DOUGLAS COUNTY ASSOCIATION OF REALTORS® OCTOBER 2012 DOUGLAS COUNTY DOUGLAS COUNTY EVENT CALENDAR Oct. 5th, 12th, 19th & 26 Exchange Club Meeting: Every Friday at 8:30am DCAR/RMLS Board Room Oct. 24th Membership meeting/ Education Class: Financing Investment Properties Sponsored by Umpqua Bank DCAR/RMLS Building Noon to 3:30pm Nov. 22nd Education Class: Overlays, Geo Hazards & A Message from your President… The election is coming! In addition to the typical issue and candi- dates, we as realtors we have a vested interest in the outcome this fall with Ballot measure 79. If you don’t know, Ballot Measure 79 is a realtor sponsored initiative that would create a constitutional amendment to ban new transfer taxes on real estate. A yes vote in November means that the state and local authorities can not add transfer taxes to the sale or transfer of real estate. So why is OAR doing this now, we don’t currently have a transfer tax? Because in the last five legislative there have been nine at- tempts to target homeowners with new taxes when they buy or sell real estate. Can you imagine what a 1% or 2% would do to first time buyers or a family struggling through a short sale? A real estate transfer tax would be devastating to our in- dustry, but more importantly it would be a real hardship to home owners in Oregon. There are many things that you can do to help make the Protect Oregon Homes campaign a success. The easiest way is to inform your friends and neighbors about the campaign, put a sign in your yard, and write a letter to the editor in support. The more people know about the issue the better chance we have to be successful. The most important thing you can do though is to vote. If you are not registered do it today, time is running out and bal- lots will be in the mail in a couple of weeks. If you have any questions about how you can get more involved call us at the association office. David Stribling II, President
Transcript
DOUGLAS COUNTY ASSOCIATION OF REALTORSreg OCTOBER 2012
DOUGLAS COUNTY DOUGLAS COUNTY
EVENT CALENDAR Oct 5th 12th 19th amp 26 Exchange Club Meeting Every Friday at 830am DCARRMLS Board Room Oct 24th Membership meeting Education Class Financing Investment Properties Sponsored by Umpqua Bank DCARRMLS Building Noon to 330pm Nov 22nd Education Class Overlays Geo Hazards amp
A Message from your Presidenthellip
The election is coming In addition to the typical issue and candi-dates we as realtors we have a vested interest in the outcome this fall with Ballot measure 79 If you donrsquot know Ballot Measure 79 is a realtor sponsored initiative that would create a constitutional amendment to ban new transfer taxes on real estate A yes vote in November means that the state and local authorities can not add transfer taxes to the sale or transfer of real estate
So why is OAR doing this now we donrsquot currently have a transfer tax Because in the last five legislative there have been nine at-tempts to target homeowners with new taxes when they buy or sell
real estate Can you imagine what a 1 or 2 would do to first time buyers or a family struggling through a short sale A real estate transfer tax would be devastating to our in-dustry but more importantly it would be a real hardship to home owners in Oregon
There are many things that you can do to help make the Protect Oregon Homes campaign a success The easiest way is to inform your friends and neighbors about the campaign put a sign in your yard and write a letter to the editor in support The more people know about the issue the better chance we have to be successful The most important thing you can do though is to vote If you are not registered do it today time is running out and bal-lots will be in the mail in a couple of weeks
If you have any questions about how you can get more involved call us at the association office
David Stribling II President
2
Page 2 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
3
Page 3 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
Are You Losing 30 of the Market 30 of all sales during 2nd Quarter 2012 were distressed properties - Source RMLS
How You Benefit List More Homes ~ Close More Sales ~ No Short Sale Headaches
How Your Sellers Benefit No-Obligation ~ Cancel Anytime ~ Private amp Confidential
What Others Are Saying About Us Real estate today has changed dramatically As a REALTOR I love working with Buyers and Sellers however many of
our Sellers are underwater meaning they owe more than their homes worth in todayrsquos market In that case we need to
accomplish a short sale This requires someone with short sale knowledge and negotiating skills unlike anything weve
needed in the past Linda Tipton has those skills Working with the short sale lenders is very time consuming and
frustrating Ive handed the short sale portion of my transactions to Linda This has left me free to enjoy my business
knowing that Linda will get the job done with the short sale lenders so my Buyers and Sellers can get on with their lives
ndash Patti Archambault REMAX Professional Realty
Linda has been handling my short sale escrows for the last couple of years She handles everything from start to finish
and keeps everyone updated through every step Her knowledge and experience are invaluable as well as her sensitivity
to the client I would highly recommend her services to anyone - Byron Frazer Garden Valley Realty
rdquoI will no longer take a short sale listing without Linda Her experience negotiation skills and knowledge of the short sale
process have been an incredible asset to me and my clients Her wonderful personality and easy going nature definitely
help all parties through the often frustrating and lengthy process My most current sale had 3 lien holders and Linda was
able to negotiate with each one to get a positive result I will continue to utilize Lindas services so that my clients receive
the great service and experience they deserve - Tracy G Century 21
Call us Today to Learn More
(541)673-6757
3000 Stewart Parkway Suite 104 Roseburg OR 97471
LindaOregonDMScom
DM-8008
4
FOREIGN OWNERSHIP OF US REAL PROPERTY
Page 4 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
By Dan G McKinney
Most real estate professionals are aware that few countries allow American citizens to purchase real estate in their country This is not the rule in the United States As US real property prices continue to stagnate and as the US dollar continues to weaken against foreign currency the United States real property has become a more attractive investment for foreign investors Foreign investment in US real property has increased from less than 6 Billion in 2009 to approximately 1337 Billion in 2010
With increasing foreign investment real estate professionals will continue to interface with foreign investors and this article is intended to allay your concern related to dealing with foreign investors
First the US permits acquisition of US real property by a foreign person The US does not tax or impose any filing obliga-tions simply upon acquiring ownership of the property by a foreign person It may be of interest to you that the US Department of Commerce Bureau of Economic Analysis does require a quarterly report by persons owning in excess of $40 Million of real estate which identifies and quantifies the nature of the real estate transactions by that person This is done so the US Department of Commerce will gain an understanding of the nature and amount of foreign holdings and identify foreign persons who hold substan-tial property in the United States This reporting is not a requirement by real estate professional and is imposed on the foreign persons holding US real estate
