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Politics and Policies of Rent Control Page 10

Business Toolkits Page 20

How Will You Retire? Page 24

If Real Estate Is Your Job, Then Politics Is Your Business. Since the last edition of this magazine, we have been busy protecting the real estate industry, private property rights, and homeownership. On April 12th, more than 850 Oregon REALTORS® came together for the biennial REALTOR® Day at the Capitol in support of legislative policies that protect homeownership and the American dream for all Oregonians. I was thrilled to see so many of our members in Salem advocating for policies that make homeownership affordable and achievable for more Oregonians. The value of homeownership is under attack, and it’s critically important that Legislators hear from people in their local communities today and throughout the entire year.

George Grabenhorst 2017 OAR President

The mission of OAR is to stand up for private property rights and homeownership in Oregon. We achieve our mission by advocating for legislation and candidates that align with our priorities. This year, we are laser-focused on working together with our members and state officials to protect tax benefits for homeowners, fight new schemes to tax homes, and ensure our land use system works for all Oregonians. We took our mission to Washington D.C. in May. OAR leadership traipsed the halls of Congress delivering that message to our entire Congressional delegation from Oregon. The NAR Mid-Year Legislative Meetings in Washington D.C. are held every year in May when REALTOR® leaders from all the world converge on D.C....and Capitol Hill certainly takes notice! I urge you all to participate and get involved with your Association by attending the OAR Fall Convention in Portland this October 3-6. There will be many quality education classes, speakers, and panels…not to mention some fun, food, and networking with other REALTOR® professionals from all over our great state. You are also welcome to attend the OAR Governance Meetings and observe your elected volunteer leadership at work on your behalf. I hope to see you in Portland this October. Thank you,

Oregon REALTORS on the steps of the U.S. Capitol during NAR’s Mid-Year Meetings ®

George Grabenhorst 2017 OAR President

Leadership Forum

HOME Foundation

Local Association & Board Update

Legal News

Oregon Leadership Academy

Member Benefits

Local ROTY Winners

Online Learning

Politics and Policies of Rent Control

How Will You Retire?

REALTOR® Owned Technology Sweetens Showings

Start on Your GRI Path

RPAC Hall of Fame Inductee

The Value of Automated Value Models

Fair Housing

Updates From NAR’s Mid-Year Meetings

Hiring the Right Drone Pilot

Homeownership Facts

Leadership Forum

Steve Strode,

2017 OAR President-Elect

After several years of holding our Fall Convention and Governance meetings in Sunriver, we’re on the move. Mark your calendars (and register now!), for October 3rd - 6th. This year, we’ll be in the heart of the Rose City at the Portland Marriott Downtown Waterfront Hotel. Invest in yourself, become a better agent to your clients, make some important referral connections - all while having some fun with your REALTOR®-peeps from across the state. We have great speakers and events lined up, and we look forward to another successful convention!

The Business Issues Key Committee is committed to working on issues that impact your business. The Raise the Bar Workgroup continues to move forward to promote and establish professionalism in our industry. The bill we introduced this Legislative Session did not pass, but we will continue to work with the Oregon Real Estate Agency to pass the bill next year and ensure any legislation passed will abide to their standards. We are having a Principal Broker/Broker Forum during the Fall Convention in Portland on Tuesday, Oct. 3. We hope to see you there!

Dave Brow,

Chair of Business Issues Key Committee

One of the most important events of the year is the OAR HOME Foundation’s TASTE OF PORTLAND. We have raised over one million dollars, all of which goes back to your local communities to support affordable HOMEownership. No matter where you live in Oregon, it’s worth the trip to attend and enjoy this great REALTOR® event. Hope to see you there.

Debra Gisriel,

2017 OAR Immediate Past President

Vikki Breese-Iverson, Chair of Government Affairs Key Committee

The PAKC is focused on improving and expanding OAR’s Key Constituent program. An OAR Key Constituent is a REALTOR® that communicates and advocates directly with their elected State Representative or Senator on behalf of OAR members and its policies. If you are interested in learning more about becoming a Key Constituent, please contact our Political Affairs Manager, Jihun Han, at

Heather Benjamin,

Chair of Political Affairs Key Committee

The next Call-to-Action is likely the most important action to take as a member of the Oregon Association of REALTORS®. While very capable and active lobbyists represent our organization, it is important for our members to listen and act when our team asks us for cooperation on contacting our legislators. Our GAKC is very active, meeting every other week, to stay abreast of what is happening during the 2017 Legislative Session and how it will affect your business and our industry. Please support these efforts, ask questions, and respond to our Calls-to-Action!

OAR education is in full member service mode with recorded webinars available for CE credit online! Interact CE (formerly Real Estate Game Works) is expanding & enhancing their programs! Don’t forget the EXIT STRATEGY Mini-Course & Seminar being offered this fall. Are you wanting to retire someday, but don’t know how you can do it? Maybe you want to buy a business? These fall courses will help. Read more on page 24. Sign up today, as space is limited!

Gail Rogers,

Chair of Professional Development Key Committee

Interested in joining a Key Committee? Are you politically minded? Do you get excited about tracking legislation that could have a big impact on the industry? Perhaps education is your bag. Or you’re tapped into the regulatory side of things and how that impacts daily practice. If so, WE NEED YOU! As a volunteer-led organization, this is your chance to help shape the direction of the Association. Find more information and the application online, submission deadline August 14th. 4

Leadership Forum

What is a DVP? Each District Vice President (DVP) is selected by the Presidents of each local association/board in their respective district. The DVP’s primary goals are to assist the OAR President, represent the Association, and serve as a conduit of information between the Executive Committee and their respective District. Northwest Oregon

Southwest Oregon

Coast & Valley

High Desert

Lane County

Columbia Gorge & Eastern Oregon

Clatsop County, Columbia County, East Metro, Portland Metropolitan

Lincoln, North Willamette, Polk County, Salem, Tillamook, Willamette, Yamhill County Central Oregon Coast, Eugene, Springfield

Cheryle Clunes,

District Vice President (DVP) of Northwest Oregon

Coos County, Curry County, Douglas/ Grants Pass, Rogue Valley

Central Oregon, Klamath County

Columbia Basin, Four Rivers, MidColumbia, Northeast Oregon, Umatilla Carl Carter will be coming to Portland in September to speak about REALTOR® Safety. The Beverly Carter Foundation ( is an independent nonprofit dedicated to the idea that every agent goes home safely every day by providing research-driven information, consulting, training, and support at no charge. Beverly Carter, a REALTOR® in North Little Rock, Arkansas, was kidnapped and murdered in September 2014 while doing the work she loved. Since her death, Carl, Beverly’s son, has spoken to tens of thousands of agents across the nation. Everyone is invited to attend this event.

The seven local boards that make up the Coast & Valley District are all busy with local community activities. Fundraisers, golf tournaments, and other events help our REALTOR® members support their communities for a variety of causes. Markets continue to be strong, and all of our members report this is a busy season.

Beth Caster,

District Vice President (DVP) of Coast & Valley

Our three local boards have been busy planning future events – fundraisers, social events, trainings, and more! On June 17th, we held a REALTOR® Food Drive and on July 7th we are holding a REALTOR® Golf Tournament. Both events will benefit Food for Lane County and other area food banks.

Donna Charko,

Teresa Zamora,

District Vice President (DVP) of Lane County

District Vice President (DVP) of Southwest Oregon

COAR and KCAR have both been very busy as of late! Congratulations to Mark Knust for being awarded the 2017 REALTOR® of the Year for the Klamath County Association, well deserved! We are also very excited for the Consumer Outreach campaign taking place in Central Oregon. As you well know, REALTORS® are integral leaders in the community, so now is the time to let your neighbors know that “We are Here!”

Michael Aid,

District Vice President (DVP) of High Desert

Coos County Board of REALTORS® has brought monthly GRI courses to their members, with excellent attendance. Curry County Board of REALTORS® are working on getting more brokers and affiliates involved. Rogue Valley Association of REALTORS® was involved in REALTORS® Care Day on June 16 – helping the Boys & Girls Clubs in Talent, Grants Pass, and Illinois Valley. Douglas County Association of REALTORS® will be holding their charity golf tournament in July to support the Umpqua College and Special Olympics. Grants Pass Chapter of Douglas County Association of REALTORS® had another great annual Easter Egg Hunt.

