global real estate: local markets chapter 2: your hometown global market

Global Real Estate:Local Markets

Chapter 2: Your Hometown Global Market

In This Chapter

• Gateway cities and beyond• Prospecting glocally • Lawful target marketing• Working with your REALTOR® association

2

Do I Have to Leave Home?

• Global business happens in your hometown

• Local opportunities lead practitioners abroad

• Competitive market distinction locally

3

Gateway Cities and Beyond

4

Source: 2013 NAR Profile of International Home Buying Activity, National Association of REALTORS®

Top States for Foreign Buyers

5

23%

17%

9% 9%

Maps: www.50states.com

Top Regions—Florida

6Source: 2013 NAR Profile of International Home Buying Activity, National Association of REALTORS®

Top Regions—California

7Source: 2013 NAR Profile of International Home Buying Activity, National Association of REALTORS®

Top Regions—Texas

8Source: 2013 NAR Profile of International Home Buying Activity, National Association of REALTORS®

Top Regions—Arizona

9Source: 2013 NAR Profile of International Home Buying Activity, National Association of REALTORS®

Top Countries

10

Canada China Mexico India U.K.

Percentage 23% 12% 8% 5% 5%

Median Price

$182,955 $425,000 $156,250 $300,000 $250,000

Location FL, AZ

Small town/resort

CA

Suburb

TX, CA

Suburb

CA, TN

Suburb

FL, CA, RI

Suburb

Financing Cash (86%)

Cash (69%)

Mortgage (50%)

Mortgage (73%)

Cash (57%)

Source: 2013 NAR Profile of International Home Buying Activity, National Association of REALTORS®

Working with Foreign Buyers

• Long-term perspective• All cash or high-equity • Acceptable, predictable returns• Quality properties

– Commercial: Building class may depend on investment goals

• Desirable locations and familiar markets• Detailed research• Specialized advisors11

Prospecting Glocally

12

Awareness

• Start with macro-level assessment • State economic development agency• REALTOR® association resources • What are other local businesses doing?

13

Research

• Who are the foreign buyers and sellers in your market?

• Where are they from? • What language do they speak at home?• What do they buy? • Glocal market clues are all around

14

Find Your Niche

• Can’t be the real estate agent for the world

• Select your niche– Language– Affinity– Travels – Personal interest

• Your interest and participation must be AUTHENTIC

15

Be the Global “Go-To” Person

• Share your expertise• Demonstrate your professionalism• Build your reputation as the source of the

source• Business will follow

16

Tap Association Resources

• State and local association global forums, councils, and committees

• Other global real estate professionals• NAR Global• NAR partners

– 81 real estate associations, nearly 60 countries

17

Brainstorm: Market Outreach

18

19

Key Point Key Point ReviewReview