the
course
is the
result
of many
focusthe
groups
conducted
year
2006 race
was
tough,
wait until
2008 we
campaign
getslast
under
where
more
of
this
type
of
training
was
requested.
This
nuts
and
way. If you live and vote in the 8th Congressional District, you
bolts
course
provides
valuable
guidance
for
the
broker
opening
should take a moment and read this story.
his or her own office or taking over management of a company.
note the
Tomfundamentals
Larson’s article
abouta broker
recent and
Supreme
Court
ItAnd
covers
of being
is useful
for
cases
that
affect
real
estate,
including
economic
development
a broker managing an office of one or 100! You can register at
corporations being subject to open meetings/records laws,
www.wra.org/newbrokertraining.
applying open records law to property assessment records,
the application of the economic loss doctrine to residential real
estate, and a case about the ripeness of declaratory judgment
actions. These issues are so important to real estate – which is
part of the reason the WRA Board of Directors voted affirmatively
to continue to include $15 of member dues in support of the Legal
Action Fund. The Legal Action Fund Program is one of the most
important programs the association has today for members. You
can find more information on the Legal Action Fund by visiting
www.wra.org/legal/legal_action/legal_action_fund.asp.
2
And on a final, personal note, there are several items I’d like to
Speaking of education, I also want to encourage you again to take
call your attention to:
a serious look at attending Winter Convention and/or Designation
These are
two Convention
premier programs
WRA, and
which
•Week.
The WRA’s
Annual
is rightoffered
aroundby
thethecorner,
give
attendees
the
chance
to
take
courses
toward
designations,
there’s still time to register. It’s a great opportunity for us to
network
with
other
professionals,
andWRA
most
importantly
relax,
welcome
Mike
Spranger,
2007-2008
Chairman,
and the
reenergize
and
reinvigorate
their
business.
Visit
www.wra.org/
rest of the 2008 leadership team and to say thank-you to
winterconv08
for more
on Winter
Convention, and
Roger Rushman
and theinformation
2007 leadership
group.
www.wra.org/designationweek to get information on Designation
•Week
Speaking
2008. of Roger, I’d like to express my sincere thanks to
him on behalf of the WRA staff and membership. Roger has
On the legislative front, find out from Mike Theo what items were
personally led us through many challenges, and we’re all
included in the new state budget (or not) that affect Wisconsin
indebted to him for a great year.
homeowners, property owners and real estate professionals. Then
Murray’s
outlining the
upcoming
•read
ANDJoe
LASTLY
… article
congratulations
to one
of our2008
WRA political
staff
races
and
candidates.
members on 30 years of service. Kitty Kuhl, senior vice
president of business services, celebrates 30 years with the
And finally, our Technology Corner this month couldn’t be more
WRA this month. I wish to personally thank her for creating
appropriate for this time of year. We spotlight eight technology
the foremost and premier real estate education program
products under $100 that you may consider giving to someone else
in the country. You can send your note of thanks to Kitty at
or hope to find under your tree.
kitty@wra.org.
On behalf of my wife Kathy and I, as well as the WRA leadership
and staff, I wish you a joyous holiday season.
See you at convention!
PS: Go Packers!
Bill
Bill Malkasian
Wisconsin Real Estate Magazine, D
2007
Oecember
ctober 2007
news.wra.org
Wisconsin Real Estate Magazine™ is published by the
WISCONSIN REALTORS® ASSOCIATION.
Trademark issued pursuant to Wisconsin state statute; federal trademark is pending.
Mike Spranger, ABR, CRS, GRI, Chairman
sprangerm@firstweber.com
Mike Mulleady, GRI, Chairman-Elect
mikemulleady@northwoodsrealty.com
John Flor, ABR, CRS, e-PRO, GRI, RRS, Treasurer
johnflor@sixlakesrealty.com
William E. Malkasian, cae, President
wem@wra.org
n o t e s
f r o m
t h e
w r a
Nominating Committee
Seeks Candidates
Are you interested in serving in a leadership
role for your state association? The WRA
Nominating Committee is seeking candidates
for the positions of 2008-09 Chairman-elect and
Treasurer. Applications are available from the
WRA Web site or by contacting Sandy Bolgrihn
at sandyb@wra.org. The deadline for submitting
an application is December 28, 2007.
Editorial Staff:
William E. Malkasian
Publisher
Robert Uhrina
Managing Editor
Terry O’Connor
Publication Editor
Nicole Breithaupt
Senior Designer
Wisconsin Real Estate Magazine, USPS 597-850, ISSN 15480526, is published monthly by the WISCONSIN REALTORS® ASSOCIATION,
4801 Forest Run Road, Ste. 201, Madison, WI 53704. Periodical postage
paid in Madison, WI and additional mailing offices. An annual subscription
rate of $5 is included in membership dues and a copy is mailed to every
paid REALTOR® and affiliate member of the association. Nonmember
subscription rate: $60. POSTMASTER: please send address changes to the
WISCONSIN REALTORS® ASSOCIATION, 4801 Forest Run Rd., Ste. 201,
Madison WI 53704-7337.
Permission to reprint or quote any material from this issue is hereby granted, provided the Wisconsin Real Estate Magazine is given proper
credit in all articles or commentaries, and the WISCONSIN REALTORS®
ASSOCIATION is provided with a copy of any reprint.
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.
In addition, the Nominating Committee is
seeking applications for the positions of 2008-09
WRA Executive Committee Vice President, NAR
Director and WRA Board of Director Regional
Representative. The number of openings for
Regional Representative is determined by
the membership as of February 28, 2008. The
application deadline for these positions is March
15, 2008.
Region
One
Two
Three
Four
Five
Six
Seven
Number of Openings
(preliminary count)
2
3
3
1
0
1
1
WRA Holiday Hours
The WRA wishes you and your family the happiest of holidays during the month of
December. Holiday hours for the WRA are as follows:
2007-2008 Holiday Hours
Monday, December 24: Closed
Tuesday, December 25: Closed
Monday, December 31: Closed
Tuesday, January 1: Closed
Visit WRA’s online calendar at www.wra.org/wracalendar
Contact Us:
4801 Forest Run Rd., Suite 201
Madison, WI, 53704-7337
(608) 241-2047 • (800) 279-1972
legal hotline: (608) 242-2296
•
(800) 799-4468
WRA General Membership Meeting
Details for the WRA’s General Membership Meeting in January are below. If you are a
member of the WRA, we invite you to join us.
e-mail: editor@wra.org
When: Friday, January 25, 2008 at 9:45 a.m.
Where:
WRA Headquarters - (Education Center)
4801 Forest Run Road, Suite 201, Madison, Wisconsin
Agenda:
I. Call to Order – Michael Spranger, ABR, CRS, GRI - Chairman of the Board
II. Association Issues
III.Adjournment
Web site: www.wra.org
For more information, call Sandy Bolgrihn at 608.241.2047
general fax: (608) 241-2901
products/education fax: (608) 241-5168
legal hotline fax: (608) 242-2279
president fax: (608) 242-2267
3
Wisconsin Real Estate Magazine, December 2007
3
Chairman’s Corner
C
News
Mike
Spranger
Hello Everyone!
What a great start to the year! A wellattended state convention, an improving
interest rate environment and the HUGE
victory in retaining the current transfer tax
rate.
In visiting with brokers around the state,
I have found great optimism for the
Wisconsin real estate market as we head
into 2008.
Wisconsin REALTORS® were well represented at the national convention, and
even though what “happens in Vegas”
typically stays there, I spoke with numerous people that were anxious to return
home and implement the new ideas and
ABR
technologies they had discovered. What a
great venue for convention!
After a well-orchestrated campaign in
opposition to the Transfer Tax increase,
CRS
we can all be proud of our efforts and
thankful that legislators saw the wisdom
in retaining the current rate. REALTORS®
across the state were there to “make
a difference.” Whether you participated
GRI
through your contributions to the Wisconsin
Homeowners Alliance or RPAC/Direct
Giver, phone calls to your legislators, the
print media campaign or all of the above,
Chairman
4
your participation was a critical part of
this success. This participation, coupled
As you read this, the Wisconsin Way
project will be entering its second phase.
The participation at the public hearings
has been fantastic, and many good ideas
were brought forward. The public hearing
process is nearing completion, and we
will now look at the common elements that
were drawn from around the state – both
the concerns for which the public offered
solutions, and those for which they had
none. Policy experts will now be engaged
to make recommendations based on the
public input and offer solutions that will
be the foundation for the debate in 2008.
We MUST ease the property tax burden,
but maintaining our great schools and
public services is also critical. Thanks
to those of you who participated in the
public hearings. If you have not yet gotten involved, you can learn more at
www.wisconsinway.org.
The Wisconsin REALTORS® Association’s
Management Conference in Pewaukee
(on December 12-13) looks to be another
great educational event. Day one will offer
continuing education course 4B. This is
great timing with the optional-use date of
January 1 for the revised Listing and Buyer
Agency/Tenant representation agreement.
Day two will present a fabulous lineup of
speakers and topics for managers who
want to survive and thrive in today’s marketplace. Please join me there!
with the tireless and innovative efforts of
our staff, delivered a great service to all
Make a difference,
property owners in Wisconsin.
Mike Spranger
December 2007
R E A L T O R®
NEWSWIRE
News
Top News Stories in and Around the Industry
City Leaders: New Housing
Development Could Mean Rural
Growth
WEAU-TV (Eau Claire, WI) Heinz, Katie
Real estate is seeing a resurgence in several of
Wisconsin’s rural areas. For the most part, towns
and town leaders are embracing the growth.
Independence City Council member Max Baertlein
states, “To grow, we need to keep increasing the
tax base, [we] need people in town and jobs. We
don’t have a lot of employment in the city itself but
we live in an area with considerable employment.”
Multifamily development is particularly attractive,
with developer Doug Ferguson planning a project
on the edge of town that could ultimately provide
housing for up to 400 people. Meanwhile, USDA
Rural Development State Director Frank Frassetto
cites quality of life as the primary reason for the
resurgence now being seen in rural Wisconsin.
