By Last night, The Business Journal posted articles about some of the exciting changes happening in Luxury Real Estate and the effect of Facebook’s IPO on the market. Who did they ask for expert advice; Intero Real Estate Services. Check out what we had to say.
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Intero Insider: 5 Home Purchase Cancellation Prevention Techniques
By The real problem in the housing industry right now is not lagging sales or falling prices. With lots of supply and rock-bottom interest rates on mortgages, demand from buyers is shaping up. The real problem now is in cancelled contracts.
In its December Pending Home Sales Index released last week, the National Association of Realtors said that pending home sales remained strong at 96.6 – still well above the same month a year earlier when the index was at 91.5. (An index of 100 is considered to be a healthy market.)
The index measures the number of contract signings made in a month and is viewed as a forward-looking indicator because contract signings in a perfect world lead to actual sales either the following month or month after. So, with all the positive numbers here, why aren’t we seeing a boom in closed sales? The answer is simply that deals are falling through.
NAR says that one-third of Realtors are reporting that contract failures remain a big issue. This is no small potatoes. Now that we know more buyers are ready to bite, we can’t let you get blindsided or discouraged by contract failures. Here are five home purchase cancellation prevention techniques:
1. Have enough cash: A no-brainer, I know. Lenders are much stricter these days about how much cash they want to see at closing. You should know how much you can bring – for both down payment and closing costs – well in advance of your house hunt.
2. Prepare your paperwork now: Agents say that many times contracts fall through because the buyers didn’t have their paperwork ready when it was needed. To save your deal, make sure you’ve got all your financial information in line before you make an offer: proof of income, assets, debt, and proof of down payment, and letters you may need to explain gaps in income or employment.
3. Tighten up your finances: Just because your offer was accepted doesn’t mean you’ve got the house. You still need to get a loan (unless, of course, you’re independently wealthy and plan to pay cash). Long before you go house hunting, be sure to visit with a loan officer or mortgage broker to get a picture of your finances so that you’ll know whether a bank will lend to you and how much.
4. Understand your comps: Many deals are falling through because of appraisals coming in below the purchase price. While there’s nothing an agent or home buyer can do about a low appraisal, you can do something about the offer price. Make sure you know your market inside out. Pull good comps that are similar, local and recent. Get a good inspection and be sure that any defects are accounted for in some way. You need to know about any little thing that may come up to negatively impact the appraisal the bank will use to determine the home’s value.
5. If buying a short sale or foreclosure, educate yourself on these processes in advance: These types of transactions take much longer to complete in many cases. But when they move, you need to be ready to move with them. That means you should first know what to expect before making your offer, and then follow through on what is expected of you every step of the way.
Extreme caution, hyper preparedness and highly informed home buyers are the only combination that’s going to make a dent in the large portion of contract failures the market is experiencing. While we can’t control lenders, we can control our readiness to respond.
Fed Opens the Year with a Plea for Housing
2012 is going to be a big political year for housing – and not just due to the presidential elections. The Federal Reserve has already kicked off the year by stepping into delicate political territory with its letter and white paper outlining U.S. housing problems to the congressional committees in charge of banking and financial services.
The move was quite surprising, given that the Fed was not given a formal request. The actual letter begins with: “Restoring the health of the housing market is a necessary part of a broader strategy for economic recovery.” The Fed’s opening argument is that the ongoing problems in the U.S. housing market continue to impede the nation’s economic recovery.
It’s clear the Fed wants to make housing the centerpiece of the national economic debate in 2012.
The white paper then goes on to outline a framework for possible policy changes that could help boost the housing economy and help struggling homeowners. Four of the possibilities outlined are:
Help more underwater homeowners refinance at lower rates. This policy is an old idea that was already poorly implemented under HARP in 2009. It was meant to help holders of the 8 million mortgages owned by Fannie Mae and Freddie Mac that carry an interest rate above 6%. It hopes to extend refinance possibilities to those who’ve not been able to take advantage due to inadequate or no equity, spotty credit or tightened lending rules.
New rules for HARP, however, could open it up to millions more households in need.
Large-scale principal reduction initiative. Lowering the amount of money that mortgage holders owe on their loan principal would drastically change the financial landscape for millions of families. The Fed notes in its paper that 12 million mortgages are underwater now, adding to about $700 billion in negative home equity.
