Archive for June, 2007

GETTING ON THE RIGHT TRACK

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Everyone is faced with challenges in life. How you deal with them determines your success.Ron Ario Blogging is a new way of communicating for me, but I’m happily jumping in with both feet. I see the potential it offers for building community and sharing thoughts and ideas with others, something that is central to my way of thinking about real estate.

I’m the Los Angeles Territory Chief Executive for Intero Real Estate Services and have been in real estate in this region for more than 25 years. I’ve worked with many different brokerages in many capacities prior to joining Intero, including having helped to build Keller Williams, into a market leader by expanding the company’s footprint in four years from 20 agents in one office to well over 1,400 agents in 14 offices.
 
Though it’s still relatively unknown in LA, Intero is one of the fastest growing real estate companies in the country, having gone from zero to more than $4.5 billion in sales in just four years. Our brand is very well known in Northern California, where Intero was founded in 2003 by Gino Blefari in the San Francisco Bay Area. Its meteoric rise from startup to more than 63 offices and 2,200 agents today has made it a favorite in the media there.  Here in LA, it’s a different story. Many realtors don’t yet know who we are, and few realize just how different our culture is.

We are hoping to change that. In this blog, I’ll communicate the story of Intero and what we stand for. I will also be sharing my experience, knowledge and views on what it takes to succeed as a realtor in LA—with a slight twist. Success is more than just professional accomplishment. It’s professional accomplishment paired with something much more personal and sustaining, a realization of your true potential as an individual. I’d like to delve into this idea and what it means. I’ll also invite guest authors (other veterans in the industry) to contribute their thoughts.

I’m calling this blog Success Track after a program of the same name we’ve developed in our office. One of my main focuses here will be discussing the important role that agent education, training and ongoing professional development play in the success of a real estate office. This is an area, unfortunately, that has become neglected in our industry and one that contributes to the failure of many agents and offices. We developed Success Track here in LA to give our people a structured framework around which they can build and grow their business. What we discuss here will be a direct reflection of the kinds of things that were implementing in our offices, and we’re happy to share with your our results.

I also want to take the time now and talk about my perspective on the business of real estate and how it differs from most in the industry. This is important because it directly relates to my deciding to join Intero and bring the company LA.

I come from a family where most everyone is hearing impaired. I inherited the condition from birth, but spent much of my youth hiding it. Though I should have had a hearing aid at the age of 5, I didn’t actually receive one until 19. My mother lived in a time when wearing a hearing aid meant carrying an enormous box with wires on your chest, and she wanted to protect me from the embarrassment and stigma she experienced. So, we kept my hearing impairment hidden, and I spent years trying to be as normal as possible, often overcompensating in other areas such as sports.

Of course, living with a hearing impairment, meant facing some real challenges as I went through my youth and teen years. Often, people would mistake me as standoffish or cold, not knowing that I simply wasn’t hearing everything they said. I was also forced to rely on all my other senses to communicate or even understand what was going on around me. All of this meant that I lived in a very introspective world, where I developed a sense and perspective of the outside that was very different from most. My hearing was a challenge for sure, but it was also a gift, because it helped me to develop at my core a deep-seeded drive to overcome, and its that drive that has pushed me forward and helped me to reach many of my goals.

My passion for what I do in real estate comes from identifying with others who are facing (or trying to face) their weaknesses so that they may grow as individuals. I fought to overcome my own limitations, and so I have a passion to help others breakthrough theirs.

In fact, many of the things that hold us back are self-imposed. Years ago, I had a stint on television. I remember what I thought the first time I saw the cameras on the side of the set, “they’re going to see my hearing aid and kick me off.” I had to break through that in order to move forward, or else it would have paralyzed me. We all have the fears we latch onto about what we can or can not do in life. And yet, those limitations often come from an internal source, not an external one. Everybody has something they must face. Mine was hearing. For someone else, it may be a difficult childhood and yet for another, it may simply be lack of direction.

