Is it time to move up in Silicon Valley?

BY JULIE WYSS  Originally published in the DEADLINENEWS.COM © JUNE 5, 2012 

 Those who have money to buy have been sitting tight for the past half decade.

Suddenly, everyone wants to buy real estate – first-time home buyers, investors, move-up, even move-down buyers.

What happened?

In the past four months inventories have fallen hard and prices have increased by $20,000 to as much as $100,000 on select properties. The bottom may have come and gone. It feels like recovery.

Silicon Valley bidding wars have erupted on everything from the worst distressed properties that attract all cash buyers because lenders won’t finance their sale, to $2 million homes in Cupertino, Los Gatos, Palo Alto and affluent areas with a tech worker-based populace.

Many local markets have become much more seller friendly.

Asked one buyer from Germany, “Why did the market move so quickly?”

Interest rates are at record lows. Prices have stopped falling. The Euro Zone troubles are prompting investors from abroad to buy U.S. There is no one specific answer.

I’m exposed to all of the global and local information available to real estate professionals and the best answer I have heard is “The herd has moved.”

Herd moving uphill

One of the fastest growing trends is move-up buys.

Home owners have been “sucking it up” and staying put, even through they have great jobs, tenure and steady pay increases. Now with this market surge, they are getting off the fence, selling mid-range homes, valued at $600,000 to $800,000 and buying up in the higher price range of $1 million to $1.5 million.

They are moving into long sought-after neighborhoods including, Los Gatos, Cupertino, Saratoga, Los Altos and Palo Alto.

They are married couples in their late 40′s and realize that life is too short to wait much longer and they really can afford their dream home.

I recently sold a Cambrian, San Jose neighborhood home that had appraised at about $700,000 a year ago. Concerned about over-pricing that could have killed a deal last year, we conservatively priced it at $760,000. It sold for more than $800,000.

The sellers, in turn, acted fast and found a great home in Las Gatos for less than $1.5 million – an entry level property for this affluent city.

Move-up financing

What kind of financing is attractive and available? It depends on the buyer. Do they hold shares of one of the hot fledgling tech companies and anticipate bonuses? Or are they on a fixed income?

One strategy is to get a conforming loan of $625,500 at a low, fixed interest rate under 4 percent and a second loan (Yes, they are back.) for $500,000 with an interest rate of 4.25 percent. For the down payment you’ll have to have to use the equity in the old home you just sold.

There are also amazing jumbo loans for a full $1 million available for low interest rates and 5- 7- and 10-year hybrid adjustable rate mortgages are back.

This is a fantastic time to move up.

Life is short.

Read this article on Deadline News by clicking here. 

408.687.2026   |   julie@juliewyss.com   |   www.juliewyss.com   

Real Estate Investors Offer Big Pay Off, If You Can Keep Up.

Deadline News.com article originally published on Feb. 3, 2012

JULIE WYSS – Today’s Silicon Valley real estate investor isn’t necessarily a high roller, but more often a working stiff with a small-business, who is tapping existing non-real estate investments to cash in on affordable real estate properties to flip or rent.

If you are a real estate agent looking to serve them, you’d better bring your A-game.

These younger investors aren’t “suits” sporting fancy cars, but are more likely to dress casually and drive a hard bargain, offering all cash or sizable down payments on the properties they buy.

Many are smaller, newer, more innovative-thinking investors with one or two rentals under their wing, looking to acquire more. One thirty-something investor with three children chose to drain the kids’ college accounts and buy three houses with 15-year loans. By the time the kids graduate, mom and pop can sell the farm and pay cash for college.

Some are trading in two-, three- and four-plexes for single-family homes (SFH), considered diamonds in the rough, valued at half what they cost at the peak of the market.

Investors with cash in the bank are getting off the fence because they no longer trust that their money will perform as well in conventional investments, including money market funds, stocks and other investments.

In the business to make money, investors also favor Section 8 housing’s guaranteed rental income.

