Housing Market Outlook Through Economic RecessionJanuary,2009Lawrence Yun, Ph.D. Chief EconomistNATIONAL ASSOCIATION OF REALTORS®
Increase Your Profits...Global
• Today's real estate brokerage industry has grown
from a local business to an international enterprise.
• While your primary business may continue to be
local, a growing number of transactions have an
"international" component to them.
• We will explore, together, how to increase your
reach into this expanding market.
• Industry Background
• The Internet impact
• How I improve my Referral business?
• How to navigate the networks?
• Mid-1970s Recession
Little Change in Home Sales.
• Early 1980s Recession
Deep Cuts in Home Sales.
• Early 1990s Recession
Moderate Cuts in Home Sales.
• Early 2000s Recession
Rise in Home Sales.
• Prosperity in 1890s launched nationwide building
• Few standards for real estate transactions.
• In 1908, honest brokers
• REALTORS® belong to three associations:
• Local association or Board at community level.
• State Association.
• National Association.
•Ninety-seven percent of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
•84 percent reported they were “very satisfied” with the honesty and integrity of their agent.
• 97% of buyers ranked honesty and integrity as a
“very important factor” when choosing a Real
• 78% of home buyers purchased their home
through a real estate agent or broker.
• 72% of recent buyers will definitely use their
Internet has opened the
international marketplace to
more than 1 and a 1/2 billion
Internet users around the world.
Population stats and Internet usage
Chart from http://www.internetworldstats.com/stats.htm
• We are all citizens of the Global village…
• …here are the statistics…
• 84% of home buyers used the Internet to search
• 84% of home buyers used a real estate
professional during their home search.
Source: NAR’s 2008 Buyers and Sellers report
• Create and maintain a content rich website
• Blog about yourself, the business and your local area
• Post videos on YouTube
• Build a social network
Source: Pat Zaby from patzaby.com
Three key ingredients:
• reputation and
• a network of contacts.
That's it. That's the secret”.
Your human capital (what you know)
times your social capital (who you know)
times your reputation (who trusts you)
Public relations firm Hill & Knowlton "Return on Reputation”
• According to Bridget Mccrea , Florida Realtor, April 2009
• “ Get your name out…in popular marketing vehicles…”
Here are some:
• Aplaceinthesun.com: Magazine and property show
• Escapeartist.com: Magazine for expatriates living oversees
• Fusedworld.com: International Real Estate Directory
• Ired.com: International Real estate Digest
• Realtor.com : Mark your Listings “international”
• Rightmove.com.uk: United Kingdom Property Listings Web site
• SIMAexpo.com: Largest Second Home Show in Europe
• OPP Russia: http://www.biztradeshows.com/russia/
• WorldProperties.com: an ICREA listing site for worldwide properties
Since 1992, more than 2,000 real
estate agents from the US and
around the world have earned their
• Scotland: 16.6 acres including a • Spain: Costa del Sol Beach
cricket pitch and tennis court Villas sold by Banks for 2/3 less
17th Century mansion down to (around € 541,000)
£ 2.5m from £ 4m
James Freeman from Knight Frank Les Calvert PropertyAbroad.com
LSP Applied Analytics: Reports on
2008 Jumbo Loans
“As the global financial crisis
World Venture Management: Buyers are finding bargains even at
Asset Manager, based in California the top of the market”
Michael Firewalker …gone shopping
on behalf of investors Judith Matloff
Financial Times, March 28, 2009
International Strategic Alliances
Prudential Florida Realty
• Networking at meetings
• Online connections.
• Personal and business
• Tapping into CIPS and
• AFIRE • Hotel Brokers International
• Association of Foreign Investors • http://www.hbihotels.com/
in Real Estate
• http://www.afire.org/ • The Institute of Real Estate
• Building Owners and Managers http://www.irem.org/
http://www.boma.org/Pages/d • Society of Industrial and Office
• CCIM Institute
• http://www.ccim.com/ • CREW Network
Commercial Real Estate Women
35 National Associations
and 3 Regional
Organizations, signed the
formal agreement to form
ICREA in 2001
• An alliance of nearly 30 leading national real estate
organizations in the world's major markets.
• ICREA’s primary objective is to assist members of
the respective organizations in efficiently and
profitably facilitating transnational business.
• Brings together brokers
and developers to serve
• Fees paid to brokers for
developers to site.
• Protocol binds constituents to terms, rules &
• Entire process occurs online
• In event of dispute, binding arbitration process is
• Facebook has 54.5 million monthly unique visitors
150 million people around the world, are using Facebook
in 35 different languages
In 170 countries
• 76 million members in MySpace US
The average MySpace user now spends 266 minutes (4.4 hours)
on the site every month
• Twitter has 500,000 unique monthly visitors
According to Compete, the growth rate for Twitter was 752%
for a total of 4.43 million unique visitors in December 2008
Social media sites…the
growing trend! Linkedin:
Face book facebook.com linkedin.com
A professional Facebook
…“ I’m hooked on
Silly yet serious,
Re/Max Town Centre, Orlando, Florida
What should I do next?
• “When you recognize that the world is
First order of business:
Chance your current mental model
Victor K Fung : Competing in a Flat world
Yoram Wind: Transform the Business of your
life and the Life of your business
C. K. Prahalad : The Fortune at the bottom of
“Achievement is largely the product
of steadily raising one’s levels of
aspiration and expectation”
“International relationships are ... preordained to be
clumsy gestures based on imperfect knowledge.”
Rebecca West (1892–1983), British author