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Making Its Way Forward: Daniel Gale Sotheby’s International Realty

May 5, 2018 by

Daniel_Gale_Cvr_300x420_300dpiSince its founding almost 100 years ago in Huntington, N.Y., Daniel Gale Sotheby’s International Realty has grown to become one of the Long Island region’s most significant residential real estate organizations. Much of the credit for its continued success through many decades of economic growth, industry changes, demographic shifts and the more recent technological revolution rests squarely with Patricia J. Petersen and her extraordinary management team. While many real estate organizations that began as a family business—much like Daniel Gale Sotheby’s—have either closed their doors or folded into a much bigger company, Daniel Gale Sotheby’s International Realty has forged its own path, opening or acquiring offices in desirable markets and developing strategic relationships enabling it to persevere and flourish, regardless of market conditions.

Following the organization’s most successful year in its history, Pat Petersen stepped aside as chief executive, naming her second-in-command, Deirdre O’Connell, as her successor.

“While it was difficult to step away from a role that has given me so much, knowing that I could turn to an executive as exceptional as Deirdre, and on the heels of our best year ever…well, that felt pretty good.”

The transition in the CEO role was announced at the annual company-wide meeting in front of an audience of close to 1,000 agents, associates, friends and family.

The transition in the CEO role was announced at the annual company-wide meeting in front of an audience of close to 1,000 agents, associates, friends and family.

Petersen announced O’Connell’s assumption of the CEO role at the organization’s annual company-wide meeting in February, along with a few other announcements that more than demonstrated that Petersen’s last year as chief executive was a busy one. In 2017, the Daniel Gale Sotheby’s International Realty organization achieved $ 3.3 billion in sales volume, closed 3,590 units and maintained an average sales price across the organization of $ 912,000—almost twice the MLS average on Long Island. As further proof of its leadership in the luxury market, Daniel Gale Sotheby’s International Realty closed more than double the number of transactions above $ 3 million than its nearest competitor.

As if the announcement of a new chief executive was not enough of a change for the future, Petersen also unveiled a powerful new branding campaign for the venerable organization: Your Way Forward (#yourwayforward).

“While our traditions of integrity, professionalism and always doing the right thing will forever be at the heart of our organization, with our company’s 100th birthday approaching, we wanted to demonstrate to today’s market that we are 100 years young, and reflective of today’s homebuyer. We know how they get their information, how they communicate, and what they want in a home. In three words, ‘Your Way Forward’ communicates what we can do for our buyers and sellers. ‘Your’ places the emphasis directly on our audience; ‘Way’ signifies the direction, purpose and the path people follow to be successful; and ‘Forward’ serves as a metaphor for moving forward in life. This campaign is more about where we’re going than where we’ve been.”

Patricia Petersen outside Daniel Gale Sotheby's Cold Spring Harbor office circa 1980.

Patricia Petersen outside Daniel Gale Sotheby’s Cold Spring Harbor office circa 1980.

While Petersen has handed over the day-to-day oversight of the organization she helped build, she will still play a major role in the strategic direction of the organization as president and chairman of the board. Recently named to the SP200 (Swanepoel Power 200), Petersen joined Daniel Gale Sotheby’s International Realty as a sales associate in 1974, and right from the start was a success story, growing her own business as well as that of the firm. Working with real estate icon D. Kent Gale, the two visionaries plotted a course for Daniel Gale Sotheby’s International Realty that grew the company from two sales offices to a half-dozen, and launched a relocation department when no other agency had one—followed by a new construction division and an agent training program that was among the most comprehensive and highly regarded in the industry.

The pair formed alliances and recruited top agents, allowing them to venture into new territories and ultimately acquire competitors that shared the same high standards of professionalism and integrity. Over the years, Petersen assumed managerial roles of increasing responsibility, leading to her elevation to president and CEO in 1990. Like O’Connell, Petersen was hand-picked by the executive she would succeed—in her case the late Kent Gale, whose leadership of the organization spanned 40 years.