Tackling this deficit would put many homeowners back in an ownership situation that makes financial sense given the current market condition and economy.
Convert vacant government-owned foreclosed homes into affordable rentals. This makes a ton of sense. The two housing finance agencies Fannie and Freddie own more than 230,000 foreclosed homes. Why not set up government programs that turn this unsold inventory into much-needed rental housing (a market that’s seen a rise in demand in the wake of the housing slowdown)?
Establish fair consumer protections for mortgage servicing. The Fed and others want to add a layer of consumer protection into the mortgage servicing market that previously was not there. Mortgage services currently have no fiduciary duty to protect consumers from errors and omissions in the servicing process. This initiative would add protections and potentially even change the compensation model to better protect consumers.
There’s a lot more detail in the Fed’s letter and white paper, which is available online. I suspect this is the first of many politically charged moves we’ll see this year. I just hope that some of these policies get it right and pull more families up from the depths of the housing collapse, helping to push economic recovery a bit harder and faster.
Intero at the 2011 N.A.R. Expo
We were very excited to showcase for the first time at the 2011 Realtors® Conference & Expo on November 11-14th in Anaheim, CA! Our booth was modeled after our contemporary and fresh concept of a real estate office reinvented, known as Andare.
At NAR we were able to spread the word about Intero to people from around the world, as well as keep everyone informed online with a LIVE STREAM of conversations between our leaders and leaders we met at the convention on our Facebook page.
Thank you to everyone who stopped by, helped and showed their support!
Check out some photos from the weekend:
Intero at the NAR Convention in Anaheim, CA this week!
We are very excited to be showcasing for the first time at the 2011 Realtors® Conference & Expo! Be sure to stop by and visit us in booth #265, modeled after our contemporary, cafe-style office design, November 11-14 in Anaheim, CA. And if you can’t make it, don’t miss the LIVE STREAM of our booth’s activities on our Facebook page.
Partners Gino Blefari, Tom Tognoli, John Thompson, and Bob Moles as well as some of our franchisees from Texas, Nevada, San Diego, Valencia, Rancho Cucamonga, and the Desert Cities will be onsite and conducting interview style discussions throughout the weekend. With a special guest appearance by Leslie Appleton Young, CAR’s Chief Economist scheduled for Saturday at 3:15pm.
The Intero Insider interview schedule:
(Catch the LIVE stream on www.facebook.com/interoRE)
SATURDAY, Nov. 12th
10:30am EVPJohn Thompson – Creating Your Vision and Purpose to be Successful
11:30am 1000Watt Consulting – What you Should be Doing, Planning and Applying Given the Breakthroughs in Technology
12:40pm Chairman Bob Moles – The Influence of International Buyers in the U.S. Housing Market & Why it’s Important Your Brokerage has an International Presence
1:20pm President & CEO Gino Blefari – Characteristics of Top Producers, Staying Relevant in Today’s Market
2:15pm Danny Morel, Intero Rancho Cucamonga – The Importance of Making a Transition From Being a Manager to Being a Coach
3:15pm Leslie Appleton Young (C.A.R. Chief Economist) – 2012 economic forecast and iPad2 Giveaway
SUNDAY, Nov. 13th
10:45am Danny Morel, Intero Rancho Cucamonga - The Importance of Making a Transition From Being a Manager to Being a Coach
11:45am RIch La Rue, Intero Palm Desert & La Quinta – Growing a Brokerage in a Challenging Market
12:40pm COO Tom Tognoli, and Katie Maxwell, Intero West Ave – Leveraging Social Media to Grow Your Brand and Create Culture
1:20pm COO Tom Tognoli & EVP John Thompson – What’s Really Holding People Back from Getting What They Want
2:30pm Michael Rescigno, Intero Valencia - Shopping for a Brand or Brokerage: What to Look For
3:30pm VP of Franchise Services, Chris Stuart – Fiscal Fitness: Maximizing Profit in Your Real Estate Brokerage and iPad2 Giveaway
We’ll also be giving away an iPad2 on Saturday and Sunday! You could get a chance to get your hands on one. Stop by the booth to register to win.
