Does the International Market Offer Opportunities to Local US Agents?
Posted in Alternative Business Models By Stefan Swanepoel, Wednesday, March 25, 2009.For a long time most international markets have felt far away, and many Americans didn’t care nor were they very interested in foreign cities. Although the Web has brought us closer together as a people we still remain apart. Few products or services illustrate this better than the buying or selling of a home.
But today with air travel becoming increasingly more commonplace, immigration and living choices becoming more readily available and our own market in a recession, many smart real estate companies have turned toward international expansion as a new means of controlled growth.
At the same time many buyers in foreign countries are looking at the United States as an investment opportunity, in spite of or in some cases even as a result of our current depressed housing market. Concurrently, fluctuation in currencies and the advantages created as a result of exchange rates have also increased business opportunities in different markets around the globe.
While America is struggling through the current financial and economic crisis, as many other countries around the world are, several overseas economies find themselves in a stronger situation – even in some cases one of strong growth. Growth in China, India and Russia seems to be resulting in a race to see who can supplant the United States and become the world’s next economic power.
And at the heart of many strong economies lies a strong real estate market. One where people have the right to live, own and transact freely with their homes. It is that ability to search, market, buy or sell real estate that forms the focus of this trend.
For individual Realtors®, working the online global tools, websites, services and communities has become a key component in a comprehensive real estate strategy. Even when just serving the local market the importance of being able to translate listing data and serving customers in the language of their choosing is vital. Have buyers from foreign countries be able to find you, communicate with you and even browse your properties for sale. You never know where the next buyer may be coming from.
Three international trends that I think can impact local real estate business, irrespective of where you live or practice real estate are:
1. Global and Multi Language IDX
2. Global Multi Listing Systems
3. Global Social Media Websites
I really believe that progressive and forward thinking real estate professionals should not ignore the international arena. What do you think?
What other benefits or services or opportunities are there in the global real estate arena?
[This is a continuation of the discussion in Trend #6 from the 2009 edition of the Swanepoel Trends Report 2009 ]
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Submitted by Jerzy (George) Szkup on March 25, 2009 - 1:00pm.
George Szkup
www.DestinationTucson.biz
Answer: probably not or very few - sorry for a pessimistic answer.
U.S. real estate information has been available to every one in this world via internet for a long time. And there are number of established brokerages specializing in international contacts. To the most of foreign buyers U.S. consists of Washington DC and 100 mile radius - rest is wilderness. It would be very difficult to sell someone a mansion in Tucson Arizona when there are number of properties on sale, at greatly reduced prices, in Beverly Hills and man-made islands of Miami.
Most of the foreign buyers (except from Canada) are looking for high priced, luxury properties. Language is not a problem because they can easily hire a local, English speaking agent to do a search. And foreign advertising is very expensive.
This broker tried to advertise in, where else but Dubai! Local agency quoted $12,000 for 3 months campaign, cash first! and no guarantee of any success. This writer decided that what is left in his 401K would not cover even 1/10 of the bill.
George
Submitted by Janet Case on March 25, 2009 - 2:31pm.
When I think about the global real estate arena, it is broader than just "can an agent find a buyer for an expensive house in ----." To me (and this is the reason I founded Proxio) it is about building a real estate practice around serving an international, multicultural clientele. That might include foreign buyers, of which there are still plenty, including foreign investors interested in "discounted" American properties; it might mean helping your current clients relocate to a retirement home in Costa Rica or Italy; and it also includes serving your own local community where some percentage of people might prefer to search listings in a non-English language. Agents from 60 countries participate in Proxio's global referral network and international MLS, building relationships with each other and sending listings to clients in multiple languages. Will networking globally turn the market around? Of course not, but it's another useful tool for agents who want to stay ahead of the pack and provide more and better services to clients, wherever they are.
Janet Case, CEO
Proxo, Inc.
Global referral network
www.proxio.com
Submitted by Stefan Swanepoel on March 30, 2009 - 1:36pm.
Thanks for comments George and Janet.
Global real estate is not just limited to one-way traffic or one activity. Global real estate means so many different things to Americans so here is a list of a few potential things it could include:
1. US RE franchises expanding abroad (such as REMAX, ERA, C21, CB, etc)
2. Non US franchises expanding globally and into the US (Engel & Volkers, Harcourts, Brookfield, etc).
3. Potential purchase or acquisition of US and non US companies by the others and forming global giants.
4. Local US companies just selling US properties to non US residents.
5. Local US companies selling US properties to immigrating non US residents.
6. Local US companies selling US properties to local immigrants or naturalized citizens.
7. Americans buying non US properties abroad.
8. Commercial and investment property ventures.
9. Vacation and rental markets.
10. MLS vendors, Software providers, Internet, Social Media, etc.
There are many opportunities but unquestionably current market conditions, language and real estate legislation differences make it complicated.