“Kent Gale and I worked side by side to build Daniel Gale, much as Deirdre and I have over the past decade,” says Petersen. “We owe a significant part of our success to always doing what was right, valuing integrity and upholding the highest standards of professionalism. Our adherence to those basic tenets always paid off in the long run, and helped to set us apart from other companies.”

In a career defined by a keen vision and market savvy, perhaps Petersen’s boldest and most rewarding move took place in 2005 when she reaffirmed and renegotiated a decades-long association with Sotheby’s International Realty (SIR), which at that time was changing its affiliate model. Petersen saw the long-term value in the affiliation—certainly for its formidable brand, but also early on recognized the growing value in, and need for, increased exposure to a national and global audience through the extensive worldwide marketing, referrals and networking that only Sotheby’s International Realty could offer its affiliates. Daniel Gale Sotheby’s International Realty has been a Sotheby’s International Realty affiliate since 1976, and finished 2017 in SIR’s Top 5 based on closed sales volume.

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The firm services a region spanning 108 miles from NY Harbor to Shelter Island.

Today, as O’Connell takes the reins at Daniel Gale Sotheby’s International Realty, its marketing prominence is visibly demonstrated by the prevalence of its iconic whale logo on For Sale signs across Long Island and Queens. Its brand is backed by a powerful team of some of the best real estate professionals in the industry delivering incomparable service to their clients and customers, both at home and abroad. Close to 1,000 people in 27 offices carry a Daniel Gale Sotheby’s International Realty business card, serving the real estate needs and investments of hundreds of different communities spanning 108 miles throughout Nassau and Suffolk Counties, Queens, the North Fork and Westhampton Beach.

While Daniel Gale Sotheby’s International Realty has grown tremendously in the past two decades, it continues to embrace the supportive family feeling that has long defined its culture. In selecting O’Connell for the CEO role, Petersen looked to someone who was widely respected both within the organization and throughout the industry as a hands-on, approachable and visionary professional.

When asked how it feels to be hand-picked as the successor to a woman who was just named among the top 200 most powerful leaders in the industry, O’Connell says, “It’s actually humbling. You work really hard and want to achieve your goals; everyone feels that way. When Pat proposed that I take on the CEO role I felt a little overwhelmed, but with excitement, honor and joy.”

A highly successful salesperson and gifted sales and regional manager, O’Connell came to Daniel Gale Sotheby’s International Realty in 2007 after having built a successful start-up real estate agency in one of the most competitive markets on Long Island: Manhasset.

“You don’t just walk into success—it takes time to build. We worked hard to build Manhasset. My husband even pitched in by running our five children around on weekends, although he was working full-time at a stressful job.”

As that office gained traction and grew increasingly successful, O’Connell opened a second office in Cutchogue on the North Fork of Long Island, which was just beginning to emerge as the next big thing in Long Island real estate. Her success did not go unnoticed by the management team at Daniel Gale Sotheby’s International Realty, which had its own Manhasset office and was looking to expand to the North Fork.

When O’Connell sold her agency to Daniel Gale Sotheby’s International Realty and joined its senior management team, she did it so that she and her agents could continue to succeed in a rapidly changing landscape.

“I was feeling the pressure to increase the resources available to my agents and clients as the real estate industry was undergoing tremendous change. When I met Pat, I instantly knew what to do. Daniel Gale Sotheby’s had the culture I was trying to build and the technology that was revolutionizing real estate—everything my agents had been begging for.”

As part of the management team, O’Connell accepted the challenge to help regional manager Carol Tintle build Daniel Gale Sotheby’s International Realty’s presence on the North Fork of Long Island and other important markets, while taking charge of the organization’s Manhasset office. There were additional challenges as well, such as building allegiance to a new company and instituting a culture of collaboration. Under her leadership, the Manhasset office has grown in size and production, ranking as the No. 1 office in the organization for the last four years. A North Fork native, O’Connell was integral to Daniel Gale Sotheby’s International Realty’s East End expansion, which today includes offices in Mattituck, Cutchogue, Greenport, Shelter Island and the Hamptons.

