Posts Tagged ‘Silicon Valley Real Estate’

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Intero Insider: Facebook’s IPO and the American Dream

By Gino Blefari | February 8th, 2012 0 Comments

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.

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The Luxury Market and Facebook’s IPO

By Teressa Francis | February 2nd, 2012 0 Comments

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.

Facebook ripple effect projected on Silicon Valley homes

Silicon Valley luxury home market flat in 2011

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From luxury to bank-owned, a review of this summer’s real estate market

By Teressa Francis | August 30th, 2011 1 Comment

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.

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Intero Insider: How to Save $67,960 on Your Next Home Purchase

By Gino Blefari | August 18th, 2011 0 Comments

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!

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Commercial Real Estate Market Insight with Steve Becerra

By Teressa Francis | July 7th, 2011 0 Comments

This Intero Insider-Video Series brings you Steve Becerra, one of the top real estate agents at Intero Real Estate Services from the Saratoga office. Steve has been in the business for over 20 years and is an expert on the commercial real estate market, owning his own brokerage business for 10 years. Steve speaks with Intero COO Tom Tognoli and shares his knowledge about the current condition of the commercial market both locally and globally as well as giving us his insight about what to expect in the future.

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Intero Insider: Down payment assistance makes a comeback

By Gino Blefari | January 12th, 2011 1 Comment

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.

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Top 10 Silicon Valley Real Estate Trends for 2009

By Dawn Thomas | December 16th, 2009 0 Comments

As 2009 draws to a close – you’ll soon be reading lots of  top 10 lists for the movers, shakers, and trends of the year and the decade!   In the spirit of being just a little ahead of the crowd, here’s our list of the top Silicon Valley Real Estate trends of 2009:

1. Low Interest Rates – with More Strings –  Interest rates have been low this year, with periodic dips into historic record  ”low” territory.   These great rates, though, come with seemingly ever-changing requirements and conditions.  Selecting a great financing source who can get you great rates AND help you navigate through the process has never been more important.

2. We’ve Got to Keep It Together For Longer – With the changing lending guidelines, it’s been taking longer for properties to close escrow and having a signed purchase contract did not automatically mean a closed escrow in 2009.   Having a black belt negotiator on your real estate team has been critical this year.

3. “Turn Key” is Hotter than Ever – A few years ago – buyers could purchase a property & count on some quick appreciation to pay for a remodel in just a little time.  Now – buyers can’t count on home appreciation to finance a remodel in the near term & are looking for great condition, move-in ready homes to buy  (as if location and condition ever go out of style in the world of real estate!).  On the other hand – for buyers seeking to purchase a property in a high-demand area like Palo Alto or Cupertino – it may pay to look for properties needing some work.  If you can see the potential in a fixer – you may have fewer competing bids from other potential buyers.

4. Buying a Silicon Valley Foreclosure is not as Easy As It Sounds - Some of the busiest agents in any real estate office are the ones listing “Real Estate Owned” or REO properties for the banks.    Buying one of these properties means navigating a maze of bank-specific requirements for making the offer, competing against multiple offers (some properties are getting 20, 30 or even 50 offers), and positioning your offer against “all cash” investors.  Finding a deal & making sure it stays a “good deal” through the process is not for the faint-of-heart!

5. No Shortage of Short Sales – over the course of 2009 – we continued to see properties listed for less than what is owed to the lender(s) – resulting in a short sale requiring lender(s) approval to go through.   We’re starting to see short sale listings where the lender has approved a short listing price – allowing the whole process to go smoother and quicker.

6. The Year of the First-Time Buyer – with more affordable home prices, the First Time Home Buyer Tax Credit, and sweet interest rates – many of the homes sold in 2009 went to first time home buyers.   In the final months of the year – we are starting to see more and more “move up” buyers rousing the mid and higher-end price points.  Welcome!  Please bring friends!   This is a trend we want to see continue & grow in 2010!

7. Deal Hunting in Palo Alto – Where’s the deal on a single family home in Palo Alto for less than $300,000?  The media in 2009 did a fantastic job of painting the picture of real estate in free fall, and we went through a period in the spring where every day brought Internet inquiries looking for the extraordinary deal in Palo Alto.  According to the MLS – the least expensive Palo Alto single family home sold so far in 2009 went for $703,000 for a 67 year old, 703 square foot cottage with foundation issues.

8. Your Home May Have a Bigger Electronic Footprint than You Do - Social media sites like Facebook and Twitter are 2009 Trendsetters above and beyond the world of buying and selling dirt.  In real estate, though,  the savvy home seller now ensures that their Real Estate agent is marketing  their property through multiple Internet channels.    Wouldn’t  you want 30 million visitors at your open house – especially the ones who can’t leave foot prints on your new carpet?

9. Welcome to California! – We are working with an increasing number of clients who are relocating to Silicon Valley for a new job.  It looks like both our job market and our real estate market are picking up!   Welcome!

10. Less to Pick From, More Competition – And finally, in many areas of Silicon Valley – we are seeing fewer homes on the market.    In fact, for Silicon Valley overall – more homes are “pending sale” than are actively for sale.  For buyers – this means that there are fewer homes to consider and more competition to get  your offer accepted. For sellers – it means that there are fewer competing properties.  This sets the stage for an even brighter 2010!

We wish you the best holiday season & look forward to serving you and your referrals in 2010!

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What’s New in Los Altos?

By Dawn Thomas | October 9th, 2009 0 Comments

Silicon-Valley-And-Beyond-Presents-New-Homes-In-Los-Altos-CABuyers often contact us – looking for a new home.  With the limited land available in Silicon Valley – most folks start off with a home that could be 30, 40, or even 50 or more years old.  And even though – these older homes might be extensively remodeled and in wonderful condition – the dream of owning a brand new – never lived in – home remains.