My whole motivation in bringing Intero to LA is to have this region stand for something. I realize that on some level this is Pollyanna. I’m not going to have an impact on everybody’s life, but what I can do is have an impact on my people—those who come to Intero with a vision for success that is bigger than simply making money. 

DreamWe created Success Track to give our agents a program that teaches the daily habits, smart business practices and overall real estate acumen that’s needed to survive in a competitive market like LA. More importantly, we developed it to motivate and help people to understand their own potential (personally and professionally) and work toward fulfilling it. Dreams are very important. They drive us forward. And to be able to dream, we must first understand what it is that we are wishing for.

Success comes in many forms. When we are on track and doing the small things everyday that push us forward, that’s success because we are working towards those larger goals we set for ourselves. Our everyday small victories give us all the motivation we need to get up and go at it again the next day. It’s just as Confucius says, “A journey of a thousand miles begins with a single step.”

Success Track isn’t just about the steps we take, though. In this industry, there’s often a gap between the exercise of practicing real estate, and the belief that you will succeed as a realtor. As good leaders, we need to teach more than just the steps. We must also work on your belief system . . . your vision and purpose. This truly gets to the heart of how we are doing things differently, because this is where we start—on your vision and purpose.

Most of us don’t think of real estate as being holistic. But really, it is about people, and whenever you’re dealing with people, you have to look at the whole individual. When we understand the person—and only then—we can empower them to move even closer to their dreams and success, which is ultimately our success as an office.

—Ron

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The Blog of Intero Real Estate Services

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Why we’re doing this.WelcomeHere at Intero, we have a lot of great ideas and information to share with our customers, agents and individuals who are thinking about starting their own real estate company. What better forum to share those ideas and information than a blog that can be as active and entertaining as you want it to be. You can use the information we provide, discount it if you disagree and add to it if you think you have a better approach.

In the coming weeks we will provide you with information on topics that are touching the real estate world and we encourage you to provide feedback (positive and negative) to make this as interactive as possible. Our site is broken into three useful sections:

Gino Blefari on Real Estate
This is our CEO’s personal blog. In it, he’ll discuss company business from his perspective as the President and CEO of Intero. He’ll also share stories of his personal experiences in real estate (successes and hardships), recommendations for reading, thoughts on the business of real estate, current books he’s reading and suggestions for personal and professional growth—really, anything that might be helpful to agents and brokers who are trying to build their business and ultimately trying to improve themselves.   

How to Build a Successful Real Estate Business
Bob Moles is the Chairman of Intero and one of Gino’s mentors. He’ll be the main thinker on “Built to Last,” a blog that discusses what it takes to build a successful real estate company, in any market. Bob is a 30-year veteran in this industry and the former President and CEO of the Real Estate Franchise Group of Cendant Corp., where he oversaw more than 13,000 franchised offices and 262,800 brokers and agents worldwide. He’ll also have contributions on this blog from Gino and other executives at Intero.

Achieve Your Dreams
Finally, our Intero corporate blog is “Achieve Your Dream.” It’s focused on the news and business of the company. Our title comes from Intero’s mission: guided by principles of trust, integrity and respect, we empower people to achieve their dreams. We also welcome you to join the discussion and talk about your dreams and how you hope to achieve them through real estate. Maybe we can help. Or maybe, your successes will inspire others.

So that’s that—a quick overview of our blogs. We welcome your feedback and comments, because most of all, we hope to make this an open forum, where ideas are shared and discussed so that we can all become better real estate professionals. 


Real Estate Sales Have Slowed. What Does It Mean?

