Event Coverage
REALTORS® Learn the A, B, C's of Global Real Estate
Left to right are NAR CIPS Advisory Board member Joanne Fraser, who served as panel moderator, SILVAR Global Business Council Chair Tess Crescini, NAR Global Business Alliances Liaison Vicky Silvano, VP for FIABCI Indonesia Rusmin Lawin, and panelists Kim Heng with Keller Williams Realty and Tim Tran with The Ivy Group.
Over 40 REALTORS® came to SILVAR yesterday to learn more about the business of global real estate and how the Certified International Property Specialist (CIPS) designation can help them work with foreign clients here and abroad. Speakers included National Association of REALTORS® Global Business Alliances Liaison Vicky Silvano with Century 21sgr and SILVAR members Tim Tran with the The Ivy Group, and Kim Heng with Keller Williams Realty. All three speakers are CIPS designees.
Silvano, who is from Chicago, said there are many opportunities in global real estate. From April 2016 to March 2017, foreign buyers purchased $153 billion of residential property, an increase from $102.6 billion during the previous 12-month period. China remains the top country of origin for foreign buyers, followed by Canada, the United Kingdom, Mexico and India. California is one of five states that accounts for 54 percent of total residential property purchases.
In order to be successful in global real estate, Silvano said REALTORS® need to educate themselves about other countries, current trends and economic indicators, and monitor the exchange rate. Get acquainted with the customs and traditions of their foreign clients. By understanding their culture, REALTORS® can gain their trust.
Earning the CIPS designation is a big leverage. The CIPS Institute, which SILVAR offers every year, provides training in international business issues, including currency conversion, cultural awareness, legal and tax requirements, transaction principles of international real estate, and specifics about the real estate markets in Europe, the Americas, and Asia. Silvano said there are currently 3,600 CIPS designees.
Networking, seeking out global events domestic and abroad, traveling to other countries, attending international conferences, participating in trade missions to other countries are other ways to connect with potential foreign clients.
Silvano noted, "Global is a business that never sleeps." Anywhere in the world, someone is awake, so you have to be flexible because responding right away to inquiries is important.
Heng and Tran, who are both CIPS graduates of SILVAR, also shared their experiences with international transactions. They said unlike transactions with local clients, transactions with foreign clients can be more complicated and take more time. Patience and perseverance are keys to success with international transactions.
REALTORS® should leverage their international skills and advertise locally and abroad. Heng said one side of her personal bio is in English and the other side in Chinese.
"It's an ongoing effort to always market yourself," said Tran, whose company engages in many inbound commercial real estate deals with foreign clients. He incorporates his international credentials in all marketing materials. In addition to his CIPS designation, Tran has a CCIM designation, which is often regarded as the "PhD of all the designations."
Heng advised REALTORS® to ask questions at the forefront, get to know their client and their goals. Foreign clients are usually only here for a week at a time, so she has to do much prep work and check out the property for them. Sometimes she does not meet the foreign buyer until after the sale.
Prep work includes knowing the documents needed. There are tax considerations and signatures from a foreign client may need an appointment at a consulate or a power of attorney, which can delay a deal.
"Global is not an overnight success. You need to be patient. Maintain your CIPS designation and be proactive," said Silvano.
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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.
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