$1.9 Million Grant to Help Get the
Lead Out
Sheboygan Press (Wis.) Litke, Eric
Sheboygan, one of Wisconsin’s highest-risk markets
for lead poisoning, is getting a $1.9 million HUD
grant to identify and clean up 120 homes with leadbased paint hazards. The grant will help combat a
lead poisoning problem inherent to Sheboygan’s
historic houses--83 percent of which were built
before 1950 when lead-based paint was in common
use. In 2006, 3.9 percent of the 1,700 children
tested for lead poisoning in Sheboygan County had
dangerously high levels in their blood. That is three
times the national average and second-highest in the
state behind Milwaukee County, reports public health
nurse Jeri Dreikosen. The HUD grant will be combined
with almost $350,000 in matching funds--$170,000
from Sheboygan County, $125,000 from the city of
Sheboygan and $51,000 from the state--to purge
the various houses of lead paint.
Brown County Holds Own as
Foreclosures Surge
Green Bay Press-Gazette (WI) McBride, Kelly
A Green Bay Press-Gazette analysis of recent
Sheriff’s Department data reveals that there were
277 foreclosures in Brown County, Wis., during the
first nine months of 2007--an increase of 15.4 percent
from the 240 tallied during the same period a year
earlier. Despite the gain, the region has escaped the
skyrocketing default rates that are hitting other areas
of the state and country so hard. That is due to two
factors: a mitigated subprime market impact and
relative fiscal conservatism. Wisconsin Mortgage
Bankers Association President Ron Steinhofer reports
that the number of foreclosures statewide is up slightly
from about a year ago. For instance, Madison and
Milwaukee have projected rates for 2006 subprime
loans at close to 20 percent, compared to 12.7
and 13.5 percent, respectively, for 1998-2001
subprime loans. Property professionals further
note that Northeastern Wisconsin did not delve as
heavily into the subprime arena as other markets
did. Kevin Quinn, associate professor of economics
at St. Norbert College, comments, “I think there’s
a natural conservatism here. The other thing is that
the people here that form the bulk of the lower end
of the income scale . . . I don’t think they were in a
position to buy a house, subprime or not.”
Soft Housing Market Impacts Pabst
Farms
Milwaukee Business Journal (WI) Millard, Pete
Southeast Wisconsin’s soft housing market kept
developers from breaking ground on several
hundred single-family homes and condominiums
at the 1,500-acre Pabst Farms project for more
than two years. Now, Pabst Farms Development
Inc. has construction back on schedule, with plans
to open additional residential neighborhoods at
the sprawling site in the hopes of attracting more
retail development. It is hoped that a national
retail developer will step forward to re-launch
the regional shopping mall project that General
Growth Properties abandoned in early October.
Pabst Farms is set to start construction on Village
Crossing, a 144-unit condo development, later
this fall after the Oconomowoc Common Council
gave the green light to the project in mid-October.
Once completed, it will be located just west of the
170-home Eastlake Village subdivision that is now
90 percent sold. Village Crossing has a waiting list
for its condos, which are priced between $270,000
and $470,000.
What’s a New Real Estate Agent to
Do?
Realty Times, Roberts, Ralph
Ralph Roberts, author of “Walk Like a Giant, Sell Like
a Madman,” says there are several approaches new
real estate agents can take to enter the business and
achieve success. They should first determine where
they want to live and work for the next three decades
and become an expert in that area’s neighborhoods,
schools and amenities. Once they have a target city
in mind, they should use an Internet search engine
to determine who are the biggest players in the local
real estate market, learning as much as possible
about the top producer and his or her agent team
and applying for a job. After securing a position,
Roberts urges fledgling agents to aggressively
market themselves, adopt the latest technology
tools and attend conferences and other events
offering educational and networking opportunities.
Finally, he stresses the importance of being able to
adapt in order to maintain a competitive edge and
serving customers without thinking about return on
investment.
City Warns Homeowners of
Mortgage Rescue Scams
Milwaukee Journal Sentinel, Derus, Michele
The city of Milwaukee recently announced that it
is issuing an advisory to approximately 167,000
households to watch out for anyone promising
easy fixes to mortgage problems. Milwaukee has
become one of the primary areas of focus for
Wisconsin’s growing foreclosure problem, with the
city accounting for the lion’s share of the more than
4,000 Milwaukee County foreclosure cases filed
in the first three quarters of 2007. Marty Collins,
Milwaukee’s commissioner of neighborhood
services, states, “Foreclosures have four impacts:
on the building itself, the neighborhood it’s in, the
tenants who live there and the city itself for the extra
services required.” Those additional services involve
keeping a vacant house from being stripped for
materials; used for criminal activities; vandalized;
and, in the worst cases, razed. Mike Ruzicka,
president of the Greater Milwaukee Association of
REALTORS®, adds that slower housing appreciation
and a clog in the home-sales pipeline has resulted in
a “trickle up effect.” Due to new lender restrictions,
he explains, “The $150,000 house can’t move, so
that owner can’t buy the $200,000 house, so that
owner can’t move to the $300,000 house--all the
way up to $500,000 or $600,000.”
Lincoln Lutheran Assisting With Home
Ownership
Milwaukee Business Journal (WI) Batog, Jennifer
A Wisconsin Housing and Economic Development
Authority (WHEDA) employer-assisted housing
program has secured its first southeastern Wisconsin
participant, Lincoln Lutheran. The Racine-based
company is a provider of housing and other services
to the elderly. Through the WHEDA initiative, it
provides a couple of $5,000 grants per year
toward employees’ home down payments. It began
accepting applications in mid-October. In addition
to qualifying for a loan from WHEDA, the employee
must either be a first-time home buyer or not owned
a residence for at least the last three years. As of
press time, nine individuals have applied for the
grants, and one has been awarded.
REALTOR® Newswire is a monthly news service prepared exclusively for the Wisconsin REALTORS® Association by Information, Inc.
Reproduction, use, or inclusion of this material in other publications, products, services or Web sites is not allowed without prior
written permission from the Wisconsin REALTORS® Association.
5
Commercial
Association of REALTORS®
6
news.wra.org
Andrew Jensen is the recently elected
chairman of the Commercial Association of
REALTORS® of Wisconsin. CAR members
include commercial REALTORS® and those
affiliated with the industry. The association’s
mission is to advance the interests of
commercial REALTORS® for the benefit of their
industry and their personal success, with a
Andrew Jensen
vision of being “the unified, respected,
recognized, effective voice of commercial real estate brokerage in
Wisconsin.”
WRA Chairman Bill Malkasian recently talked with Andrew about
the Commercial Association and the market in Wisconsin.
Q: What do you see as the status of the commercial real estate
industry in Wisconsin right now?
A: Overall we’re seeing a strong and stable business-driven market,
influenced by job growth, which has been on a steady increase.
Other areas that continue to be strong are capital markets and
institutions that buy commercial real estate as investments.
Q: What are some of the challenges Wisconsin faces versus other
states in the Midwest competing for new businesses?
A: Taxes and health care costs tend to be higher than those in other
states and deter businesses looking to move into Wisconsin. For
example, the recent joint venture between Miller and Coors has
produced publicity regarding the entity’s new home. Should it be
Denver or Milwaukee? Health care costs and taxes are two key
factors impacting their decision, which are both higher in
Wisconsin.
We are also seeing a lack of progressive thinking from business
owners, as well as government leaders, in that they tend to focus
more on the negatives instead of the assets in Wisconsin, such as
our high quality of life, centralized locations for distribution, a
wonderful workforce, and our natural resources.
Feature story ... continued on page 8
Q: What are the types of industries coming into the state that are
creating the jobs?
A: The job market is fairly stable right now. Most of the business is
originating from commercial brokers that are working with
businesses to move from one location to another due to changing
space requirements. Job growth also creates opportunities for
brokers to help businesses expand their current locations as we
have seen with M&I Bank, Northwestern Mutual Life and Epic
Systems.
The majority of the transactions for commercial brokers are
generated by clients requiring space changes to their current
configuration. Typically, it’s where we see clients moving from
private offices to an open “cubicle” format. Offices, and to a
certain extent industrial businesses, are challenging their operations
to become more efficient in today’s competitive economic
environment, and are reviewing overhead on a per employee basis
thus causing shifts in commercial needs.
Q: You said the commercial real estate market could be
characterized as “stable” in 2007. Do you have a prediction for how
it will look in 2008?
A: In 2008, we do not anticipate growth as we have seen in the
previous two years, largely due to vacancies increasing slightly,
which will likely deter new construction in the commercial area.
That being said, we shouldn’t see a huge decline either.
We may also see a slight decline in the capital markets in 2008.
They are becoming increasingly tighter, as we’ve seen in the stock
market recently. When this happens, institutional investors typically
do not look at second- and third-tier cities, such as Milwaukee and
Madison.
7
Feature story ... continued from page 7
Another area that could use some improvement is the use of Tax
Increment Financing (TIF) to further attract new businesses. The use
of this incentive has increased slightly, but we could definitely use it
more in our market.
Since Jim Villa is able to spend 100 percent of his focus and time
on CAR, we are going to overhaul our Web site, create better
educational opportunities, and stress communication amongst our
membership.
Q: You’ve been in the business for a while. How has the market
changed? What is it like being in the commercial real estate business
today versus five or 10 years ago?
Q: What are the top services you provide your members?
A: A key area of change for brokers is the representation of
landlords and tenants. Both groups are demanding more
sophistication in the areas of economic analysis, speed of the
transaction, efficient communication, and knowledge of data and
the market in general.
The usage of commercial real estate brokers has also dramatically
increased. In 95 percent of commercial real estate transactions
today we are seeing broker representation on both sides – whether
it’s the buyer and seller or the tenant and landlord.
Q: Tell us about the Commercial Association of REALTORS®.