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The market may be down, but it’s not out. There are still opportunities for growth.Bob Moles We all know housing sales have slowed in the past year. Are we surprised? Real estate is coming out of an historic period that saw a meteoric rise in home values from 2000 to 2006. Many of us had become accustomed to the massive growth we saw, especially in the last three years: an 8.22 percent increase in house price appreciation in 2004, 12.84 percent in 2005 and 12.61 percent in 2006. But, we all understood that couldn’t continue forever, didn’t we? In looking back at the nineties, we’re reminded of what is typical in this industry:

Year-to-Year Housing Price Appreciation in the US: 1990 to 1999
Taken from OFHE House Price Index for USA
(Includes Valuation Data from Purchase and Refinance Mortgages: 1990Q1-1999Q1)

  • 1990: 5.07
  • 1991: 0.61
  • 1992: 2.49
  • 1993: 1.06
  • 1994: 2.70
  • 1995: 0.73
  • 1996: 5.40
  • 1997: 2.30
  • 1998: 5.21
  • 1999: 4.45

What’s happening in 2007? The most recent OFHEO House Price Index, shows that in the last year (from Q12006 to Q12007), housing prices have increased 4.3 percent nationally. This means that we may be currently seeing a year-to-year drop in price appreciation (2006-2007 vs 2005-2006), but we’re still above the average of 3 percent for the whole of nineties, the period before the boom that started in 2000. The latest forecast by the National Association of Realtors (NAR) says that home sales are expected to see a gradual upturn through 2008, but with little price fluctuation.


Existing-home sales are projected to total 6.18 million in 2007 and 6.41 million next year, in contrast with 6.48 million in 2006.  New-home sales are forecast at 860,000 this year and 901,000 in 2008, down from 1.05 million last year.  Housing starts are likely to total 1.43 million units in 2007 and 1.49 million next year, below the 1.80 million recorded in 2006.

The national median existing-home price should ease by 1.3 percent to $219,100 in 2007 before rising 1.7 percent next year.  The median new-home price will probably fall 2.3 percent to $240,800 this year, and then grow by 2.6 percent in 2008.



So, let’s put this all in perspective: real estate has slowed, but it’s far from dead.

Housing prices are still appreciating in many parts of the country, though the total number home sales are down according to NAR: -14.6 for single-family units from 2006 to 2007. (This number reflects a downturn in new construction—new single family sales are down -18.2 percent whereas existing homes sales are hovering around -4.6 percent.) When it comes right down to it, remember that all real estate is local, and there are still pockets in ever corner of the country where sales are strong.

Take the Pacific Northwest for example, which is seeing an increase in homes values two times the national average. Washington, Oregon and Idaho have shown more than 10 percent appreciation over the last year. The same can be said for Montana, Wyoming and New Mexico—all above 11 percent. Utah has seen an incredible 17 percent increase. On the East Coast, North Carolina is showing 8 percent growth and Tennessee and South Carolina more than 7 percent. The states affected by Hurricane Katrina are also showing appreciation between 6.9 to 9.5 percent. 


*OFHEO House Price Index, May 31, 2007.

Even within states that are slowing more than the national average, such as California and Nevada, there are areas that are still going strong. The nine counties that make up the San Francisco Bay Area are a great example of this. Statewide, California’s median house price appreciation has slowed to 1.2 percent (OFHEO House Price Index, May 31, 2007), but the median price for a single family home in the Bay Area hit a record high of 660K in May, up 3.4 percent from the previous year, according to DataQuick Information Services.

In looking at the micro-regions of the Bay Area, you see just how dynamic and varied the housing market can be. This graphic is pulled from the San Jose Mercury News (April 2007). It shows difference in what is happening in the various counties: San Francisco +4.9%, Contra Costa +6.1%, Alameda +1.9%, Santa Cruz -0.1%, Sonoma -4.4%, and Santa Clara +10.8%, for example.

Drilling down even further, Santa Clara County prices overall increased by 7.8 percent from May 2006 to May 2007 according to RE Infolink . Within individual cities, however, the picture was once again very different. Take a look at the most recent stats for home price appreciation and home sales provided by RE Infolink for Santa Clara County.

Individual cities in Santa Clara County by increase in the median single-family home price from May 2006 to May 2007.

