Posts Tagged ‘intero real estate’

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Gino Blefari Attends Trendsetters Spring Meeting 2011

By Teressa Francis | April 21st, 2011 0 Comments

Intero Real Estate Services CEO participates in Top CEO Group Strategy Meeting

Silicon Valley, CA (April 21, 2011) – Gino Blefari, President and CEO of Intero Real Estate Services recently attended a three-day meeting of the Trendsetters real estate industry CEO strategy group in Virginia Beach, VA. Trendsetters is a network of real estate company owners who share their best ideas and advice with each other, as well as financials and discussion of changes in the business.

Topics for discussion included generating leads/call-lead center, effective recruiting in this market, new core services rule update and restructuring the brokerage.

“The strategy group provides a wonderful opportunity to share ideas, brainstorm, and discuss trends with the heads of other brokerage firms, something I can’t do with the direct competitors in the market,” said Gino Blefari.

The group meets twice yearly with members taking turns hosting the meeting for a peer review of the host company. Members of the group include leaders from brokerage firms all around the U.S. such as: Merle Whitehead of Realty USA, Buffalo (NY); Richard Thurmond of William E. Wood & Associates, Virginia Beach (VA); Chappy Adams of Illustrated Properties Real Estate Inc., Palm Beach Gardens (FL); Lynn Fruth of The Danberry Co., Realtors, Toledo (OH); W. Neal Hanks, Jr. of Beverly-Hanks & Associates, REALTORS, Asheville (NC); Bob Parks of Bob Parks Realty, Nashville (TN); David Boehmig of Atlanta Fine Homes Sotheby’s International Realty, Atlanta (GA); Michael Golden and Thad Wong of @Properties, Chicago (IL); Eric Thompson of The Group, Inc., Fort Collins (CO) and Steve Murray of REAL Trends, Denver (CO) the group’s executive director.

“After three days, I walk away with creative business solutions, a stimulating community of peers, comradery and friendships, and business and life strategies,” concludes Blefari.

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Housing Recovery Confusion – The 3 Things We Know

By Gino Blefari | April 19th, 2011 0 Comments

A lot of news is happening in the world of mortgage finance and the housing economy. The government is trying to figure out how to fix and/or prevent another bubble and collapse in housing finance, while also trying to help boost the housing market – an impossible feat when you think about it. Kind of like running in two opposing directions at once.

Add to that the various market statistic reports showing number of foreclosures, home price movement and sales climate, the numerous commentaries on what works, what doesn’t and the future of housing, and you’ve got one big pile of
uncertainty, couched in a lot of opinion.

Even I get confused after reading several news outlets. Is the housing market recovering or not? Are home prices stabilizing or not? Will new lending requirements help or hurt? What is the real impact of Fannie Mae and Freddie Mac?

A recent Wall Street Journal article suggests price declines may be nearing their end (see “Are Home Price Declines Easing?“), while an article in the Atlantic suggests that home values have several years before recovering (see “How Much Farther Will Home Prices Fall?“). Another Atlantic article looks at whether a new 20% down payment requirement would effectively squash first-time buyers’ home-buying dreams due to the perceived longer period of time it would take to save (“Will 20% Down Require Waiting 14 Years to Buy a Home?“)

It’s all very interesting – and none of it wrong, or right. There still are many things we don’t know about this housing recovery. To counter all the uncertainty, here are three facts we do know that should guide further insight and working solutions:

1. A strong housing market is good for the economy. This is a fact and why we see so many talks, hearings, research papers and proposals coming out of Washington. Any time Congress considers making changes to the housing finance system and the problem of what to do with Fannie Mae and Freddie Mac, there’s going to be a ton of discussion and opposition because a strong, healthy housing market is important in the grand scheme of national finance.

2. Despite a five-year overall decline in home values, Americans are still confident in the investment value of home ownership. A recent Pew Research Center survey found that 81% of adults agree that buying a home is the best long-term investment a person can make. The survey was conducted March 15-29 of this year. You can read the whole thing at PewSocialTrends.org.

3. So far, the government isn’t helping. Nothing the administration has done to date has worked toward a long-term solution. The home buyer tax credits did nothing more than cause a short-lived frenzy and prolong the correction of house prices. We still have no solution to the Fannie Mae/Freddie Mac problem, and no good ideas being championed for helping home buyers get reasonable financing in the private market.

