The NAR Power Broker Roundtable: Going Global – Incorporating International Business into Your Business Plan

RISMEDIA, August 6, 2007–Over the years, international business has helped to enhance growth at real estate brokerages across the country. As globalization heats up, more brokers are setting up shop abroad or serving foreign nationals and new immigrants here in the U.S. Incorporating effective strategies for understanding and dealing with this specialized market is imperative; the more we can learn, the more profitable we can become.

In this month’s NAR Power Broker Roundtable, Virginia Cook asks, “What benefits are derived from catering to an international market?”

Moderator: Virginia Cook, Special Liaison for Large Firm Relations, NAR
Participants: Bruce Zipf, president & CEO, NRT Inc. – Parsippany, NJ
Frances Martinez Myers, senior vice president, Prudential Fox & Roach – Philadelphia, PA
Gary Longobardo, president & COO, Realty World, Inc. – Costa Mesa, CA

Bruce Zipf: As the real estate market becomes more global, the need for an international real estate strategy is even more important. New immigrants contributed more than a third of net household growth between 1995 and 2005, and it is expected that foreign buyers will likely account for at least that large of a share through 2015. The international network for real estate brands of Realogy, NRT’s parent company, provides us a significant advantage to effectively connect with these pools of buyers.

Frances Martinez Myers: There are many benefits associated with offering a broader array of services/products that appeal to an ever-changing diversified marketplace. Our economy is no longer just a domestic economy but a global one. Corporate America is clearly focused on global business strategies and as such will attract talent into the U.S. marketplace from other countries as well as sending U.S. talent to foreign locations. This has created a new pool of potential customers for the real estate industry. Having products and services available that appeal to the needs of a multicultural market is very important and will provide financial rewards.

Gary Longobardo: Franchising is becoming more and more popular with business people across the globe. They are generally looking to the USA, as leaders in franchising, for both a name brand to promote and proven systems that can be designed to their market. For example, our master franchisor in Turkey has been successful in quickly growing 65 franchised offices in only two years by applying our model and using the tools and programs we have to offer.

VC: How does having offices abroad fit your business plan, and will you continue to open locations overseas in the foreseeable future?

BZ: NRT does not plan on expanding its owned brokerage operations abroad. However, we will continue to network with Realogy’s affiliates represented in many foreign countries.

FMM: Having offices abroad is not part of our strategy. We believe that it is more cost effective to build relationships/partnerships with local experts in foreign countries. There are also international networks and organizations to join, such as FIABCI (The International Real Estate Federation) and Worldwide ERC that can provide access to international experts.

GL: Realty World feels strongly that we have the best name in our industry to market globally. With over 120 franchises already in Mexico, Central America, the Caribbean, and Europe, we have our sights set on greater international expansion in the near future.

VC: What about catering to foreigners and immigrants seeking homeownership in the U.S.?

BZ: In addition to our parent company’s international affiliate network, we will continue to market to these various buyer/seller pools at a local and regional level. Although real estate has become more global, from a business/client relationship perspective, it is very local. As a result, having the best local real estate professionals to service the real estate needs of these emerging immigrant markets served by NRT will be a key strategy.

FMM: Overall, the real estate industry is still very much unprepared to meet the needs of the growing ethnically diverse customer base in this country. It is almost like mainstream real estate keeps thinking this growth is not happening in its market yet and that there is plenty of time to put together a strategy to reach out to these new consumers. Well, I say time is up. Get in the game now or you won’t be a player with these new customers now or in the future. Resources exist today to help the industry move into the global economy. One only needs to decide whether to get in the game. Meanwhile, the industry has a lot it needs to do, including attracting bilingual practitioners and administrative staff and learning about cultural differences and marketing to a multicultural marketplace. Multicultural training can help companies build business solutions and strategies to access a broader customer base and joining professional ethnic organizations will help close the knowledge gap.

GL: It goes without saying that the USA is a multi-cultural society and will continue to have more immigrants seeking homeownership. We feel that if they are already familiar with our brand in Mexico or Europe, then our domestic offices stand a great chance of helping them purchase or sell here at home.

VC: In addition, through its REALTOR Benefits(sm) Program, NAR has a unique new partnership with the Panama Real Estate Association (ACOBIR) and Prima Panama, S.A. to provide a cost effective, simple way to discover and purchase or lease real estate in Panama. Prima Panama offers a unique Concierge Services Program to assist REALTORS® and their clients in their search for a residence, second home or commercial property in Panama, including hotel and car rental discounts, expedited customs and immigrations assistance, a custom Web site, international referral program, and more.

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