Archive for September, 2009

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The Intero Insider: Can S.B.1678 Breathe New Life Into The Homebuyer Tax Credit?

By Gino Blefari | September 30th, 2009 0 Comments

It’s been reported by everyone. By Intero. By government entities. By every news outlet from CNN to the smallest small-town newspaper.

The Homebuyer Tax Credit.

It’s the thing that — so far — has motivated 1.2 million first-time homebuyers to purchase their first homes. It’s been a boom to the languishing real estate market, and helped stimulate our nation’s economy on the whole.

But time is running out.

The big question is, why? If there’s a program in place that can help consumers and help the still-weakened economy, why bring it to an end? Right now, the program is set to reach its termination at midnight on November 30, 2009. But several members of Congress are trying to extend that.

Enter Senate Bill 1678.

Introduced this past Wednesday by Sen. Ben Cardin of Maryland, the bill has the support of several members of the Chamber who carry some pretty heavy clout. This bill seeks to extend the credit to June 1, 2010.

The extension would give members of both houses a bit of time to work on a solution that would not only extend the credit, but open it to homebuyers in general (not just first-timers), increase the amount of the credit from $8,000 to $15,000, as well as change the income restrictions currently in place.

It’s great to know that members of our government are working to help hardworking Americans. It’s also important to realize that, as things stand right now, the Homebuyer Tax Credit is still set to expire in a few short weeks. Since the home buying process can often take an extended period of time, there’s no time to waste.

Talk to your Intero agent, as well as your tax or financial advisor, so you know the facts.

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Fremont: Two Tales of a City

By Cindy O'Leary | September 25th, 2009 0 Comments

Fremont, located in the East Bay in Alameda County, is the 4th most populated city in the Bay Area with 213,000 residents. It is also California’s 5th largest city, encompassing 92 square miles. Situated at the gateway to Silicon Valley, Fremont plays an important role in the Bay Area.

Two very diverse yet impacting events are unfolding which can potentially reshape the complexion of this East Bay hub city:

1. BART (Bay Area Rapid Transit) is extending its East Bay line further into the south end of the city, and
2. NUMMI (New United Motors Company), a joint venture car manufacturing company with Toyota and General Motors, will be shutting down its production in March 2010.

First, the long-awaited BART extension into the Warm Springs (south end) of the city is well under way and will provide even more access to the East Bay by those commuters currently living in the south end of Fremont, and also for those who live in the north part of Santa Clara County.

The closing of NUMMI, however, will have a major impact on the city, its residents and the local economy. Currently, approximately 4,500 employees will be affected once production stops in March 2010; in addition, it is estimated that thousands of other jobs will be lost from those companies who supply parts and services to the NUMMI plant not only in the Bay Area but nationwide.

The city of Fremont is already planning a multi-faceted program to mitigate the impact of the closing of NUMMI:

  • Work will continue with all vested parties to insure that employees and suppliers have the necessary support services to assist them during this transition
  • Develop a plan to transform the site to alternative uses
  • Provide job seeker assistance to affected workers from all levels of government (local, state and federal).

The impact on Fremont‘s economy and housing market could be substantial.

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Hot or Not? Silicon Valley Market Trends

By Dawn Thomas | September 25th, 2009 0 Comments

Hot or not?  How is the real estate market these days in Silicon Valley?  Here’s the latest snapshot for the West Valley.

One closely monitored real estate measure is a market’s “inventory” – the number of months it would take to sell everything that is currently on the market.    The “heat” of a real estate market is often described as:

  • Cold – 6 or more months of inventory (a “buyer’s market)
  • Neutral – 3 to 6 months of inventory  (a “balanced” market)
  • Hot – less than 3 months of inventory (a “seller’s” market)

Based on these definitions – it looks like the market is warming up in Silicon Valley!

Silicon Valley Market Snapshot (as of September 1, 2009)


City
# Active
on Market
 #
Pending
Sales		 #
Closed
Sales		 Months
Supply
(Inventory)		 Average
Sales
Price		 Sales Price vs.
List Price
(%)
Santa Clara 76 128 56 1.12 $609,054 98%
San Jose 1110 1997 605 1.17 $540,550 96%
Sunnyvale 107 98 66 1.60 $708,832 96%
Cupertino 105 52 37 2.19 $1,161,895 95%
Campbell 119 79 37 2.16 $670,612 96%
Willow Glen 184 119 55 2.45 $769,212 92%
Mountain View 60 39 20 1.88 $879,950 95%
Palo Alto 91 54 29 2.07 $1,483,068 91%
Los Altos 78 32 27 2.36 $1,787,086 92%
Saratoga 143 41 31 4.33 $1,598,459 94%
Los Gatos 188 48 33 5.22 $1,431,736 87%
Los Altos Hills 65 17 4 4.33 $2,238,750 96%

Santa Clara County Totals

2398

2987

1043

1.52

$703,160

95%

Call us for a more detailed analysis of real estate market conditions in your neighborhood in Silicon Valley!

