International buyers are steadily investing in U.S. real estate. In fact, the National Association of REALTORS® (NAR) reported that in the 12 month period ending March 2016, home sales from foreign buyers were estimated at $102.6 billion.
As a brokerage firm, this could pose great opportunities for you and your agents! According to NAR’s Global View, “the first step to success in global real estate is simply adjusting one’s mindset from thinking locally to thinking globally.”
You must first consider whether you and your agents are versed in the etiquette required to successfully conduct business internationally. Are you aware of any issues within foreign countries that would make them more or less attracted to your inventory of homes? Have you established any relationships or allies in the foreign markets where these buyers exist?
It takes great deliberation and preparation to compete globally! Being able to answer these preliminary questions will propel your firm’s ability to attract international clients. Here are 4 tips to take into consideration:
1. Conduct research to gauge international sales potential in your area
NAR found that higher amounts of foreign buyers purchased residential property in Florida, California, Texas, Arizona and New York, in the 12-month period ending March 2016. In fact, these 5 states accounted for 51% of total residential sales by international buyers. Check out this interactive map of the “Top Markets for International Traffic” according to realtor.com international.
2. Uncover the interest of international buyers
Foreign clients are a more upscale group of buyers, paying on average $477,462 for a house, compared to the overall U.S. average home price of $266,683. Furthermore, NAR found that the majority of foreign buyers are interested in detached single-family homes in suburban areas.
3. Obtaining Certified International Property Specialist (CIPS) designation
Become a trusted resource for your clients by earning your CIPS designation. “By earning your CIPS designation, you will gain access to the CIPS Network. This members-only group is specifically for international practitioners of the National Association of REALTORS®.” Additionally “the CIPS Network provides a 360° view of the global market.” Click here to learn more ListHub’s partnership with NAR, aimed to provide real estate professionals with best-in-class international listing distribution and global education.
4. Attend international real estate conferences
Each year there are numerous real estate events dedicated to offering educational tools and networking opportunities to brokers and agents. In order to expand your knowledge on global occurrences, policies and best practices, commit to a few international conferences each year. NAR has compiled a list of upcoming global meetings and events; scour the list for opportunities in countries of interest.
The U.S. continues to be an attractive market for international buyers. Some foreign buyers are attracted to the U.S. for educational opportunities for their children, while others are looking for investment opportunities or vacation properties. By expanding your brand across borders, you open up your brokerage for numerous opportunities. Take the appropriate steps to ensure that you and your team are prepared to serve this niche market.
Is your brokerage armed with the tools needed to get your clients’ for sale properties in front of international consumers? With ListHub Global, you can expand your global reach with visibility for your listings on a vast network of over 100 international websites in more than 50 countries.
