1. Welcome

2. Introduction Page 1

3. Course Goals  Knowledge of the role of real estate in the U.S. economy and society  Knowledge of the U.S. real estate marketplace  Overview of the U.S. real estate transaction  Information on the requirements, regulations, and laws associated with U.S. real estate  Overview of the REALTOR® organization  Recommendations for building key contacts Page 2

4. International REALTOR ® Membership  Open to cooperating associations members  Included in Find-a-REALTOR® database—at no cost  Benefits include access to Realtors Property Resource® database of 165 million U.S. properties  www.Realtor.org/global/international-realtor- membership Page 3

5. Earning the CIPS Designation  Complete course requirements  Document international real estate experience  Designation application at www.Realtor.org/global. Page 3-4

6. REALTOR ® Trademark  REALTOR® and REALTORS® are trademarks of the NATIONAL ASSOCIATION OF REALTORS®  Not generic term for “real estate agent”  Only members of NAR are REALTORS® Page 4

7. 1. The U.S. Economy and Real Estate Market Page 5

8. Real Estate and the U.S. Economy  15 percent of the national GDP  Every home purchase contributes $60,000 to the U.S. economy  500 jobs created for every 1,000 homes sold  Homeownership creates wealth for U.S. households  Federal government provides incentives Page 6-7

9. History of Real Estate  The American Dream 1950 – 1960  Suburban Migration 1970 – 1980  Back to the City 1990 – 2000  Recession 2008  Recovery 2012 Page 8-9

10. Investor Opinion Best opportunity for capital appreciation 1.United States 2.Brazil 3.Spain 4.Ireland 5.United Kingdom 6.Netherlands 7.China 8.India Most stable and secure real estate investments 1.United States 2.Germany 3.United Kingdom 4.Canada 5.Australia 6.Netherlands Page 10

11. How’s the Market?  REALTOR® Confidence  Existing home sales  Months of inventory  Time on market  Median prices  Mortgage Originators Survey  Commercial Real Estate Outlook  Job growth and employment  Oil prices  Currency values  Consumer Confidence Index® Page 10-11

12. Can Foreigners Buy U.S. Real Estate?  Few restrictions on type, location, or value  Same private property rights as U.S. citizens  Does not bestow residency or a work permit  May encounter difficulties with financing  Some reporting requirements  Taxpayer Identification Number required  Subject to income tax  Large investments may confer residency  Cooperatives (not condos) may have restrictions Page 10-11

13. Foreign Buyers—in Numbers Page 13 Home Sales Dollar Volume (in US$ Billions)

14. Foreign Buyers—in Numbers Home Sales to Foreign BuyersType of Property 2009157,200 2010300,600 2011210,800 2012206,200 2013192,400 2014232,600 2015209,000 Page 13 Single Family Home 62% Condominium19% Townhouse11% Land7% Commercial1%

15. Foreign Buyers—in Numbers Type of AreaIntended Use Page 13

16. Typical Single Family Homes Page 14 62% of foreign buyers of U.S. residences prefer single family homes

17. Commercial Properties Page 15 Class A, B, and C space based on architecture, age, quality of construction, locations, amenities, and quality of tenants

18. Who Buys U.S. Real Estate?  Canada, China, Mexico, India, and the United Kingdom: 51% of purchases  4% of total existing home sales  $91 billion in commercial investments Page 16

19. Gateway Cities and Beyond Page 16

20. Countries of Origin Page 17

21. Top 5 Countries of Origin  China: 16% of sales, $28.6 billion  Canada: 14% of sales, $11.2 billion  Mexico: 9% of sales, $4.9 billion  India: 8% of sales, $7.9 billion  United Kingdom: 4% of sales, $3.8 billion Page 18

22. 2. The U.S. Real Estate Market and the MLS Page 19

23. MLS: Broker-to-Broker Cooperative  Business-to-business cooperative  Brokers:  Share information on listings  Make a unilateral blanket offer of compensation to cooperating brokers Page 20

24. MLS Mechanics 1.Property listing with broker/agent 2.Property data entered in MLS 3.Property info uploaded and disseminated 4.Agents can search listings, find properties to match buyers needs, wants, price range 5.Offers presented to seller 6.Commission shared Page 22

25. MLS Benefits  For Buyers  Access to all the listings in the market  For Sellers  Market-wide exposure  For Brokers and Agents  Market-wide exposure for listings  Blanket offer of compensation  Show any listed property Page 23

26. Who Owns the MLS?  Local association of REALTORS® as a member service  Several associations of REALTORS® create a regional MLS  MLSs exchange listing data  Regional MLSs as independent entities  No national MLS Page 23

27. NAR MLS Policy  Mandatory listing service: MLS participation is voluntary, but all listings must be submitted if the member chooses to participate.  Voluntary listing service: MLS participation is available and voluntary, and the submission of any listing is optional.  Okay to participate in more than one MLS  IDX: Brokers show listings of other firms on their Websites Page 25

28. No Standard Commission  The MLS cannot f ix, control, recommend, suggest, or maintain:  Standard commission rates  Schedule of fees for services  Percentage split between brokers Page 25

29. Standardized Terminology  REALTOR® affiliated MLSs must use standardized terminology for data fields  Real Estate Standards Organization (RESO) Data Dictionary  Consistent descriptions of property features Page 26

30. Commercial Information Exchange  Most prevalent form of property information dissemination among commercial brokers  Property listing information  No unilateral offer of compensation Page 26

31. Realtor.com ® International  Sale and rentals  45 countries  Translations in 11 languages Page 27-28