In her most recent executive position as general sales manager, O’Connell has been instrumental in the expansion of the organization west to Queens, south to Rockville Centre and east to Westhampton Beach.

“Becoming part of the Daniel Gale Sotheby’s International Realty family 11 years ago certainly more than exceeded my expectations, and it is a great privilege to continue to build upon Pat’s many significant contributions to Long Island and the industry, both locally and globally.”

A number of changes occurred in the organization over the past few years to position it on solid ground for what would be an important succession plan—even if it wasn’t apparent at the time. According to Petersen, “Although the company still does have a family feeling to it, we’ve grown so much. I knew it was time to bring in some outside resources to help define who we were, and, more importantly, where we’re going. This included a comprehensive coaching program at the senior management level, in addition to elevating some of our key staff and sales managers. We also began annual surveys to not only secure feedback from sales associates and employees, but make changes accordingly.”

O’Connell is now spearheading monthly senior management meetings, as well as the monthly sales managers’ meetings. There is also a weekly teleconference for the senior management team.

“The reality is that Pat, Deb Hauser, Tom Calabrese, Jim Retz and I speak just about every day,” she explains. “That way it feels more like a conversation than a formal meeting, and we can respond quickly to the needs of our customers and clients, sales associates and staff without it feeling like an event.

“Daniel Gale Sotheby’s International Realty is exceedingly proud of its strong roots and professional history,” says O’Connell. As we look to the future in this ever-changing industry and world, we’re confident that Daniel Gale Sotheby’s International Realty will always be a leader, setting an example for the profession by living and acting in accordance with our ideals and morals.”

For more information, please visit www.danielgale.com.

Tepping_Paige_color_60x60Paige Tepping is RISMedia’s managing editor. Email her your real estate news ideas at paige@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

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Wendy Forsythe Moves to HomeSmart International as COO

Sep 1, 2017 by

Wendy-ForsytheHomeSmart has announced the appointment of Wendy Forsythe, a real estate industry veteran of 20 years, as its new chief operating officer. Forsythe’s appointment comes at a time when Scottsdale, Arizona-based HomeSmart is making decisive moves to expand its brand and high-performing brokerage model nationally, the company stated.

Previously, Forsythe served as president of the brokerage division of management consulting company T3 Sixty. Before that, she was head of global operations at Carrington Real Estate Services, senior vice president of Network Services for Better Homes and Gardens Real Estate and vice president of sales for Royal LePage, Canada’s largest real estate company.

According to HomeSmart CEO Matt Widdows, bringing Forsythe on board is a key part of the company’s ambitious growth plans, which included notable activities like the May 2017 acquisition of Cherry Creek Properties in Colorado.

“We continue to build upon our solid operational foundation, and the addition of a highly-regarded industry expert like Wendy should send a strong message about how serious we are about growth,” said Widdows.

With a three-year growth of 200.65 percent, HomeSmart was ranked in August, for the fifth time, on the Inc. 5000 as one of the fastest-growing companies. The organization achieved this milestone with 13,779 agents in its network, 47 franchises and 126 offices.

HomeSmart was recognized in April on RISMedia’s annual Power Broker Report & Survey, which ranks the nation’s top real estate firms by sales volume and transactions, as No. 13 for sales volume and No. 9 for transactions.

HomeSmart’s current president and COO, Ashley Bowers, will continue to lead the organization as president with responsibilities spanning across all HomeSmart companies, present and future.

Forsythe will officially join HomeSmart on September 18.

For more information on HomeSmart International, visit http://www.homesmart.com/.

For the latest real estate news and trends, bookmark RISMedia.com.

