Global Perspectives February 2011


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Global Perspectives February 2011

  1. 1. February 2011 to local, international & lifestyle real estate GETTING INVOLVED I can become a global agent? Yes! While the notion of developing an international component to your business may sound appealing or intriguing, many agents quickly cast off the idea, thinking it isn’t really pertinent to their situation. Or perhaps they assume that global business is too complicated or difficult to tackle. Where would I even begin? It is true that global business can be more complex. After all, it comes in many different forms—from immigrant communities, to foreign buyers, to relocating executives, and more—with each type of client presenting a unique set of circumstances and challenges. Simply spotting these opportunities in your local market can be difficult. Global business often goes undetected, flying under the radar of most agents. But this is also why savvy agents are increasingly investigating the many and varied faces of global business—a collection of opportunities that translates into a significant and growing segment of the real estate market. This issue of Global Perspectives takes direct aim at the question, where do I start? Inside, you’ll find information on specific steps you can take, as well as insights into the many different NAR-affiliated organizations that already stand ready to support your efforts. GP
  2. 2. GETTING INVOLVEDBuilding your global business from the ground up STEPONE at a Time Sometimes developing a global component to your real estate practice can feel like a “where do I start” proposition. There are, however, many ways to get involved, which is typically the best way to jumpstart your efforts. By taking this step-by-step approach, you’ll almost certainly find yourself learning more and developing important networking connections— all of which will lead to more business with global buyers and sellers. state level. Investigate and contact theseStep 1. excellent ways to come up the learning curve organizations:Ask your local association. or begin making global connections. - Tourism BureauIf you want to boost your efforts to work - Chamber of Commercewith global clients already in your area, your Other local boards have not yet developed - Economic Development Officefirst inquiry should be with your local real a full program of global initiatives, but areestate board. Ask if they have organized a studying their market to determine the While each local market is unique, groupscommittee or formal group to address global primary sources of global business and decide like this are regularly engaged in developingbusiness opportunities. Nearly 60 boards whether it is appropriate to take steps to form local business opportunities by encouraginghave formed global business councils or a council. (See page 5 for more about global trade, travel and tourism from other areas. Asinternational local councils that offer a variety business councils.) a result, they place a priority on researchingof programming and networking resources. the international movements of people and Step 2. business—data that could be very beneficialThese groups may have already compiled Ask your brokerage. in helping you understand which countries aredetails about the global influences in your Several major franchise companies have most important in your local economy.local market, and can help you identify which developed resources to help their agents tapcountries are represented more than others, into global business. If you work within such Step 4.whether through foreign direct investment,relocation of foreign employees, immigration, an organization, explore these opportunities Conduct online research. to learn more and make connections.or other sources. You can learn a lot about the global influences in your local market without ever leaving your Step 3. desk. Three of the best sources for onlineIn addition to providing this critical research,your board’s council may offer specialized Check other local resources. research include:information sessions with key experts, or host If these first two steps don’t pan out, therevarious events designed to stimulate referral are still plenty of other things you can do on ■ NAR Research – NAR offers state-business with agents from other countries— your own, right in your community, or at the by-state international business reports,2 ~ Global Perspectives February 2011
  3. 3. demographics of foreign-born and as a service to NAR members. A list of -speaking residents in the U.S. (at the President’s Liaisons can also be accessed county level), key housing statistics and at economic indicators, and much more. Go to ■ Cooperating Associations – These reportsintl for a listing of all international professional real estate groups, research, or refer to the August 2010 representing practitioners around ✺ issue of Global Perspectives for more about the world, have formed cooperative NAR’s research offerings. relationships with NAR. Even if you don’t plan to conduct transactions in another ■ U.S. Census Bureau – Go to country, it is important to learn more for a drill-down about these groups. Their members of demographic details for all states, have an NAR-compatible code of ethics counties and cities/towns with more than and can help you understand how real 25,000 people. Once approved, 2010 estate is transacted in their country— Census data will be incorporated into the an important point of reference for online database. serving clients from the same country of origin—and perhaps facilitate referrals. ONE MORE STEP! ■ – Compiles a wide range of general statistics on U.S. cities, Cooperating Associations can also be found at CIPS Training as well as many neighborhoods and zip codes. Includes information on residents Step 6. If you are interested in pursuing global (race, income, ancestries, foreign-born Explore other important groups. opportunities, but haven’t yet