As you all know the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) does impose a reporting requirement upon the sale of real estate if the person selling the real estate is a foreign person It will require taxes to be withheld unless that person is otherwise identified as a US tax payer Again this is not typically the responsibility of the real estate professional and is ac-complished by the escrow agent although all real estate contracts contain a provision that FIRPTA compliance is required at clos-ing
As you may expect all rental income in the United States is subject to US income taxation and must be reported to the IRS This obligation to report is imposed upon the tenant
If a foreign person chooses to gift US real property the FIRPTA withholding requirements do not apply although the foreign donor is subject to the US gift tax at the regular gift tax rates (Internal Revenue Code 2501) A foreign individual making a gift of US real property is required to file form 709 to report taxable gifts of US real property
A foreign person is also subject to US estate tax on all property situated in the United States Currently only a minimal estate ndash tax exemption of $60000 is available to foreign individuals For this reason most foreign investors create a corporation which may include a foreign corporation for purposes of holding US situated assets to avoid the large taxable event upon death Any foreign investor choosing to purchase real estate in the United States should be referred to an attorney for purposes of preparing a corporation to avoid this outcome
In conclusion real estate professionals should feel free to deal with foreign citizens or corporations in the purchase of real estate in the United States as there are no other restrictions or limitations which the real estate professional needs to be concerned with
If you have any questions or if your clients require legal assistance please do not hesitate to refer them to DC Law
Contact DC LAW the law office of Johnson amp McKinney Inc for all of your real estate needs
Our attorneys have over 80 years collective experience serving the real estate community
real estate documentation ~ real estate litigation and disputes ~condemnation ~ water rights ~ environmental and toxic substance
Douglas County Law Dan McKinney
435 SE Kane
Roseburg OR 97470
541-673-4451
5
Page 5 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
UMPQUA BANK HIRES JAY COURON AS LOAN OFFICER FOR
HOME LENDING DIVISION
Douglas County OR ndash October 16 2012 ndash Umpqua Bank a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) hired Jay Couron as a Loan Officer for Umpquarsquos Home Lending division serving Douglas County He will be working with customers wanting to purchase a home or refinance an existing mortgage
ldquoJayrsquos clients will benefit from his extensive mortgage knowledge and experiencerdquo said Regional Vice President Jered Helton ldquoWe are glad to have him as part of our lending team in Roseburg and Douglas Countyrdquo
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom constructionremodel high balance and government financing programs
Couron is a long-time resident of Douglas County with over 11 years of mortgage lending experience He is the vice chair of the North Umpqua Planning Advisory Committee and active with the Douglas County Asso-ciation of Realtors He operates the C H Bailey House Bed amp Breakfast with his wife Sherry and has a young son Couron enjoys playing bocce travelling internationally scuba diving live music and eating good food
About Umpqua Bankrsquos Home Lending Division
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom construction and remodel high bal-ance and government financing programs Umpqua Bank has 18 residential home lending offices across California Oregon Washington and Nevada and mortgage specialists in each of its nearly 200 stores
About Umpqua Bank
Umpqua Bank headquartered in Roseburg Ore is a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) with locations between San Francisco and Seattle along the Oregon and Northern Cali-fornia Coast and in Central Oregon and Northern Nevada Umpqua Bank has been recognized for its inno-vative customer experience and banking strategy by national publications including The Wall Street Journal The New York Times BusinessWeek Fast Company and CNBC The company has been recognized for the past six years in a row on FORTUNE magazinersquos list of the countryrsquos ldquo100 Best Companies to Work Forrdquo Umpqua Holdings also owns a retail brokerage subsidiary Umpqua Investments Inc which offers services through Umpqua Bank stores and in dedicated offices throughout Oregon Umpquarsquos Wealth Man-agement Division serves high net worth individuals and nonprofits by providing customized financial solu-tions and offerings Umpqua Holdings Corporation is headquartered in Portland Ore For more information visit httpwwwumpquabankcom
6
Page 6 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
Debi Ashley Home Mortgage Consultant
Office 541-672-5700
Fax 541-957-5209
Mobile 541-430-6924
debraashleywellsfargocom
283 SE Fowler Street 1
Roseburg OR 97470
Linda Weldon MACP 6246-011
Home Mortgage Consultant
Office 541-957-5505
Fax 1-877-403-2497
Mobile 541-957-5505
lindaweldonwellsfargocom
1701 NW Garden Valley Blvd
Roseburg OR 97471
I have FREE postcards and brochures regarding ldquoYES on Measure 79rdquo Please feel free to stop by the RMLSDCAR office to pick some up Itrsquos a great way to stay in touch with your buyers and sellers Go door knocking around your neighborhoods or take a few to your Open Houses Get the word out that a YES on 79 vote stops the transfer tax
If you are planning to move to the iPhone 5
If you want to use the eKey with the new iPhone 5 PLEASE READ this message from Supra Apple has announced that the new iPhone 5 will be orderable in September This new phone has an updated operating system
called ldquoiOS 6rdquo and a different connector called ldquoLightningrdquo The Lightning connector is much smaller than Applersquos previous 30-pin
connector As a result the current eKEY iPhone Adapter will not plug directly into the new iPhone 5 Apple also announced it will
release a 30 pin to Lightning adapter Supra will obtain an iPhone 5 and Lightning adapter from Apple as quickly as possible Please be advised that until we have
tested our application and eKEY adapter with Applersquos products we cannot confirm that they will operate correctly
Supra customers who wish to run the eKEY application on an iPhone 5 may want to consider delaying their purchase of the
iPhone 5 until Suprarsquos testing is complete Supra plans to support the iPhone 5 We will confirm compatibility as soon as we
obtain technical information from Apple and will make engineering changes to our products if required We are also exploring
a fobadapter design that may not require Applersquos Lightning adapter and we will provide more information on that as it becomes
available
7
Page 7
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Are You Losing 30 of the Market 30 of all sales during 2nd Quarter 2012 were distressed properties - Source RMLS
How You Benefit List More Homes ~ Close More Sales ~ No Short Sale Headaches
How Your Sellers Benefit No-Obligation ~ Cancel Anytime ~ Private amp Confidential
What Others Are Saying About Us Real estate today has changed dramatically As a REALTOR I love working with Buyers and Sellers however many of
our Sellers are underwater meaning they owe more than their homes worth in todayrsquos market In that case we need to
accomplish a short sale This requires someone with short sale knowledge and negotiating skills unlike anything weve
needed in the past Linda Tipton has those skills Working with the short sale lenders is very time consuming and
frustrating Ive handed the short sale portion of my transactions to Linda This has left me free to enjoy my business
knowing that Linda will get the job done with the short sale lenders so my Buyers and Sellers can get on with their lives
