July2013newsletter

Volume 17 • issue 7 - July 2013Monthly Newsletter

Durango Area Assn. of REALTORS

All photos can be found on our Facebook Page ! Like us today.

The past few months have seen big changes to the DAAR building! Currently the parking lot is literally non-existant but when it is finished we hope you will come by and see how your association home has been given an opportunity to shine.

G O T E D U C A T I O N ?

The 7 Big Trends Changing Real Estate Today Date: Thursday, July 18th Times: 10am-12pm Cost: $20Location: DAAR OfficeInstructor: Bruce GardnerCE: NONE- Professional DevelopmentPlease sign up online using your LAMPS login at https://daar.getlamps.net/Default.aspx?page=calendarMassive changes are occurring in our society, & these changes are affecting the real estate industry as never be-fore. Technology, consumer behavior, industry demograph-ics & more are causing fundamental shifts in how business is done. In this captivating 2 hour presentation you will learn about the seven trends & how to prepare yourself and your business for success. Learn how our industry is being changed by syndication, mobile web access, “Google” interviews, agent ratings, aug-mented reality, tablets & video. We’ll also discuss some other trends to watch and how they will affect you.

Amazing Apps for Agents Date: Thursday, July 18th Times: 1-3pm Cost: $20Location: DAAR OfficeInstructor: Bruce Gardner CE: NONE- Professional DevelopmentSign up online using your LAMPS login at https://daar.getlamps.net/Default.aspx?page=calendarSmartphones and Tablets are the new “power tools” for real estate Agents, and “Apps” help Agents create a customized experience on these new platforms. This exciting 2 hour event takes a look into the fascinat-ing world of “Apps” and how they can help Agents be more productive, more efficient, more profitable and have more fun every day.

NAR EthicsDate: Thursday, July 25thTimes: 1-5pm Cost: $45Location: DAAR OfficeInstructor: Aaron DiemCE: 4hoursPlease sign up online using your LAMPS login at https://daar.getlamps.net/Default.aspx?page=calendarThis course provides a basic review of the REALTOR ® Code of Ethics. You will be presented with rel-evant data to develop an awareness of the new broker relationships and the ethical considerations each presents. This 4 hour course fulfills the need for NAR quadrennial ethics requirements for both new and existing REALTOR members. (Quadrennial period 1/1/13-12/31/16)

DAAR CALENDAR OF EVENTS

1 7/3/2013 12:18 PMstaff

Su Mo Tu We Th Fr Sa1 2 3 4 5 6

7 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30 31

July 2013Su Mo Tu We Th Fr Sa

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August 2013

July 2013

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Jul 6

Jun 30 Jul 1 2 3 4 5 6 Newsletter Published DAAR Office Closed

Independence Day (Un

Jul 7

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7 8 9 10 11 12 138:30am 10:30am

Executive Committee(DAAR)

8:00am 10:00am Daar quarterly

8:15am 10:15am BOD Meeting (DAAR)

Jul 1

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20

14 15 16 17 18 19 2010:00am 12:00pm

CLASS- The 7 Big Trends Changing RE

1:00pm 3:00pm CLASS-Amazing Apps for Agents/ Bruce Gardn

Jul 2

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27

21 22 23 24 25 26 2711:30am 12:30pm

Housing Opp Committee (DAAR)

8:30am 12:30pm New Member Orientation

1:00pm 5:00pm NAR Ethics (DAAR office)

Jul 2

8 -

Aug

3

28 29 30 31 Aug 1 2 3

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

The 2012-2013 Durango Area Association of REALTORS® Board of Directors:

President / Denise Storm / 759-9819 / [email protected] / Kelly Kniffin / 749-3867 / [email protected]

Past President / Jarrod Nixon / 769-0774/ [email protected] Vice President / Jim Wotkyns / 375-7005 / [email protected] / Jerome Bleger / 759-1658 / [email protected] / Cathy Craig / 749-3986 / [email protected]

Director / Gabi Bergstrom / 946-7522 / [email protected] / Linda Buzzalini / 259-6680 / [email protected] / Nicole Perino / 259-6680 / [email protected]

CAR Director/ Lois Surmi / 749-7559 / [email protected] Director/ Jarrod Nixon / 769-0774/ [email protected]

Association Office StaffExecutive Officer/ Amanda Erickson/ 247-9604/ [email protected]