When I sit down to write this post each week, I do a lot of research – surfing through dozens of major real estate news stories to get data and facts on what’s happening in our housing markets. The conflicting headlines make my head spin. But, more importantly, they’ve made me realize how essential it is for real estate professionals to master the data and explain what’s happening to the individual buyer and seller.

People need to hear how it all sits in context with their own decisions. Now more than ever.

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Intero Real Estate Services Agent’s and Employees Contribute Back Through Their Own Intero Foundation

By Teressa Francis | April 14th, 2011 0 Comments

Realtor driven non-profit donates over $170,000 in 2010 to organizations that support children in need

Silicon Valley, California (April 14, 2011) – The Intero Foundation (www.interofoundation.org), a non-profit organization, founded by Intero Real Estate Services founders in 2002 to benefit children in need, announced that it has donated over $170,000 to 22 charities throughout the San Francisco Bay Area in 2010 as part of its mission to positively impact the growth and well being of children in our communities.

The Intero Foundation is funded, promoted and governed by Intero agents – each of whom are vested in the health of the communities in which they work and live. An executive committee, led by Intero President and CEO Gino Blefari, provides strategic guidance. All members of the Intero community – executives, staff and agents – donate their time to further the Foundation’s mission.

John Thompson, Intero’s Executive Vice President explains, “Agents donate a portion of their commission per transaction. As a company, this commitment makes a big statement. Therefore, when you drive by an Intero for sale sign or work with an Intero Realtor, feel good that at risk children in the community will be served and we thank each and every one of you for your support.”

“When Intero Real Estate Services was founded just nine years ago, its founders set out to create a company that was different. That difference would be based on values,” states Founder, President and CEO of Intero, Gino Blefari. “One of those values is Commitment. The Intero Foundation is our vehicle for expressing a meaningful and sustained commitment to our community.”

Intero Foundation President, Sandy Troia adds, “We have become a large organization, but not too large to remember that we are part of something still larger: a community to which we must give in order to receive.”

The Intero Foundation continues to impact the growth and well being of children and youth in the communities we serve. Empowered by Intero agents and employees, the Intero Foundation has given over $1.9 million in grants to nonprofit organizations that support children in need. In 2010 alone, over $170,000 was granted to organizations benefitting children in need.

Assistant League Los Gatos-Saratoga
Dream Power
One Step Closer
Small Steps
Community Solutions
Family Connections
Learning and Loving Education Center
Advocates for Children
Family Supportive Housing, Inc.
Just Read Centers
Stand Up For Kids
Montalvo Arts Center
Theatre Works Silicon Valley
Special Olympics Northern California
Bay Area Women’s Sports Initiative
Rape Trauma Services
Lincoln High Future Vision
Summer Search
Rotary International – The Rotary Foundation
Bill Wilson Center
My New Red Shoes
Breakthrough Silicon Valley

Intero and its agents have always believed in the importance of giving back to communities in which we serve, and 2010 was a perfect example of ‘paying it forward’.

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The Multi-Family Opportunity

By Gino Blefari | April 12th, 2011 1 Comment

A silver lining to today’s dismal housing markets lies right in Newton’s third law of motion. This law states that every action has an equal and opposite reaction, and that’s exactly what’s happening in a lot of real estate markets right now.

The pace of homeownership slows, and the pace of rentals speeds up. There’s Newton’s law at play. But it actually runs even deeper.

As single-family home sales on average continue at a slow pace, alas, some markets are seeing faster growth in multifamily sales. And according to a recent article in Smart Money magazine, these aren’t your run-of-the-mill investor purchases. These are families or individuals who decided the rock-bottom prices of investment real estate are just too hard to pass by.

This is obviously great news for local economies and real estate markets. But it’s also great news for homeownership in general. We’ve seen the value of ownership being picked at by critics and money gurus like Suze Orman over the last few years (see my post, “Why Aspiring Homeowners Will Ignore Money Gurus“). The growth in multifamily activity and interest is a clear sign that Americans still value the notion of being homeowners and of being entrepreneurs.

Here’s why the growth of multifamily makes a lot of sense:

  • Multifamily properties present an opportunity for owners to earn extra income – something the recent recession has reminded us can be key to making it through rough patches of unemployment or economic hardship.
  • Rental markets are on fire. People have to live somewhere and for most Americans, that will mean either renting or owning a home. This is a positive statistic that multifamily investors are paying attention to.