ndash Patti Archambault REMAX Professional Realty
Linda has been handling my short sale escrows for the last couple of years She handles everything from start to finish
and keeps everyone updated through every step Her knowledge and experience are invaluable as well as her sensitivity
to the client I would highly recommend her services to anyone - Byron Frazer Garden Valley Realty
rdquoI will no longer take a short sale listing without Linda Her experience negotiation skills and knowledge of the short sale
process have been an incredible asset to me and my clients Her wonderful personality and easy going nature definitely
help all parties through the often frustrating and lengthy process My most current sale had 3 lien holders and Linda was
able to negotiate with each one to get a positive result I will continue to utilize Lindas services so that my clients receive
the great service and experience they deserve - Tracy G Century 21
Call us Today to Learn More
(541)673-6757
3000 Stewart Parkway Suite 104 Roseburg OR 97471
LindaOregonDMScom
DM-8008
4
FOREIGN OWNERSHIP OF US REAL PROPERTY
Page 4 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
By Dan G McKinney
Most real estate professionals are aware that few countries allow American citizens to purchase real estate in their country This is not the rule in the United States As US real property prices continue to stagnate and as the US dollar continues to weaken against foreign currency the United States real property has become a more attractive investment for foreign investors Foreign investment in US real property has increased from less than 6 Billion in 2009 to approximately 1337 Billion in 2010
With increasing foreign investment real estate professionals will continue to interface with foreign investors and this article is intended to allay your concern related to dealing with foreign investors
First the US permits acquisition of US real property by a foreign person The US does not tax or impose any filing obliga-tions simply upon acquiring ownership of the property by a foreign person It may be of interest to you that the US Department of Commerce Bureau of Economic Analysis does require a quarterly report by persons owning in excess of $40 Million of real estate which identifies and quantifies the nature of the real estate transactions by that person This is done so the US Department of Commerce will gain an understanding of the nature and amount of foreign holdings and identify foreign persons who hold substan-tial property in the United States This reporting is not a requirement by real estate professional and is imposed on the foreign persons holding US real estate
As you all know the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) does impose a reporting requirement upon the sale of real estate if the person selling the real estate is a foreign person It will require taxes to be withheld unless that person is otherwise identified as a US tax payer Again this is not typically the responsibility of the real estate professional and is ac-complished by the escrow agent although all real estate contracts contain a provision that FIRPTA compliance is required at clos-ing
As you may expect all rental income in the United States is subject to US income taxation and must be reported to the IRS This obligation to report is imposed upon the tenant
If a foreign person chooses to gift US real property the FIRPTA withholding requirements do not apply although the foreign donor is subject to the US gift tax at the regular gift tax rates (Internal Revenue Code 2501) A foreign individual making a gift of US real property is required to file form 709 to report taxable gifts of US real property
A foreign person is also subject to US estate tax on all property situated in the United States Currently only a minimal estate ndash tax exemption of $60000 is available to foreign individuals For this reason most foreign investors create a corporation which may include a foreign corporation for purposes of holding US situated assets to avoid the large taxable event upon death Any foreign investor choosing to purchase real estate in the United States should be referred to an attorney for purposes of preparing a corporation to avoid this outcome
In conclusion real estate professionals should feel free to deal with foreign citizens or corporations in the purchase of real estate in the United States as there are no other restrictions or limitations which the real estate professional needs to be concerned with
If you have any questions or if your clients require legal assistance please do not hesitate to refer them to DC Law
Contact DC LAW the law office of Johnson amp McKinney Inc for all of your real estate needs
Our attorneys have over 80 years collective experience serving the real estate community
real estate documentation ~ real estate litigation and disputes ~condemnation ~ water rights ~ environmental and toxic substance
Douglas County Law Dan McKinney
435 SE Kane
Roseburg OR 97470
541-673-4451
5
Page 5 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
UMPQUA BANK HIRES JAY COURON AS LOAN OFFICER FOR
HOME LENDING DIVISION
Douglas County OR ndash October 16 2012 ndash Umpqua Bank a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) hired Jay Couron as a Loan Officer for Umpquarsquos Home Lending division serving Douglas County He will be working with customers wanting to purchase a home or refinance an existing mortgage
ldquoJayrsquos clients will benefit from his extensive mortgage knowledge and experiencerdquo said Regional Vice President Jered Helton ldquoWe are glad to have him as part of our lending team in Roseburg and Douglas Countyrdquo
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom constructionremodel high balance and government financing programs
Couron is a long-time resident of Douglas County with over 11 years of mortgage lending experience He is the vice chair of the North Umpqua Planning Advisory Committee and active with the Douglas County Asso-ciation of Realtors He operates the C H Bailey House Bed amp Breakfast with his wife Sherry and has a young son Couron enjoys playing bocce travelling internationally scuba diving live music and eating good food
About Umpqua Bankrsquos Home Lending Division
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom construction and remodel high bal-ance and government financing programs Umpqua Bank has 18 residential home lending offices across California Oregon Washington and Nevada and mortgage specialists in each of its nearly 200 stores
About Umpqua Bank
Umpqua Bank headquartered in Roseburg Ore is a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) with locations between San Francisco and Seattle along the Oregon and Northern Cali-fornia Coast and in Central Oregon and Northern Nevada Umpqua Bank has been recognized for its inno-vative customer experience and banking strategy by national publications including The Wall Street Journal The New York Times BusinessWeek Fast Company and CNBC The company has been recognized for the past six years in a row on FORTUNE magazinersquos list of the countryrsquos ldquo100 Best Companies to Work Forrdquo Umpqua Holdings also owns a retail brokerage subsidiary Umpqua Investments Inc which offers services through Umpqua Bank stores and in dedicated offices throughout Oregon Umpquarsquos Wealth Man-agement Division serves high net worth individuals and nonprofits by providing customized financial solu-tions and offerings Umpqua Holdings Corporation is headquartered in Portland Ore For more information visit httpwwwumpquabankcom
6
Page 6 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
Debi Ashley Home Mortgage Consultant
Office 541-672-5700
Fax 541-957-5209
Mobile 541-430-6924
debraashleywellsfargocom
283 SE Fowler Street 1
Roseburg OR 97470
Linda Weldon MACP 6246-011
Home Mortgage Consultant
