Posts Tagged ‘Intero Real Estate Services’

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Intero Insider: Life After the Home Buyer Tax Credit

By Gino Blefari | June 29th, 2010 0 Comments

It’s safe to say now that the action brought to the nation’s housing markets by the Homebuyer Tax Credit is over. Any buyers who wished to take advantage of this credit had to have been in contract by April 30 and now must close by June 30.

But please remain seated before exiting this ride and declaring the housing market D-O-O-M-E-D (as several headlines have cried this week). See, there is still a very key factor in place that is working in homebuyers’ favor:

Historically Low Interest Rates

This often-overlooked little fact is actually a really important point to ponder. That’s because when you look at today’s rates, which average around 4.75 percent on a 30-year fixed rate mortgage, according to the Mortgage Bankers Association’s latest survey, you realize what a win this is for borrowers – even for those who missed the tax credit deadline.

These low rates are far more significant than any tax credit in terms of savings and incentive to stoke demand. How is that? Well, let’s look at the math:

Let’s say today’s buyer is looking at a 5 percent interest rate on a 30-year fixed loan of $285,000. He’s disappointed at missing out on the tax credit, but since he’s able to lock in at a lower rate than he would’ve gotten two months ago at 5.25 percent, he’s actually saving $15,782 in interest over the life of the loan, which according to my math is significantly higher savings than what that tax credit would’ve gotten him ($8,000).

So today’s buyer nearly doubles his savings in interest compared with the April tax-credit buyers? Doesn’t spell D-O-O-M to me.

Let’s look at another scenario:

This buyer would be able to lock in a 5.25 percent rate on a 30-year fixed loan of $400,000 in July. There’s no tax credit to light a fire under his decision, but say the economic news circles expect a slight uptick in rates by the end of August. If he waits, he’ll risk increasing his rate to 5.35 percent, thereby adding $8,943 in interest to the life of his loan.

I’m not saying that rates will save the day. Remember: There are no quick fixes. But we also have to be sure we understand the forces that are working in the market’s favor.

Tax credits may come and go, but at the end of the day it’s things like historic low interest rates that will keep buyers interested.

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Intero Insider: Homebuyer Tax Credit, ACT III

By Gino Blefari | June 15th, 2010 1 Comment

That’s right. It’s back. The homebuyer tax credit strikes again – like a string of sequels in a movie franchise.

First, there was the first-time homebuyer tax credit. It received mixed reviews, but ticket sales were good, and popular opinion encouraged a sequel. The Homebuyer Tax Credit: Part II (The Revenge), opened to great fanfare. It ran only for a limited engagement, however, and people clamored to take advantage of its benefits before the end of its run in the real estate (and economic) theater.

Many of those who were able to get in on the homebuyer tax credit, which stipulated that buyers needed to be under contract by April 30, 2010, but also close/settle by June 30, 2010, are now finding themselves in a bit of a pickle.

So many people bought homes in order to take advantage of the credit that banks, lenders, title companies, and every other body that plays a role in the settlement of real estate transactions, are having one heck of a time getting it all done by the June 30 deadline (which is approaching rapidly). They’re so backlogged that many buyers might not get their tax credit after all.

Unless Congress takes action. Quickly.

Right now, they are considering extending the time to close those transactions by as much as three months. That’s a good thing, too, because the National Association of REALTORS (NAR) estimates that if Congress takes no action, as many as 75,000 homebuyers might lose out because they can’t meet the June 30 deadline.

Regardless of your position on whether the tax credit was a good idea in the first place, I think we can all agree that everyone who was under contract in time to claim it ought to be able to do so. That the settlement process is totally backlogged isn’t their fault and they shouldn’t be punished as a result.

What will Congress do? Will they save the day for tens of thousands of Americans? Stay tuned … the credits on this story haven’t rolled just yet!

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

By Teressa Francis | May 27th, 2010 0 Comments

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.”