The District 6 market is very active and going strong. The appraisal crisis is at the forefront of our mind, as it is with everyone. Our appraisal times are long and VA appraisers retiring without replacements is a growing concern. We are planning to have an OAR REALTOR® BBQ in Boardman and Hermiston in mid-July, exact date TBA, but all are welcome!

John Howard,

District Vice President (DVP) of Columbia Gorge & Eastern Oregon


Local Association & Board Update District 1 - Northwest Oregon •

Clatsop Association

Last year our broker membership grew substantially! The challenge is that the market didn’t, making marketing yourself very difficult. Marketing and technology courses that are provided by the local associations really help those who take advantage of it. We strive for our members to succeed.

Portland Metropolitan Association

Willamette Association Next month the Willamette Association will be partnering with SAR, NWAR, and Polk County for a very informative Legislative Update. This is YOUR CHANCE to hear about important legislation that came out of the 2017 Session and how it will affect you, your clients, and your business! You won’t want to miss this! Save the date for July 19, 1:00-3:00PM at the Linn County Expo Center (3700 Knox Butte Rd. E, Albany). This session will be open to the Public.

PMAR’s Masters Circle named Cheryle Clunes, Summa Real Estate Executives, their Managing Broker of the Year and Kendall Bergstrom Delancellotti, The Hasson Company, REALTORS®, their Broker of the Year. They also held a silent auction and raised $10,730 for Northwest Children’s Outreach. PMAR will host a “Financial Exploitation of Seniors & Adults with Disabilities Forum” on June 29th.

Yamhill Country Association June 2nd the Yamhill County Association of REALTORS® held their Third Annual Golf Tournament raising funds for RPAC and the HOME Foundation. With 58 golfers, 10 Sponsors, and a beautiful day at Michelbook Country Club in McMinnville, YCAR REALTOR ® Members and Affiliates was able to raise over $3,000 for the charities.

District 2 - Coast & Valley

District 3 - Lane County

Lincoln County Board On June 1st, Lincoln County Board of REALTORS® Scholarship Committee awarded one $4,000 scholarship to a 2017 graduating Lincoln County High School Student. We love being able to give back to our community!

North Willamette Association NWAR is gearing up for our annual golf tournament at the Evergreen Golf Course in Mt. Angel. All are invited! It’s a great networking opportunity and only $35 (includes dinner); a portion of proceeds benefit Habitat for Humanity. Register online:

Central Oregon Coast Board Central Oregon Coast Board of REALTORS® reports a short Spring/ early Summer. This has brought a very busy time for REALTORS® in our beach community. Three scholarships of $1,000 each were awarded to local students. Our annual Food Drive with Bi-Mart is coming up and we plan on record breaking contributions.

Eugene Association Summer is officially here, and that kicks off a series of Community Service Projects for the Eugene Association of REALTORS®. On June 17th, EAR, along with other Lane County Associations, participated in the annual Lane County REALTOR® Food Drive. There were REALTOR® Teams set up at all area Bi-Mart Stores, collecting can goods and cash donations for Food For Lane County and other local area Food Banks. On July 7th, EAR will participate in the 6th annual REALTOR® Golf Tournament, also raising money for Food For Lane County.

Polk County Association PCAR has had some great classes over the last few months. Our charities have been retirement centers, food banks, and we also donated almost $2000 to Relay For Life…all raised by our members. Soon we will be doing a Habitat for Humanity in Keizer, and we will also be holding a get-together in August to continue to strengthen our board. We, as a whole, are very encouraged with our strength together and more excited than ever.


Tillamook County Board Tillamook County Board of REALTORS® are working within the community to reduce SDC’s and housing issues. Several of our members are on the Housing Task Force and recently brought the local housing study to our membership. We are working to be the change we all wish to see in Tillamook County.

East Metro Association EMAR continues to grow and has recently broken the 1,000 member mark, yet still maintains that “you’re a part of our family” philosophy! Our volunteers have been VERY busy. We are making great strides in becoming the go-to association for CE Education, and most of our CE education is free. At our recent EMAR SUPER Meeting, we raised money for RPAC with a silent auction and had a lot of fun! EMAR has already done two separate canned food drives for our local food banks and have several additional projects planned for community involvement.

SAR kicked off a scholarship program this year, and presented two local high school graduates with $500 scholarships. Our annual ‘Virtual Food Drive’ is underway, giving support to the Marion Polk Food Share, and awarding the office with best participation the ‘Hunger Fighter’ award. The government affairs committee rallied support for the city of Salem’s police facility bond measure that recently passed.

Columbia County Board Columbia County Board of REALTORS® invited County Commissioners to attend their May Board of Directors meeting and will meet with local mayors in August. They continue to offer free CE, including an RPR Class and an Appraisal Update. They also increased their social media reach with a new Facebook page.

Salem Association

Springfield Board The Springfield Board of REALTORS® is working on a membership drive to help grow our association with new members and affiliates. We have several fundraisers to help out Food for Lane County; a food drive in June and a Golf Tournament in July. Both events are partnered with several other associations.

Local Association & Board Update

District 4 - Southwest Oregon

District 6 - Columbia Gorge & Eastern Oregon

Coos County Board

Curry County Board

Douglas/Grants Pass Association Douglas County Association of REALTORS® is gearing up for our UCAN Food Drive. Expect an update once our (sure to be record breaking) final numbers are in! June 23rd will be our Second Annual Affiliate Appreciation BBQ, and we are in the midst of planning our Annual Charity Golf Tournament for July 21st.

Mid-Columbia Association We are sad to see our AE, Jeana Beck, move on to bigger things, but also wanted to thank her for everything she has done for our community and members of the Mid-Columbia Association!

Rogue Valley Association RVAR is working on our Summer BBQ and RPAC Cornhole Tournament in July and our 25th Annual Ashland Golf Tournament and Raffle in September. The raffle prize is a trip for two to Paris, France for the 2018 Ryder Cup. Raffle tickets are $100 each. Call RVAR 541-770-7060 for details.

Four Rivers Association Four Rivers has provided many free classes for its members. We have raised money for battered women and children, we have been a part of a home buyers fair where we educated the public on the importance of using a REALTOR®. Upcoming events include the kick-off of our REALTOR® Safety campaign in June and July which will consist on educating our members on how to practice safety in today’s world of real estate. August we are holding a family movie night during the Eclipse, where we will promote REALTORS® and what our Association does for the local community.

CCBR is very excited…our six newest members are all under the age of 30! Look for a new Young Professionals Network coming soon to Curry County Board of REALTORS®

Columbia Basin Board Columbia Basin has a new AE! Our market is booming! Prices are up and interest rates are great; however, our inventory remains low. Membership numbers continue to do well, and we are gearing up for our upcoming community events!

We brought the GRI classes down to Coos County and have had tremendous success and great attendance. We are focused right now on partnering with local organizations and businesses that help with the housing crisis.

Northeast Oregon Association The Northeast Oregon Association of REALTORS® is happy to announce that Jamie Welley is the new Association Executive! Welcome aboard!

Umatilla County Board The members of the Umatilla County Board of REALTORS® have been very busy this spring. Homes are selling fast and furious here in our area. The Board continues its Community Service Projects in addition to this busy time. We will be hosting Rick Harris in Pendleton on June 29th to present LARRC and Code of Ethics for our members and surrounding Boards.

District 5 - High Desert •

Central Oregon Association The COAR PR Committee launched our 2017 Consumer Outreach campaign entitled We’re Here to demonstrate REALTORS® connection to our communities. It focuses on member’s role as community leaders and neighbors. It will feature television, print and radio ads as well a social media campaign. #WeReHere #COARealtors

Klamath County Association Congratulations to our 2017 REALTOR® of the Year, Mark Knust with Fisher Nicholson Realty! KCAR Membership is at 167 members and MLS membership is at 175. Michael Spencer will be presenting “Stump the Attorney at our June 21st MLS meeting. 2 hours of CE credit will be given!