Office 541-957-5505
Fax 1-877-403-2497
Mobile 541-957-5505
lindaweldonwellsfargocom
1701 NW Garden Valley Blvd
Roseburg OR 97471
I have FREE postcards and brochures regarding ldquoYES on Measure 79rdquo Please feel free to stop by the RMLSDCAR office to pick some up Itrsquos a great way to stay in touch with your buyers and sellers Go door knocking around your neighborhoods or take a few to your Open Houses Get the word out that a YES on 79 vote stops the transfer tax
If you are planning to move to the iPhone 5
If you want to use the eKey with the new iPhone 5 PLEASE READ this message from Supra Apple has announced that the new iPhone 5 will be orderable in September This new phone has an updated operating system
called ldquoiOS 6rdquo and a different connector called ldquoLightningrdquo The Lightning connector is much smaller than Applersquos previous 30-pin
connector As a result the current eKEY iPhone Adapter will not plug directly into the new iPhone 5 Apple also announced it will
release a 30 pin to Lightning adapter Supra will obtain an iPhone 5 and Lightning adapter from Apple as quickly as possible Please be advised that until we have
tested our application and eKEY adapter with Applersquos products we cannot confirm that they will operate correctly
Supra customers who wish to run the eKEY application on an iPhone 5 may want to consider delaying their purchase of the
iPhone 5 until Suprarsquos testing is complete Supra plans to support the iPhone 5 We will confirm compatibility as soon as we
obtain technical information from Apple and will make engineering changes to our products if required We are also exploring
a fobadapter design that may not require Applersquos Lightning adapter and we will provide more information on that as it becomes
available
7
Page 7
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Are You Losing 30 of the Market 30 of all sales during 2nd Quarter 2012 were distressed properties - Source RMLS
How You Benefit List More Homes ~ Close More Sales ~ No Short Sale Headaches
How Your Sellers Benefit No-Obligation ~ Cancel Anytime ~ Private amp Confidential
What Others Are Saying About Us Real estate today has changed dramatically As a REALTOR I love working with Buyers and Sellers however many of
our Sellers are underwater meaning they owe more than their homes worth in todayrsquos market In that case we need to
accomplish a short sale This requires someone with short sale knowledge and negotiating skills unlike anything weve
needed in the past Linda Tipton has those skills Working with the short sale lenders is very time consuming and
frustrating Ive handed the short sale portion of my transactions to Linda This has left me free to enjoy my business
knowing that Linda will get the job done with the short sale lenders so my Buyers and Sellers can get on with their lives
ndash Patti Archambault REMAX Professional Realty
Linda has been handling my short sale escrows for the last couple of years She handles everything from start to finish
and keeps everyone updated through every step Her knowledge and experience are invaluable as well as her sensitivity
to the client I would highly recommend her services to anyone - Byron Frazer Garden Valley Realty
rdquoI will no longer take a short sale listing without Linda Her experience negotiation skills and knowledge of the short sale
process have been an incredible asset to me and my clients Her wonderful personality and easy going nature definitely
help all parties through the often frustrating and lengthy process My most current sale had 3 lien holders and Linda was
able to negotiate with each one to get a positive result I will continue to utilize Lindas services so that my clients receive
the great service and experience they deserve - Tracy G Century 21
Call us Today to Learn More
(541)673-6757
3000 Stewart Parkway Suite 104 Roseburg OR 97471
LindaOregonDMScom
DM-8008
4
FOREIGN OWNERSHIP OF US REAL PROPERTY
Page 4 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
By Dan G McKinney
Most real estate professionals are aware that few countries allow American citizens to purchase real estate in their country This is not the rule in the United States As US real property prices continue to stagnate and as the US dollar continues to weaken against foreign currency the United States real property has become a more attractive investment for foreign investors Foreign investment in US real property has increased from less than 6 Billion in 2009 to approximately 1337 Billion in 2010
With increasing foreign investment real estate professionals will continue to interface with foreign investors and this article is intended to allay your concern related to dealing with foreign investors
First the US permits acquisition of US real property by a foreign person The US does not tax or impose any filing obliga-tions simply upon acquiring ownership of the property by a foreign person It may be of interest to you that the US Department of Commerce Bureau of Economic Analysis does require a quarterly report by persons owning in excess of $40 Million of real estate which identifies and quantifies the nature of the real estate transactions by that person This is done so the US Department of Commerce will gain an understanding of the nature and amount of foreign holdings and identify foreign persons who hold substan-tial property in the United States This reporting is not a requirement by real estate professional and is imposed on the foreign persons holding US real estate
As you all know the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) does impose a reporting requirement upon the sale of real estate if the person selling the real estate is a foreign person It will require taxes to be withheld unless that person is otherwise identified as a US tax payer Again this is not typically the responsibility of the real estate professional and is ac-complished by the escrow agent although all real estate contracts contain a provision that FIRPTA compliance is required at clos-ing
As you may expect all rental income in the United States is subject to US income taxation and must be reported to the IRS This obligation to report is imposed upon the tenant
If a foreign person chooses to gift US real property the FIRPTA withholding requirements do not apply although the foreign donor is subject to the US gift tax at the regular gift tax rates (Internal Revenue Code 2501) A foreign individual making a gift of US real property is required to file form 709 to report taxable gifts of US real property
A foreign person is also subject to US estate tax on all property situated in the United States Currently only a minimal estate ndash tax exemption of $60000 is available to foreign individuals For this reason most foreign investors create a corporation which may include a foreign corporation for purposes of holding US situated assets to avoid the large taxable event upon death Any foreign investor choosing to purchase real estate in the United States should be referred to an attorney for purposes of preparing a corporation to avoid this outcome
In conclusion real estate professionals should feel free to deal with foreign citizens or corporations in the purchase of real estate in the United States as there are no other restrictions or limitations which the real estate professional needs to be concerned with
If you have any questions or if your clients require legal assistance please do not hesitate to refer them to DC Law
Contact DC LAW the law office of Johnson amp McKinney Inc for all of your real estate needs
Our attorneys have over 80 years collective experience serving the real estate community
real estate documentation ~ real estate litigation and disputes ~condemnation ~ water rights ~ environmental and toxic substance
Douglas County Law Dan McKinney
435 SE Kane
Roseburg OR 97470
541-673-4451
5