I’m not one to sit here and hand out investment advice or even broad real estate advice. I think it’s all very personal and the answers and direction vary with each situation. Multifamily investing comes with its own set of problems and risks – you have to be a landlord, prices may not rise as quickly as you’d like, the rental market could soften again.

But if you’re in the market for a new home or on the fence or even just starting to think about how you can take advantage of today’s real estate market, check out the multifamily opportunity in your city. You may find some great bargains that you hadn’t previously considered. Then, next time a recession rolls around, you may find yourself with a few more options and a few more income streams.

If you’re interested in learning more about multifamily opportunities near you, ask an Intero agent where to start.

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Short Sales Pressure Home Prices

By Teressa Francis | April 11th, 2011 0 Comments

Short Sales Pressure Home Prices by Diana Olick, CNBC Real Estate Reporter, published on April 7, 2011 on CNBC Realty Check blog stated home prices fell 6.7 percent in February year over year, according to a new report from CoreLogic. That numbers includes distressed sales, that is, sales of foreclosed properties or short sales, where the bank agrees to let the homeowner sell for less than the value of the mortgage. If you take those sales out, however, home prices were basically flat.

Distressed sales, though, still make up more than a third of all home sales, according to the National Association of Realtors, and that number is likely to rise at least in the near future. The banks have slowed the process of foreclosure, and that has reduced the number of bank owned properties hitting the market lately, but it’s a whole different story with short sales.

Robert Cruz, Vice President and Managing Officer of Intero Silver Creek was featured in the article and shares his insight on today’s short sales.

Cruz says, “In the first quarter of this year Intero Real Estate Service’s short sale closings were up at least 60 percent, thanks to the banks and servicers being far more aggressive in pursuing them; not only are they pursuing them, but they are paying for them”

Short sales used to be a long, tedious process with a very low success rate. “Short sales used to be a waste of time,” Cruz remembers. “Now it’s totally changed.”

Read more on this Realty Check blog at CNBC.com

Realty Check takes you from the housing boom to bust and beyond. Led by Diana Olick, the goal of this blog is to bring the real estate market, the rescue plans, the politics and the pontification home to you, with clear concise explanations of the wildly complicated issues in all facets of real estate today and tomorrow.

Diana Olick is an Emmy Award winning journalist, currently serving as CNBC’s real estate correspondent. She also contributes real estate expertise to The Today Show and NBC Nightly News with Brian Williams.

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Intero Insider: Does ‘underwater’ mean drowning?

By Gino Blefari | April 5th, 2011 0 Comments

The term “underwater” has become about as commonplace as “purchase agreement” in real estate lingo. We hear scary statistics like one in four homeowners in the U.S. is underwater with their mortgage. But how scared should we be?

Let’s look at the facts:

At this time last year, the number of underwater homeowners seemed to be declining. Recently, we got word that the trend is reversing. Fourth-quarter data from CoreLogic showed that about 23% of homeowners with a mortgage are underwater, near an all-time high. This equals $750 billion in negative equity.

Another 2.4 million homeowners have less than 5% equity in their homes, according to CoreLogic. If home prices drop again, these homeowners also could end up with negative equity. (Check out more details from the CoreLogic report here.)

Now let’s look at the big picture:

  • Negative equity holds a homeowner prisoner to his home. No one likes the feeling of owing more on an asset than it’s worth. However, contrary to what most people think, owners who’ve experienced a 25% or more decrease in value and who can afford to keep paying their mortgage might be better off staying and waiting for prices to stabilize.
  • Some underwater homeowners in this situation may be able to refinance into a lower interest rate through a government program.
  • Some – not all – of these homeowners may choose to default to get out from under this debt.
  • Most banks would rather do a loan modification or short sale than deal with the costs of a foreclosure.

What do I see happening as a result?

I think we’re going to see a lot more “work outs” and loan modifications from the banks this year – especially if home prices drop.

Sales will likely slow rather than gain momentum because again: Negative equity holds a homeowner prisoner to his home. If a significant portion of the market is staying put, then it will affect sales. But with all the inventory, this could have a positive impact on prices.

The upside:

We’re likely to see a new breed of homeowner who’s looking to put 20% down regardless of what the banks and regulators say. This homeowner has learned a lot from observing the market these past few years and is determined not to repeat these mistakes. This homeowner wants to stay in his home – not be imprisoned by it.

