By Back in the bay area, Alain Pinel is getting more local exposure for Intero Real Estate Services. Check out this weeks interview in The Almanac to hear about Alain’s journey to Europe and back.
Posts Tagged ‘Bay Area Real Estate’
Luxury Insider: TSUNAMI WARNING!… IT’S OK!
By Have you been watching the Nasdaq lately? Of course you have. So have I, like a hawk, particularly over the last couple of months. What do we see? We see the late 90’s all over again!
2011 was not too bad for the Nasdaq. It played the little train that could, grinding most of the year, an inch at- a -time. The tempo accelerated a bit mid-December and that train now looks like nothing is going to stop it. There is no better bellwether of things to come in the Valley than the Nasdaq. Sure we are still far from the March 2000 peak of 5134 but the uphill direction in which the tech heavy index is headed and the pace at which it is moving make a statement: happy days are ahead.
There are some differences though between, say, 1998 and today. For one, we had plenty of homes to sell back then; today we have little inventory where the demand is hot, particularly on the mid-Peninsula. Also, mortgage money is still hard to get today while it was flowing during the dotcom boom. Finally, the escalation of Bay Area real estate prices in 98, 99 & the first half of 2000 was mirroring almost perfectly the progression of the Nasdaq; today, they are still slow to warm up and the thawing process is likely to be very spotty on the regional map for a while.
The barometer, irrespective of the above concerns, is indicating sunny & dry tomorrows. The “Facebook effect” you might say. Hundreds of employees and paper millionaires are already counting their money, waiting for pay-day. It might take months before the lucky jackpot winners free their cash, but they will, and just as surely, that cash is going to turn a lot of California real estate into gold. We have been there before, when regional tech IPO’s were hitting the market every week in the late 90’s. The Facebook phenomenon is going to change the Bay Area real estate landscape in a hurry.
Yes, the tsunami is coming. We don’t see the wave from shore just yet but we can already hear & feel the vibrations. Other IPO’s are lined up through the year to keep the momentum going. Looks like there is enough on the horizon to bring wealth or at least financial comfort and security to many.
The Silicon Valley, as it is often said, is the land of fear and greed. Greed is winning again. Considering the alternative, it is a very good thing. We may thank for that the genius of local visionaries, from Steve Jobs to Mark Zuckerberg, but also the background actors & directors without whom the Silicon Valley may only be another valley: the VC people. They have been using their brain cells and risking their money for nearly two decades to guarantee that the sun would keep on shining in Northern California and beyond.
In fact, they may be the true engine of growth. Obviously innovation is the necessary ingredient to produce economic success, but, by itself, it is rarely enough to leverage & multiply the opportunities and considerably accelerate & amplify the resulting benefits. By discerning the right ideas and bringing them to market, the VC companies are fueling innovation. In a way, they are “manufacturing” growth. We sincerely appreciate it. After years of bad news, we will happily reap the benefits of their good work.
Intero Insider: Facebook’s IPO and the American Dream
By By now, you’ve heard all about Facebook’s S-1 filing last week – the social networking site’s first steps toward what is expected to be a $5 billion IPO. It’s a fascinating story, and something we’re sure to hear a lot more about over the next three months leading up to the actual offering.
There is also a fascinating real estate story about to unfold. No, not the kind of story in which agents start to find wild success selling homes via Facebook. But the real kind: young Internet minds work hard to build a raving success, take the company public, and get wildly rich in the process. And what’s the inevitable next step? They buy real estate.
That’s right. Our very own Silicon Valley, which is already flush with brilliant tech minds who’ve found amazing success in their careers, is about to be flooded with even more young success stories thanks to Facebook’s IPO. The rippling effect of the wealth about to be made by Mark Zuckerberg and 3,000 Facebook employees on the local economy is expected to spark a jump in real estate sales and also boost the local economy overall for many years.
This is how we know that Americans – regardless of background, age, or current economic standing – still have a healthy appetite for owning their own homes. It’s among the first things we all do when we realize success in our careers.
News stories may have you believe that many Americans are over owning a home – that the wounds of foreclosure, financial hardship and upside down home values have created a huge disconnect in what was once the American Dream. But I’m here to tell you that it’s simply not true, and Facebook is my case in point.
Watch for evidence that the American Dream is alive and well in our local real estate market after this IPO hits Wall Street in May (and leading up to then, too).
This is why I don’t panic when personal finance gurus start to talk about shifting values among America’s young – that our kids are more interested in renting than buying. Because it’s simply not true. Give them success and a healthy income and they will buy a home.