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Intero International

By Intero Real Estate | September 24th, 2009 0 Comments

Intero works with Commerce Department in Asia-Pacific region

Intero announced this week that the U.S. Department of Commerce will assist the company as it expands in the Asia-Pacific region. The Department’s Commercial Service will help Intero in Singapore starting this month.

The Commerce Department offers U.S.-based companies a leg up in global expansion, says Javier Parraga, president of Intero International Franchise Services, LLC.

“I have had success with this program throughout the world and expect similar results in Singapore and across the Asia-Pacific region with Intero,” Parraga says.

The U.S. Commercial Service in Singapore helps U.S. businesses with customized solutions to help them enter and succeed in the market. It will also provide Intero appointments with pre-screened firms interested in an Intero Master Franchise opportunity.

You can find a full report here.

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Intero Insider: Is There An “Up” Side To All Of These Foreclosures?

By Gino Blefari | September 23rd, 2009 0 Comments

The California Real Estate Market has been hit, and hit hard. That’s no secret.

Statewide, the percentage of mortgage holders in California who have either missed several payments and are in the early states of foreclosure climbed to 9.5%. Combine this staggering figure with job losses and the recession, in general, and the state is likely to see a huge increase in the number of foreclosures.

But is there an “up” side?

Certainly, no one wants to capitalize on anyone else’s misfortune, but there is another perspective. If you’re in the market to buy a house, the news is almost entirely good.

Let’s take a look.

First off, inventory levels may be at all-time highs, and in all price ranges.

Second, sales prices are nothing short of terrific. Case in point: in August 2008, the median price paid for a home in California was $301,000. By August 2009, that number had fallen 17.3% to $249,000. For buyers, this has “good” written all over it.

Mortgage rates are at their lowest levels since the 1960s. Lower rates greatly increase a buyer’s purchasing power. Buyers will be able to get more home for their dollar — more “bang for the buck”; for families looking to upsize, this is the perfect opportunity.

There are fantastic incentives for buyers right now. Last week, we told you about the CAR Mortgage Protection Program, and we hope every home buyer knows about the First Time Home Buyer’s Tax Credit (which is set to expire on December 1st). Your Intero agent can answer any questions you might have about either of these groundbreaking programs.

Last, but by no means least, home ownership has real, sustainable value. Not just financially, but from a personal standpoint, as well. Owning a home gives you a greater sense of well-being and gives you a real sense of investment in your community.

So, yes. While it might be difficult to look at the current data on foreclosure and see a bright side, there really is one. Talk to your Intero agent today about what this can mean for you.

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Top Ten Reasons To Love Palo Alto

By Marcy Moyer | September 21st, 2009 0 Comments

pizzamyheart

1. Schools, Schools, Schools!

Palo Alto has some of the greatest schools in the country. Whether your kid is seven or seventeen, going to school in Palo Alto guarantees access to incredible academic resources and enrichment programs.

Gunn High School is renowned for its competitive academics (and award-winning robotics team!) They send over twenty graduates a year to college right around the corner at Stanford University.

Palo Alto Children’s Theatre sponsors outreach programs in district elementary, middle, and high schools.

First-rate music programs are available at every turn, and choice programs like teacher-directed learning at Hoover, conceptual learning at Ohlone, and Connections at JLS are always options for parents interested in exploring a wide range of learning possibilities for their children.

2. Rolling Foothills, Open Spaces, Artfully Landscaped Public Gardens, Jasmine Flowers

Palo Alto is a community that treasures its trees and open spaces. The city is classified as an urban forest, and Palo Alto stays true to that description with 34 city parks and almost 4,000 acres of wildlife preserves. A local commitment to keeping businesses “green” ensures a healthy environment, as does a requirement forcing all new buildings to adhere to strict environmental codes. There’s also a Zero Waste Initiative and a dedication to alternative transportation.