Member Services/ Jasmyn Fouts/ 247-9604/ [email protected] & Communications/ Jo Ann Johnston/ 247-9604/ [email protected]

1 7/3/2013 12:18 PMstaff

Su Mo Tu We Th Fr Sa1 2 3 4 5 6

7 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30 31

July 2013Su Mo Tu We Th Fr Sa

1 2 34 5 6 7 8 9 10

11 12 13 14 15 16 1718 19 20 21 22 23 2425 26 27 28 29 30 31

August 2013

July 2013

Jun

30 -

Jul 6

Jun 30 Jul 1 2 3 4 5 6 Newsletter Published DAAR Office Closed

Independence Day (Un

Jul 7

- 1

3

7 8 9 10 11 12 138:30am 10:30am

Executive Committee(DAAR)

8:00am 10:00am Daar quarterly

8:15am 10:15am BOD Meeting (DAAR)

Jul 1

4 -

20

14 15 16 17 18 19 2010:00am 12:00pm

CLASS- The 7 Big Trends Changing RE

1:00pm 3:00pm CLASS-Amazing Apps for Agents/ Bruce Gardn

Jul 2

1 -

27

21 22 23 24 25 26 2711:30am 12:30pm

Housing Opp Committee (DAAR)

8:30am 12:30pm New Member Orientation

1:00pm 5:00pm NAR Ethics (DAAR office)

Jul 2

8 -

Aug

3

28 29 30 31 Aug 1 2 3

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

The 2012-2013 Durango Area Association of REALTORS® Board of Directors:

President / Denise Storm / 759-9819 / [email protected] / Kelly Kniffin / 749-3867 / [email protected]

Past President / Jarrod Nixon / 769-0774/ [email protected] Vice President / Jim Wotkyns / 375-7005 / [email protected] / Jerome Bleger / 759-1658 / [email protected] / Cathy Craig / 749-3986 / [email protected]

Director / Gabi Bergstrom / 946-7522 / [email protected] / Linda Buzzalini / 259-6680 / [email protected] / Nicole Perino / 259-6680 / [email protected]

CAR Director/ Lois Surmi / 749-7559 / [email protected] Director/ Jarrod Nixon / 769-0774/ [email protected]

Association Office StaffExecutive Officer/ Amanda Erickson/ 247-9604/ [email protected]

Member Services/ Jasmyn Fouts/ 247-9604/ [email protected] & Communications/ Jo Ann Johnston/ 247-9604/ [email protected]

November 8-11, 2013 • San Francisco, CA2013 REALTORS® Conference & Expo

RISE to NEW HEIGHTSMake your way to the bay!If you’re serious about taking your real estate business to a higher level, here’s one thing you need to do right now: Register for the 2013 REALTORS® Conference & Expo, November 8-11, in San Francisco.

• Learn from the best. Attend your choice of 100 education sessions on timely topics delivered by the most motivational speakers in the business and be ready to put your new knowledge into action.

• Make new connections. Join 22,000 REALTORS® and guests from around the country and world at the biggest networking event of the year.

• Power up your productivity. 400 expo exhibitors will show you the newest products and services designed to make you more effective and efficient.

• Experience a world-class city. From Napa to nightlife, you’ll enjoy San Francisco through tours and deals created exclusively for members and their families.

Did you know you can save BIG in San Francisco?Hotels start at just $129 a night and there are airline discounts available for attendees. Choose from several affordable registration options to fit your budget and schedule (plus, the trip is tax deductible for REALTORS®).

Don’t stop until you get to the top. Register today at www.REALTOR.org/Conference

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Mortgagesmade easy.

You’ve helped them find the perfect house. Now help them make it their home with a mortgage from Community Banks of Colorado. With 50 convenient locations in Colorado and the ability to finance unique properties, Community Banks of Colorado has a common sense approach to clients’ mortgage needs. To help find the best mortgage solution for your client contact Margie Sittner of the Durango Banking Center at 970-259-0212 or go to cobnks.com/mortgage.

COMMITTEE MEETINGS SCHEDULEDCommittee

Board of DirectorsHousing Opportunity

Date/Time/LocationThursday, 7/11/2013 - 8:15 - DAARTuesday, 7/23/13 - 11:30 - DAAR

Contact InformationAmanda - [email protected] - [email protected]

What’s Happening With The Membership?

