Archive for May, 2010

What you Need to Know About Green Home Certifications

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Mirror, mirror, on the wall, who’s the greenest of them all?  As if we didn’t already have hundreds of eco labels to worry about every time we visit a store, now there are green home certifications that are mushrooming up all over the Bay Area and the country.  Understanding these new ways of classifying quality and operation costs is becoming a must, especially when you build, remodel or in the market for a home.  Yet another chief reason for being able to decipher these new terms is to avoid growing generalizations or greenwashing.

Frankly, most folks could careless about “green” homes. Very few want to pay extra for labels they don’t understand.  And why should they?! Price and quality are and should be the two high priority areas of concern.  However, green homes address much more than just fancy “eco-friendly” building materials.  They also encompass elements like energy efficiency, indoor air quality, water efficiency, materials use (recycled, reclaimed, sustainable), community and environmental impacts.

Third party sources play an important role in verifying that green homes are truly are as they are cracked up to be in their marketing.  Here are the three most prevalent green home titles you are most likely to see in our Bay Area neighborhoods:

Green Point – This rating program is a child of Build it Green, a non-profit based in Berkley.  GreenPoint uses a scoring system where a GreenPoint rater evaluates a home’s green features “allowing homes to be compared on a level playing field.”  The program rewards building professionals and homeowners who create green homes by allowing them to brand their products with a recognizable seal of approval.

Be aware though; it doesn’t take much to get yourself a “GreenPoint” title.  When you see this little word “Elements” next to the rating (up to 50 points) it means only a small part of the house has some sort of green feature.  When you see “Whole House,” stated next to the score, this is more exciting but again, pay attention to the score.  Some “green” homes are notorious for focusing on energy efficiency but very little attention is given to indoor air quality.  I’ve seen it and smelled it, it’s a fact.

LEED – (Leadership in Energy & Environmental Design) is an internationally recognized voluntary green building certification system from the US Green Building Council. It verifies that a building or community was designed and built using strategies aimed at improving performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts.

LEED homes have the potential to use 20-30% and some – up to 60% less energy.  Certifications have various levels of “greenness” and are categorized into Certified, Silver, and Gold & Platinum. Neither of these certifications is easy or cheap to get.  When you see a home owner or builder boasting a LEED seal of quality, rest assured they had to jump through some serious hoops to get it.

Energy Star – It is very likely that up until now, you thought Energy Star applies only to your appliances and electronics.  I was very surprised to find out that it pertains to homes also.  To earn the ENERGY STAR, a home must meet strict guidelines for energy efficiency set by the U.S. Environmental Protection Agency. These homes are at least 15% more energy efficient than homes built to the 2004 International Residential Code (IRC), and include additional energy-saving features that typically make them 20–30% more efficient than standard homes.

There you have it, the most common green home certifications in Bay Area.  As a general rule, it is always a good idea to dig deeper when you see a home that claims to be “green”.  Always look for third party verifications and other proof.  Let’s leave the “greenwashing” to the household cleaning product industry.

More on Green Homes:  http://SanJoseGreenHome.com


Intero Real Estate Services climbs to #17 on the 2010 REAL Trends 500 list of America’s largest real estate companies

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Silicon Valley-based brokerage and franchisor is the youngest firm among the top twenty companies on prestigious list

CUPERTINO, SILICON VALLEY, USA – May 27, 2010 — Intero Real Estate Services (http://interorealestate.com), a leading U.S. real estate brokerage that has recently expanded its brand globally, as a franchisor, through Intero Franchise Services, Inc. and Intero International Franchise Services, LLC, announced that it ranked #17, based on sales volume, on the prestigious REAL Trends 500 list of America’s leading real estate companies for 2010.

Intero is also the youngest company within the list’s top twenty firms – a fact that underscores the rapid growth and success of the Intero brand. Intero was founded in 2002 and broke into the REAL Trends top 25 in its second full year of operation – a first for any real estate company.

The REAL Trends 500 list is published by REAL Trends, Inc., a publishing company considered to be a leading source of real estate analysis and information.

“We are honored to make the REAL Trends 500 again – it represents a who’s who of American real estate companies,” said Gino Blefari, Intero President and CEO. “The fact that Intero is one of the youngest firms on the list is particularly meaningful to all of us at Intero who believe real estate is ready for our brand of innovation.”

Intero’s growth is driven by re-thinking the real estate brokerage. The company was among the first to syndicate listings on the Internet, has been recognized for its outstanding Website and has reinvented the real estate office. Intero is now expanding its brand nationally and internationally through master and single-unit franchising.

“The REAL Trends 500 has always been a marker of success in this business,” said Bob Moles, Intero Chairman and former President and CEO of the Real Estate Franchise Group of Cendant Corporation, the largest franchiser of residential and commercial real estate brokerage offices in the world. “The fact that the Intero® brand has made it so far so fast is a validation of our commitment to sustained innovation.”


Intero Insider: Out of the Ashes Rises the Phoenix…Or At Least A Parakeet

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I love finding the silver lining in things.

No matter how desperate a situation might look, there is almost always something positive, glimmering no matter how faintly, beneath the surface.