3. Calling All Bookworms! Libraries in Palo Alto are truly exemplary.

Creativity blossoms during the interactive story-telling programs at the Children’s Library, and annual summer reading programs keep pages turning. Visits from famous writers dot the library’s schedule. Online programs offer opportunities to learn a new language or to survey newspapers from other countries. Libraries here are a community hallmark and a great enrichment resource.

4. Nationally Acclaimed Theaters

Catch the world premiere of an original play or a Shakespeare staple at TheatreWorks, the best repertory theatre in the Bay Area.

The current season includes the Pulitzer-Prize winning drama Doubt, August Wilson’s Radio Golf, and beloved musical Grey Gardens. Local theatre company the Palo Alto Players mount yearly productions in case you exhaust the shows at TheatreWorks.

The Palo Alto Children’s Theatre gives kids a place to test their acting chops.

5. Easy Access to San Francisco and San Jose

Two nearby CalTrain stops make getting to San Francisco, San Jose, and other Northern California locations a snap.

6. Red Mango Yogurt! Enough said.

If you’ve never tasted Red Mango’s creamy froyo perfection laced with your choice of mango, kiwi, strawberry, blueberry, coconut, blackberry, raspberry, chocolate chips, almonds, or basically any other delicious topping imaginable–that’s reason enough to move to Palo Alto. Or at least visit.

7. University and California Avenues

Both avenues embody Palo Alto’s quaint downtown appeal–personalized local shops and restaurants are nestled next to the Apple Store on University, and at night the thriving bar scene makes this area a prime destination for coeds and graduates.

Word-class Indian, Chinese, Thai, Mediterranean, and Italian restaurants are among the many dining choices.

8. Architecture.

Diverse housing styles make Palo Alto visually appealing. New homes with cutting-edge design line blocks alongside cottages, ranch homes, Eichlers, Tudors, and Spanish Style houses.

9. The Baylands.

The largest tract of undisturbed marshland remaining in the San Francisco Bay is hemmed in by Mountain View and East Palo Alto. The Baylands encompass 1940 acres of unique tidal and freshwater habitats. The best bird watching in the world is done right here. Wildlife observation platforms and picnic areas with barbecues make this spot a family favorite.

10. Locally Sustained Farmers Markets.

From mid-May through mid-December farmers markets downtown and on California Avenue are open every Saturday from 8AM to 12PM.

Local vendors offer a wide array of fresh produce and specialty items like grass-fed beef, artisan cheese, Bay Area wines, California-grown bananas, mangoes, and avocados. Local musicians provide a relaxing atmosphere for browsing samplings from nearby ranches and farms.

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Tax Credit

By Intero Real Estate | September 17th, 2009 0 Comments

National Association of Realtors® urging tax credit extension

The National Association of Realtors® is urging Congress to extend the homebuyer tax credit through next year and make it available to more homeowners. The credit is set to expire Nov. 30th.

More than 1.2 million new home buyers have taken advantage of the $8,000 first-time tax credit, NAR says, and it estimates that 350,000 of them would not have bought a home if the tax credit had not been in place. 

"We have all seen how the credit has been a spur to bring homebuyers in the housing market," said NAR President Charles McMillan.

McMillan said the credit needs to be available for more time "to sustain the progress that’s been made so we can continue to see our markets fully recover. Uncertainty about the future of the credit will dampen consumer demand."  

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Leadership Conference

By Intero Real Estate | September 11th, 2009 0 Comments

Blefari speaks at RisMedia Conference

Intero CEO Gino Blefari spoke this week at RISMedia’s Top 5 in Real Estate Network Leadership Conference in New York. On this video blog, Sara Bonert, director of broker services at Zillow, discusses what Blefari and others said during the conference.

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Intero Insider: Today’s Lending Game – Really?

By Gino Blefari | September 10th, 2009 1 Comment

contributing writer -
John Thompson
Founder and Intero Vice President

Are you a fan of Saturday Night Live?  I love a segment they call “Really” on Weekend Update…I am submitting this story for them.

Yesterday one of our buyers was turned down for a loan being processed by one of the “big four” - direct lenders that are still standing. Not news in today’s world of stricter financing standards, until you hear “the rest of the story,” as Paul Harvey might say.

The property being purchased appraised without a problem, and the buyer had qualified with formal loan approval. They signed all of their loan documents in escrow, brought in their down payment, and the move was scheduled for the following day.  The champagne was on ice until…the lender called the day prior to close to announce they are not going to fund the loan.

Really?