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Technology Sucks…But It Doesn’t Have To: HomeSmart International Takes Integration to a Whole New Level

Oct 9, 2016 by

Technology sucks. Everyone, at one point or another, has had this thought. For most, it’s because some system or tool isn’t working properly, doesn’t do something it should, or (even worse) costs too much. For every one person that loves the new program you just added, one person wants you to switch back to your previous vendor, and another one wants you to choose something completely different. Selecting the “right” suite of tools is a never-ending game of tag, and some days, all you want to do is call timeout!

And, this doesn’t even begin to touch the financial or legal side of technology. An additional—yet often overlooked—problem with having multiple systems is that you also wind up with multiple databases, contracts and fee schedules, all of which creates an enormous tangled web, locking you into your current tool sets, or buying your way out of costly contracts.

In an industry filled with so many technology options for so many different purposes, one challenge remains: Programs are rarely designed to truly work together. At each and every industry conference, attendees can find rows upon rows of technology vendors selling widgets, software, systems, tools, and more, all promising to “streamline your business.” There are literally hundreds of companies in the marketplace that claim to have solved the technology conundrum. Yet, there are few real estate companies able to effectively launch and market an integrated, proprietary platform on which brokers and agents can operate—in fact, HomeSmart International believes it is the only franchise to ever truly do so.

From transaction management to agent websites and everything in between, HomeSmart International believes it has won the technology game. By building an in-house technology company to create, maintain and continually improve its proprietary, end-to-end platform, HomeSmart is able to provide one integrated system for brokers, enabling agents to access and use the systems at no additional cost. According to HomeSmart International, the company has taken control of its technical future and refuses to be held hostage by contracts, the latest and greatest tech startups, or anything else in surrounding spaces that may impact the real estate industry. The company has created an environment where it has the ability to assess the needs of consumers, agents and brokers, carving its own path through the tech maze.

Tech and Real Estate Get Equal Billing
“We function as much as a Silicon Valley software development company as we do a real estate franchising company,” says Matt Widdows, HomeSmart International founder and chief executive officer.

When Widdows created the integrated, end-to-end technology platform on which all brokerage operations and agent business can run, he did so because there simply wasn’t anything in the marketplace that could offer everything he believes brokers and agents need to be able to effectively service consumers.

Prior to becoming a successful real estate agent, Widdows developed a software company in the medical industry, which he later sold. His desire to “find a better way” is the driving force behind everything HomeSmart does.

“I founded HomeSmart because I needed change as a real estate agent and no one else in the industry offered what I was looking for,” says Widdows. “So, I built a system for myself and ultimately parlayed that technology first into a brokerage management system, and now, a franchise management system.”

Since its inception, HomeSmart International has operated solely on the company’s proprietary, end-to-end technology. Yes, you read that correctly—no third-party vendors, no outside systems. Widdows believes so firmly in the company’s technology ecosystem that he’s invested in a deep bench, and will continue to invest in the development arm of the organization, to best meet the needs of brokers, agents and consumers. Today, more than 16 years later, Widdows’ unique concept has attracted nearly 11,000 agents to more than 94 offices in 15 states.

“We don’t believe in technology for technology’s sake,” says Ashley Bowers, president and chief operating officer at HomeSmart International. “Technology is a means to provide a consistent and excellent customer service experience for our brokers, agents and consumers alike.”

A Truly Unique Tech Offering
Nowadays, almost every real estate company boasts technology as a differentiator. So, what really makes HomeSmart’s offering more unique than any other? At HomeSmart, broker/owners get eight different technology systems rolled into one platform. That’s right—one login, one URL, one system, which feeds data to and from each of the other systems. And, because the technology is built, sustained and updated in-house, there isn’t an additional incremental cost to add more agents to the system. In fact, HomeSmart agents pay nothing to get the end-to-end technology…and brokers don’t, either. It’s all included for all HomeSmart brokers or agents, anywhere in the United States.