In Los Altos – there are approximately 10,000 homes and the median age of Los Altos homes on the market is currently 47 years.  So what’s new in Los Altos?   What is available on the market that is brand new?

Currently – there are 11 new homes on the market.

Here’s the range of new single family homes in Los Altos -

High End: A brand new home with over 6700 sq feet of living space – 6 bedrooms, 4+ bathrooms, a wine cellar, and full basement on a 14,000+ sq ft lot.  List price:  $4,995,000.

Low End: A brand new home with 4000 square feet of living space – 4 bedrooms, 2 ½ bathrooms, and a basement on a 7000 sq foot lot.  This home is located on a smaller corner lot on the edge of a busy street.  On a larger lot on a quieter street – I think this home would sell for significantly more than its current list price of $1,599,000.

Just the Dirt - Note that there is one more brand new “single family” home listed for sale in Los Altos for the bargain price of only $998,888.   On closer inspection – though – it turns out that this home is actually just a nice piece of dirt.  It’s a 6750 square foot lot with approved plans and permits for a 4 bedroom, 2 ½ bath home.   You supply the general contractor, materials, labor and construction budget to build your new dream home.

The median new home on the market in Los Altos is listed for $3.2 million and features 5 bedrooms and 4+ bathrooms.  It has 3557 sq feet of living space on a lot that is approximately a quarter acre.    The spec builders in Los Altos are making these new houses “big” with lots of amenities like

  • wine cellars, outdoor kitchens and dedicated theater rooms
  • basement “suites” for the extended family (a place for your teenagers)
  • decadent master suites with huge master baths and walk-in closets bigger than my first apartment
  • great rooms combining a gourmet kitchen, walk-in pantry and family room
  • dedicated offices with built in bookcases and enough high tech wiring to make your favorite geek grin

In Los Altos, I expect to see a trend in the coming years towards slightly smaller single-level homes with an ongoing emphasis on special amenities and high end finishes.   We need our toys.

If you’re not quite ready to buy or build your brand new dream home in Los Altos, here’s a market snapshot of the overall Los Altos real estate market for single family homes:

Market Snapshot:
All  Los Altos CA Single Family Homes
As of October 5, 2009
Median List Price $1,950,000
Average List Price $2,241,075
Least Expensive Listing $998,888
Most Expensive Listing $4,995,000
Asking Price per Sq. Foot $695
Average Days on Market 123
Total Single Family Homes on Market 78
Median Home Size (sq ft) 2915
Median Lot Size (acre) 0.25- 0.50
Median Number of Bedrooms 4.0
Median Number of Bathrooms 3.0
Median Age 47
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Intero Insider: Are We Out Of The Woods Yet? No, But There’s Light Breaking Through Yonder Trees.

By Gino Blefari | August 28th, 2009 0 Comments

It might be a little early to start cheering, but we are seeing some signs of recovery in the real estate market.

Yes, even in California!

Though home prices have fallen to levels not seen since 2003, there is news that might have us exercising cautious optimism about improvements in the real estate market. The S&P/Case-Shiller Home Price Index Survey was released on August 25th, and we’re encouraged by their report.

Nationally home prices, while still down almost 15% from the second quarter last year, rose almost 3% from the first quarter of this year. That’s good news. One of the biggest reasons for a positive outlook is that this marks the first time in three years that there has been a quarter-over-quarter increase.

Since this Spring, market activity has been markedly higher, and we expect that trend to continue into the Fall.

What does this mean for consumers? Well, recently, fewer homes on the market have had price reductions than compared to Spring this year, which is typically the busiest time of the year for real estate sales. This is good news for sellers, as it means that their end point, while not at the level it might’ve been three years ago, is likely not going to keep declining.

Only time will tell.

The next couple of months will be critical in determining if we’re on a true upswing. Generally, the market sees a nice burst of activity in the early Fall, prior to the Holiday Season, and December 1 marks the end of eligibility for the Homebuyer Tax Credit. Those events will likely have a surge of buyers flowing into the market.

Only time will tell. But from where we sit, we hope that time will have good things to say.

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The Intero Insider: Online home search – make sure you get the complete picture

By Gino Blefari | August 7th, 2009 0 Comments

There are lots of places to search for properties online. National sites, local sites, broker sites, agent sites.

After a while they all start to look the same.

But they are not the same.

In fact, there are important differences you probably didn’t know about.

Let me explain.

The electronic life of a property listing begins the moment an agent enters it into the Multiple Listing Service (MLS). There are thousands of MLS’s nationwide, and they serve as central regional databases that all REALTORS use to share information on properties. They are as close to a complete picture of what’s on the market as you can get.

In the past, REALTORS shared this information only amongst themselves. But in 2000, the National Association of REALTORS formalized something called IDX (Internet data exchange). IDX allows brokers and agents to show each other’s listings on their own websites.

So, for example, if you visit broker A’s website, you will see broker A’s listings, but also the listings from brokers B through Z. This is good for brokers – who get to market their listings more widely – but also good for consumers, who get a full picture of homes for sale in their market.

Everybody wins.

Now consider some of the most popular home search sites on the Internet – those run by media companies or start-ups, not real estate brokerage companies like Intero. These sites look good, but what you may not know is that many of them show you just a slice of the listings. Because they are not members of the MLS, they cannot participate in IDX.

And you, the consumer, see an incomplete picture.

Think about it: If you were shopping for digital cameras online, it might be OK to miss a few models. But homes? Not seeing all your options is a big deal.

So next time you go online to look for homes, make sure you’re on a site that gives you a complete picture.

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