Member Spotlight

Oregon Leadership Academy

Congratulations to the 2017 graduates of the Oregon Leadership Academy! It was the culmination of a five-month, three-session, training and development program held

in locations across the state. Through the program, the Association identifies emerging REALTOR® leaders, motivates them, and sharpens their leadership skills. Following completion, the Association expects graduates to exert a strong, positive influence on the future of the Association and the real estate profession. Look out for these up-and-comers in future leadership positions for your industry!

Are you interested in attending the 2018 Oregon Leadership Academy? Find the application and more information at

Joining Leadership Academy was one of the best professional moves I could have made. It enabled me to connect and grow in ways that I never expected, allowing me to provide the highest and best value to our clients and industry by gaining knowledge and insight far greater than my own transactions and experiences. Leadership has opened my eyes to real estate at a whole new level. I feel empowered being able to provide insight to my clients about real issues that impact our industry and their private property rights.

Attending OLA gave me the confidence to continue the path that I am currently on as a REALTOR®. It enabled me to better understand my role as a leader in the industry, but most importantly, the genuine passion I have for this business. A byproduct of the Leadership Academy is the connections I made with my other classmates and becoming an active part in friendship, professionalism, and the expanded sphere of REALTORS® stretching across the state.

I became President of my local board the year after I graduated from OLA. The knowledge and experience I gained from my year in the Leadership Academy equipped me to be a much better President than I would have been. Even more incredible, however, have been the relationships I built with my fellow OLA graduates. While it’s great to have new professional connections, it’s been more than that. Now they’re my friends.

Jessica Tindell, OLA Class of 2015 Portland Metro Association of REALTORS®

Hector Garcia, OLA Class of 2015 Salem Association of REALTORS®

Adam Schwend, OLA Class of 2016 Tillamook County Board of REALTORS®




Member Spotlight

Local REALTOR® of the Year Winners Please join us in saying CONGRATULATIONS to all of the local REALTOR® of the Year winners! Each Local Associaton/Board nominated these exceptional REALTORS® for their outstanding service to in their REALTOR® organizations, the real estate profession, and their community.

Central Oregon Association of REALTORS® Louie Hoffman RE/MAX Key Properties

Central Oregon Association of REALTORS® Tim Sapp T R Hunter Real Estate Inc.

Columbia Basin Board of REALTORS® Heidi Carver RE/MAX Cornerstone

Columbia County Board of REALTORS® Patsy Evert John L. Scott, Inc.

Cottage Grove Board of REALTORS® Mike Gottlieb Mountain View RE & Property Mgmt

Curry County Board of REALTORS® Karen Kennedy Re/Max Ultimate Coastal Prop.

Douglas/Grants Pass County Board of REALTORS® LouAnn Osborn Trueblood Real Estate

East Metropolitan Association of REALTORS® Anthony Castro The Broker Network, LLC

Eugene Association of REALTORS® Dave McBride Keller Williams Realty

Klamath County Association of REALTORS® Stacy Ellingson Fisher Nicholson Realty, LLC

Lincoln County Board of REALTORS® Mary O’Connor Coldwell Banker Gesik Realty

Mid-Columbia Association of REALTORS® Becky Schertenleib Columbia Gorge Real Estate

North Willamette Board of REALTORS® Valerie Boen Harcourts NW Oregon Realty Group

Northeast Oregon Board of REALTORS® Sharron Langdon RE/MAX Real Estate Team

Polk County Association of REALTORS® Nancie Rogers Windermere Western View Properties

Portland Metro Association of REALTORS® Jeff Wiren Premiere Property Group LLC

Rogue Valley Association of REALTORS® Kim Hurley Coldwell Banker Pro West R.E

Salem Association of REALTORS® Joni McClintock Sundance Realty

Springfield Board of REALTORS® Grace Brown RE/MAX Integrity

Tillamook County Board of REALTORS® Barb Taylor Kiwanda Coastal Properties

Umatilla County Board of REALTORS® Kevin Hale Coldwell Banker Whitney & Assoc.

Willamette Association of REALTORS® Angela Stuckart RE/MAX Integrity

Yamhill County Association of REALTORS® Carrie Palmore Premiere Property Group, LLC


Public Policy Status Report

Politics and Policies of Rent Control Rent control has become the hot button issue during the 2017 legislative session. Will rent control ensure the quality and quantity of affordable housing needed in our state? I do not think so. Let ‘s look at what rent control actually is and how it hurts the very people it is supposed to help. Oregon has a supply and demand issue when it comes to affordable housing. Rent control will not solve this problem. Economists from both the right and left agree that rent control does not increase the likelihood that more affordable homes

will be built. In a May 1992 American Economic Review, 93% of economists agreed that a ceiling on rent reduces the quantity and quality of housing available. Rent control is an economic concept of government-imposed price control which leads to price distortions. The longer a person stays in their apartment, the more they benefit from the low market rent. People in rent-controlled apartments pay significantly lower rent than the true market value. Even though this would seem to benefit renters, it typically results in the opposite. Because the landlord is not allowed to raise rents to the current market level, there is very little incentive to make improvements or even keep up 10

with maintenance. Landlords work to keep their expenses at the bare minimum just to break even. Furthermore, landlords would have no fear of losing their current tenants, making a “good” tenant less appreciated. If they did lose a tenant, there would still be a long line of potential renters waiting to move in. In the end, this would lower the quality of living, for the renter and landlord alike. Another consequence is that new residential construction is geared toward the very wealthy in cities where the rent

is controlled by the government. The vast majority of new residential construction in New York, for instance, is geared toward those who can afford rents above the controlled limit. Many opt to outright buy their apartment rather than rent. This creates an immense gap in affordable housing. How has the concept of Rent Control played out this session in Oregon? As introduced at the start of the 2017 session, HB 2004 was the perfect illustration of the intersection of policy and politics. In a good housing market, as home prices and rents rise, “rent control” becomes an exceptionally popular concept. The economic story,

however, illustrates serious unintended long-term consequences. Consequences that negatively impact those who would advocate in favor: renters. Rent control is a bad policy. Economists across the board agree on this. Landlords have little incentive to keep up the quality of rent-controlled units. Tenants in rent-controlled housing are unlikely to move, suppressing long-term economic growth. New residential construction will be geared toward those who can afford the above rent-controlled price limit, increasing

the economic gap in affordability. This session, HB 2004, with all its flaws, was pushed through the House with a one-vote margin. Fortunately, it has been met in the Senate with a more rational audience. I am relieved that today this legislation no longer contains “rent control” provisions. However, HB2004 still contains issues that need much work before Oregon REALTORS® will lift our opposition. Until then, we continue to support policies that are beneficial for both renters and property owners alike.

REALTORS® Property Resource (RPR)

REALTOR® Owned Technology Sweetens Showings Today, consumers have access to more real estate data than any other time in history so it’s the REALTOR®’s job to have the right data at the right time, and be able to both show and tell her way through a tour. For those who believe real estate is nothing more than showing houses, think again. Yes, real estate is a relationship building business where one’s reputation and people skills are critical to success. Those play quite well when showing houses. Yet the industry has changed … a lot. And the value a REALTOR® brings to the table with regard to information has almost surpassed one’s ability to wave a client through a newly renovated kitchen. Today, consumers have access to more real estate data than any other time in history so it’s the REALTOR®‘s job to have the right data at the right time, and be able to both show and tell her way through a tour. Powered by technology, any REALTOR® can easily integrate the show and tell factor into a successful buyer tour, said Audrey Porter Plummer, a REALTOR® practicing with Coldwell Banker in Clifton, New Jersey. Audrey said the two dynamics came together for her once she adopted the Realtors Property Resource® (RPR®) app, the national real estate data and reporting platform offered exclusively to members of the National Association of REALTORS®. “Once I came to know the power of RPR and how it applies to every facet of my business, I started bringing an iPad to every showing so that I was always prepared to demonstrate my expertise to clients” said Audrey, a REALTOR® for 17 years. “This way, I’m showing them the house both physically and virtually, giving them the entire backstory, and even showing them everything that’s available in the area, all on my iPad.”