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Mortgage that Matters: BELIEVE

By Rick Soukoulis | March 25th, 2010 0 Comments

If there’s one thing I’ve seen over and over again, it’s the cycle where housing soars, corrects, and then soars again.

At its low periods, like today, many, many people think real estate values will never come back.  And certainly they’ll never go up again like they did in the past.

I don’t know about other parts of the country, but this is California – where the American Dream thrives.  I am eternally optimistic about California housing values, and most optimistic about values in the Bay Area.

So, I’ve collected some quotes from the past where people say real estate is dead.  Reading them might allay some peoples’ concerns and put things into perspective.  Enjoy:

  1. “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.”  (Time, Dec. 1, 1947)
  2. “Houses cost too much for the mass market.  Today’s average price is around $8,000—out of reach for two-thirds of all buyers.” (Science Digest, April, 1948)
  3. “If you bought your house since the War…you have made your deal at the top of the market… The days when you couldn’t lose on a home purchase are no longer with us.”  (House Beautiful, Nov.  2, 1948)
  4. “The goal of owning a home seems to be getting beyond the reach of more and more Americans.  The typical new house today costs $28,000.”  (Business Week, Sept. 4, 1969)
  5. “Be suspicious of the ‘common wisdom’ that tells you to ‘Buy now…because continuing inflation will force home prices and rents higher and higher.’”  (NEA Journal, Dec. 1970)
  6. “The median price of a home today is approaching $50,000….Housing experts predict that in the future price rises won’t be that great.”  (Nations Business, June, 1977)
  7. “The era of easy profits in real estate may be drawing to a close.”  (Money, Jan. 1981)
  8. “In California… for example, it is not unusual to find families of average means buying $100,000 houses…. I’m confident prices have passed their peak.”  (John Wesley English, The Coming Real Estate Crash, 1980)
  9. “The golden-age of risk-free run-ups in home prices is gone.”  (Money, March 1985)
  10. “If you’re looking to buy, be careful.  Rising home values are not a sure thing anymore.”  (Miami Herald, Oct. 25, 1985)
  11. “Most economists agree… [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s.”  (Money, 1986)
  12. “We’re starting to go back to the time when you bought a home not for its potential money-making abilities, but rather as a nesting spot.”  (Los Angeles Times, Jan. 31, 1993)
  13. “A home is where the bad investment is.”  (San Francisco Examiner, November 17, 1996)

Things look grim right now, but go back and look at the dates on all these quotes?  Anyone who followed the advice of these people would have missed out on one of the great real estate booms of all time.

What if you paid attention to the advice in quote #7?  You’d have missed out on all that growth in the 1980’s.

What about quote #12? If you followed that advice, you’d have missed out on all the great years up until last year.

I could go on and on.  If you’re a patient person, it’s been almost impossible not to get rich on California housing.

It happened before and it will happen again.

Don’t bet against California housing.

In the long run, it’s always been a great investment.

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Intero Real Estate Services, Inc. sustains profitability through innovation in 2009

By Teressa Francis | March 4th, 2010 0 Comments

Leading U.S. brokerage announces 2009 profits, shares insights on successful model

CUPERTINO, SILICON VALLEY, USA  — 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, announced today that its brokerage operation – based in California’s Silicon Valley – was profitable in 2009 despite persistent challenges in the housing sector. Intero was founded in 2002 and became one of the fastest growing companies in the history of U.S. real estate.

2009 was a challenging year in real estate. Intero executives attribute the company’s success in this environment to a long-term commitment to innovation that allowed Intero to realize efficiencies other companies were unprepared to leverage, seize opportunities before its competitors and retain productive agents and franchisees.

“Intero sprung from the cradle of innovation here in Silicon Valley, so doing things that are new, pursuing ideas that are different – it’s a spirit that is an integral part of our brand,” said Gino Blefari, Intero’s President and CEO. “While most in our industry remained static in old models which no longer worked, we decided to act – and that action is directly tied to our continued profitability.”

Bob Moles, Intero’s Chairman, added, “Increasing top line revenue growth in 2009 while at the same time growing our bottom line profit in this real estate environment, demonstrates convincingly that the Intero® brand, tools and systems are positioned to perform well even in down markets.”