Submitted by Nii Addo on March 30, 2009 - 3:34pm.
How about a website where real estate agents can speak directly to buyers locally and globally with video? That's what we are trying with Rexcheck Global (www.rexcheck.com).
Submitted by Ron Seigel on March 30, 2009 - 3:41pm.
Stefan, you make an excellent point about the importance of internationalizing your practice. The fastest and easiest way we have found for agents to internationalize "overnight" is Proxio (see Janet Case's comment). You mentioned this company in your 2009 Trends report and it is excellent.
We recommend Proxio as a personal branding strategy for agents who want to stand out from their competition and become the go-to agent for referring agents outside of their marketplace. When it comes to reaching more buyers, achieving high visibility among referring agents, not just consumers, is an imperative in the new world of internationalization. Proxio helps you build your personal global brand.
Ron & Alexandra Seigel, Partners-
Napa Consultants, International
Luxury Real Estate Marketing Strategists
Submitted by 60 One Property Group on March 30, 2009 - 5:23pm.
For the Luxury Market (properties over $1M), www.LuxuryRealEstate4Charity.com offers not only Video, but social media sharing tools (send video to potential buyers, post to Facebook, Twitter, Blogs, Websites etc.). Video is the best way for Agents to actually sell the home in the Global Market.
The site is currently in beta testing, but will open up Globally in the next few months.
As the Affluent Buyer is hard to reach, 2media created a Cause Marketing campaign associated with Agents/Properties on the site.
When a property is purchased directly through the Listing Agent, the Agent donates 1% of the property sales price to the Habitat for Humanity Affiliate where the homes resides.
This creates a "story" about participating Agents and their Listings that 2media uses in an extensive PR & Marketing Campaign to drive the Affluent Buyer to the site. 2media acts as the Agents marketing agency by attracting Affluent Buyers locally and globally.
Currently, the site is available for properties in Southern California and is free while we are in beta testing.
I think Proxio is also an excellent tool to expose properties to the Global Market.
Marcia Canady
President & COO
2media.us
www.LuxuryRealEstat4Charity.com
marcia@2media.us
Tel: 949.544.1740
http://twitter.com/LuxRE4Charity
Submitted by Jason Dolle on April 2, 2009 - 11:33am.
At www.AgentShield.com, we have free widgets and email tools for agents/brokers that help them market new developments both in the US and abroad.
The core of our technology (which is patent pending) is that agents are able to send their prospects to a development's website safely. When an agent sends a prospect to a developments website through a special link, all the contact information and forms dynamically change, showing only the agents information. All leads go directly back to the agent. The developer gets notified that the agent received a new lead so they can follow-up with the agent.
Currently, we have several developments in Costa Rica and The Dominican. We should have another in Belize and France coming online shortly. We have 30+ developments in the US, as well, such as The Cliffs in NC.
Here is an example of a live widget:
http://www.johnrwood.com/NewDevelopments.aspx
Brokerages like Michael Saunders & Company have included our technology on every agent site they maintain (500+) and their main brokerage site:
Example agent: http://maryjanegoldthwaite.michaelsaunders.com/NewDevelopments/
Sorry for the long commercial post here, but it a free, extremely powerful tool that has led to increased sales for agents.
Also, we just returned from the RSPS Symposium in Naples, FL (http://www.realtor.org/resorts). It was a fantastic event with many ideas and trends related to international real estate.
Thanks!
Jason
AgentShield.com
Submitted by TReXGlobal on April 2, 2009 - 11:50am.
Hi Jason,
That's pretty neat! Our property management software (http://www.trexglobal.com) works very similarly. When clients come to our site through a partner's link, they experience the partner's co-branding on the software, and the lead goes directly back to the agent. The client's account is permanently mapped to referring agent, so it's a wonderful marketing tool that acts like a virtual refrigerator magnet with investor clients. It's a free program, and it is effective at helping local agents connect with investors from abroad. Let me know what you think!
Niman Singh
www.TReXGlobal.com/Partner - Real Estate Web Tools for Marketing to Investors