A: CAR is a statewide organization of commercial real estate
brokers. We recently hired a new president, Jim Villa. We currently
have 500 members who are commercial real estate brokers, as well
as affiliate members. CAR offers affiliate membership to individuals
who are in the commercial real estate industry, such as contractors,
banks, furniture vendors, engineers, title companies, real estate
service providers, etc. In the past, CAR has been in the association
management business. We will no longer be in that business, but
rather focus on the business of serving our members.
8
A: First, we position ourselves to be the voice of commercial real
estate and tackle real estate issues that will benefit our members.
CAR offers publications and education and also facilitates
communication between members throughout the state, a platform
that we are hoping to use to grow our membership in the coming
year. We also work with the Wisconsin REALTORS® Association so
members can enjoy mutual benefits of networking, resources, and
legislative initiatives that are good for the real estate industry as a
whole.
Andrew Jensen has over 20 years of experience in commercial real
estate, and has been the managing principal for 13 years at The
Boerke Company. Since 2003, he has sold and leased
approximately 1.5 million square feet of office, industrial and
investment space. Jensen was recently elected as Chairman of
Wisconsin's Commercial Association of REALTORS® and is an
active member of the state's chapter of Society of Industrial and
Office REALTORS®. In 2006 Jensen was a key player in securing
the Alliance with Cushman & Wakefield, one of the largest real
estate companies in the world with 215 offices in 56 countries. This
has enabled The Boerke Company to proudly represent the entire
state of Wisconsin's commercial real estate market.
news.wra.org
Wisconsin Home Sales
Outperform Other States
By Dr. David Clark, Economist
S
oftening sales but steady home values
in the third quarter made Wisconsin’s
housing market stronger than many other
states, according to figures released by the
Wisconsin REALTORS® Association (WRA).
The sale of existing homes in the third quarter
fell 9.8 percent compared to the same quarter
last year, but median prices actually rose 2.4
percent according to the REALTORS® report.
“While home sales in Wisconsin have certainly
slowed when compared to the record levels of
2005, our local markets are far less volatile than
housing markets elsewhere in the country,” said
WRA Chairman Michael Spranger. “While our
markets don’t rise as quickly during periods
of rapid economic expansion, the good news is
they don’t fall as far when the market contracts
either,” he noted. “We’re not in the same kind of
trouble you read about in other markets around
the country. The fundamental elements of a stable
real estate market remain strong in Wisconsin.”
Key points about third quarter housing sales in
Wisconsin:
• Home sales in Wisconsin outperformed the
nation, which dropped 13.7 percent in the
third quarter, and the Midwest region, which
fell 10.8 percent over the period.
• Wisconsin’s experience was similar to some
Midwestern states (Iowa was down 9.3
percent and Indiana was off its Q3 2006 pace
by 9.4 percent) and better than others (Ohio
was down 11.6 percent, Illinois fell 17.6
percent, and Minnesota dropped 20.2 percent
over the period). Only Michigan, which is
coming off a huge slide in sales volume since
2001, fell at a slower pace this quarter (-4
percent).
• Declines in other parts of the country were
much higher, with existing home sales
volume sliding 21.5 percent in the West and
sales down 14.3 percent in the South over the
period.
• Among the worst performing states in terms
of existing home sales in the third quarter
were Nevada (-35.3 percent), Florida (-32
percent), Arizona (-30.9 percent), Maryland
(-28.6 percent) and California (-27.8 percent).
Unlike other regions of the country, Wisconsin’s
median home prices actually rose by a modest
margin (+2.4 percent) over the Q3 2006 to Q3
QUARTERLY ACTIVITY
Q3 2007
2007 period. “This should dispel any notion
that Wisconsin is in the midst of a real estate
bubble,” said WRA President William Malkasian.
“While this is a great time for buyers to get into
the housing market as interest rates remain low
and inventories are healthy, housing remains an
excellent way to maintain and grow household
wealth,” said Malkasian.
Key points about third quarter median prices in
Wisconsin:
• Since sales peaked in 2005, statewide median
prices have continued to rise, increasing 7.5
percent since the first quarter of 2006.
• All regions, with the exception of the Western
region of the state, experienced slight to
modest median price appreciation in Q3 2007
as compared to Q3 2006. The reduction in
the median price in the West was primarily
due to weakness in the Wisconsin suburban
counties around Minneapolis.
• The majority of counties experienced
moderate increases in their median sales
price in the third quarter. Those counties that
reported substantial changes in median prices
(either up or down) most likely experienced
a change in the mix of homes that sold in Q3
2007 as compared to Q3 2006.
• Mortgage rates remain low and stable with
30-year fixed rate mortgages at 6.38 percent
in September. Recent Federal Reserve
actions should keep interest rates low for the
foreseeable future, and mortgage rates are a
key determinant of home sales.
Much of the current market concerns focus
on lending and credit issues according to the
REALTORS®. “Lax underwriting standards that
existed in the subprime mortgage market have
largely been corrected, but not before they created
serious problems in financial markets and in a
number of housing markets, especially in the
Western and Southern regions of the country,”
said Malkasian. “While quick action by the Federal
Reserve has helped to mitigate the immediate
crisis, this problem will continue to impact some
regional housing markets. However, it is important
to emphasize that the Wisconsin housing market
is far less impacted by the subprime mess than
places like California, Nevada, Arizona, and
Florida as indicated by foreclosure figures,” said
Malkasian. “Wisconsin has a smaller fraction of its
Southeast
South Central
West
Northeast
North mortgage loans that are subprime than is the case
elsewhere, and our foreclosure rate is only about
one third the rate of the nation, and far lower than
the rate of these problem states,” he noted.
Key points about subprime mortgage issues in
Wisconsin:
• According to the Chicago Federal Reserve
Bank, Wisconsin’s share of the mortgages that
are subprime was below the national average
at the end of 2006.
• According to RealtyTrac, a leading national
firm that maintains the most comprehensive
database tracking foreclosures, the rate of
foreclosure eased slightly nationwide in
September relative to August of this year, but
still remains far above the levels of last year.
• Nationally, there was one foreclosure
for every 566 households in the U.S. in
September, and in contrast, there was one
foreclosure for every 1,669 households in
Wisconsin for that same month.
• According to RealtyTrac’s September 2007
analysis, the states with the most serious
problems with foreclosures include:
o
o
o
o
o
o
Nevada (one for every 185 households)
Florida (one for every 248 households)
California (one for every 253 households)
Michigan (one for every 314 households)
Arizona (one for every 316 households)
Georgia (one for every 458 households)
While sellers would always prefer stronger
markets, a softer market represents an excellent
opportunity for buyers according to the
REALTORS®. “Many communities are seeing
increasing inventories, which, when combined
with the current low interest rate environment,
affords many credit-worthy first-time buyers
the opportunity to get into homes that would
otherwise be out of reach,” said Spranger. He
also noted that more substantial upward price
pressure will result when the existing home
market rebounds. “In fact, even after the recent
softening in the housing market, it is important
to point out that median prices have grown 32.2
percent since emerging from the last recession in
late 2001, making housing a solid investment for
households,” he said.
Median Price
$188,900 $182,200 3.7%
$186,000 $180,000 3.3%
$153,300 $160,000 -4.2%
$138,300 $133,300 3.8%
$131,400 $131,100 0.2%
Existing Home Sales
6357 7506 -15.3%
3547 3748 -5.4%
1402 1548 -9.4%
2909 3287 -11.5%
1592 1696 -6.1%
9
Best of the
Legal
Legal Hotline
Commercial Transactions
The following questions concerning commercial transactions
were recently asked of the Legal Hotline.
Confidentiality Agreements
By Tracy Rucka
The agent is preparing to list a “business opportunity
without real estate.” The agent has seen statements like
the following for other business listings. “Buyers must
be pre-approved and agree to sign a confidentiality
waiver prior to receiving P&L’s, etc.” Where is there
access to such a confidentially waiver?
Compensation Agreement
What information should be contained in an offer of
compensation?
There is no pre-prepared or standard confidentiality
agreement for use by real estate licensees. The drafting
of such an agreement would be the practice of law
and should be accomplished by counsel representing
the seller in the transaction. Because each business
and related transaction is unique, the seller may ask
private legal counsel to draft an agreement that meets
the privacy needs of the seller given his or her specific
situation. Likewise, it would be inappropriate for an
agent to copy a confidentiality agreement from another
transaction.
The basic elements of a compensation agreement
would answer the following questions: How much is
the compensation, who are the parties to the agreement,
what is the standard of performance that must be met
to earn the compensation, and when will payment be
made? A conversation can create a contract, but written
documentation is always best. For more information
about non-MLS compensation agreements, see Legal
Update 01.02, “Getting Paid Outside the MLS,” at
www.wra.org/LU0201.
Offers of Compensation
Weatherization
A cooperating agent worked a deal on a listed property.
The cooperating agent had a conversation with the
listing broker who said he would “work with the agent.”
Is there commission due the cooperating agent?
In an MLS transaction, entitlement to compensation is
determined by the cooperating broker’s performance
as procuring cause of the sale or lease. Procuring cause
is the standard of performance to earn a commission
in an MLS transaction. However, in many commercial
transactions, the brokers or the properties are not
in the MLS. Therefore it must be determined if the
listing broker offered compensation to the cooperating
broker.
The listing broker’s statement agreeing to work with
the cooperating agent may only reflect an offer of
cooperation and does not automatically include an offer
of compensation. The listing broker has no statutory
obligation to pay commission to a cooperating agent.
An offer of compensation may be made verbally or in
10
writing. A conversation about commission may create
a contract to pay; however, if the agreement is not
documented in writing, the cooperating broker will
have to prove the existence of the agreement if the
listing broker refuses to pay. In addition, the amount
of compensation or the standard of performance may
be an issue if the agreement is not reduced to writing.
The building being rented to a business includes one
apartment. Is rental weatherization required?