Blefari offered several examples of initiatives driving Intero’s success, including:

Technology innovation: Intero aggressively pursued the mobile opportunity in 2009, resulting in greater consumer engagement and enhanced productivity for agents and franchisees. The 2009 Intero mobile initiative included a GPS-enabled listings service, a WAP (browser-based) mobile application, and a native iPhone application.

A pioneering new office model: While many real estate organizations continue to discuss a leaner, more attractive office model, the Intero Andare(sm) office concept experienced its third full year of operation. The Intero Andare office concept features a “cafe-style” workspace, a paperless work-flow and a high-tech, stylish appearance that permits brokerage operators to realize efficiencies while presenting a more compelling brand experience to consumers and agents.

An aggressive digital media strategy: Over the past three years Intero shifted 90% of its media spend from print to digital, increasing Web traffic and consumer and agent engagement. In 2009 the company accelerated this effort, launching a network of blogs, expanding its presence on Facebook, Twitter and YouTube and launching a highly successful series of email newsletters.
“The Intero® brand, with its proven formula for rapid growth and sustained profitability, has been received extremely well by entrepreneurs around the world looking for a compelling business opportunity,” said Javier Parraga, President of Intero International Franchise Services, LLC. “Because of the innovative spirit that drives the company, we’ve been able to present a compelling picture that other, more traditional brands cannot.”

Concludes Blefari, “2009 was a difficult year in many ways, but served to validate our vision for a different kind of real estate organization guided by an innovative sensibility that produces results.”

About the Intero® brand

Founded in 2002 Intero Real Estate Services, Inc. has quickly become one of the premier real estate brands in the U.S. Today, the Intero® brand  has over 1,800 agents and 40 company owned and franchise offices covering California, Colorado, Nevada and Texas. The company is private and headquartered in California’s Silicon Valley.

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Intero Insider: Seeing Signs of Recovery Yet?

By Gino Blefari | March 2nd, 2010 0 Comments

One week, it’s up. The next week? Down. No matter what the experts say, the fact remains that no one really seems to be able to put their finger on how fast or slow the recovery of the real estate market will be.

There are some who say that we haven’t seen the worst of it yet (and we sincerely hope that’s not true).

Others have a shinier view, saying that the turnaround has been made and that we’re well on the way back.

I think it’s more prudent to take things more cautiously. To brace myself for setbacks, but to take heart in the great strides the real estate industry has made in the past year. Make no mistake, however, the recovery of this sector isn’t going to be instantaneous, no matter how badly we’d like it to be. The boom market by which we were spoiled lasted the better part of a decade, and it left a great deal of wreckage in its path.

That said, last week, Standard & Poor’s released its quarterly home price numbers. And what they show is encouraging. They show that, while it’s gradual and slow, recovery is, most certainly, taking place. For the seventh consecutive month, there was an improvement in pricing. Granted, this quarter’s increase was just three tenths of a percent, but it’s an increase all the same.

Substantial gains were seen in San Francisco, which saw a five percent gain, in San Diego and Dallas, each of which showed gains of three percent, and gains that were far above average in Washington, DC, Boston and Denver. Even cities that have been hit (and hit very hard) by the sagging real estate market, such as Las Vegas and Phoenix, saw increases, and that’s not something that’s happened for them in a very long time.

Even Warren Buffet, whom we all can agree knows a thing or two about money, seems to feel that we’ll have recovered from this slump by 2011. He said recently that while prices will remain below “bubble” levels, a more normalized market will be return by sometime next year.

We are, by no means, over every hurdle. We are not sprinting toward the finish line. But we are making progress. Slow and steady, to be sure, but progress. I take heart in that. I think that a measured recovery is the key to winning the race and standing on the podium, once and for all.

