More REALTORS® are finding the Certified International Property Specialist (CIPS) designation important. Just like the economy, real estate has become more global. The fourth CIPS Institute offered by the Silicon Valley Association of REALTORS® (SILVAR) concluded this month, with a total of 31students from all over the Bay Area, Southern California and Arizona. The REALTOR® group welcomed back National Association of REALTORS® (NAR) 2012 and 2009 International Instructor David Wyant, who has taught the course at SILVAR since 2012.
Foreign buyers love the U.S. because the country is most stable and secure for real estate investments, said Wyant. According to the National Association of REALTORS®, for the period April 2014 through March 2015, total international sales were estimated at $104 billion, compared to the previous year's estimate of $92.2 billion. This represents 8 percent of the total existing-home sales dollar volume. Fifty-five percent of foreign purchases were made with all cash. Most international buyers came from China, 27 percent; Canada, 11 percent; India, 8 percent; Mexico, 5 percent; and the United Kingdom, 4 percent.
Joe Schneider, NAR's manager of Global Business Development and Outreach, flew in from Chicago and spoke to the students about the value of the CIPS designation, especially in Silicon Valley, which continues to attract many international buyers.
CIPS Institute Sponsors of the Day shared good information REALTORS® can share with clients. Darrell Monda, owner of TourFactory Bay Area which has a waiver from the FAA to use drone photography, took students on a virtual tour of homes. The platform is a good marketing tool for foreign buyers who cannot physically be at a property they are interested in purchasing.
Kyle Chuang, who is with Farmers Insurance, tested students on home insurance information helpful for their clients. Kenneth Chan, premier mortgage consultant with HSBC, focused on how foreign buyers who don't fall under the 2-2-2 rule (provide a two-year U.S. residency, two-year work history and two-year credit history) can qualify for a mortgage loan, obstacles foreign buyers face, and success stories.
Janet Case, CEO of Proxio, introduced the REALTORS® to the international networking platform that connects REALTORS® and their listings with other agents around the world, including real estate developments. Case said studies show 20 percent of U.S. families do not speak English at home. In California, the percentage is higher – 43 percent. Proxio translates your listings in 19 languages, 55 currencies and metric measurements and is a free benefit for SILVAR REALTORS®.
Anita Rodal, international liaison with AFEX (Associated Foreign Exchange) and president of SBPI Services, Inc., explained foreign currency exchange and SBPI Services' captive insurance program, which enables Chinese investors to take millions of dollars out of China and invest the money from the policy in real estate.
According to the NAR CIPS designee list, of 353 CIPS designees in California, 43 are members of the Silicon Valley Association of REALTORS®. Wyant described REALTORS® in Silicon Valley as among the "most intelligent, educated and experienced" in the country. Returning for the fourth time to Cupertino, Wyant observed changes, like more cars on the road, more traffic, fewer vacancies in hotels - signs of a booming economy.
"There is job growth here, you can see it. It is likely to continue for a long time," said Wyant.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.