The application of rental weatherization to a mixeduse commercial building is determined based upon the
proportion of floor area occupied by rental residential
premises. If less than 50 percent of the total floor area of
the building is occupied by residential units, then just the
residential units (and not the whole building) must be
brought into compliance with the rental weatherization
code. More information on the rental weatherization
program is available online at commerce.wi.gov/SB/
SB-RentalWeatherizationProgram.html.
Broker Lien Law
What are a commercial broker’s rights to file a lien for
commission?
The good news is brokers engaged in commercial
transactions are able to use the statutory broker lien
law to protect their interests in commissions. The bad
news.wra.org
Legal
In an MLS transaction, entitlement to
compensation is determined by the
cooperating broker’s performance as
procuring cause of the sale or lease.
news is the requirements to perfect the broker lien are somewhat
involved. Also, there are different timelines for giving notices and
recording and delivering documentation to perfect commission
liens, depending on whether the commercial transaction involves
sales, a buyer agency, a lease listing or a property management
situation. Forms are available in Wisconsin REALTORS®
Association ZipForms, including a Notice of Intent to Claim
Broker Lien, the Notice of Broker Lien Satisfaction of Lien and
a Waiver of Broker Lien Rights. Extended examples of “how
to” use the lien in commercial law are available in Legal Update
98.09, “Using the Commercial Lien & Lease Listing Forms,” at
www.wra.org/LU9809.
Commercial Real Estate Condition Report
Is a Real Estate Condition Report necessary in commercial
transactions?
Wis. Admin. Code § RL 24.07(1)(b) requires listing brokers to
inspect the property before listing, make inquires of the seller
about the condition of the property, and ask the seller to provide
a written response to the licensee’s inquiry. The broker is to ask
about the condition of the structure, mechanical systems and other
relevant aspects of the property. The WRA’s Real Estate Condition
Report (RECR) C form has been designed to assist commercial
brokers to meet the Administrative Code requirements. If the
seller refuses to complete a report, the broker may ask the seller to
document the refusal on a copy of the report to show the broker’s
compliance with § RL 24.07(1)(b). If a seller refuses to complete
an RECR, the seller will still have to make property condition
representations in the offer to purchase.
Wis. Admin. Code § RL 24.07 also requires licensees to disclose
material adverse fact if a seller’s RECR is inaccurate or incomplete.
A sample material adverse fact disclosure letter is available in
the April 2007 Broker Supervision Newsletter at www.wra.org/
BSNApr07.
Securities Transactions
An agent sold a restaurant/bar and a WB-16 Business Offer to
Purchase was executed. Now the parties have changed their minds
and the ownership interests in the LLC that owns the real estate and
business will be transferred instead. The broker is getting paid for
the real estate sale, but what about the LLC interests that are being
assigned to the buyer? Can the broker participate in this?
right to buy and sell businesses but does not necessarily entitle the
licensee to negotiate a transaction where the transfer will be the
assignment of LLC ownership interests under Wis. Stat. § 183.0704.
Such transactions may come within the scope of the securities
laws if LLC management is vested in one or more managers,
and a separate securities broker-dealer license may be necessary.
However, Wis. Stat. § 551.02(3)(f) provides that a broker-dealer
license is not required of a real estate broker whose transactions
in securities are isolated transactions incidental to his or her real
estate business.
The licensee should not become involved in the business sale if
he or she is not experienced and competent to do so unless the
licensee engages the assistance of someone who is experienced
and competent. Any person engaged to provide such assistance
must be identified along with his or her contribution. (Wis. Adm.
Code § RL 24.03.) In any event, the licensee should also work with
the seller’s attorney and the buyer’s attorney who will document
the assignment of the LLC interest and LLC membership for the
new owner along with other aspects of the sale of the business.
Environmental Assessment Reports
What is a Phase I Environmental Assessment?
A Phase I Environmental Assessment is an assessment of a
site to identify all potential or known areas of environmental
contamination. This assessment may include, but is not limited
to, reviewing records, interviewing persons and conducting
inspections of the site. See Pages 2-4 of Legal Update 95.10 for
further discussion of Phase I Environmental Assessments.
What is a Phase II Environmental Assessment?
A Phase II Environmental Assessment is an assessment conducted
to physically confirm the presence or absence of environmental
contamination in all potential or known areas identified in the
Phase I Assessment. The Phase II Assessment does not determine
the nature and extent of contamination. This assessment may
include, but is not limited to, field sampling of media, laboratory
analysis of samples and visual confirmation of environmental
contamination of the site.
Tracy Rucka is a Staff Attorney for the WRA.
A license to act as a real estate broker or salesperson includes the
11
Legal
Bulk Transfers Law
By Debbi Conrad
T
he bulk transfers law in chapter 406 of the Wisconsin Statutes
protects a buyer who purchases the assets of an existing
business from becoming liable to the seller’s creditors for
the seller’s debts. If the requirements of the bulk transfers law are
not satisfied, the buyer’s title to the inventory (and equipment)
may be subject to the claims of the seller’s creditors, and the buyer
may have to pay those debts in order to preserve the inventory
(and equipment).
The bulk transfers law applies when sellers sell a major part of
their inventory (stock-in-trade), or their inventory and equipment.
“Inventory” is defined to include goods which are held to be
sold, leased or furnished under service contracts, as well as raw
materials, work in process, and materials used or consumed in a
business. “Equipment” is defined as goods (other than inventory),
farm products or consumer goods that are used in a business (e.g.,
tables, linens, dishes, etc., in a restaurant business).
The steps for complying with the bulk transfers law are:
1.
The buyer asks the seller for a signed and sworn list of the
seller’s existing creditors, including their names, addresses
and amounts owed, if known; the names of all persons with
disputed claims against seller; and the name and address
of the clerk of the municipality where the property was last
assessed.
2.
The parties prepare a detailed list of the inventory (and
equipment) that will be transferred to the buyer.
3.
At least 10 days before the buyer takes possession of the
inventory (and equipment), the buyer gives written notice to
each creditor on the seller’s list. The notice indicates that a
bulk transfer is about to be made; the names and addresses
of the seller and the buyer; whether the seller’s debts will be
paid in full as they fall due as a result of the transaction; and,
if so, the address to which the creditors should send their bills.
The notice must be delivered personally or sent by certified
or registered mail to all creditors on the seller’s list plus all
persons who are known to the buyer to have claims against
the seller.
4.
The buyer saves the list of creditors and the list of inventory
12
(and equipment) transferred for at least six months after
closing, or files the list and schedule with the Department of
Financial Institutions.
Wis. Stat. § 406.111 gives a creditor six months following a bulk
transfer (or discovery of a concealed transfer) to bring a claim.
The seller agrees in both the WB-16 Business Offer to Purchase
and the WB-17 Business Offer to Purchase Without Real Estate to
comply with the bulk transfers law. The Bulk Sales section in these
offers provides that the delivery of a fully executed copy of the
offer to the seller constitutes the buyer’s demand for the seller’s
list of creditors and for the seller to prepare the list of inventory
(and equipment) being transferred.
As illustrated in the unreported Wisconsin Court of Appeals case,
Dellabella v. Dellabella Motors, Inc. (2006, No. 2005AP001521),
online at www.wisbar.org/res/capp/2006/2005ap001521.htm, a
decision to waive compliance with the bulk transfers statutes is
plainly neither unlawful nor fraudulent.
In the Dellabella case, when the family-owned automobile
dealership was sold, an agreement was made to have the seller,
Dellabella Motors, indemnify the purchaser, Runde Chevrolet, for
creditor claims if Runde Chevrolet waived the requirements of the
bulk transfers statutes. The Court rejected the creditor’s claim that
the sale defrauded her because the statutory bulk transfer process
was not followed.
Nothing in chapter 406 of the Statutes precludes parties from
agreeing to some other arrangement for dealing with existing
creditors, but the bulk transfers statutes provide invaluable
protection absent a negotiated alternative means. Compliance
with the bulk transfers law, and certainly any decisions to pursue
alternative measures to protect the buyer from the seller’s creditors’
claims, should be handled by a competent business attorney.
Debbi Conrad is Director of Legal Affairs
news.wra.org
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Technology
Corner
Top Gadgets For Under $100
By Rick Broida
Y
ou’ve been good this year, so why not
treat yourself to a nifty (and practical)
new gadget or two? Don’t worry if
your holiday budget is tight: These realtorfriendly devices all cost under $100.
Aliph Jawbone
$119.99 (but available for under $100);
www.aliph.com
Form meets function in this stylish Bluetooth
headset, which employs noise-cancellation
technology to block out wind, traffic,
crowds, and the like. The result is that callers
hear only the sound of your voice—which
is just what you want them to hear when
you’re talking up a sweet new property. The
Jawbone has a list price of around $120,
but plenty of online vendors sell it for under
$100. A quick search of PriceGrabber.com
should help you find one.
Arkon SM210 Universal Phone Mount
$29.95; www.arkon.com
More and more cell phones can double as
GPS navigation systems, which is great—
unless it’s sitting in your lap or on the
passenger seat, in which case it’s a danger
to you and other drivers. By mounting your
phone at eye level, you’ll have an easier
time keeping both hands on the wheel and
one eye on the road. Arkon’s Universal
Phone Mount gives you a choice between
dashboard, vent, and windshield mounting,
and it’s compatible with just about every
phone.
BlueQ
Palm Centro
$39.99; www.bqwireless.com
$99 with two-year Sprint contract;
www.palm.com
Tired of missing calls because you can’t
hear your phone ring or feel it vibrate?
The BlueQ is a rubberized wristband that
vibrates when you receive a call. Don’t
worry about wires getting in the way; true to
its name, the BlueQ is a Bluetooth gadget.
You can even decorate it by printing custom
labels on your inkjet.
Callpod ChargePod
$49.99; www.callpod.com
No one likes seeing a snake’s nest of chargers
and cables on their desk. The Chargepod
takes their place. This compact, disc-shaped
charging station accommodates up to six
phones, headsets, and other gadgets. One
device adapter comes with it; you’ll have to
buy the rest separately (for $10 each).
