1. Resort & Second-Home Markets Course
CHAPTER THREE

2. 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

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

4. 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

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

6. 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.

7. 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

8. 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

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

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

11. 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

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

13. 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

14. 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

15. 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

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