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the current state of global real estate

Tuesday 19 October, 2010

I attended this event recently JUMP START YOUR GLOBAL REAL ESTATE BUSINESS which was organized by the Chicago chapter of FIABCI, the international real estate organization.  FIABCI’s goal is to make all real estate transactions transparent world-wide.  The presentation was made by Michael Bauknect of the local Coldwell Banker office.  ProxioPro is another network which allows real estate brokers connect globally.  ProxioPro also offer computer-generated translations which allow listings to be able to be displayed locally in the “native” (as good as computer-generated can be) language.

Much of this presentation focused on the internal mechanics of working with the coldwellbankeronline.com website (which feeds realtor.com, which is for the US only) to internationalize listings.  WorldProperties.com, the official site of the International Consortium of Real Estate Associations,  is in beta as the global equivalent of realtor.com .   Apparently MLS Area 1000 is the place for international listings on realtor.com, but of the 26 listings posted there, only 14 had the correct local address.  The rest had local (Downers Grove) addresses for foreign (Costa Rica) listings.  2 years ago, it took 2 weeks to get international listings up-now it takes a matter or hours or days to get them up.  Geocoding & the ability to enter longitude & latitude are becoming ubiquitous.  Apparently this must be an antiquated system because realtors can’t input data the 1st 9 minutes of certain hours or when the system is “feeding.”

Q&A

  • US properties are listed in $US & the system is being adapted so that foreign properties will be listed in $US too-the only problem is foreign exchange rates change every minute of every day, so these prices change right along with them
  • when commissions aren’t available for foreign sales, alternative compensation is available & %’s are negotiable.  Bauknecht was able to increase a 2% commission to 4%, although you must still track it
  • Bauknecht got 1000 e-mail addresses & telephone numbers as leads from people who clicked on Costa Rican real estate
  • Europe is a bigger market than Asia for these types of properties
  • When a local client inherited a property in Rome, Italy, by going through FIABCI, Bauknecht found 6 agents in Rome in 2 hours
  • Consumers can find properties simply through search engines, but the advantage of working through FIABCI is that you’re working with local professionals in each market
  • Some foreign developers are providing local marketing dollars
  • local realtors can market their properties globally via e-mail through FIABCI & Proxio to reach 1.4M brokers world-wide
  • This is still in its infancy, so there are still a number of details which require attention:
  1. you can’t negotiate the deal/contract in-country
  2. you must find broker reciprocity terms on a state-by-state basis
  3. you must set up with the same professionals locally as here, real estate attorneys, mortgage lenders, title professionals, etc.
  4. you need to find trusted advocates
  5. Agent Shield helps protect your sales leads

The presenter said he would forward his presentation to me, but hasn’t done that yet.

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