Come show your support and experience the Intero advantage. You will walk away with a brighter and more profitable outlook on the future – a fresh new approach to real estate.
See you there!
Intero at the NAR Convention in Anaheim, CA next week!
We are very excited to be showcasing for the first time at the 2011 Realtors® Conference & Expo! Be sure to stop by and visit us in booth number 265, modeled after our contemporary, cafe-style office design, November 11-14 in Anaheim, CA.
Partners Gino Blefari, Tom Tognoli, John Thompson, and Bob Moles as well as some of our franchisees from Texas, Nevada, San Diego, Rancho Cucamonga, and the Desert Cities will be onsite for assistance and will be conducting interview style discussions throughout the weekend.
Special guest appearance by Leslie Appleton Young, CAR’s chief economist scheduled for Saturday.
And don’t miss out on the iPad2 giveaways on Saturday and Sunday! You could get a chance to get your hands on one. Stop by the booth for more details.
Come show your support and experience the Intero advantage. You will walk away with a brighter and more profitable outlook on the future – a fresh new approach to real estate.
Distressed Housing Market Overview with John Thompson
This Intero Insider – Video Series brings you John Thompson, Founder & Executive VP of Intero Real Estate Services. He speaks candidly with Intero COO Tom Tognoli and discusses the distressed housing market and what homeowners should do to overcome those situations.
Real Estate Company To Expand In Region
Intero Folsom Lake and Intero El Dorado Hills are featured in the October 12, 2011 Sacramento Bee newspaper article.
WEDNESDAY, October 12, 2011
By: Rick Daysog
Sacramento Bee
Despite the sluggish local housing market, a major Silicon Valley real estate firm said it is expanding in the Sacramento area.
Intero Real Estate Services opened its first local office in Folsom in June and its second in El Dorado Hills in August. Under an area development agreement with locally based Kaizen Real Estate, Intero said it plans to expand to as many as 16 offices in the Sacramento region over the next four years.
Intero’s two local offices employ 21 people.
“As a significant number of Sacramento residents transition to and from Silicon Valley, the Sacramento area is a perfect market for Intero,” said David Bicknell, Kaizen’s president.
Founded in 2002, Intero lays claim as the largest and fastest-growing real estate firm in Silicon Valley. The company, which has over 2,000 employees, pioneered the use of small offices that rely on high-tech innovations to market properties.
Hope in Housing Gap
David Bicknell, broker and owner of Intero Folsom Lake, is featured in the October 16, 2011 Sacramento Bee newspaper article.
SUNDAY, October 16, 2011
By: Phillip Reese and Rick Daysog
Sacramento Bee
Twenty-nine cents on the dollar.
That’s what homebuyers now pay for a typical house in the Sacramento region compared to buyers in San Francisco. And if history is any guide, that mounting price gap could have a big impact on Sacramento’s housing market and economy in the not-too-distant future.
The last time the spread between Bay Area median prices and Sacramento median prices grew so big was a decade ago, just before tens of thousands of Bay Area transplants arrived in Sacramento, turning a healthy housing market into a bona fide boom.
Since then, that wave of transplants has slowed to a drip, with barely more residents relocating from the Bay Area to Sacramento than heading in the other direction.
Several local real estate experts and economists said they don’t expect to see another approaching fleet of U-Haul trucks quite yet, with the possible exception of a few being driven by carefree retirees.
“It’s a different market now,” said Suzanne O’Keefe, a Sacramento State economics professor. “Everyone is more cautious. The housing market isn’t going to rebound quickly because people move from the Bay Area.”
O’Keefe and others note that the local job market is stalled; cheap housing is available elsewhere; and many Bay Area residents already cashed out home equity during the boom. Just as key: Bay Area home prices are less expensive than they have been in years. A San Francisco condo worth $1 million in 2005 would sell today for about $840,000.
But even if Bay Area transplants aren’t about to swoop into Sacramento tomorrow on white horses, many expect their numbers to increase, helping to put a floor on falling home prices. To bolster their case, these optimists point to past trends.
The San Francisco and Sacramento housing markets are closely entwined. Growing price differences between the two areas preceded and fed the last two housing booms.
The calculus is simple: Bay Area residents see their modest homes sell for immodest prices, and decide to cash out and buy quasi-mansions in Sacramento.