San Diego-based DataQuick says absentee buyers – mostly investors – purchased a record 23.8 percent of all Bay Area homes sold, up from 21.7 percent in November and 20.2 percent a year earlier. That’s an average. The share is higher in some counties, cities and neighborhoods.

If investors sound like tough cookies, they are, but you can serve them well if you have the energy and expertise to meet their demands.

The average real estate agent thinks the job is to write a contract and pray it gets accepted. Here’s what’s really required.

Going the distance

Investors aren’t in the mood to manage. That’s what they do for a living. They expect you to take the lead on acquiring their investment and expect you to understand their investment goals.

Be prepared to show an investor as many homes as they wish to see in a day, six, eight. And not just any homes. They include short sale properties occupied by families down on their luck and homes in horrid shape.

When a hot property is available, the investor needs to be convinced to tour it.

“You need to see this property and I am picking you up at your office in 30 minutes and will have you back in an hour….” Worker bees may say “no” at first, but later will agree, because you insisted. They appreciate your initiative and ultimately enjoy the thrill of the chase.

Bring hard core negotiating skills to the table. An investor needs a real estate agent familiar with the distressed property market. After several investment purchases, a skilled agent should recognize a good deal and advise the buyer what to offer. Hit the nail on the head and you gain their trust.

When the investor trusts the agent, the investor is more often willing to offer a higher price, if that’s what it takes to get the offer accepted. However, if the investor is an all-cash buyer and can forgo the appraisal contingency, even the property inspection and disclosures contingency, then a lower offer with a quick close is a more effective strategy.

Investors have little time to spare, including the celebratory two-martini lunch after the deal closes. Instead, they’d prefer you to pick them up, get them to the sign-off and back to work in an hour.

Other investors prefer not to leave work, but complete the transaction without leaving their desk. They appreciate the convenience of electronic signatures, when permitted. Electronic signatures are not allowed on a short sale, but offering to send a traveling notary or providing curb-side pick up can overcome that obstacle and help them maintain a sense of control without actually managing you.

Investors don’t care to read the fine print, but they do want to know what’s in the deal. You, along with the lender, must review the note to be sure the rate and the terms are what the investor wants. You must sign off on the title report and be certain there are no problems with liens or easements. The new title must be in the correct name of the investor or the investor’s living trust.

After escrow, the tough keep going

The real work begins after escrow closes.

Whether the investor will flip the property or rent it out, chances are, the property could use some help.

You’ll have to have at the ready a database of trusted vendors available for any work necessary – termite work, painting, hardwood floor finishers, roofers, general contractors, landscapers, pool repair guys, HVAC companies, virtually any provider you can think of. But not just any contractor, great contractors with competitive prices.

You can manage the work by installing a lock box and setting up appointments with the contractors. This allows them to quickly get to work transforming the purchase into an investment with hefty returns.

Source: Julie Wyss is the top producing individual broker associate with Intero Real Estate Services-Los Gatos, CA. For more information about Julie and her real estate services, please visit her website.

New Team Wyss Logo

Team Wyss has a new logo!

Team Wyss offer our clients a unique real estate strategy, cohesive synergy and level of success and this logo captures all of those elements.

When you are buying or selling a home, please consider Team Wyss. We will work tirelessly to ensure your real estate dreams come true.

Julie Wyss, Broker Associate
julie@juliewyss.com
www.juliewyss.com
408.687.2026

How Does Your School Rank?

An area's school rating is one of the most important factors in choosing a new neighborhood. School ratings can affect home values, quality of living and of course, children. Even home buyers without school-aged children should be researching education in their new neighborhoods. Educational quality varies significantly between districts. Buyers should consider class sizes, additional programs for non-traditional students and state funding in addition to basic standardized test scores in their education research.


Curious how your child's school measures up? Click here to find out!

Buy -Sell - Invest

Julie Larsen Wyss, Broker Associate  

Intero Real Estate Services, Los Gatos

408.687.2026

julie@juliewyss.com

www.juliewyss.com

  

Team Wyss Is Proud to Present The Real Estate A-Team!