Audrey says her buyers “are amazed” when she pulls up RPR maps to show them the value of every house in the neighborhood, including photos, tax info, sold prices, mortgage information and more. Moreso, buyers will ask if there are any listings nearby and all Audrey needs to do is move the map with a finger to search other neighborhoods or do a list-view search based on the client’s preferences. To make things even more streamlined, Audrey can tap on a listing, show the client everything there is to know about the home, and touch an icon to immediately call the listing agent to schedule a showing. “My clients think I’m the best techie REALTOR® ever!” said Audrey. “But actually RPR is the easiest program in the world to use.”

“I had heard about this member benefit called RPR but wasn’t quite sure what to make of it. Played around on the site and couldn’t believe what I saw. So I called the customer service line and said, ‘There’s a catch, right? You’re giving this to me now but you’re going to add fees later on?’ Now I get it. It’s part of our dues!”

Audrey Porter Plummer has been a full time NJ REALTOR® since 2000. Her areas of expertise including servicing first time home buyers, sellers and investors. Her coverage areas include Essex, Morris, Passaic, Bergen and Union counties. Audrey focuses on old-fashioned professionalism, integrity and top-notch service which becomes lost so easily in this techie era. ‘Every client is special, no matter their price range’ is a motto she abides by which results in referrals every time.

Audrey Porter Plummer Coldwell Banker Residential Brokerage Clifton, NJ


REALTORS® Political Action Committee

RPAC Hall of Fame Inductee The REALTORS® Political Action Committee, or RPAC, – a national bipartisan grassroots-based political advocacy organization – has added another name to its “Hall of Fame.” Debra Gisriel, a REALTOR® from the Klamath County Association of REALTORS® and 2016 OAR President was recently inducted into the RPAC Hall of Fame, in recognition of her contribution and support in May at the NAR Mid-Year Meetings. “RPAC is there to help shape the future of our industry,” said Gisriel. “I’m proud to be a part of the Hall of Fame, and even prouder to have been a supporter all these years.”

Please join us in congratulating Debra Gisriel and all of our Oregon REALTORS® that have made the commitment to invest in RPAC which is an investment in your business, private property rights, and your future.

The Hall of Fame recognizes dedicated members whose RPAC investments total an aggregate of at least $25,000. The first RPAC Hall of Fame class was inducted in 2002 and contained only 22 REALTORS®. Across the country, over 770 individuals have been inducted into the RPAC Hall of Fame. Gisriel joins 7 Oregon REALTORS® currently in the RPAC Hall of Fame – John Baker (Central Oregon Association of REALTORS®), Carol Dozois (Eugene Association of REALTORS®), Rick Harris (Rogue Valley Association of REALTORS®), Dave Hemenway (Cottage Grove chapter of the Eugene Association of REALTORS®), Pat Kaplan (Portland Metro Association of REALTORS®), Alan Mehrwein (Portland Metro Association of REALTORS®), and Bernie Young (Rogue Valley Association of REALTORS®).

What is RPAC? RPAC is a voluntary political action committee whose membership consists of REALTORS® and affiliates interested in actively and effectively protecting the real estate industry and the dream of homeownership by participating in government affairs at the local, state, and federal levels. Although RPAC does not back political parties and does not get involved in presidential politics, it does back congressional candidates who have strong records of supporting homeownership and private property rights. RPAC supports the REALTOR® Party – vote, act, invest!



Homeownership Matters, But Opportunity is Essential

Next year marks the 50th anniversary of the Fair Housing Act, Title VIII of the Civil Rights Act of 1968, which articulates a national policy of fair housing without regard to race, color, religion, sex, familial status, handicap, and national origin.

It is my hope that here in Oregon we do not simply commemorate the milestone year, without truly assessing both how far we have come – and the work we have to do. With respect to equality and opportunity, Oregon is definitely a mixed bag. Today, to the outside world, we’re often viewed as a bastion of tolerance – a people eager to accept all. But we have an ugly past that we haven’t shed entirely. Consider these not-so-fun facts, quoted from the Fair Housing Council of Oregon: Until 1926, Oregon’s Constitution prohibited African Americans from living in the state. Oregon once had the largest Ku Klux Klan population per capita in the nation. As late as the 1960s, cities and towns throughout our state had “sundown laws” that prevented African Americans and Asians from staying overnight. It wasn’t until the early 1960s that the National Association of REALTORS® released a new version of the “Code of 14

Behavior” (Code of Ethics) that expressly stated membership could not be “limited to those effecting integrity, competence, reputation, and credit standing”; i.e., race, gender, nationality and other physical/ personal attributes were not acceptable qualifications for membership. In fact, the National Association of Real Estate Brokers (NAREB), “REALTISTS” formed in 1947 as an equal opportunity and civil rights organization for Black real estate professionals, operating separately from NAR. Today, agents from NAREB sit on NAR’s Diversity Committee, along with representatives from the Asian Real Estate Association of America (AREAA) and National Association of Hispanic Real Estate Professionals (NAHREP). To some, the 1960s may seem like ancient history; but to many it seems like just yesterday.

and today, I’d wager a guess that some areas would be trying to write in restrictive covenants under Religious Freedom Laws. And on a personal level, the courts enabled people like me to get married in states that would’ve dragged their feet for a very long time!

By 1917, the Supreme Court voided zoning based on race. So instead, property owners and local governments used deed restrictions based on race and religion. Property rights continued to be denied until 1948 when the Supreme Court ended federal court enforcement of racially restrictive covenants.

You’ll be hearing more from NAR leadership about the 50th Anniversary as we approach next year, and as your OAR President in 2018, I look forward to playing my part to mark the occasion. Oregon has endeavored to right our wrongs, and we’ll keep moving forward!

You may be asking yourself - so what? How is that relevant today - other than to commemorate how far we’ve come in 50 years? First, it illustrates the importance of the judiciary as a check against majority tyranny. As we all know, the third branch doesn’t exist just to bless the other two branches. If it was up to waiting for popular opinion to evolve and win a majority at the ballot box, equal housing opportunity would have taken decades and decades longer;

Second, our history is still not fully behind us. A recent Inman article by Bernice Ross, entitled “Why Redlining and Discrimination are Still Real Estate’s Problem,” illustrates the issues that still persist with redlining, predatory lending, and other barriers to entry. Even in 2017, lawsuits are being filed, and compensation is being paid, by banks accused of charging African American and Hispanic borrowers higher rates than comparable White applicants.

Steve Strode 2017 OAR President-Elect

Hiring the Right Drone Pilot With rapid innovation and adoption, drones are becoming a common sight in Oregon. They can be seen surveying farmers’ fields, inspecting construction sites, and filming aerial footage for television spots and theatrical productions. In most cases, drone pilots follow the rules. However, some drone owners fly commercially without understanding the law--or, worse, willingly violate the rules of the sky. What these pilots do not know or choose to ignore may end up costing them or their clients a tremendous amount of money in fines or lawsuits. The Federal Aviation Administration (FAA) considers drones “aircraft.” To fly commercially, even over your own construction site, farm, or property, pilots need to have what is called a Part 107 Remote Pilot Certificate. Even if someone offers to fly “for free” in the hope that you might one day hire them, those flights are considered commercial. Not only can you get in trouble with the FAA, if there is an incident you may be personally on the hook if you or someone you hired flew without the right licenses. In fact, most insurance policies these days specifically exclude coverage for drones and aircraft.

