Jeff Barnett is the Managing Director of The Agency Los Gatos. Barnett has over 35 years of real estate sales and management experience.
Veeravalli Team: Hello Jeff, it is our genuine honor to interview you! You have been a paramount figure in our real estate careers and we are excited to ask you some questions.
Jeff Barnett: It's a pleasure to be here, and I appreciate you inviting me. I am looking forward to the conversation!
QUESTION 1
Veeravalli Team: To introduce yourself to our readers, can you please tell us about your background and how you ended up in the position of Managing Director at The Agency Los Gatos?
Jeff Barnett: I have been in Real Estate since 1989 and managing since 1993. When my previous brokerage was purchased I looked around to find a comparable high-end luxury boutique.
I had been following The Agency for years and it was a natural fit.
QUESTION 2
Veeravalli Team: There’s a particularly fascinating story about yourself that is well-known in the local real estate community. It’s about your meeting with Apple co-founder and former CEO Steve Jobs and how he helped you incorporate technology into real estate back in the 1990s. Would you mind sharing that story with our audience?
Jeff Barnett: In 1991, my previous brokerage Alain Pinel Realtors was looking for a computer system to take real estate into the technology world. As you know, back then, there were not many options. Steve Jobs was a client of ours and he contacted us since he had just left Apple and started his own company called NEXT Computers. We worked with him and his software company and created probably the first real estate software in the world. We also had the first real estate website in 1993.
They did an article about us in Forbes Magazine in 1993 with my picture next to Steve's. Back then he was not a superstar yet. It was a great experience.
QUESTION 3
Veeravalli Team: You are now a leader in expanding The Agency, a global real estate brokerage, here in the San Francisco Bay Area. Can you touch on how technology is at the forefront here at The Agency in Silicon Valley?
Jeff Barnett: The technology just keeps getting better year after year. We have come a long way since 1991. Our focus is on luxury and marketing since we are in 12 countries with over 130 offices. The tools we give our agents to use we feel are the best out there.
They can use our social media and newsletters turnkey and just send them out, or they can create their own from scratch within the system. We have three different levels of marketing, marketing person in the office, our California marketing team, and our New York global marketing team.
Right now we are keeping our eye on the artificial intelligence software that is coming out. It is a very exciting time.
QUESTION 4
Veeravalli Team: When we first met you, we were in the infancy of our real estate careers. Do you remember much about our initial conversations?
Jeff Barnett: I remember that you were an entrepreneurial couple with two or three companies going at the same time. You were winding them down to focus on Real Estate. I was very excited to bring your team on board and you have not disappointed me by becoming the number one team in the office.
QUESTION 5
Veeravalli Team: You are now growing The Agency’s presence in Los Gatos and regularly recruiting both veteran agents and newer licensees to our office. When it comes to a newer real estate agent, what are some of the traits that you are looking for that you believe will lead to long-term success?
Jeff Barnett: The Agency doesn't typically hire new agents but I have been given an exception because that's how I like to build my office. Only about 15% to 20% are new and I may interview 10 people to get to one. I will do a couple of interviews and you just know when you hit the right person. They go through extensive training for up to a year by myself personally and then I pair them with a top REALTOR® when they do their first couple of deals.
QUESTION 6
Veeravalli Team: Let's pivot to the present-day real estate market, how would you describe the Silicon Valley real estate market at the moment?
Jeff Barnett: The market is better than in 2022 & 2023 but inventory is still very low. Customers are accepting the new interest rates as the new normal, pushing the spring market into summer. I would say that around 60 to 70 percent of current listings receive multiple offers that are over the asking price. If you're a buyer do not wait to get into the market.
QUESTION 7
Veeravalli Team: With the enduring impact of the pandemic, the rise in remote work, economic and political fluctuations, and much more, the real estate landscape in America has undergone significant transformation. What are some of the biggest misconceptions contemporary buyers and sellers have about real estate today?
Jeff Barnett: I don't think they fully understand all the work that a REALTOR® does in a transaction. With all of the recent changes, a trusted REALTOR® is more important than ever. Some clients also don't understand that REALTORS® don't get paid until a deal closes. Many REALTORS® will work with a listing or buyer for weeks or more with no expectation of compensation unless a deal closes. It's the nature of our business.
QUESTION 8
Veeravalli Team: The topic of interest rates has become an integral part of the real estate conversation in the last few years. We strive to keep our fingers on the pulse with the latest updates and have even written a couple of blogs (blog #1 & blog #2) on the topic! From your perspective, how have recent interest rate trends affected Silicon Valley real estate and where do you see them going forward?
Jeff Barnett: It looks like real estate buyers have accepted the current interest rates as the new normal. Of course, people who currently have 3% and 4% loans are not in a big hurry to move. This is a big factor in inventory levels remaining lower than the present buyer demand.
We saw this acceptance from buyers start happening in the first quarter of this year. These buyers are no longer just waiting on the sidelines hoping for the Fed to take action, they are getting active in the real estate market now.
QUESTION 9
Veeravalli Team: We also recently wrote a blog about the emergence of Blossom Valley as a premier neighborhood in Silicon Valley. From your informed point-of-view, what are some areas you believe offer a lot of value for buyers today?
Jeff Barnett: That's a great question. Silicon Valley has so many different neighborhoods that oftentimes even locals don't know all of the communities in their area. That is where a great real estate team can really help! In terms of value, I believe that the Cambrian area of San Jose has a lot going for it. It has a convenient location with direct access to the recently updated Pruneyard Shopping Center, Downtown Willow Glen, Downtown Campbell, Downtown Los Gatos, and more along with great schools and generally more affordable housing for the area. There is so much positive growth and development in this area that you really do get to enjoy an incredible lifestyle as a homeowner in Cambrian. Most of the lots there are in the county so they are larger than normal. The Garden Hill area of Los Gatos is a great entry-level neighborhood also if you are looking to move to a smaller Silicon Valley suburb. We work in Los Gatos so you know how passionate we are about this community!
QUESTION 10
Veeravalli Team: Let’s finish up with something fun. If you could give someone one bit of advice on how to succeed in the real estate market, what would it be?
Jeff Barnett: It really hasn't changed over my 35-year career. Pick the best real estate firm in the area with the best management and training program.
Look what it has done for you guys.
OUTRO
Veeravalli Team: That was fantastic! Thank you so much, Jeff, for joining us and sharing your incredible real estate insights. I'm sure our readers will find your experience and advice very valuable.
Jeff Barnett: Absolutely! This was a lot of fun. I am always happy to connect with you both. Keep up the great work in helping your clients succeed in Silicon Valley real estate! We are all very proud to have you as a part of The Agency Los Gatos team.
Are you looking for top Silicon Valley REALTORS® at The Agency? Follow the Veeravalli Team for an exclusive look at Blossom Valley, Los Gatos, Cambrian, Campbell, San Jose real estate and more
VEERAVALLI TEAM
Ashwin Veeravalli
(408) 784-6595
LIC.# 01914395
Aparna Veeravalli
(408) 887-0330
LIC.# 01952626
The Agency Los Gatos