taken residents, place of birth, etc.), graphs There are numerous other groups you can Certified International Property Specialist of key real estate market statistics, and investigate for more information and global much more. (CIPS) training, this is an important networking relationships, including: step to add to your list. The specializedStep 5. ■ U.S. Chamber of Commerce – The coursework helps agents short-cut theTap country-specific resources. world’s largest business federationAssuming you’ve identified a particular represents the interests of more than process of becoming knowledgeablecountry you’d like to concentrate upon that is 3 million U.S. businesses, 96 percent of about the essential elements for successwell-represented in your market, you’ll want which have less than 100 employees. in international transactions. Plus, CIPSto make sure you connect with any NAR- The U.S. Chamber of Commerce alsoaffiliated groups or individuals also focused has an active international agenda, with candidates expand their opportunitieson that part of the world, including: programs and councils advocating for U.S. for international referrals by becoming business around the world. Learn more members of the CIPS Network. ■ Ambassador Associations – Numerous about their national and regional events local associations of REALTORS® serve as at ambassadors to NAR bilateral partners or Learn more about earning your CIPS at Cooperating Associations located across ■ American Immigration Lawyers the world. Any REALTOR® can approach Association – Over 11,000 attorneys are any Ambassador Association and express members of the AILA. While membership their interest in getting involved—you are is restricted to lawyers, real estate not limited to the activities undertaken professionals can tap numerous online by your own local board. To research resources, participate in conferences and these relationships, go to online events (at a higher non-member global_alliances. rate), and find an immigration attorney in their area using an online directory. ■ President’s Liaisons – Similarly, Visit individual members of NAR have been appointed by NAR’s President to act as This list of steps will take you far. But to liaisons, helping facilitate interactions some extent, it is just a beginning. Once you between Cooperating Associations and dig in, you’ll discover countless other ideas NAR members. You can approach these for getting involved and building your global individuals, typically CIPS designees, business well beyond what you might have and express your interest in a particular initially imagined. GP country. This is not a referral network but rather a peer-to-peer program offered Global Perspectives February 2011 ~ 3
  4. 4. GETTING INVOLVED Learn the LingoHOW NAR If you are just beginning to navigate the supporting structure around NAR’sSUPPORTS global business activities, you’re undoubtedly encountering many new terms. Following are the most important components, collectively called GLOBAL AGENTS NAR’s Global Alliances—a network of relationships all aimed at helping members tap the global marketplace. GLOBAL AGENTS • Global Business Councils — Nearly 60 local NAR associations of REALTORS® have formed GLOBAL international councils, forums or committees for helping members cultivate global BUSINESSES business. To see if your association has one, AND go to ALLIANCES DIVISION • Cooperating Associations — To help Provides facilitate cross-border real estate supporting transactions, NAR has bilateral agreements in 59 countries with 80 cooperating structure for all associations. To search by country, or by the international name of the cooperating association, go to activities • Ambassador Associations — This “sister city” program links a foreign Cooperating Association with a U.S. state or local REALTOR® association. The Ambassador Association works closely with a President’s Liaison and Regional Coordinator to expand global business opportunities. Details on Ambassador Associations can also be found LOCAL at NAR MEMBER ASSOCIATIONS VOLUNTEERS • President’s Liaisons — President’s Liaisons Includes Includes Regional are member-volunteers appointed by NAR’s Ambassador President to serve as liaison to each foreign Coordinators Associations and COOPERATING Cooperating Association. They are generally and President’s Global Business ASSOCIATIONS CIPS designees and, ideally, have some Liaisons Councils Real estate knowledge of their designated country’s organizations culture and language. For an online directory of President’s Liaisons, go to outside the U.S. global_alliances. • Regional Coordinators — Also appointed, Regional Coordinators provide strategic direction in support of NAR’s global business goals and leverage the individual efforts of President’s Liaisons in a specific region of the world. Contact NAR Global for information on Regional Coordinators. GP4 ~ Global Perspectives February 2011
  5. 5. If you’re wondering how to explore global business in your market, a good first stop is a visit to your local board’s global business council, whosemission is to develop opportunities in its members’ local market. By joining and becoming involved with a council, you’ll be able to arm yourselfwith knowledge and connections to help you move through the sometimes complex world of global transactions.Councils go by various names. The Naples Area Board of REALTORS® (NABOR) calls theirs the Global Business Network. In Boulder, it’s theBoulder International Council, and in the San Francisco area, the South Bay International Committee. To find out if there is a council in yourmarket, check GLOBAL Access a world of opportunities by joining a BUSINESS COUNCIL ✺What can a council do for you?Whether you are new to international sales oralready have your CIPS designation, a councilhas something for any level of experience.Here are a few of the benefits a council properties, vacation and seasonal homes, or residential housing in immigrant enclaves. You’ll also be able