  • County: $862,500, +7.80%  
  • Los Altos Hills: $3,575,000, +45.90%
  • Mountain View: $1,161,000, +33.40%
  • Los Altos: $1,864,000, +19.90%
  • Saratoga: $1,807,500, +17.00%
  • Palo Alto: $1,517,500, +16.70%
  • Santa Clara: $759,000, +5.40%
  • Sunnyvale: $920,000, +5.10%
  • Los Gatos: $1,412,500, +4.60%
  • San Jose: $760,000, +4.10%
  • Campbell: $795,000, -0.60%
  • Milpitas: $715,000,  -4.00%
  • Gilroy: $710,000, -5.30%
  • Morgan Hill: $877,499, -5.60%
  • Cupertino: $1,171,900, -6.20%
  • Monte Sereno: $2,012,500, data not available


Now, if we look at actual home sales compared to last year, the numbers look slightly different:

  • County: -9.50%
  • Los Altos: 100.00%
  • Los Altos Hills: 57.10%
  • Cupertino: 42.90%
  • Morgan Hill: 37.90%
  • Sunnyvale: 13.60%
  • Saratoga: 11.10%
  • Mountain View: 0.00%
  • Campbell: -3.40%
  • Santa Clara: -9.80%
  • Palo Alto: -10.80%
  • Los Gatos: -17.60%
  • San Jose: -21.10%
  • Gilroy: -22.70%
  • Milpitas: -48.60%
  • Monte Sereno: data not available


As you can see, though most cities are continuing to see appreciation in home values, the actual number of housing units sold is down. Much of this has to do with the dynamics of what is selling in the Bay Area right now. Higher priced neighborhoods are doing well, while most lower priced neighborhoods are having trouble.  (More on that in another blog).

The point I’m making here is this. Yes the market has pulled back, but historically, we’re still in good shape in terms of home values. Which means that even though housing sales have stalled, this won’t last forever. And second, even in a slowing market, there are still opportunities for sales and growth.

To this point, Intero is continuing to open offices new markets across the US and beyond in 2007. We recently opened our first international office in Mexico, added our most innovative office to-date in the heart of Silicon Valley at Santana Row and recently launched into LA.

At Intero, we look for opportunity in people as much as in market statistics. If we can find an individual in a new market who is aligned with our values, believes in the Intero culture and has the dedication and drive to become a leader in their region, we are willing partners in helping them to succeed because we know that it’s our people, more than anything, who make the difference.

If you’re interested in learning more about Intero Real Estate Services franchise opportunities, contact us at:

franchise@interorealestate.com or 1-877-4-INTERO. 



Setting Your Goals for Growth and Success

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Be healthy, wealthy and wise in 2007Gino BlefariMark Twain, once wrote, “Keep away from people who try to belittle your ambitions. Small people do that, but the really great make you feel that you, too, can somehow become great.”

I like this quote because it is, in essence, what we try to do at Intero and what I’ve worked to do personally for the last 21 years I’ve spent in real estate. I found that if you want to succeed in this business, you need to first surround yourself with people who will encourage you to strive for the very best and second, make sure they have the wherewithal to help you get there. Never underestimate the power of influence. The book that I’m currently reading, The Slight Edge, says your average income tends to equal the income of your five closest friends and your attitude and health tends to equal those same friends.

My success has come, very simply, through dedication, hard work and focus. Each November and December, I take a moment to reflect on my accomplishments for the year past and think about what I hope to achieve in the year ahead. I think about what I want for family and myself. I think about what I’d like to accomplish personally and professionally. I set goals. I come up with a theme. And, I write it all down as my life plan.

This is something I encourage everyone to do. It’s easy as a realtor to find yourself adrift, not quite knowing what direction to take. (This is especially important when the market is slowing, such as it is today.) By considering your goals and where you want to go at the beginning of the year, you’re essentially creating a road map for yourself. My life plans have become a sort of progress report by which I can gauge my accomplishments and take stock of where I’m heading.