Epson PictureMate Dash
$99.99; www.epson.com
Take this lunchbox-size photo printer
with you to open houses and property
showings and you’ll be able to churn out
4x6 glossies on the spot. The PictureMate
can accommodate all the popular memorycard formats—just pop the card out of your
camera and into the printer—and features
a 3.6-inch color screen for previewing and
selecting photos. Just think how impressed
your clients will be when you hand them a
freshly snapped photo of the fireplace they
just raved about.
In crafting the Centro smartphone, Palm
effectively shrank its popular Treo, then
went on to shrink its price tag as well. For
a mere $99, you get all the capabilities
of a Treo—e-mail, Web, access to Office
documents, and killer PDA features—from a
phone that can actually fit your pocket. Plus,
it taps Sprint’s high-speed 3G data network
to provide broadband Internet access. Even
better, the Centro can pull double duty as a
wireless modem for your notebook. This is
definitely the best smartphone you can buy
for under $100—make that the only one.
Roadmaster RLPF100
$59.99; www.roadmasterusa.com
Turn your car into a rolling business card
with this scrolling digital-message system,
which replaces your existing license-plate
frame. It comes with a remote control and
lets you choose between three playback
speeds.
Spark SwizzleStik
$49.99; swizzlestik.com
Plug the ingenious SwizzleStik into your
phone and it quickly backs up your contacts,
photos, music, or all of the above. Plug it
into your PC to sync with Outlook or offload
your snapshots. Plug it back into your cell to
upload new ringtones. And so on. Basically,
it’s a flash drive for your phone, and a really
handy one at that. Want to use it with more
than one model? Additional interface tips
cost $9.99 a pop.
Tech guru Rick Broida writes for CNET, PC Magazine, and Lifehacker.com. He is the author of over a dozen books, including How to Do
Everything with Your Palm Powered Handheld, 6th Edition.
14
news.wra.org
tip
sales
REALTOR®
Back to Basics
W
Marcus a. Wally
ith the new year fast approaching,
December is an opportune time to
take a fresh look at those things
that are most elemental to our business.
Reminding ourselves what we do best and
what changes we need to make in order to
reach our “new” goals for 2008 will keep us
focused and motivated! “If you always do
what you’ve always done, you’ll always get
what you always got.”
the four highest and best uses of our time
are and concentrate on these activities. The
following are what a day in the life of a real
estate professional should look like:
To be winners, we must constantly and
consistently polish our craft. We must
continually gain new ideas and inspiration
in order to remain competitive. And it goes
without saying that our industry is full of
competition.
3. Negotiating offers into contracts and
closing transactions (a polished skill)
Local, state and national conventions inspire
me with new ideas and renewed energy and,
most importantly, help me get my creative
juices flowing. I always feel “pumped up”
in a crowd of other top-notch professionals
who are willing to share their secrets. After
all, our business is not one in which we
need to “re-invent the wheel,” but rather
one where we put systems into place so that
required daily activities are accomplished
with routine precision and skill.
Like any successful business, we must
have goals and objectives …. a roadmap
to success! Reviewing those goals and
objectives allows us to ensure their relevancy
and attainability. Take a good hard look at
your mission statement. Is it still you? Your
mission statement should reflect where you
currently are in your business and why you
are in business. Then review your vision
statement. Your vision statement should
reflect where you see yourself going in the
future. Share it with friends and have them
read it. It should inspire them and make
them smile!
Knowing your core values – what you
believe and stand for – ensures that your
mission and vision statements are correct.
If my mission and vision statements do
not follow the same philosophy as my core
values, I am doomed.
Keep in the forefront of your mind what
1. Prospecting (the most important aspect
to the real estate business)
2. Showing property and writing offers
(nose-to-nose and toes-to-toes with
buyers and sellers)
4. Following up (working hard to ensure
repeat business and loyalty)
I do realize that there is so much more to
our daily lives than just these four duties,
but what I want you to concentrate on is
what makes the $$. Go ahead and take the
leap of faith – outsource all other duties and
watch your production and income increase.
Remember, the office is a hiding place as the
buyers and sellers are outside waiting to
meet YOU!
Lastly, but most importantly, is our ability
to consistently earn repeat business. It is no
good to go through life with the shotgun
approach – trying to work with everyone
just one time. This way of doing business
leads to great frustration for the real estate
practitioner as well as the customer/client.
The outcome is the development of poor
relationships that lead to a bad reputation
and no repeat business.
A much better approach is to develop a
strong sphere of influence (200-300 people
who value you) whereby each and every
transaction provides the potential for the
satisfied customer/client to refer business to
you. This is the foundation of our industry.
These leads are pre-sold on our abilities and
are much better prospects than the cold calls
we chase.
Real estate professionals should make every
effort to meet their customers/clients needs
the first time around to increase the likelihood
of working with them again down the road.
We must educate our sphere as to how our
industry operates, how we are compensated,
and what their loyalty means to us. For the
most part, the general public does not know
how commission is distributed and how we
ultimately get paid. We must not take this
area for granted or we risk the loss of that
repeat opportunity.
After the transaction closes, REALTORS®
should give customers/clients handwritten
thank you notes or modest gifts to show
appreciation for their business. The power
of personal notes is one of the best tools to
increase business! REALTORS® should also
follow up with past customers/clients to
make sure that the developed relationship
prospers. A few of the best ways to accomplish
this is to routinely mail out cards, send an
item of value, call them or visit in person to
let them know they can call on you later for
their future real estate needs. I try to never
miss a birthday or anniversary of one of my
customers, and my gig is to call and sing to
them. I call my customer’s home answering
machine while he or she is at work and I
leave my happy greeting. This corny call has
a dramatic impact and my customers never
forget me. That is my ultimate goal.
Additionally, we can always drum up
business by calling the past customers/
clients of associates who have long since left
the company. However, we must not take it
personally when the previous buyer or seller
chooses a different person to represent him
or her. We must respect those choices. Listen
to their reasons for not choosing you and
take note of things you can strive to improve.
We can also use those opportunities to
evaluate and upgrade our services if another
professional is offering something we are
not.
2008 will be here in the coming weeks. Take
some quiet time for yourself. Set your goals
high and then do what is required to meet
those goals. I know you will succeed!
To accomplish great things, we must dream
as well as act.
Marcus A. Wally, MBA, GRI, CIPS, AHWD, RSPS, TRC, is an active Florida REALTOR® in St. Augustine, Florida – “OUR NATION’S OLDEST CITY.” Marcus is the founder and broker of NEW WORLD REALTY, which manages coaching and facilitation of education classes
around the world. He has an MBA from the University of North Florida in Jacksonville. Marcus entered the real estate profession in 1991. He is a NAR faculty member for the Certified International Property Specialist (CIPS) program, and is a member of the AT HOME
WITH DIVERSITY faculty. Marcus can be reached at 904-669-1081 or by e-mail at mwally@cbwwcorp.com.
15
Education
2008 Winter Convention
January 21-23
Lake of the Torches Resort Casino & Convention Center
Lac du Flambeau, WI
Appraiser Education Requirements to Change
Effective January 1, 2008, appraisers considering upgrades to their
credentials and those considering a first application will be subject to
significant education requirements changes.
The DRL is providing the opportunity for “segmented implementation,”
meaning that those who complete their entire education requirement
for their desired level before January 1, 2008, will be credited under the
pre-2008 requirements. Those who do not complete their entire education requirement for their desired level before January 1, 2008, will need
to meet all the new education requirements. To see the new requirements, visit www.wra.org/appraisalpl.
If you complete the 90 hours of education below by December 31,
2007 to get your appraiser credentials you will fall under the pre-2008
requirements.
The WRA is collaborating with Computaught Cengage
Learning to offer quality online pre-qualifying appraisal courses. Additional courses will be added as
necessary to meet education requirements.
Appraisal Pre-License Education Online – 75 hours
Appraisal Qualifying Course (30 Hours Basic Appraisal Principles, 30
Hours Basic Appraisal Procedures and 15-Hour Residential Report Writing and Case Studies)
Exhibits and
sponsorships
available! Contact
Debbie Thacker at
800.279.1972 for
more information.
This course focuses on the basic principles and practices of appraisal.
It covers real estate concepts, finance, the valuation process, neighborhood analysis, the concept of highest and best use, data collection, site
and improvement description, and the three approaches to value – sales
comparison, cost and income. (Proctored exam required.)
Dreading another long Wisconsin winter? Avoid the January doldrums by using your time for
learning and business planning ... with a bit of skiing, snowmobiling and chili-eating on the
side! January is the time to warm up at the Lake of the Torches Resort Casino and Convention Center in Lac du Flambeau, the location of the WRA's 2008 Winter Convention.
This year at Winter Convention you can attend workshops or choose to complete your CE
courses. If workshops grab your interest, attend several and learn from the best!
Join Jerry Rossi for the Opening Session entitled Rich Agent … Poor Agent, and Dale Carlton
for the General Session, Nothing But Ideas or attend workshops including:
•
Shift Happens With Buyers and Shift Happens With Sellers, Jerry Rossi
•
Keep ‘Em Coming Back…Building a Referral Business, Mark Given
•
Floodplains, Shorelands, and Piers ... What REALTORS® Need to Know
About New Regulations That Affect Waterfront Property, Tom Larson
•
Creating E-mail Newsletters, Rob Uhrina
•
Care and Feeding of Past Buyers & Sellers, Connie Erickson
•
How to Double Your Income by Working with Investment Property Buyers and How to Double Your Income by Working with Investment Property Sellers, Tom Lundstedt
•
Five Factors in Succeeding with Sellers, Dale Carlton
National Uniform Standards of Professional Appraisal Practice
(USPAP) – 15 hours
This course fulfills the mandatory course requirement for students
wishing to become an appraiser. The course covers history, purpose
and structure, how some terms are defined and used, and the rules of
USPAP. It also covers the relevant statements and advisory opinions.
(Proctored exam required.)