Goodbye & Good Luck!Carolyn Johnson - RealEstate.com Carla Neal - Bayfield Realty

WeLcome AffiLiAte members!Jonathan Colton - Land Designs By Colton

WeLcome NeW membersRalph Janisch - Keller Williams RE SW Dee Dee Kendall - Century 21 Premiere

Lisa M. ReedPresident

1099 Main Avenue. Suite 213 • Durango, CO. 81301970-382-9800 • Fax 970-382-9808

E-mail: [email protected]

Southwest MortgageLoans, Inc.

EQUAL HOUSING

LENDERFDIC

Mike and Judy Malone970.375.BANK (2265)

1201 Main Avenue, Suite 101Durango, CO 81301

Colorado Capital Bankmortgage

R E S I D E N T I A L M O R T GAGE OF COLORADO A DIVISION OF UNIVERSAL LENDING CORPORATION

Mike & Judy Malone970.375.2265

970.749.1104 (Judy) 970.749.1101 (Mike)

1201 Main Avenue, Suite101www.applywithjudy.com

Michael K. Russell, PEPrincipal

934 Main Avenue, Unit C Durango, CO 81301

ph: 970.385.4546 fx: 970.385.4502e: [email protected]

July Birthdays

Julee Glynn ~ 7/2John Ralph ~ 7/5Tina Miely ~ 7/6Kathy Hall ~ 7/6

John Andrews ~ 7/8Michelle Brown ~ 7/8

Brooke O’Malley ~ 7/9Mike Davis ~ 7/10Rick Lorenz ~ 7/12

Marilyn Thorsen ~ 7/13Eric Romero ~ 7/17

Debra Parmenter ~ 7/19Amanda Mapes ~ 7/23

Terrie Troutman ~ 7/28Sondra Joyce ~ 7/30

Carol Burnham ~ 7/30Suzanne Sitter ~ 7/31

2013 CAR VOLUNTEER LEADER ELECTION RESULTSCongratulations to all participants of the 2013 CAR Elections. Your fellow REALTORS and associ-ations appreciate your passion and desire to lead the Colorado Association of REALTORS into the future and beyond. The following are the election results for 2014.

President – Jolon RuchPresident-elect – David BarberTreasurer – Ann HayesNAR Director – Keith Kanemoto

District VP ElectsMetro – Debbie ConnerMountain – Jill MastersNorthwest – Michelle MartinezNortheast – Terry LeeSouthwest – Denise StormSoutheast – Linda Richie

http://www.coloradocapitalbank.com/Home.aspx

http://www.russellpe.com

Ethics Corner- By Steve StazelSteve Stazel is a senior ethics instructor for C.A.R. since 1979,

teaching the Professional Standards course here in Durango and across the state of Colorado. He has been a REALTOR since 1974 and is a member of N.A.R.’s Professional Standards Committee. Steve is

available to answer your ethics questions at303-773-3333 or email him at [email protected]

COOPERATION VS COMPENSATION—SECOND VERSION

Here is the situation---You and another broker are at a party on a Saturday night. He asks you how things are going. You say “Great, I’m going to be writing an offer tomorrow” He says “Which property” You tell him/her and he asks, “Is that the perfect property for your buyers?” You say “Well no but it is the best available now” He asks “”What are your buyers looking for?” After you tell him the answer to that question he/she says; “I just listed the property your buyers should buy. I haven’t had time to do anything except put up a lock box. Why don’t you show it tomorrow morn-ing while my buyers are at church”

The next morning you show his/her listing—your buyers love it –they write a FULL PRICE of-fer. They admit to you “To be honest with you, we thought you would be out drinking and parting last night. But no YOU WERE LOOKING FOR HOUSES FOR US!! You bring the other broker the offer. He/she takes it to the sellers that afternoon. It is signed and you have a deal. -------------- What is wrong with this scenario? ------ Maybe nothing—Maybe you will receive NO co-op compensation. I would hope the listing broker would be an honorable broker and pay you whatever his/her listing agreement said. (If the listing broker gets the property sold does the owner care who, if anyone receives a co-op compensation?) What you should have been aware of in this situation was that the listing broker had made an offer of COOPERATION but not an offer of COMPENSA-TION.

