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Transcript of TRC Course
formality, face-saving communication, relationships, slow pace
Asia, Russia, Middle East, Central and South America, Southern Europe High Context / Low Context 95 My name is
(626) 221-3994 Arcadia Association of REALTORS®
September 27, 2012 Thank you for attending the
Transnational Referral Certification Course
Organized by Pay the registration fee
Locate or obtain a member ID (fill out form)
Register at WorldProperties.com (we do this)
Add a photo and logo to Profile
Research local market trends
Develop a networking strategy
Formulate quantifiable business goals
Organize a networking information system
Pick a date and get started! Next Steps Checklist Do you have a business plan for international referrals?
What can you do in the next 30, 60, 90 days? Business Planning Formulate goals
Develop action steps
Develop a timeline
Work your plan
Evaluate results Action Steps Long-term time frame Key to Referral Success
Do I have a business plan for international referrals? Ask Yourself Plan what you will do today, tomorrow, next week, and in the near future to integrate international referrals info your business plan Application 8. NEXT STEPS Market Information
Prospects and clients
Spheres of influence
Trends Networking Information System Business cards specifically for referrals
Referral flyers and postcards
Referral newsletter in print and/or online
Enroll in education courses
Web site links, invite links to your site
Referral section on your Web site
Provide referral forms on your Web site Practice Tips The more you give, the more you will receive
Give something without expecting anything in return
Be a willing resource
See other real estate professionals as colleagues, not as competitors Focus on Relationships 10. Choosing the wrong network to join
9. Not being actively engaged in the network
8. Letting the network consume you and your time
7. Not giving referrals yourself
6. Not thanking people who give you referrals
5. Doing a bad job
4. Not communicating updates
3. Not tracking the results
2. Not marketing yourself
1. Not asking for the referral The Top 10 Referral Mistakes Build your network by becoming part of others’ networks
What are some good ways to meet other real estate professionals?
Your spheres of influence Be Part of Others’ Networks Commitment of time, effort, money, focus, and planning
What do you want to accomplish?
Who will be the target of your efforts?
When do you expect these goals to be accomplished?
How will you achieve the goals?
Why are you investing time, effort and money? Strategic Networking Contact, information resources, and communication channels
Gain access to targeted markets
Maintain current market awareness
Reach prospective clients and referrals
Publicize local investment opportunities
Publicize services and capabilities Building a Personal Network Do I have a strategy for networking? Ask Yourself Use these ideas to plan a systematic approach to making contacts and becoming part of other professionals’ networks Application 7. NETWORKING Acknowledge the referral immediately
Notify when first contact is made
Notify when “gone to contract”
Inform when the transaction is complete and pay the referral fee
Encourage future referrals A Courtesy Model Essential elements for making a referral are comfort, trust, integrity, competence, service
When accepting a referral you become the guardian of the other agent’s reputation Guarding Your Partner’s Reputation Exchange transaction procedure info
Complete the Referral Contract
Accept Client Hand Off
Contact the referred client
Update referring agent
Notify of pending closing date
Pay the referral fee Receiving a Referral Best Practices Contact from referring agent
Discuss the client situation and market dynamics
Accept the referral
Agree on a timeline and fee
Obtain detailed client information Receiving a Referral Best Practices Am I prepared to accept referrals of buyers and sellers?
Can I provide service that reflects well on my referral partner? Ask Yourself Follow these steps to accept a referral and keep your partner up to date on transaction progress
Remember that in accepting a referral, you become the guardian of the referring agent’s reputation Application 6. RECEIVING A REFERRAL Dynamics of the market
Referrals are not a usual way of doing business
Pocket-listings or “my client”
Language issues Why No Response? RESPA - Real Estate Settlement Procedures Act (HUD)
Multiple Listing Service
Notary Definitions A successful referral establishes a proven contact and an opportunity to build a relationship with an agent in another country
Ask for future referrals Proven Contact Personal equity – give before you get.
Ask in both an appropriate and comfortable manner
Accept and demonstrate your responsibility
Follow through and follow up – consistency is critical 4 Principles of a Referral-Based Business Set expectations
Complete the referral contract
Prepare the client
Hand off client to receiving agent
Monitor the transaction Making a Referral Best Practices Finalize your selection
Discuss compensation Issues - “How much would this transaction be worth to you?”