Residential Appraiser Site Valuation and Cost Approach – 15 hours
Designed to provide an introductory understanding of the fundamental
concepts of appraising, this course focuses on the valuation of vacant
land parcels and the development of the cost approach. (Proctored exam
required.)
Residential Market Analysis and Highest and Best Use – 15 hours
This course covers the relationship between market analysis and
highest and best use. You will learn how to find the information you
need to make a highest and best use decision and how to interpret the
information you find. It also provides information on how to read and
map a market area and how to discover the essential links between
market analysis, highest and best use analysis and the three approaches
to value – cost, sales comparison and income capitalization. (Proctored
exam required.)
For a complete Winter Convention schedule &
to register, visit www.wra.org/winterconv08
16
news.wra.org
Education
Working Toward a Designation?
Check Out These Scholarship Opportunities
The Wisconsin REALTORS® Association’s Designation Week is scheduled for February 12-15, 2008,
and you could be the recipient of a scholarship to pay for some of your designation education. To
register for Designation Week courses, visit www.wra.org/designationweek. For more information on
scholarship opportunities, contact your local board/association. Applications are also available on the
WRA’s Web site at www.wra.org/resources/gri_scholarship.htm. The application deadline for these
scholarships is January 11, 2008.
Darwin D. Scoon
Three, full tuition, GRI
WRA members
Al Petrie
One, full tuition, GRI
Members of Door, Marinette,
or Northeast Boards
Washington Board
Members of Washington Board
Western Wisconsin, Sue Alt
One, up to $500
Members of Western Wisconsin Assn. for any WRA-sponsored designation course, registration fee only
Waupaca – Shawano Board
Two, full tuition, GRI
Affiliated with an office or with a place of business in Waupaca or Shawano
Counties or New London Community and member of a local board of REALTORS®
Shirley Hansen/
Association Ozaukee Association
Members of Ozaukee REALTORS®
or Coldwell Banker Premier Offices
Otto Bytof
Coldwell Banker – The RE Group
Must be an Independent Contractor of Coldwell Banker –The RE Group
Otto Bytof of Northeast Wisconsin REALTORS® Association
Members of the REALTORS Association
of Northeast Wisconsin
Donald Hovde Scholarship
Six, full tuition, GRI
WRA Members
®
Arline Beyer
Members of Ozaukee REALTORS®
Association
Wisconsin CRS Chapter
One, $250, GRI
WRA Members
Wisconsin CRS Chapter
One, $250, any CRS
course
Wisconsin CRS Chapter Members
Upcoming Courses & Events
Sales Pre-license
Madison, WI
Visit: www.wra.org/SalesPL
GRI Course 1
Complete GRI Course 1 in one of four ways
Visit: www.wra.org/GRIcourses
Broker Pre-license
Madison & Milwaukee, WI
Visit: www.wra.org/BrokerPL
SRES Class
February 21-22, 2008
Visit: www.wra.org/SRES
Buyer Agency Course & Electives
Eau Claire, Brookfield & Baraboo, WI
Visit: www.wra.org/ABRcourses
Out of State Real Estate CE
March 3-4, 2008
Tuscany Suites & Casino, Las Vegas, NV
Visit: www.wra.org/CELasVegas
Broker
New
Training
Get a Jump on Operating
Your Office!
January 9-11, 2008
New Broker Training provides guidance for brokers who
are opening up their own brokerage office or are going to
become a manager for their company. This three-day course is
taught by attorney and former broker-owner Mel Check. The
curriculum covers the fundamentals of being a broker and the
responsibilities that come with that supervisory role.
Wisconsin REALTORS® Association
Madison, WI
Register Today!
800.279.1972
17
Education
Course Schedule
Sales & Marketing Management w w w. w r a . o r g / C o u r s e S c h e d u l e
Date
January 9-11, 2008
January 16-17, 2008
January 18, 2008
Course
Location
New Broker Training
Madison
ABR
Brookfield
ABR elective-Innovative Marketing Brookfield
(1) Fee represents cost of the 4 modules, new WRA members receive a $40 discount.
January 21, 2008
January 22, 2008
Additional fees for non-members
#
Winter Convention
##
Group discounts available
February 12-13,2008
February 12-13,2008
February 14, 2008
$
Positioning Properties to Lac du Flambeau
Compete in the Market (CRS elective)
Positioning w/convention Foreclosure Opportunities
Lac du Flambeau
(ABR elective)
Foreclosure w/convention
GRI Course 2/CRS201
Baraboo
GRI Course 3/CRS202
Baraboo
ABR Baraboo
ASP RE Staging Course
Baraboo
CRS201-Listing Strategies
Baraboo
CRS202-Sales Strategies
Baraboo
Foreclosure Opportunities
Baraboo
QuickStart
sales
training program
Early Reg.
315
260
130
$
Regular Reg.
325
270
140
$
ATD
345
290
160
185
195
215
225# 155
235# 165
255#
185
195#
##
335
##
335
##
260
##
325
##
285
##
285
##
130
205#
345
345
270
335
295
295
140
225#
365
365
290
355
315
315
160
February 14, 2008
CRS204-Creating Wealth Through RE Investments
Baraboo
##
285
295
315
QuickStart Module 1, 2, 3 & 4
SRES QuickStart Module 1 & 2
QuickStart Module 3 & 4
Baraboo
Brookfield
Madison
Madison
250 (1)
375
240 (1)
240 (1) 260(1)
385
240(1)
240(1)
280(1)
405
260(1)
260(1)
Now available online!
www.wra.org/QuickStartOnDemand
March 20-21, 2008
April 3-4, 2008
##
Conference and Conventions Register
Date
Course
Time
Location $ Early Reg.
Management Pre-conference 800-279-1972
December 12, 2007 2007-08 CE4B 1:00 – 4:30 p.m. Pewaukee Non-conference Member attendees!
Management Conference 800-279-1972
December 13, 2007
Pewaukee
Non-member@
Winter Convention
800-279-1972 January 21-23, 2008
Lac du Flambeau 135
Appraisal Conference
800-279-1972 March 11-12, 2008
Appleton
Appraisal CE Appraisal continuing education modules available on VHS and DVD
Real Estate Continuing Education Date
Course
December 12, 2007
January 17, 2008
January 24, 2008
January 21, 2008
January 22, 2008
January 23, 2008
January 30, 2008
February 7, 2008
February 7, 2008
February 13, 2008
February 20, 2008
March 3-4, 2008
2007-08 CE 4B
Pewaukee
2007-08 CE 1 & 2
Marinette
2007-08 CE 4A & 3
Brookfield 2007-08 CE 1 & 2 Lac du Flambeau 2007-08 CE 3 Lac du Flambeau
2007-08 CE 4A Lac du Flambeau 2007-08 CE 4A & 3
Madison 2007-08 CE 1 & 2
Madison 2007-08 CE 1 & 2
Manitowoc 2007-08 CE 1 & 2
Brookfield 2007-08 CE 1 & 2(Commercial) Appleton 2007-08 CE 1, 2, 3, & 4A Las Vegas
Pre-license * Plus books
18
January 14-17; 21-24, 2008
February 4-7, 2008
March 3-6; 10-13, 2008
April 7-10, 2008
Sales Pre-license
Broker Pre-license Sales Pre-license Broker Pre-license Wisconsin Real Estate Magazine, December 2007
Location
Madison Milwaukee
Madison
Madison
Time
1:00 – 4:30 p.m.
8:30 – 4:30 p.m.
8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 1:00 – 4:30 p.m.
1:00 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m. 8:30 – 4:30 p.m.
8:30 – 4:30 p.m. 8:30 – 4:30 p.m.
8:00 – 5:00 p.m.
8:00 – 5:00 p.m. 8:00 – 5:00 p.m. 8:00 – 5:00 p.m. $
Regular Reg.
30
35!
79
95@
145
$
ATD
50
55!
99
115@
165
Register #
800-279-1972
920-897-2899
800-279-1972 27/m; $35 nm
Must register for Winter Convention
800-279-1972 27/m; $35 nm
800-279-1972 27/m; $35 nm
920-553-6227
800-279-1972 27/m; $35 nm
800-279-1972 30/m; $38 nm
800-279-1972
325*
255*
325*
255*
325*
255*
325*
255*
335*
265*
335*
265*
news.wra.org
Education
Ho-Chunk Casino, Hotel & Convention Center
Baraboo, WI
February 12-15
2008
CRS 204 (February 14-15, 2008)
GRI Course 2 (February 12-15, 2008)
This four-day program includes CRS 201 (Listing Strategies for the Residential Specialist), so you can earn required credits toward your CRS designation while earning your
GRI designation. GRI 2 also covers environmental issues, personal promotion, business
ethics, PDAs and digital cameras, creating a Web presence, e-marketing, tying technology
together and selling new homes.
GRI Course 3 (February 12-15, 2008)
This four-day program includes CRS 202 (Effective Sales Strategies) to help you work toward your CRS designation and your GRI designation at the same time. The course covers
real estate investments and exchanges. Calculator required.
Certified Residential Specialist (CRS) Opportunities
Earn two designations in half the time! CRS 201 is featured as part of GRI Course 2 and
CRS 202 is featured as part of GRI Course 3. After you earn your GRI, take additional CRS
classes of your choice and complete your CRS education requirement.
CRS 201 (February 12-13, 2008)
Listing Strategies for the Residential Specialist (included in GRI Course 2)
The quality of your listing skills can give you a strong competitive edge. Only those
professionals who learn proven listing strategies will win over the client and increase their
conversion rate. “Listing Strategies” provides you with the important skills necessary to
conduct successful listing presentations, price a home to sell, close the transaction and
market and promote effectively. The course takes you through an actual listing presentation that helps you understand the key steps in this process and create a system for
success.
CRS 202 (February 14-15, 2008)
Effective Sales Strategies (included in GRI Course 3)
Top sales associates enjoy a competitive advantage because they understand what
motivates and influences their customers. “Sales Strategies” gives you the inside track to
win over prospective buyers by teaching you the necessary strategies to make your sales
quick and efficient. You will learn how to work with today’s new buyer through counseling,
salesmanship and negotiation. These effective strategies will give you customers for life.