Page 5 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
UMPQUA BANK HIRES JAY COURON AS LOAN OFFICER FOR
HOME LENDING DIVISION
Douglas County OR ndash October 16 2012 ndash Umpqua Bank a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) hired Jay Couron as a Loan Officer for Umpquarsquos Home Lending division serving Douglas County He will be working with customers wanting to purchase a home or refinance an existing mortgage
ldquoJayrsquos clients will benefit from his extensive mortgage knowledge and experiencerdquo said Regional Vice President Jered Helton ldquoWe are glad to have him as part of our lending team in Roseburg and Douglas Countyrdquo
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom constructionremodel high balance and government financing programs
Couron is a long-time resident of Douglas County with over 11 years of mortgage lending experience He is the vice chair of the North Umpqua Planning Advisory Committee and active with the Douglas County Asso-ciation of Realtors He operates the C H Bailey House Bed amp Breakfast with his wife Sherry and has a young son Couron enjoys playing bocce travelling internationally scuba diving live music and eating good food
About Umpqua Bankrsquos Home Lending Division
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom construction and remodel high bal-ance and government financing programs Umpqua Bank has 18 residential home lending offices across California Oregon Washington and Nevada and mortgage specialists in each of its nearly 200 stores
About Umpqua Bank
Umpqua Bank headquartered in Roseburg Ore is a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) with locations between San Francisco and Seattle along the Oregon and Northern Cali-fornia Coast and in Central Oregon and Northern Nevada Umpqua Bank has been recognized for its inno-vative customer experience and banking strategy by national publications including The Wall Street Journal The New York Times BusinessWeek Fast Company and CNBC The company has been recognized for the past six years in a row on FORTUNE magazinersquos list of the countryrsquos ldquo100 Best Companies to Work Forrdquo Umpqua Holdings also owns a retail brokerage subsidiary Umpqua Investments Inc which offers services through Umpqua Bank stores and in dedicated offices throughout Oregon Umpquarsquos Wealth Man-agement Division serves high net worth individuals and nonprofits by providing customized financial solu-tions and offerings Umpqua Holdings Corporation is headquartered in Portland Ore For more information visit httpwwwumpquabankcom
6
Page 6 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
Debi Ashley Home Mortgage Consultant
Office 541-672-5700
Fax 541-957-5209
Mobile 541-430-6924
debraashleywellsfargocom
283 SE Fowler Street 1
Roseburg OR 97470
Linda Weldon MACP 6246-011
Home Mortgage Consultant
Office 541-957-5505
Fax 1-877-403-2497
Mobile 541-957-5505
lindaweldonwellsfargocom
1701 NW Garden Valley Blvd
Roseburg OR 97471
I have FREE postcards and brochures regarding ldquoYES on Measure 79rdquo Please feel free to stop by the RMLSDCAR office to pick some up Itrsquos a great way to stay in touch with your buyers and sellers Go door knocking around your neighborhoods or take a few to your Open Houses Get the word out that a YES on 79 vote stops the transfer tax
If you are planning to move to the iPhone 5
If you want to use the eKey with the new iPhone 5 PLEASE READ this message from Supra Apple has announced that the new iPhone 5 will be orderable in September This new phone has an updated operating system
called ldquoiOS 6rdquo and a different connector called ldquoLightningrdquo The Lightning connector is much smaller than Applersquos previous 30-pin
connector As a result the current eKEY iPhone Adapter will not plug directly into the new iPhone 5 Apple also announced it will
release a 30 pin to Lightning adapter Supra will obtain an iPhone 5 and Lightning adapter from Apple as quickly as possible Please be advised that until we have
tested our application and eKEY adapter with Applersquos products we cannot confirm that they will operate correctly
Supra customers who wish to run the eKEY application on an iPhone 5 may want to consider delaying their purchase of the
iPhone 5 until Suprarsquos testing is complete Supra plans to support the iPhone 5 We will confirm compatibility as soon as we
obtain technical information from Apple and will make engineering changes to our products if required We are also exploring
a fobadapter design that may not require Applersquos Lightning adapter and we will provide more information on that as it becomes
available
7
Page 7
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Most real estate professionals are aware that few countries allow American citizens to purchase real estate in their country This is not the rule in the United States As US real property prices continue to stagnate and as the US dollar continues to weaken against foreign currency the United States real property has become a more attractive investment for foreign investors Foreign investment in US real property has increased from less than 6 Billion in 2009 to approximately 1337 Billion in 2010
With increasing foreign investment real estate professionals will continue to interface with foreign investors and this article is intended to allay your concern related to dealing with foreign investors
First the US permits acquisition of US real property by a foreign person The US does not tax or impose any filing obliga-tions simply upon acquiring ownership of the property by a foreign person It may be of interest to you that the US Department of Commerce Bureau of Economic Analysis does require a quarterly report by persons owning in excess of $40 Million of real estate which identifies and quantifies the nature of the real estate transactions by that person This is done so the US Department of Commerce will gain an understanding of the nature and amount of foreign holdings and identify foreign persons who hold substan-tial property in the United States This reporting is not a requirement by real estate professional and is imposed on the foreign persons holding US real estate
As you all know the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) does impose a reporting requirement upon the sale of real estate if the person selling the real estate is a foreign person It will require taxes to be withheld unless that person is otherwise identified as a US tax payer Again this is not typically the responsibility of the real estate professional and is ac-complished by the escrow agent although all real estate contracts contain a provision that FIRPTA compliance is required at clos-ing
As you may expect all rental income in the United States is subject to US income taxation and must be reported to the IRS This obligation to report is imposed upon the tenant
If a foreign person chooses to gift US real property the FIRPTA withholding requirements do not apply although the foreign donor is subject to the US gift tax at the regular gift tax rates (Internal Revenue Code 2501) A foreign individual making a gift of US real property is required to file form 709 to report taxable gifts of US real property
A foreign person is also subject to US estate tax on all property situated in the United States Currently only a minimal estate ndash tax exemption of $60000 is available to foreign individuals For this reason most foreign investors create a corporation which may include a foreign corporation for purposes of holding US situated assets to avoid the large taxable event upon death Any foreign investor choosing to purchase real estate in the United States should be referred to an attorney for purposes of preparing a corporation to avoid this outcome