Team Wyss is comprised of hand-selected men and women who have tremendous experience in their respective areas of expertise. Each amazing member plays a significant role in each complex real estate transaction and ensures the home buying and selling magic happens for our clients. Team Wyss is committed to exceptional customer service and making your real estate dreams become a reality!


Here is a little more about what each Team Wyss 'player' brings to the table. 

Alain Pinel Global Marketing Advisor Real estate entrepreneur and seasoned 30-year industry veteran Alain Pinel has moved to Silicon Valley- based Intero Real Estate Services as its senior vice president and managing officer. He will be in charge of Intero's estate and luxury markets in the U.S. and abroad.  Alain brings with him tremendous knowledge and experience in the industry as well as an extraordinary level of professionalism.

Gina Gemma Escrow Officer A 24-year industry veteran, Gina is a certified escrow officer with a Bachelor of Science degree in Business Administration from Creighton University. She specializes in residential and builder transactions and is a certified short sale specialist.

Brian Crane VP, Managing Officer & Founder Mr. Crane has 15 years of experience in real estate sales and mortgage lending. Mr. Crane's extensive experience in the field as a top 5 percent Realtor/Broker in Santa Clara County over the past several years provides great experience in leading Intero Los Gatos. Mr. Crane believes that by planning and setting goals, anything is achievable, and he will utilize this philosophy in maintaining a strong branch office in Los Gatos. Mr. Crane joined Intero in 2002 after working as a Broker Associate for Alain Pinel Realtors since 1999. Prior to that, he worked with Intero President Gino Blefari at Contempo Realty, where he was a Broker Associate from 1995 through 1999, and as a Broker Associate for Cornish and Carey from 1992 through 1995. Prior to Real Estate sales Mr. Crane operated a mortgage brokerage business.

Trina Hunt Transactional Coordinator Trinaddie Transactions was co-founded by Trina Hunt and Addie Grilli in 2002. Trina got her start in 1997, training in Corporate Relocation, Residential & Commercial Property Management, Real Estate Finance, & Real Estate Sales. Both Trina & Addie have Real Estate licenses & currently working on their Brokers & notaries.

Margo Lawrence Home Staging & Redesign In 2006 after receiving her certification as a Professional Home Stager from the Home Staging Resource, Margo launched 'Stage It With Margo." A few years later, she decided to join a group of stagers and create a Co-op called Stagers Collective. In doing so, "Stage It With Margo" is able to offer their clients a team of established professional home stagers who have combined their experience, styles and resources to bring the most comprehensive, full-service staging company in the Bay Area.

Tamara B. Pow Attorney at Law Tamara B. Pow JD MBA, is a founding partner of Structure Law Group, LLP. She advises business owners and real estate investors on all aspects of business transactions, including contract negotiation, liability protection, employment issues and tax planning. Ms. Pow has extensive experience with the formation and representation of corporations, LLCs, LLPs, general partnerships and limited partnerships. She also handles 1031 exchange tax planning and other real estate matters, including purchase and sale agreements, and leases.

Frank Esposito Preferred Lender Today, purchasing or refinancing a home is the largest financial transaction that any of us will enter into, so it’s essential to select an experienced Loan Officer.  Frank has over 8 years of experience in the mortgage industry and knowledge as a trusted and qualified Loan Officer.  With Wells Fargo’s numerous loan programs, such as FHA, Conventional, Jumbo and Renovation financing, he has successfully worked with people to effectively help them obtain a loan that is tailored to fit their individual financial needs. Frank strives to provide outstanding service and looks forward to earning your business now and for many years to come.  Whether you are a first-time home buyer or a seasoned homeowner, don’t leave the largest transaction of your life to chance, call Frank today.

When you or someone you know is in the market to buy or sell a home, let Team Wyss work for you!

