Inside the WRA
Inside the WRA with Bill Malkasian
 The election season is in full swing, but I'll spare you that debate for the moment and comment on some other matters of significance to the WRA membership. Let me share a few "campaign issues" I've identified during travels to state and national meetings.
Do we have a Housing Bubble?
If you listen to David Lereah, the NAR Economist, the answer is no. BUT, he does caution us that the lifestyle to which we have become accustomed may be slowing a bit in 2003. He calls it a slow release of the air from the bubble versus a severe
pinprick. As you can tell from our last housing report (on page 7 of this issue), the market in Wisconsin is good. Mortgage rates are at historical lows, which in turn means people are buying lots of property. Can it continue for an indefinite period of time? My guess is that a slow down will occur, which will bring us back to normal. Bottomline, we may break a housing sales record in Wisconsin by Dec. 31, 2002.
Hey, what's up with technology?
It's not a secret that the Internet boom is behind us. Realtor.com is alive and well in the marketplace, but according to Steve Ozonian and Mike Long of Homestore, we can expect some substantial restructuring of their products later this fall and into 2003. The concept of one-Internet-product-fits-all is gone, and will be replaced by an array of Internet-based tools for integration into
REALTORŪ and Company Web sites.
It's not a question that Realtor.com is the Internet listing leader and that it brings dollars back into the
REALTORŪ pocketbook, but watch for innovative business plans to come out of real estate companies as new ways to present property listings on company Web sites emerge.
Where's the pressure point for organized real estate? MLS leadership will be challenged locally as companies impose greater pressure for access to information. We are lucky in Wisconsin to have progressive MLS staff who see many of these business trends.
In November brokers and MLS staff will debate on what we do with the data empowering the consumer. Some argue for opening the floodgates for the consumer regarding MLS data, while others maintain that giving it away hurts the industry in the short- and long-term. My advice is to go slow and smell the roses for a few days. The consumer is doing just fine in Wisconsin by the looks of the housing sale numbers, and I haven't heard a gigantic cry for more consumer choice.
Affordable Housing is back on the table...and I don't mean low-income housing
In the past we referred to affordable housing as it relates to people with less income being able to enter the housing marketplace. Today, the availability of "affordable" housing could have implications for a teacher, police officer or firefighter in selected areas of the state. Well if these fine citizens can't get into housing now with historically low mortgage rates, what is the answer? Look for Congress and entities like WHEDA to develop even more mortgage programs for housing through Fannie Mae and Freddie Mac. NAR and other national trade groups see the need for these products. Hardworking people need to be housed in their own community - not 20 miles away. This issue may lead to a housing bill in Congress in 2003, which hasn't occurred for nearly 10 years.
Insurance
You thought I meant something like Errors and Omissions, didn't you? No, I mean household and commercial building insurance. We have a potential crisis on our hands stemming back to 9-11.Our national leaders have informed us of areas throughout the country where insurance companies are just picking up and leaving. In some areas of the country banks want an insurance binder up front before the mortgage application will even begin!
This may become the new hot topic for 2003.
Back to the election
Are you going to vote in the Sept. 10 primary? You better, and ask the significant people in your life to do the same. This election defines the next four to six years of where Wisconsin is headed as a state. You have read about the massive budget deficit in your local newspaper and the frustration with the politicians here in Madison who seem unable to solve the problem. I would start asking yourself the question: Which candidates have an actual SOLUTION to the problem versus just tossing coins in a fountain or holding kids in the classroom. I sound pretty tainted, don't I? Well I am. I sit in Madison week after week and understand what trainwreck is coming for our wonderful state. If you work and play here for the long term, this election should top your list.
It's not the "R or D" issue but who has a philosophy that fits yours. The WRA simply looks at the real estate market place and decides which candidate can present solutions to our economic problems. In every focus group we did with
REALTORSŪ throughout Wisconsin in 2002, taxes and quality of life issues were on the table. The solutions presented by our members were not to add to the cost of living here, but to find ways to create efficiencies within what we currently own and operate. Trust me, we all learned a lesson on the concept of shared revenue cuts. What I heard was "My town is the best place in the world to live. Just keep Madison away from MY doorstep." I wish it were that simple.
As we roll into the fall, I plan on traveling the entire state in the months of September and October to attend the local associations' annual meetings. I can't wait. Being out of Madison for a while is just what the doctor ordered.
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Chairman's Corner with Matt Miller
 Realtors Endorse McCallum for Governor
The WRA has formally endorsed Scott McCallum for governor. This unanimous decision by the WRA Board of Directors is based on two fundamental reasons - Scott McCallum is trusted and tested. Based on our 25-year relationship with Scott McCallum - as a state senator, as Tommy Thompson's lieutenant governor, and as governor - he has steadfastly supported
REALTORSŪ- period.
Trusted
More than any of the other candidates - Democrat or Republican - Scott McCallum has a demonstrable record of support for
REALTORŪ issues. For example, in his first few months as governor, McCallum withstood months of partisan, media and public pressure to act hastily in responding to federal law changes regarding wetland regulations. McCallum's thoughtful leadership allowed the WRA and other vested parties time to negotiate what became a national model for wetlands regulations, garnering an unprecedented unanimous vote in both houses of the legislature. That's leadership you can trust.