Share specific information
Exchange information on real estate transaction procedures Making a Referral Best Practices Prepare for agent interviews
Make contact with the firm
Schedule agent interviews
Interview agents Making a Referral Best Practices Determine the region that best meets client needs
Research market dynamics
Check your office policies
Research major firms in the market Making a Referral Best Practices
Do I have a systematic approach to finding a referral partner, handing off the client, and monitoring the transaction? Ask Yourself Follow these steps to find a referral partner, agree on compensation, and monitor the transaction Application 5. MAKING A REFERRAL Referring agent can make a formal complaint if a receiving agent fails to pay the agreed referral fee Dispute Resolution Voluntary participation
Contract states conditions and details
ICREA members only Referral Contract Community of professionals using same methods and documents Members Only
The Referral Contract is an enforceable agreement between the referring and receiving firm principals/brokers that outlines the conditions and compensation of the transaction Contract Between Firm Principals/Brokers Foreign ownership of real estate
Registration of property ownership
Restrictions on capital and income
Protection of property rights Major Areas of Law Understand impact on:
Agent/client relationship and interaction
Timing of important transaction stages
Funds availability for referral fee
Involvement of other professionals
Go to www.WorldProperties.com for info Business Practice Information Listing added by a data feed or manually depending on the Association Property Ad FAQs How can I use ICREA business tools to market properties and build my international referral business? Ask Yourself Various ways to market properties worldwide: the Featured Properties Advertising Service and profile enhancements Application 4. BUSINESS TOOLS Location and currency of transaction funds
Transfer and convert the funds as soon as possible to determine price range and act quickly on the right property
Consequences of delay
Seller may refuse offer
Transaction cannot close Exchange Rate Risk Impact on:
Return on investment
Gain or loss on sale
Loan payments, closing expenses, operating costs, and upkeep
Commissions and referral fees Currency Exchange Rates Discuss expectations during the initial contact with the firm and receiving agent Requesting Compensation Expectations of how agents will interact
When fee can be paid
Money available for payment of a referral fee
Involvement of other professionals
How property is marketed
Relationship between the agent and client
Taxation issues, property title recording, and disbursement of funds Fee Reflects Work and Expense Focus on the transaction and the client, not the potential income Customer Service First New business and commission income without prospecting
More revenue for agents and firms
Set realistic expectations
Agree on value of the business
Commission “pool” may be small Compensation Co-brokerage is an ongoing partnership between the agents for the client’s future business Co-Brokerage vs. Referral Competitive edge, even in your local market Market Distinction When initiating international referrals, search the Transnational Referral Certified database first:
“Find an Agent” Look for Transnational Referral Certified Smoothes the way for clients and affirms your ability to extend a level of good customer service world-wide
Relationship and loyalty can continue and lead to future referrals Relationship Building Maintaining and enhancing client relationships
Network of contacts
Access to international markets
Compensation Benefits for the Real Estate Professional Contact with competent real estate professionals
Referring agent can monitor the transaction and continue as trusted real estate advisor
Assurance of professional handling
Help in understanding the global market Benefits for Buyers and Sellers Protect your client’s interest and be honest with all
Keep client information confidential
Disclose and fulfill agency, legal, and fiduciary relationships
Respect your fellow professionals.
Use the dispute resolution systems for resolving conflicts
Disclose personal interests and avoid side deals
Provide professional service to all clients and customers
Be knowledgeable and competent in your fields of practice
Comply with your national code of conduct Principles of Conduct Connections for real estate markets and 2 million+ real estate professionals Global Real Estate Market Benefits Exists and functions exclusively on the Internet
Is a legal agreement between firm principals/agents
Overcomes two common challenges
Finding a professional
Assuring compensation The Virtual Handshake Referring Agent: finds an agent in another country to represent a client or customer, receives a referral fee Definitions How can I tap into the benefits of the Transnational Referral System for my clients, customers, and myself?
How can I use the System and the professional certification to distinguish myself in my local market?
How much could my business grow? Ask Yourself You can offer clients and customers global real estate services using standardized procedures. Application 3. TRANSNATIONAL REFERRAL SYSTEM Are referrals accepted or made?
Participation in a referral network?
Referral fees paid – how much and when?
Expenses covered by a referral fee?
Assignments to agents within the firm?
Communications schedule and courtesies?
Languages in which business is conducted? Your Office Policy Members outside of the U.S.
Your Member ID is assigned by your association
Request registration info by e-mail
Return to the Member Log-in screen and complete the registration process
9-digit NRDS# is your Member ID Locate Your Member ID Important step to participating in the Transnational Referral System
Informs other real estate professionals that you are willing to accept and make referrals
Can be enhanced with photo & logo WorldProperties.com Registration Can referral partners, buyers, and sellers from other countries find me?
Have I taken advantage of ICREA’s free profile registration?
Have I added a photo and logo to my profile?