For a complete Designation Week schedule &
to register, visit www.wra.org/designationweek
20
Creating Wealth Through Residential Real Estate Investments (Also elective course
requirement for the ABR® Designation, elective course for Resort and Second-Homes
Property Specialist (RSPS), and qualifies toward the CIPS and CRS designations.)
More people have become wealthy investing in real estate than many other investments. Agents who want to learn the specific secrets to smart real estate investments can discover them in this course. Students will learn how to identify the right
opportunities, compare real estate with other investments and create additional
wealth – for themselves and their clients. This high-energy course explores another
way to generate sales that has been overlooked, and the results can be life changing!
This class is a must for any real estate professional looking to create wealth through
residential real estate investment.
ASP Real Estate Staging Course (February 12-13, 2008)
(The ASP™ designation helps you sell homes faster for more money!)
Do it for them. Do it for yourself. Get your ASP Real Estate Agent designation and start
selling homes faster for more money through the power of staging. You can earn your
ASP designation by simply attending the two-day ASP course. This two-day training
course is specifically designed for licensed real estate agents wanting to list and sell
more homes by communicating the benefits of staging as a marketing tool. You will
learn what staging is, how to communicate the benefits to sellers, how and why to
stage a listing and specific technique to help your clients stage.
QuickStart (February 12-15, 2008)
The QuickStart program assists agents in learning the business of real estate. The
program begins with how to build relationships with buyers and sellers including
prospecting, pricing properties, responding to concerns and making presentations
to buyers and sellers. The course includes contract issues, agency relationships and
negotiating strategies. The QuickStart program also discusses various methods of
communication, goal setting, time management and incorporating technology into a
real estate agent’s business plan. The program is designed to help agents become
confident in their practice as well as focused on their personal business plan.
Completion of the QuickStart program (four days) and passing the exams fulfills the
requirements for GRI Course 1.
(Day 1) QuickStart 101 – Sellers as Clients
(Day 2) QuickStart 102 – Working with Buyers
(Day 3) QuickStart 103 – Contracting and Negotiating
(Day 4) QuickStart 104 – Effective Communication and Business Planning
Accredited Buyer Representative (ABR®) (February 12-13, 2008)
The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation. The overall goals of the ABR® designation courses
are to educate and prepare buyer’s reps to provide the kind of service and fidelity to
buyers that sellers have always enjoyed, and to offer methods for building your buyer
representation business. In each course module you will examine a different topic,
and together they create a comprehensive guide to help you become an effective,
efficient, and profitable buyer’s representative. Approved for 2007-08 CE #4. Does
not fulfill the NAR ethics requirement.
news.wra.org
Product Showcase
The Insider’s Guide to Commercial Real Estate
T
o some real estate agents, the commercial side of real estate can
seem like a foreign language. Transitioning from a residential
background to the commercial field is not easy. With limited
resources available, The Insider’s Guide to Commercial Real Estate is
a great resource to help one comprehend the commercial real estate
market.
The guide’s in-depth explanations and examples make it an easy-to-follow
resource. Case studies are included at the end of each chapter to help
confirm that you understand the material as you go. The complete glossary
will assist you in understanding the terminology used in commercial real
estate. Also included are handy checklists that you can use as you practice
commercial real estate to make sure you cover all necessary aspects.
Order The Insider’s Guide to Commercial Real Estate at www.wra.org/
pub186. Pricing is $24.95 for members and $27.95 for non-members.
About the author: Cindy Chandler, CCIM, CRE, owns her own training
and consulting company in North Carolina and has worked for numerous
organizations in multiple areas of real estate.
Paperback: 175 pages
Publisher: Dearborn Real Estate Education (September 1, 2006)
Language: English
Price: $24.95/members, $27.95/nonmembers
WRA Products and Education
Affected by New WB-1 and
WB-36 Forms
J
anuary’s release of the new WB-1 Residential Listing Contract and
WB-36 Buyer Agency/Tenant Representation Agreement affects
more than hardcopy forms and ZipForm. Many other products and
educational programs available through the Wisconsin REALTORS ®
Association are currently being updated including the law manual,
explanation of the listing and offer consumer brochure, continuing
education distance learning courses and pre-license products. For a
complete list of affected products and programs as well as the revision
status, visit www.wra.org/formsupdate.
21
Public Affairs
Real Estate Issues in the
State Budget
A
fter a prolonged debate, Wisconsin
finally has a biennial state budget.
The proposed doubling of the real
estate transfer tax was a primary concern
for the Wisconsin REALTORS® Association
(WRA) and the focus of a substantial
grassroots lobbying effort. The WRA is
very pleased that this onerous proposal
was rejected in the final version of the bill.
By Michael Theo
and
There were, however, numerous other
Rick Chandler
provisions in the budget that we have
not highlighted that impacted Wisconsin
homeowners, property owners and real estate professionals. A
summary of these other budget provisions follows.
Health Care Coverage: (“Healthy Wisconsin” Plan)
Real Estate Transfer Tax Increase
• The WRA’s position: Oppose the Healthy Wisconsin plan as
proposed.
• The governor’s bill increased the RETT from $3 per $1,000 of value to
$6 per $1,000 of value, raising an additional $142 million in revenue
in the next biennium.
• This provision was retained by the Joint Finance Committee and the
Senate.
• The Assembly bill reduced the RETT to $1 per $1,000 of value,
effective in the next biennium.
• The WRA’s position: Oppose the RETT increase; support the RETT
reduction.
• Final bill: No increase in the RETT. The WRA’s position was adopted.
22
• The Senate bill contained the Senate Democratic Healthy Wisconsin
plan, a government-run, universal coverage, single-payer plan in
which most state residents and all state employers would be required
to participate.
• Health care coverage would be provided through a single statewide
health insurance purchasing pool run by a 16-person board.
• Participants would choose their doctors and coverage plans.
• The projected $15.2 billion annual cost of the plan would be funded
with a new tax of 4 percent of wages for employees, 10 percent of
self-employment income for self-employed individuals, and 10.5
percent of wages paid for employers, with the taxes of as much as
$97,500 imposed on wages and income per year, per person.
• The Healthy Wisconsin plan was not included in the bill by the
Assembly.
• Final bill: Healthy Wisconsin plan was not included. The WRA’s
position was adopted.
Health Savings Accounts
• The governor’s and Senate bills did not include provisions allowing
for the state income tax deductibility of contributions to HSAs.
• These provisions were included in the bill by the Assembly.
• The WRA’s position: Support HSA deductibility.
• Final bill: HSA deductibility was not included. The WRA’s position
was not adopted.
news.wra.org
Public Affairs
Property Taxes
• The governor’s bill modified the levy limits included in prior law
for local governments for the 2005-07 biennium. The maximum levy
increase for municipalities and counties would be 4 percent or the
increase in value due to new construction (whichever is greater),
rather than the prior law limits of 2 percent or the increase in value
due to new construction.
• These modifications were retained in the bill by the JFC and the
Senate.
• The Assembly bill contained modifications to the levy limits. The
maximum levy increase for municipalities and counties would be 0
percent or the increase in value due to new construction, whichever is
greater.
• The WRA’s position: Maintain limits at least as effective as prior law
to restrain property tax increases.
• Final bill: Levy limits of 2 percent or the increase in value due to
new construction were included, continuing the limits from the prior
biennium. The WRA’s position was adopted.
• Veto: The governor vetoed this provision, however, so that the limit
is 3.8 percent in the first year of the biennium or the increase in value
due to new construction. The limit remains 2 percent in the second
year of the biennium.
Department of Regulation and Licensing: Methodology for Setting
License Fees
• The governor’s bill contained a provision allowing the DRL to
set license fees administratively rather than in the statutes. The
methodology for setting the fees would be the same as the current
methodology, but there would be less legislative oversight.
• This provision was removed by JFC and re-inserted by the Senate.
• This provision was not included in the bill by the Assembly.
• Also, $4.2 million in license fee revenue was transferred from the
DRL to the state’s general fund and a one-time $5 credential fee
was imposed by the JFC. The $5 credential fee was removed and
the license fee revenue transfer was reduced to $2.4 million by the
Assembly.
• The WRA’s position: Neutral.
• Final bill: The governor’s bill provision allowing the DRL to set
license fees administratively was included.
Definition of Agricultural Land for Use Value Purposes
• The Senate bill modified the definition of agricultural land to exclude
land that is platted and zoned for residential, commercial or industrial
use.
carefully reviewed and unless they are part of a package along with
other recommendations made by a legislative council committee that
revises the exemption for retirement housing for middle- and upperincome residents.
• Final bill: No changes to this exemption were included. The WRA’s
position was adopted.
Stewardship Program
• The governor’s bill reauthorized the Stewardship program to
purchase and preserve land at $105 million per year from 2011
through 2020 for a total of $1.05 billion in increased bonding
authorization between now and 2020. This is a 75-percent increase
over the current $60 million annually.
• This provision was retained by the JFC and the Senate.
• The Assembly bill reauthorized the Stewardship program at $25
million per year from 2011 through 2020. It also reduced authorized
bonding by $105 million over the next three years. Hence, it provided
increased net bonding authorization of $145 million between now and
2020.
• The WRA’s position: Support reauthorization of the Stewardship
program; no position on exact funding levels.
• Final bill: Stewardship program was reauthorized at $86 million per
year – a 43-percent increase over the current level. Also, provisions
requiring enhanced legislative oversight of purchases and public
access to land purchased under the program were included.
Smart Growth (Comprehensive Planning)
• The Assembly bill extended the deadline for completing a
comprehensive plan from January 1, 2010 (current law), to January 1,
2015. In addition, the Assembly bill exempted all communities with a
population below 2,500 from the Smart Growth law requirements.