“Our ability to scale technology platforms in-house is what enables us to provide everything to agents and brokers for free,” says Widdows. “We aren’t paying per-user fees to outside vendors, so we’re able to provide access to all agents and brokers, and our adoption rates are through the roof.”

One-hundred percent of HomeSmart brokers and agents are on the company’s transaction management system, perhaps making it the only franchisor that is completely paperless in all brokerage offices and with that level of adoption.

Because the technology drives consistency and quality service across the nation, it enables HomeSmart to provide centralized services from its corporate office in Scottsdale, Ariz. For instance, an agent in New York or Chicago is on the same system as an agent in Portland or San Diego, ensuring that the consumer in each location gets a consistent experience when they select a HomeSmart agent. HomeSmart’s technology is oriented for the sole purpose of providing incredible customer service to consumers, agents and franchisees.

Simplifying Services for Brokers
In early 2015, HomeSmart International launched its Centralized Services division, providing a menu of services to franchisees at a much lower rate than brokers would normally pay if they were to staff up and provide these services themselves. Today, services in this division include recruiting and marketing, agent support, agent retention initiatives and virtual reception, with other offerings scheduled to become available in 2017.

“Through Centralized Services, we are able to show the broker what to do and then take it a step further and even do it for them,” says Bowers. “The purpose behind this is to free up the franchise owner from some of these time-consuming activities to better focus on providing leadership and guidance to agents, helping them grow.”

Over the last 15 months, the recruiting arm of HomeSmart’s Centralized Services division has set more than 7,000 appointments and hired close to 500 agents to 31 franchises within the HomeSmart family. Since launching the program, two-thirds of all HomeSmart franchisees have leveraged the company’s Centralized Services at varying levels. At the heart of the recruiting engine for HomeSmart is a new, fully-staffed call center, which manages all outbound recruiting calls and scheduling for the individual franchises using the service.

“Streamlining these services for our franchisees positively impacts their brokerages by helping them grow at a faster rate while also saving money on hiring employees for these task-oriented positions, which we are better staffed for,” explains Widdows.

In recent years, HomeSmart International has garnered much attention and many accolades for growth and future-forward plans. To date in 2016, the HomeSmart brand has increased its agent count by a net-positive 10 percent and grown its franchise base by 26 percent, with several additional brokerages slated to open in the fourth quarter of the year. Historically, HomeSmart has bucked against the tradition of the real estate industry, always thinking outside the box and looking for new ways to innovate. It’s that same unique approach that has taken HomeSmart International down a less traveled path toward an end goal intended to revolutionize the way the real estate industry thinks about the integration between service and technology.

“Practicing real estate, owning a brokerage and providing a consistently amazing customer service experience doesn’t have to be as hard as everyone makes it out to be,” says Widdows. “No other company can provide the same quality systems and tools we do while also jumping in to help brokers grow and manage success in so many aspects of the business.”

Given the technological advances HomeSmart International has made to propel the industry forward, it’s obvious why agents and brokers nationwide are jumping on board to exceed goals, systemize the real estate business and provide high levels of service to consumers.

Technology Applications Built to Support Your Business
From a brokerage standpoint, having access to integrated technology means having the ability to scale and grow affordably. Likewise, to agents, the technology HomeSmart provides cuts operating expenses and saves time by having everything that is needed in one place, for free.

RealSmart Broker – RealSmart Broker is the central hub from which the brokerage operates. It centralizes paperwork, broker-to-agent communications and operations regardless of whether a franchise has one office or 20. Its paperless transaction system allows for maximum efficiency by giving 24/7 access so broker/owners can quickly track and manage productivity. This guarantees smooth transaction review with a high level of accountability.

Key Features:

  • Transaction Management
  • Education
  • Recruiting
  • Broker Website
  • Accounting
  • Agent Services
  • Broker Review

RealSmart Agent – RealSmart Agent is the central hub from which all agent business is conducted. In this one system, agents can access all listing information, transaction documentation, business-planning goals, custom marketing materials, websites, and much more. This one login gives agents access to everything they need to run and grow a successful real estate business.

