It is clear that global exposure opens up more opportunities for real estate brokerages. International transactions can be lucrative, as foreign buyers typically make relatively expensive real estate purchases. According to a 2018 NAR report, Chinese investors tend to buy the priciest properties.
International Transactions Are a Gold Mine
Although rising home prices and low inventory led to a decrease in foreign home purchases in the U.S., international sales still totaled about $121 billion from April 2017 to March 2018. China accounted for a significant portion of the investments, followed by Canada, the U.K., India, and Mexico. The top foreign buying activities occurred in Florida, California, Texas, Arizona, and New York.
Gaining Global Exposure
There are several ways that a brokerage can gain exposure to the global market. One of such methods is referrals. Due to the imperfect nature of the real estate market and the unavailability and inadequacy of information, prospective buyers are always happy to get information from trusted sources such as friends.
Another way that brokerages can gain global exposure is by listing properties on different marketplaces. Some platforms might appeal more to foreign buyers. Propy is one of such platforms, as it offers fiat and crypto options (great for cross-border transfers).
Benefits of Using Propy
Propy’s platform is backed by blockchain technology that incorporates MLS, DocuSign, and multiple payment options. The platform allows a brokerage to reach a broader global audience. Due to its various features and automation, Propy reduces the amount of time that is needed to complete an international transaction. Furthermore, the system helps to ensure contractual compliance. The brokerages can rely on secure document storage and easy record access.
The benefits of global exposure are apparent. Any brokerage that does not try to gain exposure to foreign buyers is ignoring a valuable opportunity and potential increased revenues. By listing properties on platforms such as Propy, a brokerage can promote itself as tech-savvy and willing to adapt.