to find out which countries provide the most inbound > Educate agents on ways international transactions are different. Most councils sponsor educational events that might include talks by authors of books on international business, foreign nationals✺can provide. activity—information that may surprise you. discussing business practices in their native For instance, in Naples, Florida, the vast countries, panels of outside professionals,> Identify local international majority of international purchases last year or a look at best business practices for opportunities. were made by Canadians seeking winter developing international business. In most markets, sources of international homes; Germany and the U.K. ran a distant business aren’t immediately obvious, nor is second and third. The local council in Cape These programs are designed to help you it easy to gauge the size of the opportunity. Cod, Massachusetts, discovered that there become more familiar with the nuances Your local council may have already done were approximately 25,000 Brazilians of global transactions, like understanding this work for you. It can tell you what in the area, and took steps to bridge the cultural differences in social and business types of international sales are prevalent language gap to reach out to them. behavior. Knowing what is considered in your area including, for instance, resort polite, as well as what can be construed as (continued on page 6) Global Perspectives February 2011 ~ 5
  6. 6. GETTING INVOLVEDGLOBAL 2011 Access a world of opportunities by joining a ✺ GLOBAL BUSINESS COUNCIL (continued from page 5)BUSINESS EVENTSFollowing are numerous programs rude, can help put you on good footing with > Introduce members to internationalbeing hosted by global business councils an international client. marketing platforms.across the U.S. Other programs are also in Councils can steer their members towarddevelopment, so be sure to check “It’s a case of what you don’t know can NAR-associated platforms that reach thewith your local association for more really hurt you—and your community,” international market—both clients andevents in your area. says Brett Brown, ABR®, CIPS, CRB, other agents. These include social media, CRS, e-PRO®, GRI, RSPS, TRC, broker/ such as Facebook pages for CIPS and otherDenver Board of REALTORS® salesperson at Downing-Frye Realty, Inc., councils; listing websites; a formalized and former NABOR president. “Your client network of global alliances; and referralAlternate Energy Solutions: may not tell you when you do something best practices.Meeting the Green Expectationsof the Global Buyer wrong. But they may go home and tellMarch 24, 2011, 4:00 p.m. their friends not to go to that city, because Miami Association of REALTORS®at Denver Board of REALTORS® the people there don’t know what they’re CIPS Institute4300 East Warren Avenue, Denver doing.” June, 2011 Dates and location TBDHow Currency Affects Our TransactionsMay 26, 2011, 4:00 p.m. A council can also be a great resource for learning about other differences. Real 2011 Miami International Real Estateat Denver Board of REALTORS® Congress & Expo4300 East Warren Avenue, Denver estate practices, that is, the process, November 6–8, 2011 documentation, transaction costs, Miami, FLFor more information, contact Inge Frerichs financing, and title, vary from country toChair, International Steering Committee country. You may find that you have to For more information, contact Lynda educate your clients on U.S. practices, Vice President, Public Relations(303) 667-1737 and your council may be able to provide (305) 468-7040 guidance on how to do that. Other ✺Manhattan Association of REALTORS® potential roadblocks to the internationalInsider Tips and Tools for REALTOR® sale include currency exchanges, overseasMembers in Predicting Global Market money transfers, visa issues, conversion > Foster referrals through buildingTrends and Potential International of price-per-foot to metric and euro relationships with globally-focusedInvestment Opportunities equivalents. Once again, a council can agents.April 7, 2011 steer you towards resources to learn more. Joining a council will keep you in the loopLocation TBD (Also see the October 2010 issue of Global for programs and events that give you a ✺For more information, contact Elise Barry Perspectives for articles on these topics.) way to interact and network with agentsAssociation Executive sharing your interests. (See related > Help agent build their agents gents for a sampling of upcoming local events.)(212) 594-2233 professional team. ssional t al Agents with glo clients should have a s global Many REALTOR® boards with well-REALTOR® Association of Greater ate ter team of intern international specialists to assist rna established global business councils haveFt. Lauderdale clients in are outside their venue, like n areas ar formal NAR-sanctioned relationships taxation and immigration law. Finding with organizations in foreign cities calledInternational Women’s DayMarch 17, 2011 good peop can be hit-or-miss and time- people Cooperating Associations. The board isTime and Location TBD intensive. M sive. Many councils search for and ive designated as an Ambassador Association, reach out to professionals with relevant coordinating activities between the twoFor more information, contact Sharon Lindblade, haron experience as a way to widen their ence w organizations. You can access a list ofDirector of Professional Development members’ resourc mbe s resources. embers’ resourc ers er Ambassador Associations and cross-border partners through Vias, Chairman, Global Real Estate Council global_alliances.of the REALTOR® Association of Greater Ft.LauderdalePhilip@philipvias.com6 ~ Global Perspectives February 2011