Key Features:

  • Custom virtual tours
  • Buyer home search
  • Personal agent websites
  • Listing websites
  • Search engine submission of listings to 2,000+ websites
  • Custom YouTube video for each listing
  • Automated listing flyers
  • Transaction management
  • Broker communication
  • Product catalog

SmartCall

  • IVR MLS Integration
  • MLS Phone Search

– Caller ID for lead generation
– MLS information by text
– Property availability for agents
– Read description of property to customer

  • Phone System Auto Attendant

– Agent directory integrated with RSB agent roster
– Auto-transfer to agent preferred phone
– User definable touch-tone directory
– After-hours directory

Centralized Services

  • Centralized Agent Services (Agent Support)

– Answer incoming agent questions
– Technology support for agents
– Remote/webinar training for agents

  • Centralized Agent Recruiting & Marketing (Recruiting Support)

– Marketing creative
– Contact center – outbound calling to recruits and existing agents (retention)
– Appointment setting
– Email marketing
– Video creation
– Benefits explanation to recruits

  • Centralized SmartAccess
    (Remote Keycard Entry)

– Honeywell keycard access control
– Integration with RealSmart Broker for agent access card management
– Integration to SmartReception for remote door unlocking/locking
– Full reporting of user access and auditing

  • Centralized SmartReception
    (Virtual Reception)

– Proprietary centralized receptionist for all offices utilizing the service
– Remote notification of visitor arrival
– Two-way video and voice communication
– Integration with SmartAccess for remote door unlocking/locking
– Scheduled coverage with HomeSmart Centralized Services for when live receptionists are out to lunch or out of the office
– Video banner advertising for recruiting, affiliates, etc., remotely managed

SmartSites (Agent Website)

  • Agent-branded website
  • Full IDX-enabled with powerful consumer search
  • Customer relationship marketing (CRM) tool
  • Comparative market analysis (CMA) tool
  • Drip marketing system
  • Lead capture from consumer visitors

SmartTools (Automated Marketing Tools)

  • SmartFlyer (Automated custom listing flyers)
  • SmartTube (YouTube property videos for each listing)
  • SmartGallery (Custom listing websites)
  • SmartTour (Custom buyer tours)
  • SmartSearch (Easy buyer searches)
  • SmartSES (Automatic search engine submission of listings to 2,000+ websites)

The Numbers Don’t Lie

  • 5000® – HomeSmart has held a place on the prestigious list of the fastest-growing companies in the United States for several years. In 2016, the company ranked No. 611 out of 5000 other companies in all industries, representing a 642-percent, three-year increase on the list.
  • 223 percent increase in agent growth over the last five years.
  • Entrepreneur® Low Cost Franchises® – HomeSmart has ranked for the last three years for being an affordable franchise option for brokers.
  • RISMedia’s Power Broker Report – Three HomeSmart franchises were ranked on RISMedia’s 2016 Power Broker Report for their success in 2015: HomeSmart Phoenix/Denver/Palm Springs (No. 9 in transaction sides and No. 14 in sales volume), HomeSmart Evergreen Realty (No. 318 in transaction sides and No. 151 in sales volume), and HomeSmart Realty West (No. 447 in transaction sides and No. 362 in sales volume).
  • Tools 4 School by HomeSmart – Each year, HomeSmart actively participates in numerous charitable outreach projects. This past summer, the company raised more than $ 35,000 in multiple states to provide backpack kits and school supplies to more than 3,000 underprivileged children to prepare to go back to school ready to learn.
  • HomeSmart Phoenix was ranked No. 1 Residential Real Estate Brokerage by Phoenix Business Journal.
  • HomeSmart Utah grew from zero to nearly 200 agents in just three-and-a-half years.
  • HomeSmart Realty West (Carlsbad, Calif.) grew to 450 agents in four-and-a-half years.
  • HomeSmart Professionals Real Estate (Rhode Island) went from zero to 120+ agents in just over two years.
  • HomeSmart Connect Real Estate (Chicago, Ill.) expanded from five to 145+ agents in two-and-a-half years.
  • HomeSmart Realty Group (Salem, Ore.) joined HomeSmart in 2014 with no agents and just surpassed 145 agents to become the largest office by agent count in the market.
  • HomeSmart Evergreen Realty (Orange County, Calif.) recruited 365+ agents in four years under the HomeSmart brand, and is now at more than 1,100 agents with seven offices.
  • HomeSmart Phoenix grew by more than 1,000 agents in 2015 and ranked as the No. 1 residential real estate brokerage in Arizona for the last several years.

