Just a few years ago, real estate brokers didn’t have the knowledge and resources the Internet now provides to them, to get through to international real estate investors.
Which is the case within any business, when opportunity presents itself like it has in international real estate, it cannot go disregarded.
Considering the data files from 2017 we know that foreign real estate traders accounted for around $153 billion of the entire sales in the USA which subsequently was an upturn of the former year of a massive 50%. Similarly this represents 10 percent among all national real estate deals in the United States. All these statistics are sourced from the National Association of Realtors and should be considered a very good indication of what the future holds for real estate deals to foreign investors.
A really attractive factor to finding your own international real estate clients is how lucrative it can also be for the agent. And then there is the stats revealing that of all foreign clientele, the lion’s share of them are affluent individuals interested to increase their riches in foreign real estate marketplaces.
Still adding the international investor to your menu won’t be as straight forward as finding them can be difficult.
Getting in front of promising international buyer leads is tricky that can also involve added complications including language barriers that stateside buys just don’t face.
Among all countries actively taking part in the United States real estate segment, China unmistakably dominates and is responsible for over half the entire international sales volume in the US alone. Everything despite the many variations in culture, language and investing protocols.
With such a profitable marketplace in existence, how do you get yourself in on it?
CPROP’s end-to-end electronic transaction administration suite is made to present real estate agents to international prospects and enable them to safely and transparently close deals.
Technology is certainly vital for any deal from start to finish. Let’s lay out a couple methods any brokers could hedge in to this market segment.
Be part of a transparent international base
Breaking in on the international real estate market is not simple for real estate brokers that have not ventured here before.
Mike Wilson, a condominium realtor in Kelowna, Canada, had this to say…
International real estate investors are by far our most common client for higher end condos in Kelowna!
You should not go getting all dollars signs in your eyes as opposed to thoroughly researching where on the net these groups might exist. Once you have located them you will definitely have to hedge inwards and earn trust within the international real estate trader community.
If the platform boasts a service provider directory with unfiltered consumer ratings and ratings and even automated translations, better yet.
Think confidence and safety
Remember the film Lost in Translation? Well like with international real estate transactions this is certainly the case whereas the two parties involved speak different languages.
Robert is a renown San Pancho, MX realtor who’s no noob to this sector, After a few international deals went badly for them, the agency [Galvan Real Estate Services], they quickly realized safety and security needed precedence over all else when dealing in international real estate.
Two remarkably significant things to start thinking about when doing business in international real estate are security and trust. It’s essential to cover yourself and your client while retaining the trust of the other party.
Technology progresses at an awesome speed and today blockchain technology has joined the mix and everlastingly changed the way that real estate professionals do business over the internet. Anytime a contract is finished and executed, it will be recorded to the blockchain, producing an immutable delivered leger confirmed by a system of perhaps thousands of computers, thus effectively combating any unknown changes to a contract.
“Technology has really helped us avoid sour international transactions here in Costa Rica and we’ve seen a rising number of closings involving digital currency here.” says Fernando Lopez, a Costa Rica attorney.
Perhaps among the finest aspects to using blockchain technology is for down payments and payments held in escrow.
Look for trustworthy, effective alliance
One thing is closing deals within the country however it’s always a totally different thing when finalizing international deals and these sales need more care to ensure a clean closing.
Can you tell your transactions status in realtime, what is left to finish and who should next do what in the process?
An online transaction administration system manufactured for international contracts that walks parties through every step of the closing process is often very powerful here. Transactional transparency spanning any real estate transaction is important however couple that with a technology that can enhance your flow like assuring security, would indefinitely change the industry.
For years Costa Rica, in Central America, was referred to as the Switzerland of the Americas. Naturally a large portion of higher [than local] priced real estate was becoming attractive to foreign buyers. So for a 5 year period between 1995 and 2000, the country saw a huge boom in their real estate niche.
Top ranking Costa Rica realtor Brett Elliott saw the writing on the wall and made moves to adapt on the fly, to ever changing technology and how that could help improve real estate deals from foreign investors.