Low inventories have created a seller’s market, and your buyers may be tempted to write multiple purchase offers on their favorite listing, for instance, as well as the close second.
On the one hand, it may increase the odds of their getting one of the two homes they want. But is it worth the legal risk if the buyer needs to back out of one of the offers? They could end up in multiple fully-executed contracts to purchase if the offers weren’t written with adequate contingencies allowing them to cancel. They could be accused of breaking a good faith covenant and face major legal ramifications.
How would you advise your client?
An Accredited Buyer’s Representative course may help.
“Never let your clients enter into multiple contracts without intent to buy,” said instructor Adorna Occhialini Carroll, CRB, ABR, GRI, broker/owner of Realty3 in Berlin, Conn., and president of Dynamic Directions, Inc., an international sales training consulting firm. This was one of many important buyer-related topics covered the debut of a new ABR class at the National Association of REALTORS® headquarters in Chicago last week. About 25 REALTORS® from around the country participated in the two-day VIP ABR course, covering everything from buyer’s representation agreements handling objections.
“Our hope is to expose the course so that brokers will recommend the ABR designation to their agents as an essential key component of their professional development,” said Carroll.
The course is designed for any REALTOR® active in real estate. In order to achieve the actual ABR designation, you also need to take one elective course and have proof of five closed transactions where you have represented the buyer.
NAR First Vice President Steve Brown, broker/owner of Irongate Inc., REALTORS® in Dayton, Ohio, was one of the course attendees. Continue reading »
There’s a dark secret lurking in the throats of the National Association of REALTORS® employees. I personally uncovered this closet skeleton on a reconnaissance mission in the Chicago Association of REALTORS®’ professional development wing.
I walked up to the desk and announced that I was reporting for duty to cover the Certified International Property Specialist (CIPS) class. Except here’s how I said it:
Meg White: Hi! I’m from REALTOR® Magazine, here for the “sips” class.
Patsy Smith Wyant: Oh great; we’re so glad to have you! Except it’s C-I-P-S.
Meg: Really? Not “sips”?
Patsy: Yep! It’s C. I. P. S. [flashing hugely welcoming, forgiving smile]
Meg: [blushing] Oh geez. I’ve never heard anyone at NAR pronounce it like that. I’m sorry.
Patsy: No problem! Happens all the time, really. David [Wyant, Patsy’s partner and the instructor for my class] always jokes, “It’s not a drink that you sip!” And, you know, people don’t talk about being a “gry” [GRI, Graduate, REALTOR® Institute] or a “cree” [CRE, Counselor of Real Estate].
Meg: Makes total sense, now that you mention it. But I imagine hearing “sips” all the time would have the same effect as it does when the rest of us down at 430 N. Michigan hear “real-it-or” or “nahr.”
Patsy: Haha, yeah. It is kind of like that!
So, as you can see, I started at the absolute bottom when it came to the knowledge required to become a certified international property specialist. With that baseline set, let me share a few other items I learned from the globetrotting Wyants during Global Real Estate: Transaction Tools. While some of these information nuggets won’t be a huge surprise to global experts out there, there were others that had the whole class in disbelief, saying, “Really?”
Q: Do you need a social security card to purchase property in the U.S? Continue reading »
Miami is known for its colorful vibrancy, but 23,000 vacant condos put a dark cloud over the south Florida market at its peak inventory in 2008. Do you know what happened? They’ve all sold — largely due to the purchasing power of international investors.
As foreign buyers’ interest in U.S. real estate continues to surge, REALTORS® are seizing this opportunity and arming themselves with education.
A window into this trend could be seen in Chicago this week as about 20 REALTOR® students, some who traveled from several states away, attended the Certified International Property Specialist (CIPS) course at the Chicago Association of REALTORS®. I had the pleasure of sitting in on the first day as instructor David Wyant of Wyant Realty and Across Borders School of Real Estate in Ormond Beach, Fla., covered local markets. CIPS is a real estate designation that has seen exponential growth, with more than 2,000 recipients and courses taught in 50 countries.
Why are foreign buyers eyeing the U.S. real estate market?
Is it because the value of the dollar has fallen? Yes, the lower dollar value equals deals for foreign buyers. But according to Wyant, that’s one reason among many.
“Investing in real estate is great for individuals and for sovereign nations,” Wyant explained. “Real estate has its ups and downs, but it’s never worth nothing. It’s tangible, it holds its value and it’s around for a long time.”
Of all the countries in the world, the U.S. is still leading the way in providing the most stable and secure real estate investment environment, above Germany, Canada, France, Australia and the UK. Why? The stability of the economy and laws the U.S. has protecting private property rights. “That means a lot if you’ve ever had anything taken away from you,” Wyant said.
The internet has helped quicken globalization. It’s led to the migration of jobs across borders, and as countries evolve and economies diversify or move from farming to industry, creative centers have emerged and trade has expanded. Sunsetting tariffs, 24-hour markets, ease of air travel, and countries specializing in specific industries and trades have all contributed to globalization.
Who’s buying in the U.S.? Continue reading »