To learn more about HomeSmart International, visit www.HomeSmart.com.

For more information about the real estate technology landscape, visit www.RealEstateTechSucks.com.

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Survey Shows International Home Sales Dollar Volume Retracts in U.S.

Jul 8, 2016 by

Waning economic growth in many countries and higher home prices further enhanced by a strengthening U.S. dollar resulted in a slight decline in international sales dollar volume of U.S. property over the past year and a significant retreat in buying from non-resident foreigners.

This is according to an annual survey of residential purchases from international buyers released by the National Association of REALTORS®. The survey also amazingly revealed that the dollar volume of sales from Chinese buyers exceeded the total dollar sales figure of the next top-four ranked countries combined.

NAR’s 2016 Profile of International Activity in U.S. Residential Real Estate, covering U.S. residential real estate sales to international clients between April 2015 and March 2016, found that foreign buyers purchased $ 102.6 billion of residential property, a 1.3 percent decline from the $ 103.9 billion of property purchased in last year’s survey. Overall, a total of 214,885 U.S. residential properties were bought by foreign buyers (up 2.8 percent), and properties were typically valued higher ($ 277,380) compared to the median price of all U.S. existing home sales ($ 223,058).

Lawrence Yun, NAR chief economist, says this year’s findings highlight the tremendous appeal U.S. real estate still has on many foreign nationals despite the price of property becoming less affordable. “Weaker economic growth throughout the world, devalued foreign currencies and financial market turbulence combined to present significant challenges for foreign buyers over the past year,” he says. “While these obstacles led to a cool down in sales from non-resident foreign buyers, the purchases by recent immigrant foreigners rose, resulting in the overall sales dollar volume still being the second highest since 2009.”

Adds Yun, “Foreigners – especially those from China – continue to see the U.S. as a solid investment opportunity and an attractive place to visit and live.”

According to the survey, sales to non-resident foreign buyers pulled back by approximately $ 10 billion to the lowest dollar volume since 2013 ($ 35 billion). The decline was largely caused by the decrease in the share of non-resident foreign buyers to foreign residential buyers to 41 percent – down from the almost even split between the two in previous years (48 percent in 2015).

“Both the increase in U.S. home prices – up 6 percent in March 2016 compared to one year ago – and the depreciating value of foreign currencies against the U.S. dollar made buying property a lot pricier last year,” says Yun. “Led by Venezuela (45 percent) and Brazil (24 percent), at least eight countries, including China and Canada, saw double-digit percent increases in the median sales price of a U.S. existing-home when measured in their country’s currency.”

For the fourth year in a row, buyers from China exceeded all countries by dollar volume of sales at $ 27.3 billion, which was a slight decrease from last year’s survey ($ 28.6 billion) but over triple the total dollar volume of sales from Canadian buyers (ranked second at $ 8.9 billion). Chinese buyers purchased the most housing units for the second consecutive year (29,195; down from 34,327 in 2015), and also typically bought the most expensive homes at a median price of $ 542,084.

“Although China’s currency modestly weakened versus the U.S. dollar in the past year, it’s much stronger than it was 5 to 10 years ago, thereby making U.S. properties still appear reasonably affordable over a longer time span,” notes Yun.