In conclusion real estate professionals should feel free to deal with foreign citizens or corporations in the purchase of real estate in the United States as there are no other restrictions or limitations which the real estate professional needs to be concerned with
If you have any questions or if your clients require legal assistance please do not hesitate to refer them to DC Law
Contact DC LAW the law office of Johnson amp McKinney Inc for all of your real estate needs
Our attorneys have over 80 years collective experience serving the real estate community
real estate documentation ~ real estate litigation and disputes ~condemnation ~ water rights ~ environmental and toxic substance
Douglas County Law Dan McKinney
435 SE Kane
Roseburg OR 97470
541-673-4451
5
Page 5 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
UMPQUA BANK HIRES JAY COURON AS LOAN OFFICER FOR
HOME LENDING DIVISION
Douglas County OR ndash October 16 2012 ndash Umpqua Bank a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) hired Jay Couron as a Loan Officer for Umpquarsquos Home Lending division serving Douglas County He will be working with customers wanting to purchase a home or refinance an existing mortgage
ldquoJayrsquos clients will benefit from his extensive mortgage knowledge and experiencerdquo said Regional Vice President Jered Helton ldquoWe are glad to have him as part of our lending team in Roseburg and Douglas Countyrdquo
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom constructionremodel high balance and government financing programs
Couron is a long-time resident of Douglas County with over 11 years of mortgage lending experience He is the vice chair of the North Umpqua Planning Advisory Committee and active with the Douglas County Asso-ciation of Realtors He operates the C H Bailey House Bed amp Breakfast with his wife Sherry and has a young son Couron enjoys playing bocce travelling internationally scuba diving live music and eating good food
About Umpqua Bankrsquos Home Lending Division
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom construction and remodel high bal-ance and government financing programs Umpqua Bank has 18 residential home lending offices across California Oregon Washington and Nevada and mortgage specialists in each of its nearly 200 stores
About Umpqua Bank
Umpqua Bank headquartered in Roseburg Ore is a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) with locations between San Francisco and Seattle along the Oregon and Northern Cali-fornia Coast and in Central Oregon and Northern Nevada Umpqua Bank has been recognized for its inno-vative customer experience and banking strategy by national publications including The Wall Street Journal The New York Times BusinessWeek Fast Company and CNBC The company has been recognized for the past six years in a row on FORTUNE magazinersquos list of the countryrsquos ldquo100 Best Companies to Work Forrdquo Umpqua Holdings also owns a retail brokerage subsidiary Umpqua Investments Inc which offers services through Umpqua Bank stores and in dedicated offices throughout Oregon Umpquarsquos Wealth Man-agement Division serves high net worth individuals and nonprofits by providing customized financial solu-tions and offerings Umpqua Holdings Corporation is headquartered in Portland Ore For more information visit httpwwwumpquabankcom
6
Page 6 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
Debi Ashley Home Mortgage Consultant
Office 541-672-5700
Fax 541-957-5209
Mobile 541-430-6924
debraashleywellsfargocom
283 SE Fowler Street 1
Roseburg OR 97470
Linda Weldon MACP 6246-011
Home Mortgage Consultant
Office 541-957-5505
Fax 1-877-403-2497
Mobile 541-957-5505
lindaweldonwellsfargocom
1701 NW Garden Valley Blvd
Roseburg OR 97471
I have FREE postcards and brochures regarding ldquoYES on Measure 79rdquo Please feel free to stop by the RMLSDCAR office to pick some up Itrsquos a great way to stay in touch with your buyers and sellers Go door knocking around your neighborhoods or take a few to your Open Houses Get the word out that a YES on 79 vote stops the transfer tax
If you are planning to move to the iPhone 5
If you want to use the eKey with the new iPhone 5 PLEASE READ this message from Supra Apple has announced that the new iPhone 5 will be orderable in September This new phone has an updated operating system
called ldquoiOS 6rdquo and a different connector called ldquoLightningrdquo The Lightning connector is much smaller than Applersquos previous 30-pin
connector As a result the current eKEY iPhone Adapter will not plug directly into the new iPhone 5 Apple also announced it will
release a 30 pin to Lightning adapter Supra will obtain an iPhone 5 and Lightning adapter from Apple as quickly as possible Please be advised that until we have
tested our application and eKEY adapter with Applersquos products we cannot confirm that they will operate correctly
Supra customers who wish to run the eKEY application on an iPhone 5 may want to consider delaying their purchase of the
iPhone 5 until Suprarsquos testing is complete Supra plans to support the iPhone 5 We will confirm compatibility as soon as we
obtain technical information from Apple and will make engineering changes to our products if required We are also exploring
a fobadapter design that may not require Applersquos Lightning adapter and we will provide more information on that as it becomes
available
7
Page 7
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Douglas County OR ndash October 16 2012 ndash Umpqua Bank a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) hired Jay Couron as a Loan Officer for Umpquarsquos Home Lending division serving Douglas County He will be working with customers wanting to purchase a home or refinance an existing mortgage
ldquoJayrsquos clients will benefit from his extensive mortgage knowledge and experiencerdquo said Regional Vice President Jered Helton ldquoWe are glad to have him as part of our lending team in Roseburg and Douglas Countyrdquo
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom constructionremodel high balance and government financing programs
Couron is a long-time resident of Douglas County with over 11 years of mortgage lending experience He is the vice chair of the North Umpqua Planning Advisory Committee and active with the Douglas County Asso-ciation of Realtors He operates the C H Bailey House Bed amp Breakfast with his wife Sherry and has a young son Couron enjoys playing bocce travelling internationally scuba diving live music and eating good food
About Umpqua Bankrsquos Home Lending Division
Umpqua Bank Home Lending is a full service lender offering a wide variety of home loan options for pur-chase and refinance including first time homebuyer investment custom construction and remodel high bal-ance and government financing programs Umpqua Bank has 18 residential home lending offices across California Oregon Washington and Nevada and mortgage specialists in each of its nearly 200 stores
About Umpqua Bank
Umpqua Bank headquartered in Roseburg Ore is a subsidiary of Umpqua Holdings Corporation (NASDAQ UMPQ) with locations between San Francisco and Seattle along the Oregon and Northern Cali-fornia Coast and in Central Oregon and Northern Nevada Umpqua Bank has been recognized for its inno-vative customer experience and banking strategy by national publications including The Wall Street Journal The New York Times BusinessWeek Fast Company and CNBC The company has been recognized for the past six years in a row on FORTUNE magazinersquos list of the countryrsquos ldquo100 Best Companies to Work Forrdquo Umpqua Holdings also owns a retail brokerage subsidiary Umpqua Investments Inc which offers services through Umpqua Bank stores and in dedicated offices throughout Oregon Umpquarsquos Wealth Man-agement Division serves high net worth individuals and nonprofits by providing customized financial solu-tions and offerings Umpqua Holdings Corporation is headquartered in Portland Ore For more information visit httpwwwumpquabankcom
