GLOBAL BUSINESS COUNCIL
I’m Ready to Go Global in Real Estate! What Skills Do I Need? By: Pamela Modisett, Realtor®, Michael Saunders & Company
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ould you like to become part of the global real estate market? Are you wondering how you make connections and have the confidence to serve international clientele? Real estate professionals who serve the global market rely on the same skills as those acquired in the domestic arena. However, it is a good idea to deepen your economic and cultural literacies to participate in the global market. Here are several ways to adapt your existing real estate skills to cater to the growing global market:
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1 | Regulatory knowledge. Clients from other
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countries typically expect the real estate professional to be a primary source of objective information on federal, state and local laws and regulations. The ability to discuss and explain laws and regulations reinforces the value you bring to the transaction. Market and product knowledge. The global specialist’s market and product knowledge must encompass a range of property types and all aspects of the market. You need to know about the property types available and be able to evaluate investment values. This requires comprehensive knowledge of the market, community, demographics, and local cultures. Financing. Access to mortgage financing is a significant obstacle for many international buyers. Proving credit worthiness can be problematic because of variations in how other countries collect and report credit history, and financial data might not match up with the U.S. lenders’ underwriting requirements. Networking. Networking is essential to making and receiving referrals and this is never truer than for the global specialist. In addition to the traditional referral base, your network needs to encompass experts such as immigration attorneys, foreign exchange brokers, property managers, commercial real estate professionals, and travel agents. Presentation skills. Sales presentations need to include the merits of the property as well as the investment value of the property compared to other areas. Your client may have very little knowledge about the community so your presentation will need to be more detailed than one for a local client. Communication and listening. Communication must overcome challenges of distance, culture, and language. Communication must be adaptable for a range of clients. Being proficient in a foreign language is an advantage but not a requirement.
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investment advice in violation of SEC regulations. It is best to suggest to your client to consult with their tax accountant for the most detailed analysis beyond your scope of knowledge. Patience. Be patient! It takes time to develop a global clientele. However, once established, international clients tend to be loyal to their agent and will refer others. Fiduciary duties. Florida’s guidelines for fiduciary duties to clients apply to international clients. Be prepared to explain agency relationships and decide how much you are willing to do without a signed agency agreement. Customer service. Be prepared to handle more aspects of the transaction than you normally world. Customer service is the key to creating a distinction in a global market and winning loyalty. Client loyalty. Listen and learn about your client’s goals. Be responsive and reliable. Regular communication is always the key. Marketing. The use of email, video conferencing, and social media are more predominant in marketing to a client who lives in another county. Know how to focus your marketing efforts. Technology use. Internet access, social media presence, and digital marketing technology are musts. Tax issues. Global specialists must have knowledge about the taxation of real estate owned by foreigners, particularly investment and rental properties. Negotiation and decision-making. Be attuned to the negotiation styles of various cultures and find ways to reconcile differing approaches. Property presentations. Provide detailed market information on local, state, and regional levels and substantiate what you say in printed form. Provide maps of the market, county, state, and photographs of the city, neighborhood, and property. Address every detail the client has indicated to be important.
Think you have the skills necessary to serve the global market? If so, I highly encourage you if you haven’t already to earn your Certified International Property Specialist designation from NAR. It is also a good idea to become a part of the RASM Global Business Council. The 2022 CIPS 5 Day Institute will be held at RASM South on July 12-21, from 8:30 a.m. - 5:00 p.m. Check the calendar for details at www.myrasm.com/calendar. To join the RASM GBC, email global@myrasm.com. • Source: CIPS Designation Course Student Manual-Global Real Estate: Local Markets.
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