I’m excited to see this generation of dot-coms growing and sustaining, defying the slow growth trend that’s happening in almost every other sector. This is exactly the type of positive news we need right now. Let’s embrace it!
Eight years ago, a young Zuckerberg took a chance and came out to Silicon Valley one summer while enrolled at Harvard. That chance is now paying off, and our local economy is lucky to be a part of it.
From luxury to bank-owned, a review of this summer’s real estate market
This Intero Insider – Video Series brings you Dominic Nicoli, one of our top real estate agents at Intero Real Estate Services from the Los Altos office. He speaks candidly with Intero COO Tom Tognoli and shares his insight and projections on today’s real estate market from luxury real estate to foreclosures – where we have been, where we are now, and where we are headed.
Intero Insider: How to Save $67,960 on Your Next Home Purchase
Standard & Poor’s downgrade of the U.S. debt rating this month sparked speculation about what the effects would be on stock, bond and key interest rate markets. A lot of conversations centered around the prediction that interest rates for mortgages would increase dramatically, damaging an already delicate housing recovery.
So far, the opposite is true. We’re talking down, down and down again. In the tumultuous days following the S&P downgrade, rates on 30-year fixed-rate mortgages fell to 4.32%, according to Freddie Mac’s Primary Mortgage Market Survey.
I realize I’m the CEO of a real estate company so you’d expect me to say this: But, now truly is an opportune time to borrow money for real estate if your finances are in a solid, healthy state. Borrowers who lock in super low rates stand to save a substantial amount of money over the life of a mortgage.
Take this example: A borrower with a $450,000 30-year mortgage with a 4.3% interest rate would have a monthly payment of $2,227 and pay a total of $351,692 in interest. If their rate on their fixed-rate mortgage had been 5%, they’d pay $2,416 a month and $67,960 more in interest over the 30 years.
Substantial!
Could rates go even lower? Who knows? Seriously. We don’t know. However, S&P also downgraded Fannie Mae and Freddie Mac, which means borrowing could get more expensive for the mortgage giants. That increase likely gets passed on to consumers.
Even if you refinanced last year at an average 5.5%, a rate drop to below 4.5% is worth a check-in on the math of refinancing. When rates really do start moving up, you don’t want to look back and think “I wish I’d…”
Interest rates really do matter. So if you are on the fence or if you’re an agent with buyers who are on the fence, do some math to see your/your client’s total savings. It’s as good a time as any to borrow money. Talk to your mortgage advisor today!
Intero Insider: Down payment assistance makes a comeback
Down payment assistance programs have been through the ringer in recent years, but now seem to be making a comeback. According to a Smart Money article I read this week, the number of programs across the country now stands at around 1,000 and has increased 3% to 5% in just the last six months.
What does this mean for home buyers, home sellers and the market as a whole? I think it’s a nice positive incentive and help for what continues to be one of the biggest hurdles to homeownership, the down payment – especially in high-cost areas like California and our own Bay Area and Silicon Valley.
Down payment assistance essentially comes in the form of programs that offer either grants or low/no-interest loans to qualifying first-time home buyers, or buyers who haven’t owned in awhile. Programs obviously vary, but generally there is an income and home value limit that qualifies a buyer. It can be a lifesaver for qualified buyers in places like San Francisco, where 20% down on an average home easily costs in the six figures.
Banks in the past had been reluctant to work with these programs because the borrowers who qualify were seen as risky. But that seems to be what’s changed this time around. Lenders are more willing to work with these borrowers now.
Programs like these are great for buyers in need of help. But they’re also good news for the market as a whole. Remember: first-time buyers especially are a significant piece of the housing market food chain. We need first-time buyers to create demand that fuels sales at the lower end of the market – and those sales in turn fuel sales for move-up buyers. Any move this year that can help create demand – especially in a market segment that needs it – will result in a positive effect to the market.
I applaud this new movement toward down payment assistance and hope that we will see more positive help to buyers and the market like this going forward.
Are Bank Owned and Short Sales Always a Good Deal?
By All home buyers have one thing in common: Everyone wants a great deal. The buying public seems to think that “great deal” equals foreclosure, short sale or bank-owned property. The truth is that these properties may appear to be bargains, but in many cases you could be buying someone else’s problems. So the real issue is whether the foreclosure, bank owned or short-sale property you’re considering is a bargain or problem. If you’re looking for a bargain property, here are some key issues to consider:
1. What is your time line for purchasing?
You may find the perfect short-sale property, and the seller may accept your offer. The challenge is that you don’t have a deal until the bank approves the short sale. At many large lenders, a single short sale processor may have hundreds of files to handle at one time. I’ve experience delays of up six to get an offer approved. The wait can be extremely frustrating and it can also be costly.