Intero Is Pleased To Introduce Prestigio

Hello All,

It is my great pleasure to announce “Prestigio”.  Prestigio is Intero’s brand new Estates Division and the agents involved to participate in this new venture are handpicked. Recently I was chosen to become a member of Intero's President's Circle and was also awarded Top 5% among all Intero agents nationwide. I am honored to be among the select agents from the Intero Los Gatos office chosen to be a part of the revolutionary Prestigio opportunity.

Prestigio provides an exhaustive and exclusive menu of global marketing services for luxury homes and is going to change the way Realtors do business not only in the San Francisco Bay Area, but across the globe.  Prestigio is a program that is second to none in our industry, anywhere, and is being launched by Intero’s Top Producers. Some may think that it is pretty gutsy for a real estate company to create such a new extensive high end program just coming out of five years of a brutal downturn which severely affected the luxury market.  Yes, it is gutsy. 

The reality is: we felt compelled to do it. Business has changed and we felt we needed to change as well to adapt to the migrations and the profiles of new buyers at the top end of the market.  Not to mention the new ways to do business to best leverage the technology at our disposal. Simply put, we cannot do business as usual in an unusual market.

We at Intero want to be relevant and offer the best service possible to today’s homeowners who trust us with the marketing of their exceptional property. We have a no-nonsense approach to marketing and we actually place our advertising commitment in the customized marketing plan we prepare for the sellers, covering each and every month of the listing duration. That includes looking for buyers all over the United States and abroad.

Actions, not just words. That’s what sellers need today. They do understand that their opportunity to sell their home is predicated on the listing company’s ability to connect with a maximum of qualified prospective buyers, wherever they may reside or work. We created this new upscale marketing program to deliver on those expectations.

Please contact me if you’d like more details about the Intero Prestigio program or if you or someone you know is ready to buy or sell a home in the Silicon Valley.

Warmly,

Julie Wyss, Broker Associate, DRE # 01350871

Intero President’s Circle, Top 5%

Office 408.357.6157 

Cell  408.687.2026  

julie@juliewyss.com

www.juliewyss.com   J

Intero Real Estate Los Gatos, 518 N. Santa Cruz Ave. Los Gatos CA 95030

Silicon Valley Real Estate Market Update

Silicon Valley home prices are on the rise.

General Market Conditions: The real estate market in Santa Clara County is vibrant among most price points. In many areas, home values have returned close to their high water marks. Houses in the $750,000 price point and below are moving very quickly as owner-occupants battle investors for great deals. For homes above $750,000, location matters.

“Be fearful when others are greedy. Be greedy when others are fearful.”- Warren Buffett

Because of the resurgence of the real estate market, there are some great opportunities. With the right marketing strategy, we have been very successful helping clients navigate the market, taking advantage of the best opportunity based on our client’s situation.

1.     Investment real estate continues to be hot. Three areas of consideration:

A.     Buy “cash flow” rental property in Santa Clara County or beyond

B.     Buy distressed property at discount and refurbish and “flip”

C.     Sell depreciated rental property and “trade up” for better cash flow and tax benefits

If your a flipper, the market offers amazing investment opportunities.

2.     “Right Sizing” your current household to adjust for changing family

A.     Move up: sell ( or keep for rental income ) your current home and move to larger

B.     Move down: for many, now is a good time to make the nest “smaller”

C.     Move laterally: sometimes a move to another neighborhood is in the cards

Property is a great 'basket' in which to put some of your 'eggs'.

3.     Diversify part of your stock portfolio into real estate

A.     Convert current IRA into a “self-directed IRA” to fund real estate diversification strategy.

B.     Join a small group of friends/ investors, pool funds and buy income property

We are also getting requests from more clients who are helping elderly parents turn the page on their life long home and move to a variety of different independent care homes.

We continue to be very active helping buyers and sellers throughout Santa Clara County. If any of the opportunities listed here caught your attention and you (or someone you know) would like to discuss them in greater detail, we would be happy to do so.