In addition to the slightly diminished sales activity from Chinese buyers, the total number of sales and the sales dollar volume from buyers from Canada, India ($ 6.1 billion) and Mexico ($ 4.8 billion) also retracted from their levels one year ago. Only buyers from the United Kingdom – after a decrease in the 2015 survey – saw an uptick in total sales and dollar volume ($ 5.5 billion).

“Sales activity from U.K. buyers could very well subside over the next year depending on how severe the economic fallout is from Britain’s decision to leave the European Union,” adds Yun. “However, with economic instability and political turmoil outside of the U.S. likely to persist, the world view of American real estate as a safe investment should keep demand firm even as pressures from a stronger dollar continue to weigh down on affordability.”

Five states account for half of foreign-buyer purchases, prices and all-cash sales decline
Slightly over half of all foreign buyers purchased property in Florida (22 percent), California (15 percent), Texas (10 percent), Arizona or New York (each at 4 percent). Latin Americans, Europeans and Canadians – who tend to buy in warm climates for vacation purposes – mostly sought properties in Florida and Arizona. California and New York drew the most Asian buyers, while Texas mostly saw sales activity from Latin American, Caribbean and Asian buyers.

The median purchase price over the survey period was a tad lower ($ 277,380) compared to the 2015 survey ($ 284,900) as a result of the fewer non-resident foreign buyers. Overall, foreign buyers most commonly purchased a home priced between $ 250,001 and $ 500,000, while 10 percent paid over $ 1 million or more.

Exactly half of all international transactions were all-cash purchases, which was slightly down from a year ago (55 percent) but still roughly double the overall share of existing sales. All-cash purchases were more common by non-resident foreign buyers (73 percent) and those from Canada, China and the United Kingdom.

A majority of foreign buyers over the past year purchased a single-family home, and nearly half bought in a suburban area. Two–thirds or more of buyers from each China, India, Mexico and the United Kingdom purchased detached single-family homes, while Canadian buyers were the most likely to buy a multi-family home.

REALTORS® representing international clients slightly down, growing interest in purchasing abroad
Thirty-one percent of REALTORS® surveyed said they worked with international clients, a decrease from the 34 percent share in last year’s survey but up from two years ago (27 percent). Seventeen percent had one to two foreign clients; 5 percent of respondents had six or more.

This year’s survey asked seller’s agents for the first time about their international clients who sold residential property. With Florida and California leading the way, the list of states where foreign buyers sold or bought their U.S. property was very similar. The median price of a sold U.S. home was $ 245,331, and respondents reported several cases of Canadians selling their U.S. home to take advantage of the stronger U.S. dollar.

Approximately 14 percent of responding REALTORS® reported that they had a client who was seeking to purchase property in another country, which is over double the amount in last year’s survey (6 percent). Mexico – at almost triple the amount (13 percent) – generated the most inquiries about purchasing abroad, followed by Costa Rica, Philippines, Colombia and Canada (each at 4 percent). Most U.S. clients interested in buying in another country (87 percent) were looking to use the property as a vacation home or residential rental unit.

“Especially in the local markets attracting a hefty share of international buyers and sellers such as those in California, Florida and Texas, it’s advantageous for REALTORS® to consider earning the Certified International Property Specialist, or CIPS, designation,” says NAR President Tom Salomone. “The specialized training on critical aspects of an international transaction such as exchange rate and tax issues and regional market conditions best prepare REALTORS® for the increasingly globally connected world of real estate.”

For more information, visit www.realtor.org.

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Taking Your Business International

Apr 20, 2016 by

Do you have a successful business that’s ready to tread onto international grounds? Growing your company into an international firm offers the exposure and growth opportunities to transform your business from a domestic success to a global powerhouse. Global expansion also offers the flexibility to rely on an alternate market when others are experiencing fluctuations. […]
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