• The WRA’s position: Oppose the Assembly provision to extend the
deadline to 2015 unless it can be demonstrated that an extension is
necessary to ensure that good quality plans are adopted. Also, oppose
the exemption of all communities with a population below 2,500 from
the Smart Growth law.
• Final bill: No changes to the Smart Growth law were included. The
WRA’s position was adopted.
Income Tax Deduction for Health Insurance Premiums
• The governor’s bill provided a state income tax deduction for health
insurance premiums paid by employees who pay part of such
premiums while the employer pays the other part. The deduction
would be phased in over a four-year period starting in tax year 2008.
• This provision was not included in the bill by the Assembly.
• This deduction would accompany a number of provisions under
current law that provide income tax exclusions and deductions
related to health insurance premiums.
• The WRA’s position: Oppose the changes to the definition since they
are inconsistent with the intent of the use value law.
• This provision was retained in the bill by the JFC, the Senate and the
Assembly.
• Final bill: No use value changes were included. The WRA’s position
was adopted.
• The WRA’s position: Support health insurance premium deduction.
Tax Exemption for Low-Income Housing (Columbus Park Case)
• The JFC added language to the bill that expanded the property tax
exemption for certain types of low-income housing.
• This provision was removed from the bill by the Senate and the
Assembly.
• Final bill: Premium deduction was included. The WRA’s position was
adopted.
Michael Theo is Vice President of Legal and Public Affairs for the WRA.
Rick Chandler is a former State Budget Director and Secretary of the
Department of Revenue and is currently a consultant to the WRA
• The WRA’s position: Oppose including this provision in the budget
bill. Also, oppose these changes in separate legislation unless they are
23
Public Affairs
The Political Year Ahead
Wisconsin’s
status as a swing
state in the 2008
presidential race
will generate a lot
of activity at the
grassroots level.
A
By jOE mURRAY
s we close out the 2007 legislative year, we
can all be thankful that Wisconsin finally has
a two-year state budget and the proposed
transfer tax increase was defeated. And, for all you
political junkies, before you know it we will all
be treated to a front-loaded presidential primary
campaign that will kick-off the 2008 election cycle.
Here is a quick overview of the political year ahead.
Presidential Race
Wisconsin’s status as a swing state in the 2008
presidential race will generate a lot of activity at the
grassroots level. Democrats Al Gore and John Kerry held
on to win narrow victories in the last two presidential
contests, both winning the Wisconsin vote by less than
one percentage point.
Wisconsin, Iowa and Minnesota will be regional
battlegrounds for both sides next year. All three states
have a significant independent vote, and all three states
are considered winnable by Democrats and Republicans.
If you live in Madison, Milwaukee, the Fox River Valley
24
or along the Mississippi River in western Wisconsin, you
can expect a steady schedule of candidate visits in your
area.
State Supreme Court
The spring election for State Supreme Court will be the
first statewide race in 2008. The three candidates in the
race so far include the incumbent, Justice Louis Butler
of Milwaukee, appointed to the Court by Governor
Jim Doyle; Burnette County Circuit Court Judge Mike
Gableman; and attorney Charles Shutze of Sun Prairie.
Two of these candidates will survive the February 19
primary and face off in the April 1 general election.
The WRA Political Strategy Group will interview all
three candidates and are likely to recommend one
for endorsement. That recommendation will then be
reviewed by the REALTORS® Political Action Committee
trustees and forwarded to the WRA Board of Directors
for a final endorsement decision. Watch for information
on this race through the Wisconsin Real Estate Magazine
and e-mail.
news.wra.org
Public Affairs
The spring election for State Supreme Court will be the first
statewide race in 2008. The primary is February 19 and the
general election is April 1.
8th Congressional District
State Assembly
REALTORS® in the Fox River Valley will take part in a rematch
between Democratic Congressman Steve Kagen of Appleton and
former Republican Assembly Speaker John Gard of Peshtigo.
Republicans control the state Assembly 52-47. Democrats need
three seats to reclaim the majority they lost in 1994.
The 2006 congressional race between Kagen and Gard broke all the
records. It was the most expensive congressional race in Wisconsin
political history with combined spending of $6 million. The race
also generated record voter turnout for an off-presidential election
year. Perhaps more memorably, it will also be remembered as one
of the most negative congressional campaigns in Wisconsin.
This time, Congressman Kagen will run as an incumbent member
of the majority party. Both candidates will now have a record they
must run on and Gard will be sure to highlight votes on critical
issues where he differs from Kagen. While Kagen now has the
power of incumbency, Gard’s campaign will be assisted by the
Republican National Committee in a big way. The RNC believes
Gard can win the 8th District on a second try. This race could be
every bit as intense as the 2006 match-up.
State Senate
Democrats gained control of the state Senate two years ago and
now hold an 18-15 advantage in the upper house. Republicans
need two seats to regain the majority in the 33-member chamber.
Senate Democrats will target three seats held by Republicans to
increase their majority: Alberta Darling, 8th District in Milwaukee;
Dan Kapanke, 32nd District in LaCrosse; and Sheila Harsdorf, 10th
District in Hudson. Republicans have their own three Democratic
targets: Roger Breske, 12th District in Rhinelander; Bob Wirch,
22nd District in Kenosha; and Dave Hanson, 30th District in Green
Bay. Over the last 15 years, the state Senate has changed hands six
times.
Assembly Republicans will likely target these seats held by
Democrats to hold on to their narrow majority: Phil Garthwaite,
49th District, Platteville; Barbara Gonemus, 91st District, Arcadia;
Steve Hilgenberg, 51st District, Dodgeville; Kim Hixon, 43rd
District, Whitewater; Ann Hraychuck, 28th District, St. Croix Falls;
Andy Jorgensen, 37th District, Fort Atkinson; Cory Mason, 62nd
District, Racine; Tom Nelson, 5th District, Kaukauna; Jeff Smith,
93rd District, Eau Claire; and James Soletski, 88th District, Green
Bay.
Assembly Democrats will target these seats and hope to recapture
the majority: Sheryl Albers, 50th District, Reedsburg; Garey Bies,
1st District, Sister Bay; Brett Davis, 80th District, Oregon; Gene
Hahn, 47th District, Cambria; J.A. Hines, 42nd District, Baraboo;
Mark Honadel, 21st District, South Milwaukee; Dean Kaufert, 55th
District, Neenah; Terry Moulton, 68th District, Chippewa Falls;
John Murtha, 29th District, Menomonie; Lee Nerison, 96th District,
Prairie du Chien; Karl Van Roy, 90th District, Green Bay; Mary
Williams, 87th District, Medford; and Jeff Wood, 67th District,
Chippewa Falls.
Watch for more information on these races and more in future
editions of the Wisconsin Real Estate Magazine.
Joe Murray is Director of Political and Governmental Affairs for the
WRA.
25
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Public Affairs
New Sprinkler Rules for
Multifamily Housing Adopted
T
he Wisconsin Legislature recently
approved new administrative rules
related to the regulation of sprinklers
in multifamily buildings. According to the
Wisconsin Department of Commerce (DOC),
these new rules will take effect sometime in
March 2008. Developers and REALTORS®
should be aware of the important changes in
these rules because they will impact the cost of
By Tom Larson
new multifamily housing, as well as provide
improved safety protection for renters and unit owners.
Background
In November 2006, the DOC introduced new administrative rules related
to the installation of sprinklers in multifamily residential buildings. As
introduced, the proposed rules required all new apartment buildings and
condominiums with three or more units to have fire sprinkler systems
installed. (Current law requires sprinklers in all buildings with more
than 20 residential dwelling units.) Under the rule, the new requirement
would be applied in all areas, even where there is no public water system.
Additionally, buildings that had been approved, but where construction
had not yet commenced, would be required to meet the new sprinkler
standards.
At several public hearings, representatives from the real estate industry
raised concerns about the potential cost impacts of the proposed rules.
While the proposed changes would improve fire safety in new multifamily
residential buildings, the changes would also increase the costs of affected
housing anywhere from $3,000 to $24,000 per housing unit, depending
on whether additional infrastructure would be needed to operate the
sprinkler system.
After months of failed negotiations, the DOC finally agreed to make
changes to the proposed rules to lessen the impact on housing costs. These
changes were made, in large part, thanks to the efforts of Rep. Jim Kreuser
(D-Kenosha) and Rep. Dan Lemahieu (R-Cascade), who strongly opposed
the sprinkler rules as originally drafted. While the changes to the rules do
28
not address all of the concerns raised by the real estate industry, they are
an improvement over the original draft and will enhance the fire safety of
multifamily dwelling units in Wisconsin.
New Sprinkler Requirements
The new administrative rules adopted by the DOC make the following
changes to sprinkler requirements in Wisconsin:
• Beginning in March 2008, all newly constructed multifamily
dwellings with nine units or more will require fire sprinkler systems.
• Beginning January 1, 2011, all newly constructed multifamily
dwellings with three units or more will require fire sprinkler systems.
This is essentially a three-year phase-in of the original proposal
introduced by the DOC.
• Less expensive fire sprinkler requirements will apply in areas with
insufficient water pressure (NFPA 13 D fire sprinkler systems will
be required rather than NFPA 13 R fire sprinkler systems). This will
make the sprinkler requirements less expensive in rural areas and
other areas not serviced by public water.
• Buildings that have already received approval, but have not yet been
constructed will be “grandfathered” in and will not have to meet the
new sprinkler requirements.
Why This is Important for REALTORS ®
Residential condominium units and apartment buildings equipped with
fire sprinklers will likely be more expensive than similar units and buildings
without fire sprinklers. This may be an important factor for developers and
builders who are planning to construct multifamily residential dwellings
in the near future. However, fire sprinklers are often an attractive safety
feature for prospective buyers and should be highlighted in all applicable
marketing materials.
For more information on the new changes to the fire sprinkler rules, please
contact Tom Larson (tlarson@wra.org) at 608-240-8254.
Tom Larson is Director of Regulatory and Legislative Affairs for the WRA.
news.wra.org
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Commercial - Wisconsin REALTORS® Association

Transcription

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