I have long postulated that the Federal Government’s stoppage of investment in mortgage-backed securities could result in rising interest rates. And I still believe that to be the case.

We seem, however, to have found a silvery lining in the specter of that cloud.

As you are likely aware, our friends in Europe are going through a bit of a financial crisis of their own. Greece is deeply in debt and has no earthly idea how to get out. The rest of the European Union doesn’t want to help them out, but Greece’s troubles are having a crippling effect on the, until now, untouchable Euro, whose value is dependent on the economies of all of the countries that use it.

The result? International investors, now wary of stockpiling their cash in European markets, have sent the U.S. an unexpected windfall in the form of mortgage rates that are now at near 50-year lows.

How low, do you ask?

Freddie Mac, on Friday, the 21st, said that rates averaged just 4.84% last week. Far from shabby, that’s the lowest since December 2009. In fact, I’ve heard reports of mortgage officers locking in loans with rates as low as 4.25% — fixed — which is as low a rate of which I’ve ever heard.

Did you miss out on the Homebuyer Tax Credit? As I mentioned a couple of weeks ago, it’s OK if you did. In the long run, that $8000 won’t take most people all that far. But a mortgage interest rate of below 5%? Now that is something that’ll save you some big money. A one-percentage-point decline in mortgage rates can save you hundreds of dollars each month. Over a 30-year period, that could translate into a lot of money. Real savings.

Also, lowered interest rates will increase buyers’ spending power. For each percentage point mortgage rates decline, buyers can spend about 10% more on a home. The extra bedroom or bump-out for which they’d been hoping might now be within their reach.

Take heed, though. It’s tougher now to qualify for a mortgage than it has ever been. Underwriting standards are tough. Not everyone is going to qualify, I’m afraid.

How long will things stay this way?

That’s a great question, and unfortunately one which has no answer. But I can tell you this: it’s unlikely that these rates will last for very long. If you have questions, contact your mortgage lender, your financial advisor, or your Intero real estate professional. They can point you in the right direction. If you’re looking to buy a home (or to refinance your current mortgage), it would seem that there is no time like the present.


Intero in the News!

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Inman News, the leading source of independent real estate news, highlights Intero in its Top 25 largest brokerages in the U.S. article today!


The Intero Insider: All politics (and real estate) is local

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Former Speaker of the House Tip O’Neill stated, famously, that “All politics is local.” The same could be said for real estate.

This is true for many reasons, but for my purposes today, I’m going to focus on just one of them.

Home values.

For my money, there’s nothing that compares to a local expert. Someone who knows the markets in which he or she works. Local agents know the neighborhoods in which they do business in a way that a big box company simply can’t. They know that home prices don’t vary simply from state to state, nor from city to city. They know that home prices are specific to neighborhood and that making sweeping generalizations about the real estate market in a given area might get you in the right ballpark, but they’ll rarely hit a home run.

I’ll give you an example.

Earlier this morning, while I was getting ready for the day ahead, I was watching a popular morning news program. On it, a nationally-recognized real estate figure was encouraging first-time homebuyers to use online tools like Zillow and Trulia to decide what a fair price for a home in a given area might be.

Now, I’m not going to knock Zillow and Trulia. Each of these tools is in business because it’s brought something new and innovative to the real estate table. But the fact remains that the information they make available for home values is very often wrong. Dead wrong. Sometimes, its values are dramatically below actual market price, sometimes they are far above.

These services simply cannot provide the perspective that (A) a human being and (B) someone who’s intimately familiar with an area can.

When you work with a real estate professional, work with someone who understands the subtle nuances of the neighborhoods in their market area. Work with someone who knows that homes on the side of the street with water views are going to cost more than those on the side of the street with no view (for the record, Zillow can’t tell the difference).

Work with someone who’s going to know which price constitutes a great deal for his or her clients.

At Intero, we pride ourselves on being this type of company. We take pride in being a hometown company whose agents live, work, and play in our market area. We take pride in knowing that our real estate professionals understand the market data that really matters, and we take pride in knowing that our agents know the tiny details that will make the biggest difference to you.


Intero Insider: The News Is Up! And It Is…Good?

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Yesterday, the good folks over at Zillow released the results of its First Quarter 2010 Survey. Was the news good? Sort of. Maybe. A little.

First, the facts:

Home values in California appear to be on the rise. During the First Quarter of 2010, home values in Los Angeles, San Francisco, San Diego, Santa Barbara and Ventura County showed marked increases.

Nationwide, home values continued to decline in the first quarter of 2010. The Zillow Home Value Index showed a 3.8% decline for the same period last year — this makes thirteen consecutive quarters with year-over-year declines. In 106 of the 135 markets tracked, home values fell.

Negative equity is rising steadily. In the Fourth Quarter of 2009, 21.4% of single family homes had mortgages that were “underwater” or “upside-down,” meaning that more was owed on the mortgage than the home was worth. In the First Quarter of 2010, that number rose sharply to 23.3% — nearly ¼ of all mortgages on single-family homes.