Perhaps more importantly, as Governor McCallum demonstrated his support for our issues repeatedly through the use of his veto pen to stop bad legislation stuck in two state budget bills by Senate Democrats. In his first budget this meant vetoing new and onerous regulations of "closing agents" in each and every real estate transaction. He also vetoed obscenely excessive fines for innocent telemarketing violations - fines as high as $10,000 for a single violation, to which
REALTORSŪ could easily and unknowingly be exposed. He also nixed new municipal service fees that would have increased the cost of homeownership significantly. In the recent budget repair bill, the governor's veto was needed to undo anti-development changes to the use value assessment law; to kill new development fees on housing developments; to stop the transfer of all consumer protection functions from the consumer protection department to the Justice Department; and to prevent the annexation of specific land without property owner involvement.
In each of these cases, Governor McCallum sought our input and responded favorably to our comments. McCallum's support for
REALTORŪ issues has been every bit as strong as his predecessor Tommy Thompson!
Tested
The state is facing the most vexing economic times in nearly a generation. The next governor will be under enormous pressure to raise taxes and cut corners. Scott McCallum has been there and we know how he will respond under fire. In addressing the largest budget deficits in 20 years, he said no new taxes, no cuts in education, and proposed numerous long term reforms. Each of these convictions and proposals brought considerable political risks that McCallum could have avoided but didn't. The next governor will not be able to avoid the difficult decisions. Regardless of whether you agreed or disagreed with Scott McCallum's proposals, the fact that he attempted to address immediate as well as systemic problems in a forthright manner demonstrates his leadership and his conviction to reform and to doing what's right. Because he has been tested under fire, we know how he will respond to the difficult challenges facing the next governor. The same can't be said about any of his opponents.
Members Support McCallum
The overwhelming majority of WRA members support McCallum over the other candidates, based on detailed membership polls conducted for the WRA by the respected Washington, D.C. and long-time WRA pollsters Public Opinion Strategies Inc. Sixty-two percent of our members view McCallum favorably as opposed to 30 percent who view him unfavorably. Forty-nine percent think we should endorse McCallum, only 9 percent think we should endorse Jim Doyle, 7 percent Tom Barrett and 5 percent Kathleen Falk. Twenty-six percent are undecided. And 62 percent said if the WRA endorsed McCallum, they would support it.
I know that there are some REALTORSŪ who feel the current slate of candidates for governor is not perfect. That is unfortunate and in some respects irrelevant. The reality is one of these candidates will run this state for the next four years. The question for us is which one is the best for our members, industry, our customers, our clients and our state? This clear question has a clear answer - Scott McCallum.
This election will be decided by a razor-thin margin. (Remember the 2000 presidential election in Florida?) Every vote will count. Therefore, to win we need each and every
REALTOR'SŪ vote and active support. In the next seven or eight weeks, you will hear more about McCallum and his opponent, as we compare and contrast them on issues important to our industry. You will also hear more about how you can help the campaign and thus help yourself, your business and your state.
This is an important moment in time for the association. I ask you to think not as Democrats or Republicans, but as
REALTORSŪ. And think not just of yourself and your business, but also of your customers and clients - those upon whose livelihood our livelihoods depend. Simply put, we can trust Scott McCallum to block bad legislation and promote good legislation for our industry. Looking to the past, we have seen him do this time, and time, and time again. Looking to the future, he shares our vision of a proactive legislative agenda that fosters economic growth and focuses on issues that promote, protect and preserve Wisconsin's unique quality of life - one home at a time. Scott McCallum deserves our support.
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Real Estate Executive Education Programs Offered
The University of Wisconsin-Madison is offering several Real Estate Executive Education Programs and Conferences this fall. For more information or to register, visit their Web site at:
www.bus.wisc.edu/realestate/culer/calendar.htm.
Architectural Design for Developers
Sept. 12-13, 2002, Fluno Center, Madison, $895.
This course bridges the gap between real estate development and architecture. Learn how developers and architects, with markedly different backgrounds, working on the same project, combine their knowledge to develop well-integrated products.
International Real Estate Investment and Finance
Oct. 3-4, 2002, Fluno Center, Madison, $895 (members of the Mortgage Bankers Association receive a $100 discount)
Historically, real estate was a local business. What was happening on the other side of the street was important but what was happening on the other side of the world was not. This course is designed to give you a thorough introduction of the globalization of the real estate capital markets and a practical understanding of its implication s to your business.
GIS Applications in Real Estate
Oct. 24-25, 2002, Fluno Center, Madison, $895.
Proximity to customers and transportation systems, location of potential competitors, crime rate and labor pool characteristics are all critical variables that define the quality and price of real estate. You will learn how Graphic Information Systems provide powerful new tools to help real estate professionals manage data and give your business the competitive edge.
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Join the REALTORŪ Big Band
Calling all musical REALTORSŪ! Two real estate industry leaders are putting together "The Closing Statement," an
all-REALTORŪ big band which will be available to play at national conventions across the country. The Closing Statement will feature vocals and a variety of music including big band, jazz, and Broadway tunes.
Rolf Anderson and Rod McIntyre have the dream of a creative outlet for fellow
REALTORSŪ that will also promote the REALTORŪ trademark, encourage attendance at industry conventions and special events, and be fun for band members as well as those on the dance floor listening.
"It was our intent to organize a 30-40-piece musical, song and dance band made up entirely of
REALTORSŪ from around the country," says Anderson. "Not just the musicians themselves, but the entire entourage necessary to produce a show."
For more information on joining the band, providing non-musical support, or offering a sponsorship, please contact Rolf Anderson, CRS, at 800-304-6756 or
visit his website at www.rolfanderson.com.
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