Standard of Practice 3-1 states in part “Terms of compensation, if any, shall be ascertained by coop-erating brokers before beginning efforts to accept the offer of cooperation.” We have been spoiled by our MLS because when we put our listings in the MLS, there is automatically a field for us to enter the CO-OP COMPENSATION we are offering to pay COOPERATING brokers. Because MLS takes care of this for us, we may blur the different meaning of these two words.

Prior to showing a property (in the MLS or not) do you ascertain what co-op compensation is being offered? Should you? Remember co-op’s can and do vary.

CHANGE MADE TO THE REGULATIONS OF HOMEOWNERS INSURANCE

CAR took a neutral position on HB-1225 Concerning the Homeowner’s Insurance Reform Act- HB-1225 during the 2013 Legislative session. This bill creates the “Homeowner’s Insurance Reform Act of 2013″ and makes a number of changes to the regulation of homeowner’s insurance primarily for single-family homes used as a primary residence by the owner. It requires insurers to provide to homeowner’s insurance policyholders a specific disclosure at least annually regarding policy limits, replacement value, and the importance of preparing an inventory of the contents of the home outbuildings. HB-1225 was signed by Governor John Hickenlooper.

Other changes require that:

insurers included additional living expense (ALE) coverage of not less than 12 months with an option to purchase a total of 24 months of coverage;

insurers make available extended replacement-cost coverage and law and ordinance coverage;

the text of all homeowner’s insurance documents must not exceed the tenth-grade reading level by January 1, 2015;

insurers consider an estimate from a policyholder’s licensed contractor or architect as the basis for establishing the replacement cost;

at renewal, insurers provide written notification to policyholders describing changes in insurance policy language;

insurers make an electric or paper copy of the homeowner’s insurance documents available within three business days of the policyholder’s request; in the event of a total loss of a furnished dwelling, insurers offer a minimum of 30 percent of the value of the contents coverage without requiring a written inventory;

if a policyholder receives the depreciated value of contents, the insurer make available to the policyholder the methodology used for determining the depreciated value;

an insurer allow a policyholder up to 180 days after a total loss claim to submit an inventory of lost or damaged property, or in the event of a disaster, up to 270 days;

an insurer allow a policyholder up to 180 days after the expiration of ALE to replace property and receive recoverable depreciation on that property;

insurance agents selling homeowner’s insurance must complete at least three hours of continuing education in homeowner’s insurance coverage every two years; and

at least annually, insurers provide policyholders with a specific disclosure form that clarifies that the policyholder is responsible for the adequacy of his or her replacement cost coverage and for maintaining a home contents inventory.

Finally, on or after January 1, 2014, the bill voids any provision in a homeowner’s policy that requires the policyholder to sue the insurer in the case of any dispute within a shorter period of time than allowed for by the applicable statute of limitations.

Media Contact: Walter Molony / 202-383-1177 / Email [email protected]

WASHINGTON (June 21, 2012) - Limited supplies of housing inventory held back existing-home sales in May, but sales maintained a strong lead over year-ago levels and home prices are on a sustained uptrend in all regions, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, con-dominiums and co-ops, declined 1.5 percent to a seasonally adjusted annual rate of 4.55 million in May from 4.62 million in April, but are 9.6 percent above the 4.15 million-unit pace in May 2011.

Lawrence Yun, NAR chief economist, said inventory shortages in certain areas have been building all year. "The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand. The normal seasonal upturn in inventory did not occur this spring," he said. "Even with the monthly decline, home sales have moved markedly higher with 11 consecutive months of gains over the same month a year earlier."

There are broad-based shortages of inventory in the lower price ranges in much of the country except the North-east, and in the West supply is extremely tight in all price ranges except for the upper end. "Realtors® in West-ern states have been calling for an expedited process to get additional foreclosed properties onto the market

Important Updates and Reminders!

DAAR 2nd Quarterly MeetingPLEASE JOIN US WEDNESDAY, July 10th

FOR THE SECOND DAAR QUARTERLY MEETING OF 2013!SPONSORED BY: Bank of Colorado

Your Association leadership will be addressing the entire DAAR member-ship to give an informative look at what’s been going on lately with your

Local, State, & National Associations. Our guest speaker will be the new air-port manager Kip Turner who will present an update on current/upcoming changes going on at the airport. Meeting will be at the Henry Strater Theatre

To RSVP, please go to:https://daar.getlamps.net/Default.aspx?page=calendar

DAAR OFFICE CLOSUREThe DAAR Office will be closed in July 4th honor of Independence Day.

because they have more buyers than available property," Yun added. Widespread inventory shortages also are found in much of Florida.