When we started Intero, I began doing this for the company as well. These themes have helped to coalesce the many different components of this company into a more coherent strategy for the year. Here’s a quick rundown of the themes of years past:

  • 2002: Genesis,
  • 2003: Building the Dream
  • 2004: Realizing the Dream
  • 2005: Provizio (Aspiring to Greatness)
  • 2006: The Heart of a Team
  • 2007: Salute, Ricco, Saggio (Healthy, Wealthy and Wise)

This year, with Intero continuing to grow, I’ve designated 2007’s theme as “Be Healthy, Wealthy and Wise.” This speaks to the heart of our values—that to be successful, it’s important to balance both your professional and personal life. Don’t make the mistake of compromising your health and wellbeing by focusing only the commissions you make. You’ll be a better real estate professional; you’ll be more successful, if you are healthy and taking care of yourself and your family. This is one of our core values at Intero. Myself, I started the year by heading to the gym and being smarter about how I eat.

Even before I started down this path, my days began at 4:50 a.m., and so you can imagine that it hasn’t always been easy to fit a workout into my day. By making my health a goal for the year, I put it at the top of my priority list and ensure that I make time for it. As a result, I’ve lost weight and feel healthier and better than I have in a long while and that translates to me being able to do more for Intero.

This year marked another big milestone for me. Our executive team recently completed the purchase of Intero Real Estate Services from Mercury Companies. We are very grateful for Mercury in providing the capital to help get Intero started, but it has always been our philosophy to own and operate our offices on a local level. With this leap forward, we are now able to do that. This, too, was part of my life plan.

If you haven’t already done so, I encourage you to take some time, sit down for a few moments and review your own goals. If you haven’t established goals for the year, think about doing so as soon as possible. Some you will accomplish, others you will not. The importance is not in achieving the goal, but in the person you will have to become to achieve it.

We offer excellent professional guidance for realtors through Provizio, our agent training, education and ongoing professional development program. Learn more about it by contacting Mia Park, our Director of Education and Career Development at mpark@interorealestate.com or 408.541.4307.


About the Author

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Gino Blefari, Chief BloggerGino BlefariGino Blefari is the Founder, President and CEO of Intero Real Estate Services. He launched the company in 2002 and with the help of a top–notch executive team built it into one of the largest real estate brokerages in the country. In July of 2005 Intero was recognized by Realtor® Magazine as the fastest growing real estate company in the nation, ranked #1 out of approximately 80,000 brokerages.

Gino began selling real estate in 1984 in the San Francisco Bay Area, where he’s known as one of the region’s most successful agents, managers and executives. Averaging 50 home sales per year in his career, he’s set the gold standard by which many of his colleagues mark their success.

Prior launching Intero, Gino was part owner in Contempo Realty, a Silicon Valley startup he helped build into a $2.4 billion brokerage. Contempto was acquired by NRT in 1997, and through several rounds of consolidation, it eventually merged into Coldwell Banker to form a 90-office, 4,000-agent strong brokerage with over $24 billion in combined sales. Blefari served as the senior vice president for NRT until the summer of 2002, when he broke off to start Intero.

Throughout his career, Gino has been committed to raising the professional standards in the real estate industry for agents and brokerages alike. When he launched Intero, he did so with the intent of building a different kind of real estate company, one that treated its agents and clients with the respect and integrity and was dedicated to giving back to the community.

Of all his qualities, what most defines Gino is his relentless desire to better his life and the lives of those around him. He is intensely committed to his own professional and personal development an has been influenced by the teachings of motivational speakers and business thinkers like Zig Ziglar, Og Mandino, Mike Ferry, and Jim Rohn. He shares his real estate knowledge with future realtors in a class he teaches at De Anza College called “Principles of Real Estate,” and in addition to having inspired the Intero Foundation, which to date has awarded more than $650,000 to charities and nonprofits, Gino is actively involved with local groups like the Silicon Valley Heart Walk.