Market stability begins with the homeowner. As we regain a population of buyers that begin their ownership with more financial stability and more equity, we’ll see the benefits play out in the form of an all-around more stable housing market.

When you read past the headline, you see that “underwater” doesn’t necessarily mean drowning.

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Intero Insider: Why Aspiring Homeowners Will Ignore Money Gurus

By Gino Blefari | March 29th, 2011 3 Comments

Suze Orman. She’s the sassy “money guru” you often see on CNBC, PBS and Oprah speaking to an audience of middle-class men and women who hang on her every word. Their eyes always seem to be looking for answers, looking for a way out, or a sure-fire method for gaining control.

Flipping through PBS a couple of weeks ago, there she was – proclaiming to her audience that homeownership is no longer the American Dream it once was, that she’s been hearing a lot lately from folks who can’t wait to get rid of their houses and go back to renting. Owning a home apparently is a dream now dead.

Seriously? Or is it more like sensationally?

Let’s look at what Suze is really saying.

In her latest book, “The Money Class,” Orman points to the troubles that many Americans will have getting the financing to buy a home now and in the future. She points to the fact that many are still jobless or underemployed, making it even harder to save for a house and sustain the income needed to keep one. Borrowing standards are strict and getting stricter – and those with spotty credit histories will be left in the lurch.

These are all great points – and true. But not being able to afford a house and not wanting a house are two entirely different things.

The woman in the audience of the PBS show I saw stood up and told Suze how paying her mortgage and associated housing bills was killing her finances and that she couldn’t wait to get out from under this mess. It’s easy to conclude here that owning a home isn’t ideal for this woman because she’s buckling under the weight of the bills.

What Suze failed to dig into was whether this woman would rather own than rent should the financial situation be different. In other words, if a magic wand was waved and she could comfortably afford her home, would she stay?

A recent survey done by Wells Fargo tells an entirely different story. More than 70% of folks surveyed said that even despite market setbacks, they still want to own a home. Of these people, those in the younger “Millennial” generation were even more keen on buying a home, seeing the stricter lending guidelines as a good thing because to them, that means they’ll be financially stable and able to stay in their homes as long as they want.

Sure, it’s all a bit anecdotal. Let’s just not be so quick to listen to these people who conclude that home ownership is dead or no longer a dream. Just because the economy is slow and loans are harder to get, doesn’t mean young renters won’t aspire to be homeowners. It just means that the dream is back to being the challenge it was before the days of loose lending.

And maybe we end up with a much better homeowner in the process – one who worked hard to get the house and one who will continue to work hard to keep the house. We end up with homeowners who are in homes they can afford, and we avoid stepping into this same housing mess all over again.

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Intero Insider: How to Read the Latest National Market Report

By Gino Blefari | March 22nd, 2011 0 Comments

The national housing numbers show a pretty lousy market right now – sales of existing homes fell by 9.6% in February and prices fell to the lowest level in nine years, according to data out this week. Here are some things to think about in light of this news:

With lower home sales comes a hotter rental market.

If you’re a buyer who’s decided to wait a bit longer to purchase, expect tight competition in many rental markets. The national vacancy rate for the fourth quarter of 2010 was 9.4%, which was 1.3% lower than the 10.7% rate during the same period in 2009, according to U.S. Census Bureau statistics.

National vacancy rates haven’t been this low since the first quarter in 2003.

Good or bad?

Good if you’re a landlord looking to rent out your apartments. Good if you’re a homeowner looking to rent out your place while you wait to list your property for sale. Good if you’re an agent looking to dabble in the rental market.

Bad, though, if you’ve decided to size up or relocate your rental instead of buying this year. Bad if you lost your home in foreclosure and are looking for a new roof over your head.

All in all, the rental market news shows that at the end of the day homes are places to live. When people can’t afford to buy or keep their homes, they still have to live somewhere. It’s an interesting market indicator to watch for that reason.

With lower home prices comes major opportunity for first-time buyers.

This one’s so obvious it hardly needs mentioning – except that in times like these, some buyers will choose to wait and wait because the uncertainty makes them too uncomfortable.

My advice is to not try to time the market, but to instead think about your financial future in a vacuum. If you’re ready financially and you’re feeling secure in your job, then pay no attention to news reports about national housing figures. Here’s why:

  1. These reports reflect zero reality of what’s happening in your local market.
  2. You still need to live somewhere. And a tighter rental market with more competition isn’t going to make it any cheaper for you.
  3. Interest rates are still historically low.
  4. A wildly changing lending market is going to be more and more difficult to navigate as time passes. New regulations may disqualify you from getting a good loan. Or you may find that you need more money down at this time next year to buy the same house for the same price.