Total housing inventory at the end of May slipped 0.4 percent to 2.49 million existing homes available for sale, which represents a 6.6-month supply2 at the current sales pace; there was a 6.5-month supply in April. Listed inventory is 20.4 percent below a year ago when there was a 9.1-month supply. Unsold inventory has trended down from a record 4.04 million in July 2007; supplies reached a cyclical peak of 12.1 months in July 2010.

"The recovery is occurring despite excessively tight credit conditions and higher downpayment requirements, which are negating the impact of record high affordability conditions," Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage declined to a record low 3.80 percent in May from 3.91 percent in April; the rate was 4.64 percent in May 2011; recordkeeping began in 1971.

The national median existing-home price3 for all housing types rose 7.9 percent to $182,600 in May from a year ago, the third consecutive month of year over year price gains. The last time there were three back-to-back price increases from the same month a year earlier was from March to May of 2006. "Some of the price gain results from a shrinking share distressed homes in the sales mix," Yun explained.

Distressed homes - foreclosures and short sales sold at deep discounts - accounted for 25 percent of May sales (15 percent were foreclosures and 10 percent were short sales), down from 28 percent in April and 31 percent in May 2011. Foreclosures sold for an average discount of 19 percent below market value in May, while short sales were discounted 14 percent.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, offers advice to buyers in markets with limited supply. "We are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage," he said."It's extremely important to listen to the advice of your agent and perform all the due diligence that you would normally do in a more balanced market, such as making offers contingent upon a satisfactory home inspection," Veissi said.

First-time buyers accounted for 34 percent of purchasers in May, compared with 35 percent in April and 36 per-cent in May 2011.

All-cash sales slipped to 28 percent of transactions in May from 29 percent in April; they were 30 percent in May 2011. Investors, who account for the bulk of cash sales, purchased 17 percent of homes in May, down from 20 percent in April and 19 percent in May 2011. "These figures reflect a modest increase in traditional repeat home buyers in May," Yun said.

Single-family home sales slipped 1.0 percent to a seasonally adjusted annual rate of 4.05 million in May from 4.09 million in April, but are 10.4 percent above the 3.67 million-unit level in May 2011. The median existing single-family home price was $182,900 in May, up 7.7 percent from a year ago.

Existing condominium and co-op sales fell 5.7 percent to a seasonally adjusted annual rate of 500,000 in May from 530,000 in April, but are 4.2 percent higher than the 480,000-unit pace one year ago. The median existing condo price was $180,000 in May, which is 8.8 percent above May 2011.

Regionally, existing-home sales in the Northeast fell 4.8 percent to an annual level of 590,000 in May but are 7.3 percent higher than May 2011. The median price in the Northeast was $250,700, up 3.8 percent from a year ago.

Existing-home sales in the Midwest rose 1.0 percent in May to a pace of 1.04 million and are 19.5 percent above a year ago. The median price in the Midwest was $147,700, up 6.4 percent from May 2011.

In the South, existing-home sales slipped 0.6 percent to an annual level of 1.78 million in May but are 9.2 per-cent higher May 2011. The median price in the South was $159,700, up 7.8 percent from a year ago.

Existing-home sales in the West declined 3.4 percent to an annual pace of 1.14 million in May but are 3.6 percent above a year ago. The median price in the West was $233,900, up 13.4 percent from May 2011. "The sharp price increase in the West results largely from more sales at the upper end of the market," Yun explained.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, repre-senting 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE: For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on trans-action closings from multiple listing services. Changes in sales trends outside of MLSs are not captured in the monthly series. A rebenchmarking of home sales is done periodically using other sources to assess the overall home sales trend, including sales not reported by MLSs.

Existing-home sales differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each se-ries to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger sample - about 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4Distressed sales (foreclosures and short sales), all-cash transactions, investors and first-time buyers and are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.

The Pending Home Sales Index for May will be released June 27 and existing-home sales for June is scheduled for July 19; release times are 10:00 a.m. EDT.

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