6
Page 6 DOUGLAS COUNTY ASSOCIATION OF REALTORSreg
Debi Ashley Home Mortgage Consultant
Office 541-672-5700
Fax 541-957-5209
Mobile 541-430-6924
debraashleywellsfargocom
283 SE Fowler Street 1
Roseburg OR 97470
Linda Weldon MACP 6246-011
Home Mortgage Consultant
Office 541-957-5505
Fax 1-877-403-2497
Mobile 541-957-5505
lindaweldonwellsfargocom
1701 NW Garden Valley Blvd
Roseburg OR 97471
I have FREE postcards and brochures regarding ldquoYES on Measure 79rdquo Please feel free to stop by the RMLSDCAR office to pick some up Itrsquos a great way to stay in touch with your buyers and sellers Go door knocking around your neighborhoods or take a few to your Open Houses Get the word out that a YES on 79 vote stops the transfer tax
If you are planning to move to the iPhone 5
If you want to use the eKey with the new iPhone 5 PLEASE READ this message from Supra Apple has announced that the new iPhone 5 will be orderable in September This new phone has an updated operating system
called ldquoiOS 6rdquo and a different connector called ldquoLightningrdquo The Lightning connector is much smaller than Applersquos previous 30-pin
connector As a result the current eKEY iPhone Adapter will not plug directly into the new iPhone 5 Apple also announced it will
release a 30 pin to Lightning adapter Supra will obtain an iPhone 5 and Lightning adapter from Apple as quickly as possible Please be advised that until we have
tested our application and eKEY adapter with Applersquos products we cannot confirm that they will operate correctly
Supra customers who wish to run the eKEY application on an iPhone 5 may want to consider delaying their purchase of the
iPhone 5 until Suprarsquos testing is complete Supra plans to support the iPhone 5 We will confirm compatibility as soon as we
obtain technical information from Apple and will make engineering changes to our products if required We are also exploring
a fobadapter design that may not require Applersquos Lightning adapter and we will provide more information on that as it becomes
available
7
Page 7
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
I have FREE postcards and brochures regarding ldquoYES on Measure 79rdquo Please feel free to stop by the RMLSDCAR office to pick some up Itrsquos a great way to stay in touch with your buyers and sellers Go door knocking around your neighborhoods or take a few to your Open Houses Get the word out that a YES on 79 vote stops the transfer tax
If you are planning to move to the iPhone 5
If you want to use the eKey with the new iPhone 5 PLEASE READ this message from Supra Apple has announced that the new iPhone 5 will be orderable in September This new phone has an updated operating system
called ldquoiOS 6rdquo and a different connector called ldquoLightningrdquo The Lightning connector is much smaller than Applersquos previous 30-pin
connector As a result the current eKEY iPhone Adapter will not plug directly into the new iPhone 5 Apple also announced it will
release a 30 pin to Lightning adapter Supra will obtain an iPhone 5 and Lightning adapter from Apple as quickly as possible Please be advised that until we have
tested our application and eKEY adapter with Applersquos products we cannot confirm that they will operate correctly
Supra customers who wish to run the eKEY application on an iPhone 5 may want to consider delaying their purchase of the
iPhone 5 until Suprarsquos testing is complete Supra plans to support the iPhone 5 We will confirm compatibility as soon as we
obtain technical information from Apple and will make engineering changes to our products if required We are also exploring
a fobadapter design that may not require Applersquos Lightning adapter and we will provide more information on that as it becomes
available
7
Page 7
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Residential Sales Activity for the Last 90 Days
Douglas County Oregon
Period Ending October 15 2012
$0-99000
Total Listed 133 Minimum Sold Price $5000 Total Active Units 217
Total Sold 100 Average Sold Price $56225 Units SoldMonths Back 333
Median Sold Price $54000 Months of Inventory 65
Maximum Sold Price $98500
$100000-199000
Total Listed 191 Minimum Sold Price $100000 Total Active Units 346
Total Sold 120 Average Sold Price $148587 Units SoldMonths Back 400
Median Sold Price $149400 Months of Inventory 87
Maximum Sold Price $198000
$200000-299000
Total Listed 101 Minimum Sold Price $200000 Total Active Units 191
Total Sold 45 Average Sold Price $244965 Units SoldMonths Back 15
Median Sold Price $244500 Months of Inventory 127
Maximum Sold Price $295000
$300000-399000
Total Listed 42 Minimum Sold Price $300000 Total Active Units 105
Total Sold 16 Average Sold Price $328143 Units SoldMonths Back 53
Median Sold Price $318750 Months of Inventory 197
Maximum Sold Price $365000
$400000-499000
Total Listed 25 Minimum Sold Price $400000 Total Active Units 58
Total Sold 6 Average Sold Price $431650 Units SoldMonths Back 20
Median Sold Price $422450 Months of Inventory 290
Maximum Sold Price $490000
8
Page 8
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
ldquo
$500000-599000
Total Listed 12 Minimum Sold Price $510000 Total Active Units 26
Total Sold 1 Average Sold Price $510000 Units SoldMonths Back 3
Median Sold Price $510000 Months of Inventory 78
Maximum Sold Price $510000
$600000-699000
Total Listed 4 Minimum Sold Price $615000 Total Active Units 16
Total Sold 2 Average Sold Price $655000 Units SoldMonths Back 07
Median Sold Price $655000 Months of Inventory 24
Maximum Sold Price $695000
$700000-999000
Total Listed 9 Minimum Sold Price 0 Total Active Units 29
Total Sold 0 Average Sold Price 0 Units SoldMonths Back 0
Median Sold Price 0 Months of Inventory 0
Maximum Sold Price 0
$1000000+
Total Listed 4 Minimum Sold Price $1400000 Total Active Units 13
Total Sold 1 Average Sold Price $1400000 Units SoldMonths Back 03
Median Sold Price $1400000 Months of Inventory 39
Maximum Sold Price $1400000
Low Valuation in Home Appraisals Caus-ing Steady Level of Contract Glitches
Media Contact Walter Molony 202-383-1177 Email
WASHINGTON (October 10 2012) ndash The real estate market is recovering but still faces hurdles notably from tight mortgage credit but problems with a sizeable share of real estate appraisals also are holding back home sales according to survey findings by the National Association of Realtorsreg
Most appraisers are competent and provide good valuations that are compliant with the Uniform Standards of Professional Appraisal Practice However appraisals generally lag market conditions and some changes to the appraisal process have been causing problems in recent years including the use of out-of-area valuators without local expertise or full access to local data inappropriate comparisons and excessive lender demands In addition before the beginning of last year some lendersrsquo loan processors edited valuations cutting them by a certain percentage
Although 65 percent of Realtorsreg surveyed in September report no contract problems relating to home appraisals over the past three months 11 percent said a contract was cancelled because an appraised value came in below the price negotiated between the buyer and seller 9 percent reported a contract was delayed and 15 percent said a contract was renegotiated to a lower sales price as a result of a low valuation These findings are notable given that homes in many areas are selling for less than replacement construction costs
Continued on page 8
9
Page 9
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Come Celebrate a Stitch in Time at Seven Feathers Casino Resort on
October 5th
Meet with exhibitors offering the best in services tools and technology for your business Learn from industry experts and get credit for classes