I’m not going to be delusional about the housing market this week. But I’m also not going to buy into this report as reality for everyone. I like to look at the cause and effect of numbers like this – and to step out and see how other segments like rental are impacted.

These are interesting times we’re living in! And at the end of the day, we do still all need a place to live.

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Intero Insider: Gas Prices Throw a Wrench in Housing Rebound

By Gino Blefari | March 15th, 2011 1 Comment

It’s looking more and more like the rebound in housing markets across the country won’t rear its head until 2012. At the end of last year, many folks expected more slow and steady recovery in 2011, but even that seems optimistic.

Why? A few reasons, of course. But the biggest and easiest scapegoat right now is gas.

Have you visited the pump lately? Each week, the cost of filling up is rising so fast you think your final price must be a mistake. That’s not for my car, you think. But it is.

Historically, the price of gas is a serious enough issue for many Americans to cause a chain reaction of paralysis on consumer spending. It starts with the trade-offs like less eating out and shopping, then seeps into small changes like fewer car trips and different commuting habits, then onto downsizing – smaller, more fuel-efficient cars. Then finally, it gets into our heads.

And when it gets into our heads, we start to feel uncertain about the economic future (as if we weren’t there already). This very psychology is enough to derail major purchasing decisions like buying a house or car, or making risky but beneficial moves with your business or career.

The other thing to think about with gas prices and the effect on housing is location. In many parts of the country, your car is your only means of travel. If we continue to see climbs in gas prices and sustained high prices like some are anticipating, then eventually this will start to impact how we think about where to live.

Suddenly, the “Can I live here?” question includes a lot more considerations.

As we move through the market this year, we had expected some obstacles thrown in from a new lending atmosphere and congressional attempts to regulate. We expected slow growth due to a slow job market. But did we stop to think about something as seemingly unrelated as the price of gasoline? Maybe not. But now it’s time to realize how these things affect everything around us – big and small. And housing is definitely one of them.

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Intero Insider: 5 Housing Trends to Watch

By Gino Blefari | March 9th, 2011 0 Comments

We’re just about to enter the spring home-buying season and a lot of forces out there are working for or against the market this year. Here are five things to watch out for:

1. Tighter, stricter lending. Lenders continue to be more and more stringent with loan qualifications. As real estate agents, we should be sure to keep our clients up to date and look for ways to help manage expectations when loan shopping. As consumers, we need to be on top of our game – keeping our credit histories in good shape, documenting income, and making sure we have solid cash for down payment.

2. Continued buyer’s market. Even as more buyers come out of the winter lull to go home shopping, the high inventory levels in many markets, strict borrowing requirements from lenders, and sluggish job market are keeping the scales tipped in buyers’ favor. More inventory + not as many qualified borrowers = a buyer’s market for most places.

3. Changes to down payment requirements. The powers that be are still grappling with instilling new down payment requirements on all types of loans, but it looks like a 10% minimum down payment requirement is imminent for FHA loans. Higher down payments is a good thing in that more money down (i.e., collateral) tends to equate to fewer foreclosures. But in the short-term it may delay some buyers from getting into the market now.

4. The end of a government-backed mortgage finance system? This of course is less of a trend and more of a major event. The Obama Administration has been searching for ways to get rid of Fannie Mae and Freddie Mac, the two government-sponsored finance companies that historically have made it possible to keep record amounts of money available for the nation’s home buyers.

Obama and others in Congress are serious about dissolving these quasi-governmental companies because tax payers essentially foot the bill when there’s a major housing fallout like the one we’ve seen in the incredible foreclosure crisis.

What does it mean for you and me? More privatization of the mortgage market, potentially the end of the 30-year mortgage, higher interest rates for most borrowers, and potentially more fees for borrowers.

5. Increased globalization. A lot of factors are making foreign real estate investors increasingly interested in buying property in coastal cities like San Francisco and surrounding areas like Silicon Valley. Intero is at the forefront of this trend and will continue to lead by expanding our presence in Asia, where a lot of these interested buyers are located. This is a trend we believe in and think will contribute positively to the housing recovery.

I’ll continue to monitor these happenings and give them time for discussion in Intero Insider throughout the year.

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