Obtaining a Part 107 commercial license requires pilots to pass a knowledge test and a background check by Homeland Security. Test takers are required to understand airspace classifications and restrictions, drone-specific regulations, weather, and a number of other topics. While one can self-study, there are many courses available, and it is likely that local community colleges will begin offering training courses. Passing the knowledge test is an accomplishment, but becoming a proficient pilot often requires years of flying. If a person already holds a pilot’s certificate, the process to receive a “UAS” endorsement is straightforward, and details can be found on the FAA’s website. When hiring a commercial drone pilot, protect yourself from liability and ask to see a copy of his or her Part 107 Remote Pilot Certificate. Ask for a certificate of insurance that specifically covers commercial use of unmanned aircraft. Do not accept Academy of Model Aeronautics (AMA) insurance, as they only cover hobbyist flights and exclude commercial operations. Ensure that the insurance is for at least $1 million, preferably $2 million or more. Do not be afraid to ask for an operations manual. Check and make

sure that pilots are authorized to fly in certain locations. This is especially important when flying near airports such as Portland International Airport. Most of NE Portland is in Class C airspace where pilots need specific written authorization; ask to see a copy of your pilot’s Class C authorization. If you are requiring a flight at night, ask the pilot for a copy of their daylight waiver. Commercial pilots may not fly at night without a waiver. As with any service, ask for references. Avoid the low-baller who may not have the experience that you need. If you are asking for photos or video, ask for demo media. Look for tilted horizons, jerky camera motions, fisheye distortion, or the classic shaky jello. These are all hallmarks of inexperience or a lack of attention to detail. Check for a professional website and social media presence. Most of all, look for pilots who are thoughtful, professional, and take pride in their work. Drones have the potential to provide many benefits to businesses, but businesses should always look to abide by the rules to ensure that they don’t get fined or get dragged into costly lawsuits.

A 5-year veteran drone pilot with a passion for aerial cinematography and photography, Kenji Sugahara is the CEO of Ariascend Corporation and a principal at Dronescape Consulting. An attorney, he is also one of the first Part 107 pilots in Oregon. He helps advise the Oregon Legislature on drone issues, is the Policy Director for the 25,000 member Drone User Group Network, and is an Oregon Tourism Commissioner. An active member of the community, he serves as an advisor for a STEM initiative in Yamhill County, Oregon. In September of 2013, he was part of a team that was the first to fly a drone inside a state capitol building. His clients have included the Oregon Department of Transportation, Tillamook Coast, Microsoft, Friends of the Columbia Gorge, and Motor Trend Magazine. He may be reached at



WE HAVE YOU COVERED Through our family of companies and agency relationships, Ticor Title covers 29 counties in the state of Oregon for all your title and escrow needs.


COUNTIES SERVED Baker Benton Clackamas Clatsop Columbia Coos

Crook Deschutes Douglas Harney Hood River Jackson

Jefferson Josephine Klamath Lake Lane Lincoln

a Fortune



Linn Malheur Marion Morrow Multnomah Polk

Tillamook Umatilla Wasco Washington Yamhill

HOME Foundation

Your REALTOR® charity What is the HOME Foundation? The Oregon Association of REALTORS® HOME Foundation is a 501(c)(3) charity that provides financial resources to create, expand, and encourage homeownership opportunities for Oregonians at or below local median income. It also promotes awareness of affordable housing issues by educating Oregonians and their representatives about the barriers to homeownership and the resources needed to increase housing affordability. Despite best efforts, far too many Oregonians in today’s workforce simply can’t afford the American Dream. We understand that homes stabilize families, and we want that to be achievable for more Oregonians.

The Oregon REALTORS® HOME Foundation gives back to your communities. Your contributions to the HOME Foundation provide much-needed funds to organizations dedicated to the development, maintenance, or repair of affordable housing. Since founded in 2004, the HOME Foundation has awarded grants totaling more than $1,000,000 to organizations supporting affordable housing in every corner of Oregon. Fundraising occurs year round with flagship events such as the Driving it HOME Golf Tournament in July and the Taste of Portland in September. Events held in local communities, such as the Rogue Valley Association of REALTORS® Food & Wine Classic in March, raise money that all stays in the local area.

july 20 th   (sold out)  

Driving it HOME Golf Tournament The Driving it HOME Golf Tournament is a great way to network with other industry professionals while enjoying a fun afternoon of golf, food, and drinks. This year is already sold out, but you can still participate by purchasing raffle tickets! You can potentially win $500 and support the HOME Foundation, without leaving your house! 1 ticket for $10 and 3 tickets for $20.


Taste of Portland

The Taste of Portland is the premier industry cocktail party in Oregon! Enjoy some of Portland’s best food and drinks, shop and bid on the silent auction items, and mingle with hundreds of real estate industry attendees to benefit the OAR HOME Foundation. Buy your tickets early to reserve your place; this event is sold out every year! 17

Legal News

LEGAL COMPETENCY BY ROBERT LOWE, vice president & counsel old republic title | oregon

TITLE & ESCROW The Legal Competency of a Party to the Transaction The lack of mental competency of a seller to legally participate in the sale of their real property could be an issue of first consideration in the transaction. Communications between agents and escrow officers should begin as soon as it is apparent that the competency of a party to act might be an issue. In other words, the title and escrow company can only do what they do if the seller or buyer both know what they are doing. Escrow officers are trained to identify “potential” signs of mental incapacity. When the possibility presents itself, the title company’s management and possibly legal counsel could be involved prior to the closing of the sale. This does not mean that a real estate agent or an escrow officer will be expected to draw the “legal” conclusion that a party is or is not competent. What should be expected is the discussion of how the issue will be resolved when first presented. The failure to discuss the “possibility” of incompetency could increase the risk of termination of the transaction or delays while the competency of the party is assessed. According to court decisions, a person cannot enter into a valid contract if the person’s reasoning ability does not enable them to understand the contract’s quality and consequences. 18

Examples of factors that could be considered: •  The party’s ability to articulate the reasoning behind the decision to act. •  The irregularities of the party’s state of mind. •  The party’s ability to understand the consequences of the decision. •  The irreversibility of the decision. •  The substantive fairness of the transaction. •  The consistency of the transaction with the party’s future commitments. •  The undue pressure on the party by someone who may have an interest in the sale.

A buyer’s title insurance policy provides assurances for certain “Covered Risks”. The language providing coverage concerning the capacity of a party to act is as follows: The title insurance company insures against loss or damage sustained by or incurred by the insured by reason of: 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from

(a) A defect in the Title caused by

(ii) forgery, fraud, undue influence, duress,    incompetency, incapacity or impersonation.

If it is determined prior to closing that a party is incompetent, there will be further issues concerning who can legally act on behalf of the party. This could involve the approval of the use of a previously prepared power of attorney or a court proceeding such as a conservatorship.

Legal News

Questions from the Legal Hotline:

Returning a buyer’s earnest money is not always so simple. By jenny Pakula, Esq. VP Legal Affairs & Business Development   Oregon Association of REALTORS®

LEGAL HOTLINE Get unlimited opportunities to ask real estate related questions to an attorney specializing in real estate and contract law for only $125 per year! Subscribe to OAR’s Legal Hotline for M-F 9-12 hotline and 24/7 email access to real estate attorneys. Right now, the prorated cost is just $62.48 for July joiners. Don’t miss this deal!

Question: I represent a buyer that is in contract with a seller that misrepresented the property. When the buyers wrote the offer, the property was advertised as having more acreage, more river frontage, lower taxes, and the home was not in a floodplain. The seller would only agree to the buyer’s offer if they paid full list price regardless of the appraisal. After the inspections were performed, we learned that the seller does not own as much river frontage as represented and the owner of the additional land would not agree to an easement. In addition, the taxes were double, the acreage was a bit less and the home is in the floodplain increasing the insurance premium significantly. Also, the appraisal came in at $85,000 less than list price. The buyers cannot get financing due to high ratios and they don’t have enough down. If the buyers and sellers can’t work something out, will the seller get to keep the earnest money? Answer: You mean would the seller be awarded the earnest money if the buyers refuse to purchase. Probably not, but it will depend on a couple things. First, there are the contingencies of the sale. The most commonly used form has a compound finance contingency that makes the deal contingent on the property and the buyer “qualifying for the loan” AND “the lender’s appraisal not being less than the purchase price.” It sounds like the buyer waived the appraisal part, but, depending on exactly how that was done, that may have affected the “qualifying for the loan” part. That is especially true given the other issues with the property, as a lender might well decline to lend on such property without regard to the appraisal. There is also a professional inspections contingency that may be implicated, assuming there have been professional inspections and reports that could reasonably serve as the basis for the buyer’s unconditional disapproval of the property based on any inspection reports. The second issue is whether the after discovered defects are material, as in “latent material defects.” That is, that they are significant enough that a reasonable person in the same circumstances would have considered them when determining the price or terms of the contract HAD THEY BEEN KNOWN OR APPARENT. All of these issues are very fact sensitive and are almost always viewed differently by buyers and sellers. There is no way to predict how a court would react to a particular presentation of the facts in a particular circumstance. That means the seller might refuse to release the earnest money if it is in escrow. In that case, the buyer would have to sue (probably in small claims court) to get it back. That ultimately means that before your clients make up their mind about the contract, you should advise them to seek the advice of an attorney based on all the facts of the transaction and most importantly, make sure you document in your records any advice you provide. Do not give legal advice about the meaning of the contract or the buyers rights or obligations under it, as that would be the unlicensed practice of law.