  7. 7. “If people don’t personally know you and Naples Area Board of REALTORS® South Bay (Los Angeles) Association trust you, they won’t make referrals to of REALTORS® 2011 Global Overview you,” says Sally Masters, ABR®, CIPS, with Tony Macaluso RSPS, TRC of Coldwell Banker Residential International Marketing Mixer February 18, 2011 Real Estate in North Naples, Florida, Thursday, February 9, 3:30–6:00 p.m. at Naples Area Board of REALTORS® Location TBD whose global business is 90 percent 1455 Pine Ridge Road, Naples referral-based. “It’s all about building International Networking Luncheon United Kingdom with Steve Barker relationships, and international events give Friday, May 6, noon–2:00 p.m. March 24, 2011 - morning; time TBD me the opportunity to establish and grow Sacramento, CA (exact location TBD) at Naples Area Board of REALTORS® them.” Sally reports that her business with 1455 Pine Ridge Road, Naples For more information and updates on event Canadian clients has tripled in the last year. locations, please contact: International Legal Issues Roger Phillips, 2011 South Bay Association April 28, 2011, 3:00 p.m. Seattle King County REALTORS® of REALTORS® International Council Chair at Heritage Bay, Naples Trade mission to Japan featuring Germany with Birgit Wolf NAR leadership and four Japanese Tashia Hincliffe, 2011 California Association May 19, 2011 - evening; time TBD trade associations: of REALTORS® International Forum Vice Chair at Naples Area Board of REALTORS® National Federation of Real Estate 1455 Pine Ridge Road, Naples Transaction Association (NFRETA) (310) 376-8871, extension 165 All Japan Real Estate Association David Kissinger, South Bay Association International Networking (AJREA) of REALTORS® with Doug Devitre Association of Real Estate Agents June 23, 2011, 8:30 a.m. of Japan (FRK) at Naples Area Board of REALTORS® 1455 Pine Ridge Road, Naples Real Estate Companies Association of Japan (RECAJ) Getting involved yields results. For more information, contact Maribeth Shanahan In the period November 2009 to May 2010, April, 2011 Director, Professional Development Services international business in Naples grew by 42 At various locations throughout Japan. percent. This corresponded with a growth in (239) 597-1666 For more information, please contact Claudia the Global Business Network’s membership Crowell, RCE, Director of Business Practices from 200 to 700 agents. “A large portion of this is due to educating agents in how to Some councils have reached out to develop ✺ (425) 974-1014 less formal business bonds with cities in handle international clients and transactions other countries. For example, NABOR’s differently,” says Brett Brown. “Not only does Global Business Network has formed a the organization sponsor events, we’ve also > Track international sales. successful informal partnership with agents created a helpline between members and Local boards can request their MLS to in Toronto, Canada, after meeting them the Global Business Network Committee add fields to their databases that help track through a NABOR-sponsored inbound to handle questions about international international sales and their sources, giving trade mission held for foreign agents last transactions as they come up.” e members a benchmark against which to summer. The Toronto agents helped spur measure change and results. For example, Canadian interest in the Naples market, NABOR has used the MLS database and If you don’t have a council in v your area.✺ generating a stream of referral business for public records to track business growth, counterparts in Naples. Many boards have not yet fet fo formed an flagging sales made to buyers with official group to support global business l business international addresses. This provides a> Host trade missions. development. If yours has not, contact your conservative estimate of sales, because it As in the Naples example, your local or association executives and encourage them doesn’t capture international buyers who state association may sponsor inbound to join NAR Global’s Race to 100, or volunteer have U.S. addresses or purchases through trade missions to attract foreign agents’ to help start a council in your area. To learn U.S.-based companies. interest in your area, or even outbound more, visit missions to cities and countries outside the U.S. Getting involved can help you establish What a local council can do for your global agent relationships that generate business business is only limited by how involved you in both directions. choose to be. Dive in, and you will reap the rewards. GP Global Perspectives February 2011 ~ 7
  8. 8.® is going global!The burning question on every real estate practitioner’s mind: how can I get my propertylistings in front of over half a million new, unique visitors from all over the world, every month?The mystery is solved with®. Globalize your listings and benefit from international > About® • Consumers spent over twice asexposure for your properties and nearly 10 million unique visitors every month. long on® searching for properties than the next closest®, the nation’s No. 1 homes-for-sale website, will add translation services andincrease its presence in international markets to attract even more international visitors to • More pages were viewed onU.S. listings. More than 575,000 consumers from non-U.S. destinations currently® each month.® than the next four competitors combined.“This expansion of the strategic collaboration between Move and NAR benefits REALTORS®,provides home sellers with access to an even broader audience beyond our domestic borders, • Three times more pages wereand delivers greater choice to home buyers interested in property in the U.S. and internationally. viewed on® than theIt is the result of the strong and long-lasting partnership between NAR and Move that continuesto evolve with the real estate market,” said® President Errol Samuelson. next closest competitor.Work is already underway to make these features available. Stay tuned for more details! •® had the most average daily visitors —twice as many daily visitors than the next closest competitor. Suggestions for future topics? Please send them to 800.874.6500 • 430 North Michigan Avenue • Chicago, IL 60611-4087