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Move over Los Gatos – Morgan Hill: Quaint – Yet Progressive

By Ralph Chellino | February 26th, 2010 0 Comments

3rdstreet250Over the next five years downtown Morgan Hill will be undergoing significant changes to become more vibrant and active – to serve as the true hub of our community.  The Morgan Hill Redevelopment Agency will invest $40 million in downtown to improve parking, lighting, landscaping, infrastructure (water/sewer/utility undergrounding), and expand public art and cultural activities.

The first major project is the Third Street Promenade.  Over the last four months, Third Street has been transformed into a pedestrian-friendly thoroughfare between Monterey and Depot Streets, featuring:

  • wide sidewalks
  • decorative street furniture & art
  • pedestrian scaled lighting
  • street trees and landscaping.

It is envisioned that Third Street will become a place where Morgan Hill residents and those in surrounding communities will want to come to for dining, shopping, mingling, relaxing and enjoyment of outdoor entertainment.

What? Los Gatos without the traffic and congestion?  Come visit us and see for yourself!

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Intero Insider: Is California Rebounding? Is It Really?

By Gino Blefari | January 27th, 2010 0 Comments

Last month, home sales in California were up almost 17% over November, and more than 10% over December 2008. This would indicate that progress is being made. Indeed, lots of people are predicting (as many do at the beginning of each year) that there will be a marked turnaround in market value and that things will do nothing but get rosier.

But there’s a problem that not a lot of people are talking about.

Raise your hand if you’ve heard of Strategic Mortgage Default.

No? Let’s talk about it.

Strategic Mortgage Default occurs when a homeowner, finding his home worth less than he owes on his mortgage, intentionally allows it to go into foreclosure. Let me repeat that: intentionally. Right or wrong, lots of people have done it. And many, many more are considering it. The thinking, typically, is that throwing good money after bad will just lead to … nothing. Many people believe that their homes will never again be worth what they paid for them. As such, they think, “Huh. No more property taxes, maintenance, insurance? That sounds good.”

In 2010, based on when many parts of California saw their real estate markets “top out”, many homeowners will have adjustments in their mortgages kick in. One saving grace here might be that interest rates are quite low, so payments mightn’t change all that much. But these adjustments, coupled with new taxes just passed in the state and the realization that their homes aren’t worth close to what they paid might be enough to have many people throwing in the proverbial towel.

While all of this might sound bleak, it would be naive to issue feel-good platitudes and not face the reality of the situation head-on. Strategic Mortgage Default will do its part to radically raise the number of bank-owned for sale in California. And there are lots already.

If you’re planning on selling your house this year, these homes — part of what we call “shadow inventory” — could play a big role in where you can, realistically, set your price. If you’re planning on buying, you’ll want to know how to position yourself to get the best price possible on your purchase.

Strategic Mortgage Default is going to be something you’ll hear more and more about in 2010. Like “short sale”, “REO”, and “foreclosure”, it’ll become part of the daily vernacular.

Pretending that the world is draped in sunshine and rainbows won’t solve anything. It might make people feel better for a while, but it won’t solve anything. Facing reality is the only thing that gets the job done. Your Intero Real Estate professional is ready to deal with reality. Let us know how we can help.

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Intero Insider: How Will The New FHA Guidelines Affect YOU?

By Gino Blefari | December 10th, 2009 0 Comments

For many years, the Federal Housing Administration, by virtue of its policies designed to help people with lower incomes or those just starting out, made it possible for millions of Americans to purchase their own homes. They made it possible for these people to take part in the American Dream.

Fast-forward to 2006, at the height of the “boom” real estate market, and the FHA found itself backing just 3 out of 100 home loans, as “non-conforming” loans were being given to, pretty much, whoever asked for them, and their requirements were virtually hassle-free when compared to those that the FHA had in place.

Today, the FHA backs 3 out of every 10 new home loans, because, as other lenders have tightened restrictions, FHA has followed the status quo, keeping things fairly liberal.

The result of all of this? Problems. Big ones.

On December 2, 2009, the Secretary of Health & Urban Development, Shaun Donovan, stood before Congress and announced that the FHA’s cash reserves have fallen well below the Federally-mandated level of 2%, to a staggering .53%.