OAR Featured Benefit

Business Toolkits

OAR has developed several toolkits to benefit you and your business. They are hosted on the OAR website and updated regularly as new information becomes available. These toolkits provide risk management education, business tools, and services to reduce risk and increase profitability, and keep you abreast of current issues affecting the real estate industry. Find them at

Risk Management

DMCA Toolkit

The risk management toolkit is a reference guide intended to inform about professional real estate practices in Oregon. Topics covered include: advertising regulation, fair housing law, making legal cold calls, Agency relationships, dealing with FSBOs, commission issues, forms, multiple offers, contract performance, short sales, and initially identifying, analyzing, and mitigating risk.

Do you really know who owns the pictures you’re using to showcase your listing? The DMCA guide was developed to educate and guide members through the precautions and steps you can take to protect yourself within the provisions of the Digital Millennium Copyright Act (DMCA). The guide also includes sample language and forms, and is designed to inform you about the dangers of using third-party images, or images you find on the internet, on your own website without proper permissions.

Buyer/Seller Advisories

Flood Insurance Toolkit

The buyer/seller advisories are resources available to members that provide invaluable advice. These resources include:

The flood insurance toolkit hosts a collection of documents, links, videos, and resources designed to help Oregon REALTORS® navigate the world of Flood Insurance. Topics covered include: FEMA flood insurance update, FEMA’s Rate Relief Program, FEMA’s Hazard Mitigation Assistance (HMA) Program, elevation certificates, and FEMA flood map appeal.

 • Oregon property buyer advisory  • Oregon property seller advisory  • Sample client engagement letter  • Initial agency disclosure pamphlet

Chock full of helpful information for your clients (translatable into many languages, too), these documents are a great member benefit. Feel free to link to them from your own website or emails to pass the information along to your buyers and sellers. They’ll thank you for your service and appreciate the value you bring as a REALTOR®. 20



Market your listings, service your clients, get leads and brand yourself WITH YOUR REALTOR.COM® PROFILE Market your listings over 53MLS Million consumers* every month Promote your brand withto NAR and credentials and personal recommendations from colleagues, Evolving consumer experience designed to increase leads and engagement friends andPromote family your brand with NAR and MLS credentials and personal from colleagues, Enhanced web recommendations and mobile experiences


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Build your online reputation and experience and name of yourimprove brokerage.your search engine ranking with help Get started Subject to sold data availability by MLS ® SEO from * As compared with consumers who did not view a full profile. Based on test of seven brokerage firms conducted from July 2015 through November 2015. 1

The Winner **To contribute to House Talk, please go to® and start posting to demonstrate your expertise in your local market. You are all-set with a Winner’s profile and showcasing your expertise to the world. Share the link of 1 Subject to sold your data availability by MLS fabulous profile with your client base. Coming soon: With your contributions to House Talk you will * Move, Inc internal second calendarinquarter 2016 of neighborhood experts at the bottom of the page. be metrics, eligible to be featured the carousel

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Work and Play, the Real Estate CE Game Using simulation mechanics, Interact CE is an interactive learning app that goes through the life of a real estate broker. Within the game,  you navigate the world of a REALTOR®, grow your business, take courses, and earn Oregon qualified CE credit for your next renewal. Play the free demo to test it out and check out the Interact CE website for more details. OAR is excited to offer you this new, exciting way to experience online education. We hope you enjoy it! *As of May 1, 2017, Real Estate Game Works re-branded into Interact CE. We are happy to partner with Interact CE to provide a new take at online CE with simulations and interactive learning that is proven to be more effective than other modes of online education. Save 10% off any purchase by using discount code: ORNEWCE


Experiential Learning

Real Scenarios

Instant Certificate Technology

Typical CE can be boring. Interact CE presents ‘real’ situations via simulations to give you the best learning experience.

Use an avatar to navigate the world of a real estate professional.

Under a time crunch? Print your certificate instantly. Get your license renewed on time!

Meets all State Requirements

Play anywhere on any device

Money Back Guarantee

Course content has been approved by the Oregon Real Estate Agency for CE credit.

Your course follows you where you go. Play anywhere you have an internet connection and get your credits fast and easy.

Interact CE offers a 30 day, 100% money back guarantee. If you don’t like it, Interact CE will refund you!

Oregon REALTORS® Online Learning

We have courses from A(ppraisals) to Z(ipForms)! OAR has developed an online learning platform called Oregon REALTORS® Online Learning to deliver our past webinars for CE credit at a minimal cost - $10/course. Watch and earn CE hours at your convenience and an excellent price!

Oregon REALTORS® Online Learning

With enough CE hours for an entire renewal, you can get your education while at home, during down time at the office, or traveling! Use your computer, tablet, or phone to browse the course catalog at Oregon REALTORS® Online Learning today.

Current Course Catalog •  2017 OREF Forms Changes - 1.5 CE hrs •  Avoiding the Specter of Elder Abuse - 1 CE hr •  Basics of Easements - 1 CE hr •  Closing Disclosure Changes, CFPB Rules & How They Affect You - 1 CE hr •  DEQ Septic Inspection Disclosure Rules - 1 CE hr •  Facts & Data on the New LP Siding - 1 CE hr •  Fiduciary Duties and Working with Multiple Parties - 1 CE hr •  Flood Insurance Program Changes - 1 CE hr •  Home Inspections: Preparing for the Unexpected - 1 CE hr •  How to Master Your zipForm® Program - 3 CE hrs •  Issues Impacting Appraisals - 1.5 CE hrs •  Legal Capacity: Working with a Questionably Competent Client - 1.5 CE hrs •  Omitted Property Issues - 1.5 CE hrs •  Property Management - 1 CE hr

As a member of OAR, you will continue to be able to watch our webinars live for the great value of $19/location or watch the free recorded webinar for your edification only (no CE credit) by logging into our Webinar Library: oregonrealtors. org/education/webinar_library. The recorded webinars we post on the Webinar Library are not valid for CE credit; they are only for your edification.

•  Property Taxes and The Appeal Process - 1.5 CE hrs •  Reading and Understanding Title Reports - 1 CE hr •  Real Estate Implications of Marijuana Legalization - 1.5 CE hrs •  Reverse Mortgages 101 - 1 CE hr •  Seller-Carry Financing: The Role of a Real Estate Licensee - 1.5 CE hrs •  The Credit System is Changing - 1 CE hr •  The Golden Handoff - 1 CE hr •  The Green Rush: What are your Obligations under Oregon’s Marijuana Laws? - 1 CE hr •  The Green Rush Part II: Navigating Real Estate Issues - 1 CE hr •  They Finally Got Hitched - RESPA and TILA Tie the Knot - 1.5 CE hrs •  Transactions Involving Bankruptcy - 1 CE hr •  Updates for Selling Oregon HUD Homes - 1.5 CE hrs

* More courses will be added every month.