Do I want prominence as a Transnational Referral Certified professional? Ask Yourself The search at WorldProperties.com is prominently featured at the top of the page
Under “Agents”, TRCs are highlighted in the search with the TRC Logo
Listing as TRC is automatic for those who complete the course and pay the registration fee
Self-register to enhance your profile Application 2. GETTING STARTED Property Sales Price: $200,000
$6,000 Commission (3% commission)
Receiving Agent keeps $4,500
Referring Agent earns $1,500 referral fee (25% of commission) Do the Math If you belong to a Consortium member association you are an ICREA member
If your association has signed the Transnational Referral Protocol, you can participate in the referral system Are You a Member of ICREA? Global industry news
Real property advertising system
Standards for business conduct and data transfer
Advocacy for private property rights
Networking and referral tools
Transnational Referral System ICREA Value Maintain ICREA-linked Web site
Comply with technical standards
Maintain a code of ethics
Keep membership info up to date
Share operating costs ICREA Organizations’ Commitment How can I tap into the resources and services of ICREA for my own benefit and for my agents, and colleagues? Ask Yourself Services, tools, resources, professional certification, and organizational support provided by ICREA are available to every member of the real estate organizations that comprise it Application 1. THE WORLD OF ICREA Distinguish yourself among 2.5 million real estate professionals worldwide Why Get Certified? Complete the TRC Course 3 Steps to Earning the TRC Demonstrates knowledge of the Transnational Referral System and adherence to Principles of Conduct in business dealings The TRC Integrate international referrals into business planning You Will Learn How To Gain the skills and knowledge of procedures needed to make effective use of the Transnational Referral System
Integrate international referrals into business planning Course Goal
As a courtesy to other students
Please turn off
phones and pagers Welcome Arcadia Association of REALTORS®
September 27, 2012 TRANSNATIONAL REFERRAL CERTIFICATION (TRC) COURSE Currency A strengthens against currency B, more units of currency B are needed to purchase an equivalent amount of currency A Currency Fluctuation Basics 65 member associations in 61 countries
on five continents
2 million agents/brokers
3 million property listings worldwide
$ 70 billion of GDP Lithuania
Turks & Caicos
Uruguay ICREA potential Member Countries
Outlook 2010/2011 47 associations in 44 countries on five continents
2 million++ agents/brokers
3 million++ property listings worldwide Jordan
United Arab Emirates
United States Argentina
Italy ICREA Member Countries
September 2010 Exchange Rate “Weather” Advantage
When the temperature rises (value increases), you need fewer layers of clothing (fewer units of currency) to maintain body temperature (value). Disadvantage
When the temperature drops (value decreases), you need more layers of clothing (more units of currency) to maintain body temperature (value). Provides a listing in the online database searchable by consumers and the industry The Transnational Referral System addresses two fundamental concerns of international referrals:
finding a qualified referral partner and receiving compensation Customer: non-agency relationship Client: fiduciary and legal duty Receiving Agent: contacted by the referring agent , pays a referral fee Worldwide property marketing Support, communication, and networking Standardized referral procedures Info on countries’ business practices Referral is a one-time deal with terms and fees negotiated for each transaction Difficult to monitor, expectation of client “ownership” can lead to misunderstanding Emphasize good service to the client and building a good relationship with the other agent, a successful transaction will result “How much would this referral be worth to you?” What will the receiving agent be expected to do? expenses incurred? On-line resources offer real estate business practice information The standardized referral contract is legally-enforceable and backed by an arbitration system, that assures compensation What do I need to know about real estate business in other countries in order to prepare myself and my clients? U.S. agents’ listings of U.S. properties must be available through REALTOR.com. All REALTOR.com listings are featured in the distinctive property search (linked to REALTOR.com.) Listings outside the U.S. are added manually. To manually add a listing agents must first be registered at the site and then select “Add a New Listing” Referral to a non-ICREA member is outside jurisdiction Important protections:
Legally enforceable agreement
Online arbitration system Failure to pay arbitration award?
reported to national, state or provincial, and local real estate associations
barred from use for 3 years
names published on Web site for 3 years Only compensation claims, no consumer or professional standards complaints Use a standard format to increase responses to e-mail inquiries A low context culture
informality, direct communication, results, fast pace, punctuality
United States, Canada, Northern Europe Am I part of other real estate professionals’ networks? Ask for referrals Relationship building before transactions Nick Zigic, CIPS/TRC Create a network of contacts in key markets Request and offer referral compensation Contact and respond to referral partners Research business practices, etiquette, and regulations Tap into the benefits of international referrals and the Transnational Referral System Membership in an ICREA association Take the exam Be part of a searchable database of certified professionals at WorldProperties.com Market yourself worldwide as “TRC” Increase your income potential Today’s local real estate deal could lead to a future international referral Distinguish yourself as a member of an international network