Foreclosures reached an all-time high in March 2010. According to Zillow’s survey, more than one out of every 1,000 U.S. Homes — a startlingly high number — went into foreclosure that month.

It is interesting to me to compare this national level data with what I am seeing here in Silicon Valley at the Street level, which is always, in my opinion, the most useful way to look at the housing market. Here I am seeing lots of signs of market vitality. Recently, a listing in Cupertino received 14 offers. A listing in San Jose received 6 offers just this week. This seems to be going on at both the entry level – where one might expect to see such things – but also towards the higher end.

This is information that, especially if you’re planning on selling a home, is very important for you to understand. You need the big picture, but also the picture in your neighborhood or on your block.

Please talk to your Intero real estate professional. We’ll make sure you have all of the facts, and every tool at our disposal to make sure that you make educated decisions about your home sale. We’ll tell it to you the only way we know how: like it is.


Intero Insider: HAFA Spells Relief … Or Does It?

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At the beginning of April, the Federal Government introduced new measures aimed at helping Americans avoid foreclosure. Sort of lost in all of the news about how great the real estate market’s been doing, Home Affordable Foreclosure Alternatives (HAFA), are designed to help struggling homeowners who, regardless of effort to keep their homes, simply can’t afford to.

“A short sale would really help … if only the bank would agree.”

Now, maybe it will. Banks already participating in the Government’s HAMP program are required to participate in HAFA, as well. Mortgage holders have been notoriously difficult to deal with when it comes to short sales. One hand doesn’t know what the other is doing, approvals take virtual eternities (if they ever come at all), homeowners who’re feverishly trying to sell their homes or face the spectre of foreclosure are lost in a sea of confusion about how to proceed in the process.

With a glut of foreclosed homes (over a million at last count), banks are having to rethink their options. Each foreclosure costs banks upwards of $100,000 more than a short sale, but until now, they’ve not been enthusiastic about approving them.

The HAFA program should make things a bit easier on everyone. Whether it’ll work is another matter altogether.

The new guidelines institute a timeline, so that all parties involved will know about what they can expect and when. Sellers will be able to get pre-approval and know what the absolute bottom-line acceptable prices will be. Junior lienholders, who typically get left out in the cold and who are, typically, the factors in denying short sales, will be able to recoup some of their losses. Improvements are definitely being made to the system (although “system” is far too precise a word to pin on the old way of doing things).

A major benefit to HAFA is that it will, hopefully, allow homeowners to leave their properties with their heads held high, and with their dignity intact by fully releasing them from the liability of their loan.

In California, which has been one of the 4 states hardest hit by the foreclosure crisis, there’s a bit more to the program.

The recipients of $700 million dollars in additional aid, the State of California has proposed assistance to low-to-moderate income level homeowners through means such as principal write-downs for those who owe more on their home than it is worth (it’ll be interesting to hear reactions from people who are in the same situation but who are still making their payments on time), relocation assistance, subsidized mortgage payments, or temporary aid for the unemployed who are at risk of foreclosure.

They are, sadly, many more homeowners affected by this crisis that won’t be helped, for one reason or another, by this program or any other.

If you’re a homeowner in distress, please contact your lender. Ask your Intero real estate professional. Find out what alternatives you have before it’s too late.


Intero Real Estate Services, Inc. makes new, more efficient real estate office model available to franchisees worldwide

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The ‘AndareSM‘ Office, launched in Silicon Valley, enables real estate brokers to sustain profitability while delivering a compelling customer experience

CUPERTINO, SILICON VALLEY, USA – May 4, 2010 — Intero Real Estate Services (http://www.interorealestate.com), a leading U.S. real estate brokerage that has recently expanded its brand globally, as a franchisor, through Intero Franchise Services, Inc. and Intero International Franchise Services, LLC, has announced that its groundbreaking Andare office model is now available to companies choosing to affiliate with the Intero brand.

The Andare model, first piloted by Intero in Silicon Valley, re-wrote the book on what a real estate office should be: a cost-efficient operation that delivers a memorable experience to agents and consumers alike. Gone are the seldom-used cubicles, replaced with wired pods for agents who drop-in and head out. Gone are the fax machines, file cabinets and copiers, replaced with wireless Internet and Web-based transaction management. The Andare office is an environment built for today and tomorrow, not yesterday.

A multimedia presentation of the Andare office can be viewed online.

‘The economics of a real estate brokerage today are different than a few years ago – that’s a fact that cannot be ignored’ said Gino Blefari, President and CEO of Intero Real Estate Services. ‘The real estate office as we have known it needed to change, so we reinvented it completely with Andare.’

Intero has developed a turnkey plan for franchisees around the globe to create their own Andare offices. Research, floor plans, operational and management practices and consulting are available to Intero affiliates that wish to open Andare offices in their markets.

‘Andare was a big part of my decision to affiliate with the Intero brand because it gave me something new and exciting to bring to the marketplace and will put me on a profitable track from day one,’ said Sandy Miller, the owner of the soon to be built Intero Rancho San Diego, California branch. ‘There’s a lot of talk about innovation in real estate right now, but Intero was the only company that delivered substance.’