Exit Strategy Courses

How Will You Retire? Are you building your business to sell? Do you know how to retire? How do you avoid mistakes when you sell your business? Retiring from real estate is a daunting task. Let Judy LaDeur help you on your path! Whether you are a young agent just starting out or ready to hand off your business to someone else, Judy will give you guidelines and techniques to ensure you are setting up yourself for success. Everyone deserves to retire comfortably, why should real estate be any different? We are offering two Exit Strategy courses this fall to help you retire.

Join Judy LaDeur after Fall Convention for her limited seating Exit Strategy Mini-Course on Friday, October 6th from 1 – 3pm. She will cover building a business to sell, pitfalls to avoid, contracts, and more! The cost is $25 and you earn 2 CE hours, but space is limited. Register today to reserve a spot:

A recent NAR survey indicated that 87% of all agents surveyed, plan to walk away from their real estate business without even trying to sell it! You have worked hard to build that business and you should definitely be selling it if you are retiring or relocating.


Are you hungry for more and really want to bite into this topic? Join Judy for a full-day Exit Strategy course that will go into great detail on how to build, train, and sell your business. You will be given practical advice and shown tools you can use in your own business. You can’t afford to miss this course in Portland on Thursday, November 9th from 9am –  4pm. The cost is $125 and you earn 6 CE hours. Register today:

Graduate REALTORS® Institute

The Graduate REALTOR® Institute (GRI) designation is a way to stand out to prospective homebuyers and sellers as a REALTOR® who has the fundamentals of real estate and gained in-depth knowledge on technical subjects. It takes more to succeed than just motivation and initiative. The GRI will give you tools for your continued success.

Complete 30 hours of GRI Core Courses.

Start On Your GRI Path

Courses are being offered across Oregon. Find one near you:

Complete 30 additional hours of GRI Content. Either additional GRI Core Courses or approved NAR designations/ certifications, like ABR or e-PRO . ®


Register for GRI Graduation online. Complete and submit your GRI Graduation Application with all required documentation.

OAR will verify your application and notify you of your GRI status within two weeks.

Do you want to become a member of the OAR GRI Instructor Pool? We are accepting applications for OAR GRI Instructors now through Friday, September 1st. If you believe you are a good fit and would like to teach GRI courses with OAR, find the application at We will be contacting all applicants by Friday, October 6th after the Professional Development Key Committee has reviewed them.

• 13 Core Courses

• Nationally Recognized Designation

• 3 or 6 hours course length

• No Annual Fees

• All are approved for Oregon CE credit

• Boost Your Earning Potential

• Courses range from negotiation to finance, risk management to sellers

• Only 60 Total Hours

• No required courses. Mix and match the courses you want to take to earn your hours.

• Local, Quality Courses


Where’s the Real Value in Automated Valuation Models? A handful of organizations offer Automated Valuation Models (AVMs) yet not one is 100 percent accurate. The truth lies in the types of data that AVM providers use to generate the AVM.

The problem with AVMs Although most AVMs are readily and publicly available to consumers, real estate agents, appraisers and lenders, they carry distinct disadvantages. First, without a physical inspection, AVMs do not factor in a property’s condition and thereby rely on “average condition” scenarios when determining value. Second, AVMs draw from public records sources which can be inaccurate and incomplete. So says Karen France, senior vice president of Association and MLS Services at Realtors Property Resource® (RPR®). “Public records are known for being incomplete and slow to react to changing market trends,” said France. “There can be a delay for transactions to be recorded at the local courthouse and then even longer to be published electronically. Every courthouse has their own procedures and many of them are not electronic.” In some cases, AVMs include listing information licensed from an MLS which, in turn, can provide a more accurate representation of comparable on-market properties and information acquired from a prior physical inspection. Yet, according to France, if MLSs are only sharing on-market listings with an AVM provider, rather than both on-and off-market information, the AVMs generated are only painting part of the picture when it comes to the estimated value. “Many things can distort the estimated value of a property, including situations where a property is unusual compared to its neighborhood counterparts, access to off-market data is limited or missing, or you’re working in an area with a lot of new construction,” said France. Perhaps the greatest concern rising from the public dissemination of AVMs is the prevalence of misinformation delivered by consumer-facing real estate websites. Lower values may prompt low-ball offers, used by buyers as a negotiating point; whereas overinflated values create unrealistic expectations among sellers who want every dollar squeezed out of their property. 26

Low inventory levels in a market can also affect the quality of the AVM. Fast-moving markets with low inventories cause prices to rise dramatically and quickly, so it’s important to know when the AVM was last updated. An agent’s expertise in determining market value is critical in fast-moving markets, such as the Silicon Valley, especially when a home’s list price is dramatically higher than the AVM. Kyle Else, a REALTOR® with Keller Williams in Palo Alto, California, specializes in working with relocation clients who have little time to waste when purchasing in one of the country’s hottest markets.

“Demand is everything here and, because of that, we take pricing very seriously,” said Else. “It often happens that a home’s list price is significantly higher than the AVM. The AVM might say $4.4 million but the list price is closer to $8 million. In these cases, I use RPR’s REALTOR® Valuation Model® (RVM®) to refine the comps based on high demand, rare property features and other market data; then sit down with my client to have a discussion on my best RVM.”

The Value of Automated Value Models

The Role of the REALTOR® With Regards to AVMs The open-market availability of AVMs, especially to consumers, has become a double-edged sword for REALTORS® as well. It can be a challenge to counter a seller’s expectations when there’s a 5 percent price variance on the estimate he found online. On a $300 thousand home, that margin of error can amount to $15 thousand. Of course, there are times when the reported AVM is good news for both REALTOR® and seller, said France. “Can you imagine the advantages of being the agent who tells a seller that his house is actually worth more than the AVM estimate?” she said. “But only a qualified REALTOR®, armed with complete market information, will know how to reach the true market value of the property.” Michelle Gordon, REALTOR® and founder of The Gordon Group, JH Realty Partners, based in Ada, Michigan, advocates strongly for getting deep into the weeds when it comes to verifying the AVM. Following the economic crash of 2008, several homeowners in her Western Michigan territory, apprehensive about their ability to pay real estate commissions and still stay afloat, opted to go FSBO as an impediment to ending up in a short sale or selling the property for less than its worth. That trend has continued, according to Gordon.

“The over abundance of FSBOs in our area, coupled with the lack of off-market property data in the AVM equation, caused a lot of hardship for agents seeking a solid CMA,” said Gordon. “In these cases, I have personally gone to the tax sites and spent hours looking up parcels to determine a property’s value. Thankfully, I don’t have to do that anymore.” Gordon is referring to her “go to tool”––RPR’s exclusive valuation model, the RVM. “RPR’s data includes off-market properties, which is a huge help,” she said. “And the RVM gives me a price range for the property based on its own algorithms that also has a confidence score.” One of the RVM’s most unique attributes is its exclusivity. Available only through a REALTOR® via RPR’s web or mobile applications, the RVM allows agents to deliver this key market information via an array of reports, establishing them as a professional who guides clients using best-in-class tools and market expertise.