Seems a copy of the termite report landed in the hands of the underwriter at the last minute (literally), and the bank refused to fund.  Now claiming the loan is “un-sellable” to Fannie Mae since there are bugs in the wood to the tune of $6,000.

I should probably tell you that the buyer had a $600,000 down payment on a $1,000,000 home purchase, asking only for a $400,000 loan.

Really?!

After going “up the ladder” all day at this bank to find out who could make sense of this, I was shocked by the question I kept getting asked by high level bank personnel…”How did this report get to the underwriter?  This would not have been a problem otherwise.”

Interesting, isn’t that how we got into this mortgage mess? Keeping information from the lenders? The point is – given the new information what the underwriter should be asking is – is this still a good loan? Let’s see $600,000 down with $6,000 worth of work on a lending program that has a minimum down payment requirement of 20%, or for this loan $200,000. It’s a no brainer right?

The loan was now denied because Fannie Mae (FNMA) won’t buy this asset now that they are aware of this report. Huh?  The truth is, banks really aren’t the lender anymore, and the government is, since the majority of today’s loan’s are either purchased or insured by Uncle Sam via FNMA and FreddieMac (FHLMC.)  Another way to think of it is taxpayers now own Fannie Mae through Uncle Sam’s bailout.  So we taxpayers turned down a $400,000 investment secured by a $1,000,000 property over $6,000 in bugs from a well qualified buyer.

Really?!

I want that investment in my portfolio Fannie Mae – are you listening?

Don’t worry, we the taxpayer made up for it later in the day by purchasing a different loan.  A $410,000 FHA loan (taxpayer supported as well as own them too) funded for a different buyer we represented secured by a $425,000 property with the buyer putting 3.5% down.  I feel your nervousness.  You can rest assured the bugs were removed from this investment.   We taxpayers were fine with putting this highly leveraged loan in our portfolio vs. a buyer putting 60% down.

Really?!

Yes really.  This is today’s lending game.

Doctors must be making us sick since they explain what’s wrong with us after reading our charts and reports when WE get ‘inspected.’  So we think – as long as I don’t go to a doctor, and there are NO reports, I must be healthy.  This same logic is used today while making many lending decisions based on bank guidelines.

Really?!

If banks, or Fannie Mae, are so concerned about a home’s condition before they fund, I am curious how termites got to the top of the ‘home repair food chain.’  The chimney could be falling in on a property, and my loan will fund as long as I have a termite clearance.

Really?

Here is the coup de grâce -

Bank owned properties (REO’s) make up almost half of the properties for sale in many markets across the country.  It is a “buyers beware” purchase.  Banks demand buyers to sign a complicated “as-is” addendum drawn up by their attorney.  Yet today, the bank denied a perfectly good loan for their own borrower because they were buying the property “as-is.”

Really?

Am I the only one that sees the irony?

Would you like to know the “rest of the story?”

There is a happy ending.  The buyer did close escrow and get to move in.  This “unqualified buyer,” according to “Mr. Big Four” lender, ended up paying all cash for property.

Really.

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Gino Blefari Speaks at RISMedia & the Top 5 in Real Estate Network®’s 2009 Leadership Conference

By Teressa Francis | September 9th, 2009 0 Comments

Today, Gino Blefari, Intero’s President and CEO will be a featured panelist at RISMedia & the Top 5 in Real Estate Network®’s 2009 Leadership Conference, September 9-10 in New York City.

Held at the historic Roosevelt Hotel in Midtown Manhattan, this year’s Leadership Conference will once again bring together real estate’s top executives, visionaries and practitioners for the industry’s premier educational and networking event.

Gino will be on two educational panels this afternoon. His first panel takes a national perspective on banks and lending. Gino will be discussing topics such as – What they’re doing now? State of the credit industry today? How the practitioners can get back in the game? And role of national re brand these days?

His second panel focuses on regional brokers and he’s discussing daily business. Each broker will be giving insight on ‘what really works’ in business. Gino will be speaking about Intero’s recruiting strategy as well as Intero’s new social media marketing strategy.

RISMedia, the leader in real estate information systems, has been providing the industry with news, trends and business development strategies for nearly 30 years through its flagship publication, Real Estate magazine, its leading website, RISMedia.com, and its renowned networking and educational events.

RISMedia’s Top 5 in Real Estate Network® is a membership network of leading real estate professionals providing leading real estate information to consumers. To qualify for membership in the Top 5 in Real Estate Network, agents must meet specific criteria in five key categories: experience; results; education; information technology; and commitment to community.

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