For example, months from now the offer made today you may be too high or to low. Also, interest rates are more likely to go up rather than down during the coming year. And, just because the seller has accepted your price, it doesn’t mean the bank will. You will have a better shot at buying a short sale where the bank has preapproved the sales price. It still may take a long time to close, but not as long as it would if the price was not preapproved.
2. Are you prepared to be in a multiple-offer situation?
You’re not the only one looking for a “bargain.” Many buyers are searching for distressed properties and the approval process takes so long, multiple offers are common. The sellers agent or lender will not tell you about the details of other offers.
If another offer comes in at a higher price and at better terms, the bank is obligated to take the best offer. If the property is a short sale, the seller’s signature on the document merely opens the negotiation – it does not finalize it. Furthermore, the seller/lender may continue to market the property even after they have signed a contract with you.
3. Ask the agent if the seller participated in the “Cash for Keys” program
The best candidates for good bargains are those properties where the sellers are still occupying them. Many banks have a program called “Cash for Keys.” This program pays the owners of foreclosure and short-sale properties money to keep the owner from trashing the property when they move out. It’s not uncommon for disgruntled owners or tenants to remove or damage appliances, plumbing and electrical systems. Cash for Keys is designed to minimize these behaviors.
4. Beware of tenant occupied and vacant properties
It’s never a good practice to purchase a property without doing a physical inspection. Also, be sure you have stipulated the right to make a final inspection prior to closing. This is especially important with distress sales. Also, if the property is tenant occupied be sure the contract states the property must be delivered to you vacant. Trust me, you don’t want to be responsible for evicting a tenant. Also, the longer a house stays vacant, the more likely it is that problems will develop. Not only vandalism, but rats and mice are more likely to move into vacant properties. Rodents can chew through the wiring and generally wreak havoc with the home’s electrical systems.
5. Is the deal more important than your lifestyle?
A property can be a great deal in terms of the price, but is it worth it if it’s in a poorly rated school district or if you end up with an extended the commute? A “bargain price” won’t make up for a poor floor plan, airplane, train or traffic noise or the occasionally whiff of the sewage treatment plant? When you purchase, it’s important that you take all of these issues into consideration rather than focusing exclusively on the price. A property with any of these types of problems will be harder to sell in the future.
As you can see, it’s important to consider the price in conjunction with the quality and the convenience of your lifestyle once you move in.
Of course there are good distressed property deals out there. Nevertheless, don’t limit your search. Keep in mind that, depending on the neighborhood and price range, anywhere for 10 to 50 percent of the sales may be distress sales. This means that 50 to 90 percent of the available homes are likely occupied by owners that are maintaining their homes and in better neighborhoods. In the long run, they may be a much better bargain.
A true bargain is when you find a home in the neighborhood and price ranges that fits your lifestyle. A house you will be proud to call home.
Moving at the Speed of Opportunity
You’ve probably heard the old saying “You Snooze, You Lose!” I’m told that the line came from the character known as George Owens on the 80’s sit com, “Mr. Belvedere.”
I think the words spoken by “George Owens” say a lot about where some “homebuyers” are relative to this market. Hopefully that’s not you.
Some people are sitting on the sidelines…taking a wait and see attitude, waiting for the market to “change,” hoping that some of the perceived risk will be reduced by more stable credit and mortgage markets, and wishing that just one more piece of positive news would filter out of the media to convince them to become active and take action.
Well, guess what? It just isn’t going to happen that way. Not if you want to capture the market at the bottom, at least. Let me explain why, and how to avoid “staying sidelined,” so you are in the right position to capture current opportunities.
Imagine for a moment that you are attempting to merge onto the freeway, where traffic is moving at 65 miles per hour - now picture yourself coming to a stop.
Being behind somebody that stops on an on ramp waiting for the “right opportunity” can be scary, yet I imagine it’s happened to all of us at one point or another.
So, when you’re at a standstill, how hard it is to find just the right opening between the rapidly moving cars. You know how hard it is to get your car to go from zero to 65 miles an hour in a very short distance and merge into flowing traffic. It’s not easy.
Now, picture yourself in this same situation – only this time, you continue moving down the on-ramp, and, once you find the right opening to merge, you join effortlessly into the moving traffic.
Simply put – it’s hard to find an opening when you are standing still. You know this – but did you know that this principle is not just a question of physics – it’s a question of money and opportunity? And did you know that it applies to many would be home-buyers?