Pre-registration is required for classes but not required to attend the Trade Fair itself so you can explore exhibitor booths to your hearts content Check out the two classes we are offering during the Trade Fair this year
1000am to 1130am - Uncertified Oregon Woodstoves (15 Oregon CE) presented by Todd Bowers Pillar to Post
100pm to 330pm - Play the Fair Housing Jeopardy Sales Game (25 Oregon CE) presented by Jo Becker Fair Housing Council of Oregon
Click here to view our flyer for more details Remember to pre-register for classes as they fill up quickly
Reminder Dont forget your business cards for door prize drawings happen-ing throughout the day
Western Title amp Escrow Jennifer McIntosh 580-8735 jmcintoshwesterntitlecom
The Douglas County Association of REALTORSreg THANKS all of our Affiliates that join us in support of what we stand
for which is Home Ownership Private Property Rights Free Enterprise Community Service and Good Government
Looking for a Contact Person Check out our Affiliate List
10
Page 10
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Lawrence Yun NAR chief economist said there has been a steady level of appraisal issues for quite some time ldquoThough the real estate recovery is taking place the combined issues of stringent mortgage lending requirements and appraisal frictions are hampering otherwise qualified buyers from purchasing a home in a timely fashion and in some cases are preventing them from buying at allrdquo he said Major problems reported by Realtorsreg include
bull Some appraisers are using foreclosures short sales and run-down properties as comparable homes and are not mak-ing adjustments for market conditions or the condition of the property
bull Appraised values that do not reflect market conditions such as rising prices the presence of multi-bidding and low in-ventory
bull Appraised values are very inconsistent and fluctuate widely
bull Out-of-town appraisers who are not familiar with the area or local market conditions are being used
Turn-around time by both appraisers and banks is slow which delays closings A large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aversion on the part of the lender Furthermore unrea-sonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic require-ments for appraisers
There is a clear difference between the value of distressed property and non-distressed homes and some appraisers do not currently distinguish between these types of properties when making comparisons for valuation purposes NAR data shows that the typical foreclosure is sold for an average discount of 20 percent relative to traditional homes in good condition while the typical short sale is discounted by 15 percent
Many of the inappropriate comparisons appear to be made by appraisers lacking local expertise who generally live outside of the market where the appraised property is located ndash often without full access to local data from a multiple listing service
NAR President Moe Veissi broker-owner of Veissi amp Associates Inc in Miami said some appraisal practices lack com-mon sense ldquoOur long-standing policy is that all appraisals should be done by licensed or certified professionals with lo-cal expertise which also is what Fannie Mae and Freddie Mac recommend but clearly this isnrsquot practiced universallyrdquo he saidA large concern is that some appraisers working for an Appraisal Management Company are operating under strict and limited parameters due to bank lending criteria which appears to be related to banking regulations or risk aver-sion on the part of the lender Furthermore unreasonable ldquoput backrdquo risks imposed by Fannie Mae and Freddie Mac could also cause banks to set unrealistic requirements for appraisers
NAR has long advocated for an independent appraisal process and enhanced education requirements that allow ap-praisers to produce the most accurate reports possible However appraisers have faced undue pressure ndash whether from a lender or an AMC ndash to complete appraisals using distressed sales as comps to complete an appraisal in an unac-ceptably short time frame and to complete a scope of work that is not justified by the fee being offered
These are major problems In addition some appraisers are required to provide as many as eight to 10 comparable sales which almost guarantee the use of distressed properties as comps in many cases
Previously three comparable homes were the norm for most appraisals In many cases there simply arenrsquot enough ap-ples-to-apples comps to comply with the excessive demands by lenders so discounted distressed homes are sometimes used in valuating traditional homes in good condition without appropriate adjustments
ldquoIn short there has been an inconsistent appraisal process leading to disruptive delays for home buyers and sellersrdquo Veissi said ldquoAll home valuations should be made without undue pressure from any source Even so buyers sellers and agents are free to ask appraisers to consider additional data and to correct errors or discuss unique aspects of the home the neighborhood or properties used as compsrdquo
The appraisal industry has made strides in adapting to market conditions expanding education and making appropriate adjustments for distressed homes that are used as comps It appears many of the remaining problems are tied to ap-praisals made through AMCs
Continued on Page 9
11
Page 11
APPRAISERS Contact Phone Fax or Email
Applegate Appraisal Service Todd M Wilson 580-0978 toddwilsondouglasfastnet
Dozhier Appraisal Service Kathryn Dozhier 672-6658 672-6659
Appraisal Source Brett Findlay 459-6222 459-8222
West Coast Valuations Inc Lawrence Carter 808-221-7410 bumkinmecom
Lisa Martin Real Estate Appraisal Lisa Martin 957-8900 677-8815
Lonnie R Ferber R E Appraisals Lonnie Ferber 673-7446 673-8711
Pamela S Simleness RE Appraiser Pamela Simleness 826-5654 simlenessgmailcom
RL Card Real Estate Appraisal Ron Card 673-7241 673-1540
Wentz amp Co Real Estate Appraisal Glenn Wentz 672-2790 440-1436
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
Looking for a Contact Person Check out our Appraiser List
Fortunately the level of distressed sales is trending down ndash they accounted for about one-third of all sales in 2011 but have averaged roughly a quarter of sales in recent months By 2013 NAR expects the distressed mar-ket share to decline to about 10 to 15 percent As distressed inventory is cleared from the market over the next two years it should help to correct ongoing problems
ldquoIn the meantime buyers sellers and real estate agents need to be aware that there are problems with some real estate appraisals but also be aware of their rights to communicate with appraisers and lenders about errors or concerns with individual valuationsrdquo Veissi said ldquoIn some cases a second appraisal may be justifiedrdquo The National Association of Realtorsreg ldquoThe Voice for Real Estaterdquo is Americarsquos largest trade association rep-resenting 1 million members involved in all aspects of the residential and commercial real estate industries
Data on appraisal issues are from a monthly survey for the Realtorsreg Confidence Index posted at wwwRealtororg The findings from a panel of NAR members typically are based on more than 3000 monthly responses NOTE Existing-home sales for September will be reported October 19 at 1000 am EDT
(Low Valuations in Home Appraisals continued)
12
Page 12
13
Page 13
Affiliate Spotlight
The Douglas County Association of REALTORSreg THANKS all of our Affiliates
that join us in support of what we stand for which is Home Ownership Private Property Rights Free Enterprise Community Service and
Good Government
14
Your DCAR REALTORreg Store
Douglas County Association of REALTORSreg
10 REALTORreg Brand
items
Expires October 31st
Committee Chairs
Political Affairshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Richard Chasm