Right now, the median home price in the Sacramento region is about $185,000, according to data from Wells Fargo and the National Association of Home Builders. In San Francisco-Marin-San Mateo, it’s $630,000. In the San Jose area, it’s $454,000.
David Bicknell, the local franchisee for Intero Real Estate Services, is putting money behind his premonitions of a coming influx. His company recently opened offices in Folsom and El Dorado County and plans more expansion.
“More and more people are able to move to the Sacramento area,” Bicknell said.
Influx of equity-rich retirees seen
Bicknell is encouraged by the local tech sector, which he believes is rebounding.
Intel Corp., one of the local region’s largest private employers, recently hired 368 new workers at its Folsom campus, reversing more than a decade of downsizing.
The new hires increased Intel’s local workforce by about 6 percent to 6,515 workers. Many are recent college graduates who have relocated to the region, the company said.
Tech company Bloo Solar of El Dorado Hills plans to hire another 40 or so workers over the next several years as it expands its solar manufacturing plant.
“We see this as a continuing trend,” Bicknell said. “The homes are nice, the schools are good, and the cost of living is so much lower.”
Retiring Bay Area baby boomers are just as important to Bicknell’s strategy.
The last generation of retirees largely drove the big influx from the Bay Area to Sacramento 10 years ago. The town of Lincoln quadrupled in size during that boom, partly because of senior citizens arriving from places like Santa Clara County.
Assuming they have a pocket full of cashed-out equity, retirees might not worry as much as others about Sacramento’s difficult economy.
“There’s a lot of potential out there for the active adult market,” said Dean Wehrli, a senior manager at John Burns Real Estate Consulting. “That part of the market is increasing, and it’s going to be like that for 20 years.”
Granite Bay Realtor Eve Fenstermaker said she has noticed more interest from prospective Bay Area buyers since last spring. She gave the example of a client who lives in the exclusive Blackhawk area of Contra Costa County. Two years ago, the woman balked at moving because of declining prices in her neighborhood – and corresponding lost equity. With prices recovering, she is considering Sacramento.
“If you can sell your house in the Bay Area for $900,000 and can buy a comparable house here for $725,000, why wouldn’t you do it?” Fenstermaker said.
Douglas Booher, a 34-year-old Southwest Airlines pilot based in Oakland, recently looked at several homes in Folsom and El Dorado Hills. He likes the schools and the proximity to Lake Tahoe.
“If we can live in Sacramento in a nice home – maybe not our dream home, but a nice home – then we will have more money left to play with,” said Booher, who rents in Clayton and spends much of his time on the road. “It’s worth the two-hour drive once a week.”
An Audience With Internationally Acclaimed Real Estate ‘Top Gun’ and Property Business Guru Gino Blefari
Mike Bidwell is delighted to offer you this unique chance to attend a special event being hosted by Intero UK in association with the Guild of Professional Estate Agents and Fine & Country to spend an afternoon packed with insight and discussion focusing on the challenges currently being faced by the UK estate agency profession and the outlook for the property market place in the future.
Intero UK is an independent estate agency brand for independent estate agents bringing together the value of the best of the Guild’s networking knowledge and marketing tools with the strength of a hugely successful brand and all of the advantage that we have already seen this bring for the membership of Fine & Country in the upper quartile of the market place.
Gino Blefari will share his thoughts on how estate agents can not only survive but also thrive through collaboration yet without losing their independence or identity.
The event will incorporate sessions geared towards Intero UK’s brand positioning, marketing and I.T. including its unique and innovative social media strategy. Learn new concepts, techniques and initiatives designed to help you earn greater market share and enjoy increased profitability.
Intero aims to become an effective specialist ‘executive’ property network successfully combining a superb suite of tried and tested marketing tools and ground-breaking technology with the power of a national brand.
Please respond quickly as spaces are limited and are being allocated on a strictly first come, first served basis.
Venue: Central London
Date: 24th October
Time: 2.30pm – 6pm
RSVP: clientservices@interouk.com
The event will be followed by a dinner hosted by Malcolm Lindley, Managing Director of GPEA Ltd.
The Intero Insider
A weekly e-newsletter with fresh market data and candid insights from Intero CEO Gino Blefari