The RVM’s “Secret Sauce” RPR’s RVM, the REALTOR® Valuation Model, which incorporates listing and sales data from the MLS into its algorithm, takes property valuation to a whole new level, says France. “MLS data is the ‘secret sauce’ that fills in the blanks found in public records,” she said. “RPR is partnered with 95 percent of MLSs across the nation. By having that licensed data, including MLS listing, sales and off-market properties, RPR valuations are of a higher quality than those found on public-facing sites. And because RPR has a direct feed from the MLS, the data is updated on a daily basis, much more quickly than public records.” France cautions REALTORS® to consistently remind clients that AVMs and the RVM are not meant to serve as an appraisal. “There’s an important distinction that the consumer should know about,” claims France. “REALTORS® determine market value that must be validated by an appraiser. Lenders only rely on an appraisal.” Reggie Nicolay, VP, marketing and communications, Realtors Property Resource® (RPR®)


Updates From NAR’s Mid-Year Meetings

Oregon REALTORS® Join Thousands of REALTORS® Visiting Washington and Capitol Hill to Advocate for Homeownership and Commercial Real Estate On behalf of current and future home and property owners throughout the country, more than 9,600 REALTORS® traveled to Washington, D.C., in May to advance key real estate issues during the 2017 REALTOR® Legislative Meetings & Trade Expo. 73 Oregon REALTORS® joined fellow REALTORS® from across the nation to attend meetings and informational sessions, as well as meet with regulatory agency staff and lawmakers on Capitol Hill to discuss and advocate real estate issues affecting their businesses, communities and clients, including flood insurance, tax reform and sustainable homeownership. REALTORS® are critical advocates for the real estate industry and for their clients, and this meeting is the perfect opportunity to educate ourselves on the issues facing real estate markets, as well as the legislative and regulatory issues on the horizon that could affect REALTORS ®, home buyers and sellers, and property owners. While in Washington, we met with Senators Wyden and Merkley, Congresswomen Bonamici, and Congressmen Walden, Blumenauer, DeFazio, and Schrader on Capitol Hill to discuss and influence public policy decisions that directly affect consumers’ ability to own, buy, rent and sell residential and commercial real estate. As the leading advocates for real estate, it is important for REALTORS® to meet face to face with our nation’s representatives to make sure homeownership and commercial real estate remains top of mind, since these help to shape our communities and play crucial roles in the economic health of America. One of the main issues discussed was the urgent need to pass a multiyear reauthorization

of the National Flood Insurance Program before it expires on September 30. Additionally, REALTORS® urged the protection of sustainable homeownership by advocating for responsible reform of the secondary mortgage market, prohibiting the use of guarantee fees for any purposes other than credit-risk management, improving consumer protections for energy-efficiency improvement loans and tax reform. With tax reform currently being discussed by the administration and legislators, it is important for regulators to hear from REALTORS® that while tax reform is necessary, it cannot come at the expense of real estate tax provisions, such as the mortgage interest deduction, which are essential to the housing market and a key driver of the economy. During the meetings, we heard from industry experts and leaders, such as Secretary of Housing and Urban Development Dr. Ben Carson, who spoke about the challenges facing potential homebuyers, including low home inventories and tight mortgage credit. During the meeting, Carson confirmed that HUD is in “lock-step” with REALTORS® about an NAR-backed rule that would make it easier for consumers to buy a condominium with Federal Housing Administration backed financing, which has been pending since September 2016. Carson agreed that this rule would “make a big difference to a lot of Americans.” In addition, attendees heard from Fox News’ Chris Wallace and CNBC’s Ron Insana, who shared their insights on the administration’s agenda and other legislative and regulatory happenings in Washington; Mark Calabria, chief economist to Vice President Mike Pence, who said reversing weak productivity and the low labor force participation rate are

necessary to boosting the economy; John Worth, senior vice president for Research and Investor Outreach, National Association of Real Estate Investment Trusts, who shared his perspectives on commercial market activity; Roy Wright, deputy associate administrator for Insurance and Mitigation at the Federal Emergency Management Administration, who said that challenges remain in ensuring access to affordable flood insurance and a multi-year reauthorization of the NFIP is critical; and NAR Chief Economist Lawrence Yun, who shared residential and commercial real estate market updates and forecasts for the remainder of 2017. In addition to the informational legislative sessions and meetings with legislators, we had the opportunity to explore the latest industry innovations and receive up-to-date information on the newest products and services from more than 100 industryleading companies that participated during the trade expo.

Colin Mullane, 2015 OAR President, 2018 Region 12 VP

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Homeownership Facts

A REALTOR® : Your Key to Buying a Second Home With low mortgage rates, home values rising and rental demand remaining strong, investment buyers are holding their ground in the real estate market. Since 2014, sales to individual investors have made up roughly one-fifth of all sales and have risen each year.

2 million vacation and investment properties were purchased in 2017.

to buying a home. He or she will help you find the right property that fits your budget and will negotiate on your behalf to ensure you get the best deal,” said George Grabenhorst, 2017 OAR President & 4th generation Oregon REALTOR®.

According to the National Association of REALTORS® annual Investment and Vacation Home Buyers Survey, nearly

With a steady stream of investment purchasers in the market, interested buyers should remember to turn to a REALTOR®, a member of the National Association of REALTORS®, for advice before buying that vacation home or investment property. “A REALTOR® is your expert professional when it comes

Call a Professional

Get Your Finances in Order

Brush up on Rental Regulations

REALTORS® can help point to areas with the best properties for vacation or investment homes. NAR’s survey found that buyers typically purchased a vacation property 200 miles from their primary residence. “Even if you are familiar with the targeted search area, chances are you are not up to speed on local market conditions. That’s where a REALTOR® can come in and educate you on demand levels and future resale value in the area,” said Grabenhorst.

Getting a mortgage these days can be difficult, especially for second-home owners. “Adding another mortgage is going to expand your debt-to-income ratio, and you’ll likely need to make a substantial down payment on any second-home purchase,” said Grabenhorst. So be ready to dive into some paperwork with your agent at your side to ensure you can find the best property within your budget at the most favorable terms.

Many second-home owners rent out their property to earn extra income. If you are planning to rent out a second home, be sure to understand the rules and regulations affiliated with rental agreements. Laws can vary from one town to another, so it is crucial that you understand all the local ordinances before you open the door to tenants in your home. Working with a REALTOR® will give you insights on the rules and laws of a property before you decide to make an offer.

If you are considering buying a second home for your family’s vacation getaways or as an investment property for additional income, here are some important tips to keep in mind:

By working with a REALTOR® and the proper planning and patience, the second home you have been dreaming of can be right within your reach!

Homeownership Facts

Consumer Interest and Demand Grows for Greener, More Sustainable Properties

Growing consumer interest and demand for greener, more sustainable properties is driving a dialogue between REALTORS® and homebuyers and sellers. In April 2017, the National Association of REALTORS® introduced the REALTORS® and Sustainability report, which surveyed REALTORS® about sustainability issues facing consumers in the real estate market and ways REALTORS® are setting their own goals to reduce energy usage. According to the report, which stems from NAR’s new Sustainability Program, over half of REALTORS® find that consumers have an interest in real estate sustainability issues and practices.

“As consumers’ interest in sustainability grows, REALTORS® understand the necessity of promoting sustainability in their real estate practice, such as marketing energy efficiency in property listings to homebuyers,” said Steve Strode, 2017 OAR President-Elect. “The goal of the NAR Sustainability Program is to provide leadership and strategies on topics of sustainability to benefit members, consumers and communities.” To meet growing consumer interest, more Multiple Listing Services are incorporating data entry fields to identify a property’s green features. Forty-three percent of respondents report their MLS has green data fields, and only 19 percent do not. “REALTORS® see great value in promoting energy efficiency in listings with 7 out of 10 feeling strongly about the benefits in promoting those features to clients,” said Strode. The survey asked respondents about renewable energy and its impact on the

real estate market. A majority of agents and brokers (80 percent) said that solar panels are available in their market; 42 percent said solar panels increased the perceived property value. 24 percent of brokers said that tiny homes were available in their market, compared to 61 percent that reported tiny homes were not yet available. When asked about involvement with clients and green properties, 27 percent of agents and brokers were involved with 1 to 5 properties that had green features in the last 12 months. 70 percent of members worked with no properties that had green features, leaving a great deal of room for future growth. The home features that REALTORS® said clients consider as very or somewhat important include a home’s efficient use of lighting (50 percent), a smart/ connected home (40 percent), green community features such as bike lanes and green spaces (37 percent),

landscaping for water conservation (32 percent), and renewable energy systems such as solar and geothermal (23 percent). “When it comes to the sustainable neighborhood features for which clients are looking, 60 percent of REALTORS® listed parks and outdoor recreation, 37 percent listed access to local food and 9 percent listed recycling,” said Strode. The transportation and commuting features of a community that REALTORS® listed as very or somewhat important to their clients included walkability (51 percent), public transportation (31 percent) and bike lanes/paths (39 percent). For more information on the REALTORS® Sustainability Program, visit:



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REAL Shield Oregon REALTORS® Magazine 2017 Q2  
REAL Shield Oregon REALTORS® Magazine 2017 Q2