Movement creates opportunity. It invites new things to happen. Movement means you are ready to take action – that you are responding and adapting to the changing marketplace.
As the market continues to evolve we are past the time to watch, to wonder and to wait. Now is the time to pay attention! Watch what’s happening, and look for your opportunity. Believe me the growing positive statistics, like those at our Market Activity website, www.bayareamarketmetrics.com reveal that there are plenty of buyers ready to jump at the right opportunity. Remember, if you are sitting on the sidelines, all you can do is watch.
But what about those that “just got lucky”, right? Well here’s how people get “lucky”, they (1) they get into motion, (2) they get their financing lined up, (3) they find a great agent who welcomes their business and they start looking for the right home (4) They make an offer that fits the circumstances, (5) and THEN they “get lucky”. In other words, they are people willing to move at the “speed of opportunity”.
Remember, just like you can’t easily merge onto a highway from a dead stop - neither can you find the best home buying opportunity unless you are moving at the “speed of opportunity.”
If you want to move at the “speed of opportunity”, a good place to start is understanding the current level of market activity. Our Bay Area Market Metrics Report can be viewed at www.bayareamarketmetrics.com.
12 Reasons Why It’s Great to be a Dog in Los Altos
By 
1. It’s a Great Place for a Walk!
Los Altos is a “walker-friendly” town with miles of quiet residential streets to explore, as well as several great parks. Just remember to bring a flashlight – with the scarcity of street lights in Los Altos, it can be hard to see!
2. A Little Shopping is always Fun
A little exercise can make a dog hungry! Check out the 5 Paw Bakery (315 Main Street)– where they bake such canine culinary confections as birthday cakes, yogurt and carob-dipped cookies and savory biscuits.
3. Coffee and Canines
Catch up with dog and human friends alike at one of the coffee shops in Los Altos. You’ll almost always see at least one dog sharing the love outside Starbucks (296 Main Street & 643 Los Altos Rancho), Peets (367 State Street) and Main Street Café (134 Main Street).
4. Fine Doggie Dining
When it’s time for more than a cup of coffee – enjoy a great meal on a dog-friendly patio. The staff will even bring a bowl of water for your canine friends!
- Fiesta Vallarta (301 State Street),
- Rick’s Café (205 State Street
- Brian’s Restaurant (680 Los Altos Rancho)
5. Ouchies Fixed 24 x 7
The Adobe Animal Hospital is open 7 days a week, 24 hours per day, providing regular and emergency vet services for dogs and other pets. From regular preventative check-ups to fast attention during an unexpected emergency – it’s reassuring to be able to go to one place. Ask someone in Los Altos which vet they use – and chances are – they’ll say Adobe.
6. Buff and Fluff
The staff at the Barking Lot (467 First Street) makes sure that Fido and Princess look sharp for their strolls through the Village. From nail clipping to baths, clips and coifs – this is the place for the latest Los Altos canine look!
7. Hanging out at Home
Some days – it’s great to just hang around home. The median lot size in Los Altos is just about a quarter acre – bigger than the average lot size in Palo Alto and Mountain View. The kids and the dog need lots of room to romp!
8. Room to Run
Los Altos does not yet have its own dog park – but it is considering working with the City of Cupertino and Santa Clara county to build one. In the meantime- check out the nearby dog parks in Mountain View and Palo Alto (Mountain
View Shoreline Dog Park) and Palo Alto (Mitchell Dog Park).
9. Need a SPaw Day?
When your pooch needs pampering – it’s time for a short drive to the Pooch Hotel in Sunnyvale. Here, your favorite companion can enjoy the swim facilities, personal trainers, aromatherapy baths, facials, massages, and pawdicures.
10. Certified Canine Design & Construction
John Hammerschmidt of Hammerschmidt Construction in Los Altos jokingly refers to himself as a “Certified Canine Designer”. Having completed multiple Los Altos remodels with custom canine features, John is well-versed in designing fido-friendly features including dog washes, dog runs and landscaping, custom breed-specific tiling, and scratch-resistant flooring.
11. Ms. Manners
Does your dog need a visit from Ms. Manners? Maybe it’s time for obedience classes. Some the best local classes are taught by the Deep Peninsula Dog Training Club at nearby Rengstorff Park.
12. Strut Your Stuff!
Since 1947, the Los Altos Kiwanis Club sponsors the Annual Los Altos Pet Parade on the Saturday following Mother’s Day each year. It features thousands of kids, their pets, and some very creative costumes!
