Resort & Second-Home Markets Course CHAPTER THREE

In This Section Understanding the luxury market Adapting customer and client services to work with international or affluent buyers and sellers Tapping into the Transnational Referral System

The Luxury Market 31% of luxury home owners already owned a second home 15% plan to purchase a second home within the year

Affluent Buyers’ Expectations Know about their market Be organized and prepared Demonstrate professionalism Provide a high level of service on the client’s time schedule Maintain confidentiality

Part of the Team May never meet face-to-face Others will be the “face” of the client Comfortable working at arm’s length

Skill Builder Tip Showing properties to affluent buyers Prepare a portfolio for each property that you will show to prospective buyer; prepare a summary of how the property will meet the buyer’s objectives. Affluent buyers, particularly successful business people, are accustomed to reviewing business proposals and will expect information about the property to be presented in an organized manner.

The International Market Largest number of vacation homes owned by foreign nationals States: Florida, California, Texas, Colorado, and New York Cities: Chicago, Washington D.C., San Francisco, and New York City Europe has “Baby Boomer” retirees too

U.S. Real Estate Is Attractive for Foreign Buyers No restrictions on foreigners Large supply of investment grade real estate Registration of property ownership and real estate transactions Robust economy and political stability Strong Euro makes U.S. real estate more affordable

Common Preferences of Foreign Investors Long-term perspective High-equity position Acceptable and predictable returns Quality properties Desirable locations

Currency Issues Currency value affects the value of real estate at crucial stages of the transaction Return on investment Price Income Tax Financing costs

The Transnational Referral System REALTORS in the U.S. automatically receive the System benefits Adds value to established relationships Assures compensation Provides a network of contacts Provides market distinction Creates and supports an efficient market

The Virtual Handshake Exists and functions on the Internet Assured compensation Dispute process with an independent arbitrator

Benefits for Clients Don’t have to go blindly into a foreign market Competent real estate professionals Standardized referral procedures and code of professional conduct Relationship can continue for future referrals

ICREA Code of Conduct ICREA Member Associations have codes of conduct to which it holds members accountable Individual practitioners commit to a standard of service for clients, the public, and fellow practitioners

Transnational Referral Certification (TRC) Prepares real estate professionals to make and receive compensated referrals using the System Look for the TRC certification Assures the agents are attuned to international referrals and will abide by business principles

worldproperties.com Easy Internet access to information about brokers and distinctive properties around the world Global New Home Resorts Portal