To try to alleviate the FHA’s problems and raise reserves to their legally-required levels, Mr. Donovan indicated sweeping changes would be coming to the FHA’s loan process. Here’s some of what you should expect:

More Money Down. One of the big reasons that FHA loans have been so popular over the years was low down-payment requirements — just 3.5%. FHA’s withering balance sheet, however has the agency requiring that buyers put more money down. The new down-payment requirement? As high as five percent.

Higher Fees. Fees for FHA loans have always been high. There are upfront and annual fees that borrowers must pay, which the agency uses to reimburse lenders in the event of default. The fees are already as high as the law will allow, but the agency is considering asking for increases.

Better Credit. Mr. Donovan said that the agency would, at least for now, increase the minimum credit score for new borrowers. The FHA’s current low-limit is a score of 500, though it’s important to note that most of the lenders funding FHA loans won’t accept a score of below 620, even now.

Lower Debt-to-Income Ratios. FHA has been lenient in the past, making exceptions with people with higher debt-to-income ratios (DTI) in the event of extenuating circumstances or those with longer credit histories. No more. The maximum allowable DTI will be 45%. This means that if your debt is more than 45% of your total income, you won’t be approved.

These changes will likely be implemented in early 2010, with the first kicking in during the first week of January.

The bottom line is that with the new FHA guidelines, a borrower’s bottom line will have to be straight, narrow, and raised much higher.

On a related note – the FHA Section 203K home loan is becoming an increasingly popular mortgage loan choice for home buyers purchasing a distressed property. This unique mortgage loan offers all the benefits of FHA financing along with the ability to provide funds for both the purchase and the renovation of a new home. Think about the possibilities – a single loan to buy and fix your home up!

As mentioned in last week’s Insider, Intero recognizes the need to educate our agents to keep them informed and up-to-date with the latest programs aimed at helping those within the distressed home market. With the help of the Re-buildUSA program Intero agents will now become FHA 203K experts helping our communities rebuild and grow.

We are excited to share more on this opportunity – so look forward to more detailed information in next week’s Intero Insider.

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Is the Demise of the “Buyers Market” at Hand?

By Russ Boyd | December 2nd, 2009 0 Comments

With all the information floating around about the health of the real estate market, it is wise to focus on a forward look indicator, the Pending Home Sales Index.

As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 8th consecutive monthly gain in September nationwide.

demise-narpending home sales

The index now stands 21% higher than it did one year ago and Pending Home Sales are now at their highest levels since December 2006.

A Pending Home Sale is a home under contract to sell, but not yet closed.

The following Pending Home Sales Reports are taken from our October Market Metric Reports available at www.bayareamarketmetrics.com.

These graphs cover a two years period and as you can see below, San Mateo County and Santa Clara County Pending Home Sales are at their highest point in the past two years.

demise-san mateo county

demise santa clara county

As seen in these graphs, Alameda and Contra Costa Counties are reporting a steady number of Pending Sales at an elevated level when compared to two years ago.

demise alameda county

denmise-contra costa county

When the Pending Home Sales Index rises, it tells us that market activity has picked up. October’s data confirms what we’ve been noticing since February — the Buyers Market is coming to an end.

With more homes under contract in the marketplace, home buyers typically face one or more of the following:

1. Competitive, multiple-offer situations
2. Reduced purchase price leverage over sellers
3. Few if any seller concessions

Therefore, if you’re planning to buy a home in the next several months, know that the 8-month increase in Pending Sales has lead to an increase in closed sales which in turn results in higher home prices and reduced affordability.

Further evidence can be seen in this recent Case-Schiller Report.

demise case schiller

If you intend to buy while rates are low and affordability factors are still favoring buyers, you should be actively working with an agent now. If you are thinking of selling but have been holding off until the market was showing clear signs of improvement now would be the time to talk with your agent about preparing to list your home.
Whether you are considering buying or selling speak to your agent about ways to get the most of the this evolving market.

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