Ten Reasons To Love Menlo Park
By 
1. Schools, Schools, Schools! Menlo Park, like Palo Alto and Mountain View, have some really outstanding schools. Students in this district are consistently high performers and many gain admission to top universities after high school. There are two public elementary school districts: Menlo Park and Las Lomitas. As well as many private schools which include: Trinity, Phillips Brooks, St. Raymond, St. Joseph’s (part of the Sacred Heart Schools), and Peninsula School.
2. Burgess Park. located next the Civic Center, this park features a little league baseball field, a regulation baseball field, an open play field, lighted tennis courts, a soccer field, picnic areas, and children’s playgrounds. The Burgess pool, rec center, sports center, and skate park are adjacent to the main park area. There’s also a lovely and relaxing duck pond here that’s a great place to relax and read a book.
3. Huge Library. Menlo’s library (a quick walk from Burgess Park) is one of the town’s focal points, especially for children and families. My two sons always enjoyed the Summer Reading Programs, and Storytimes are another free, entertaining, educational, and kid-approved favorite. Professional storytellers spin their magic at scheduled times throughout the week. On certain days, the stories cater to younger or older kids. The online live homework help program is one of the library’s new services. It’s totally free, and many of the tutors also speak Spanish.
4. Annual Connoisseurs’ Marketplace. This is the summer festival for summer festival lovers – and one of the best events in the area. There’s hardly anything more enjoyable than wandering a tree-lined street while local bands play during this popular festival of visual, performing, and culinary arts. It’s always the third weekend of July on Santa Cruz Avenue. This year, Organic Alley will highlight samplings of the finest organic food the area offers. Old favorites like the cooking demos and the kid’s fun zone will be up and running. The festival is always as eco-friendly as possible, and it embodies community values and the sense of civic responsibility cherished in Menlo Park and the Bay Area.
5. The Guild. This independent movie theatre is the place for real film lovers. Hard-to-find independent and foreign films play here, and the space itself has art-deco touches everywhere and velvet curtains surrounding the movie screens. Plus, it’s free refills on Mighty Leaf Tea AND all you can drink coffee (two great touches that make movie-going a lot less draining on your wallet and more pleasurable.) This is not your basic space-age blockbuster twelve screen Cinemax, and sometimes you have to put up with crackly sound or finicky seats. Nevertheless I’ve never had a bad experience here–the movies are always thought provoking, and sometimes the manager thanks you personally for coming.
6. Santa Cruz Avenue. This is the main drag of Menlo Park, where great shopping and world-class restaurants are crammed in side by side. You have endless options here – craft shops, clothing boutiques, interior design stores, bistros – literally anything you need. During lunch time it’s crawling with business professionals eating at sidewalk tables, and there are always shoppers resting on benches or teenagers hanging out in the coffee shops.
7. Every Kind of Home. Wonderful housing options here as well. New homes, green homes on Willow, ranch homes on huge lots, condos, town homes, and tons of rentals near downtown ensure you’ll find exactly what you’re looking for in Menlo Park when it comes to your living needs.
8. Caltrain Station. You can get anywhere from here! You can also get here from anywhere on Santa Cruz Avenue, which is the biggest plus of all. This station is literally steps from Cafe Barrone and Kepler’s Books, so if you arrive a little early you can always grab a magazine or a cup of coffee to ease your wait.
9. Kepler’s Books. When the final Harry Potter book came out last summer, Kepler’s threw the bash of the century. There was a brass band, tents selling magic charms, Hogwart’s culinary staples, and a sorting hat. Kids of all ages wandered around in robes with magic wands tucked under their arms, and it seemed like everyone from the Bay Area decided Kepler’s was the place to snag this seventh wonder. My favorite touch was the keepsake ticket handed out at the beginning. You paid for the ticket, and traded the ticket in for the book. The line of Potter fans snaked out the door and around the corner, and the Kepler’s staff did everything possible to make sure the night went smoothly. This place has a great history, and is one of the last independent bookstores standing in the Menlo Park/Palo Alto area. If they don’t have something in stock, they’re always happy to order it for you.
10. Menlo Medical Clinic. The staff here is friendly and accommodating, and the clinic gives off a good – we actually care about your health vibe – instead of that sterile, impersonal feeling. The lab staff is well trained, and it’s very clean. The doctors in this group are among the best in their fields, and everyone in the facility is professional and helpful. MMC is affiliated with Stanford Hospital, so coming here with any illness or ailment guarantees you’ll receive the best medical attention possible.
The Intero Insider
A weekly e-newsletter with fresh market data and candid insights from Intero CEO Gino Blefari
