Golden Rules of Real Estate Trade
Cover Oct 02, 2020
International investors try to take into consideration many criteria of the region, where they wish to purchase real estate. Trust is one of the most important concepts that countries need to attract investors consistently. A reliable infrastructure brings transparency with it in all processes. Providing various conveniences in purchasing operations and responding to the expectation of the customers with after-sales services are also considered indispensable for real estate trade.
How to Maintain Continuity in Investments?
With a great impact on turning cities and countries into a brand, the real estate promotes countries and increases tourist income.
Real estate investment is regarded as one of the most preferred investment tools. One of the biggest underlying reasons for this is that the investment tool is protected against fluctuations and value losses in the market. If an investment is accurately analysed, it will have a well-balanced place in the risk-reward ratio. When we consider that the worldwide real estate investment market was $9.6 trillion in 2019, we can see the importance of this investment tool more clearly. We shouldn’t measure the value that is added to the economies of countries receiving investments only by the value of the real estate. With a great impact on turning cities and countries into a brand, the real estate also promotes countries and increases tourist income. Easy access to information brought with it an increasing demand for international investment. Turkey increases its actions to get its piece of this pie day by day.
Rapid purchasing process is important
Opportunities like the financial return of the investment, regional and natural facilities, and citizenship can be listed among the primary motivations for international real estate investment. On any ground, potential investors have
certain criteria to look for too. The political and economic stability of the country to invest in is the primary criterion in question. Consequently, it is necessary to have the proper legal infrastructure for real estate purchasing of international investors and provide protection of property rights. On the other hand, a rapid and easy purchasing process is also very important.
The research process for the “right investment” starts after ensuring the necessary pre-conditions for the investment and forming the purchasing will of the investor. Accessing the right information about the investment country is critical here. It should be noted that ensuring the continuity of the investment is only possible through happy investors. Proper pricing, a transparent purchasing process, access of investors to the legislation and legal regulations in their language and ensuring the right information flow are necessary. The report of the international valuation company is vital in full-scale purchases and especially in commercial and industrial investments.
Trust brings stability with it
The “trust” factor is the most important condition for our country to be chosen by international investors. Trust brings stability with it. When we do well by the word “trust”, we take the biggest step to realize the investment. Companies that target international investors in real estate should give priority to international promotions in their marketing budgets. We need to ensure the quality and continuity of promotions by both the private sector and state channels.
Finally, we also need to mention post-sales services, which are probably the least considered but also may be the most important factor to ensure branding and continuity of the investment. Building solution-communication centres for investors and correct guidance in possible disputes and problems will fill a great gap.
Real estate has always maintained its importance throughout human history and will continue to do so. Increasing our share of this pie is possible only by offering world-class services and being open to the innovations.
Credible System: The US Model
I believe that sales convenience and transparency are indispensable components of the international real estate trade.
According to the report of the amerıcan national associatıon of realtors, international investors purchased $74 billion worth of real estate from the USA between April 2019-March 2020. The June statistics also show that there is a 22% increase in sales to international investors within a month. China, Canada, Mexico, and India are among the countries that show the most interest. Even COVID-19 and the tense mutual relations between countries couldn’t decrease the passion of the investors in the US real estate market. To have a credible real estate trade system is also greatly important in decreasing risks as well as reasons such as the USA having the strongest economy in the world, its currency preserving its value against other currencies in a long-term, and the desire to diversify investment instruments and the expectation of high income in a mature market. We need to talk about the real estate trade system in America when we talk about the keys to the real estate trade. You can see the summary of this system in the following items:
89% of the people who sell their houses in America exclusively work with a listing agent. In other words, they give power to only a listing agent to sell their houses. They sign a contract for a
certain commission (generally 6%) from six months to one year. In this period, the authority to put the house on the market only belongs to the listing agent with a contract.
· The American system is built on cooperation
between realtors. After making the contract with the seller, the listing agents have to put their portfolio to the pool of the local Multiple Listing Service. In short, they have no right to say that “this house is my portfolio, so no one can find a client except for me”.
· Investors looking for a house in the same market come to a listing agent who they already know and trust and inform about their investment criteria instead of individually finding listing agents with a portfolio. The buyer’s agent can reach all real estate lists in that region by pressing a few buttons and all their features through the Multiple Listing Service.
· Bidding, technical expertise report, title deed, and similar procedures are tracked for the investors to reach their real estate goals.
· Upon completing the title deed process, half of the commission collected from the trustee seller is allocated to the seller’s
agent and the other half to the buyer’s agent.
Our main goal is to provide convenience to investors
As you can see, buyers give no commissions, they don’t have to be a US citizen or have any kind of visa. You also don’t need to give a power of attorney to anyone or have a bank account in the US. Offers are e-signed, and the price of the house is sent to licensed trustees who are mostly advocates. There is scarcely any bureaucracy. Therefore, everything is based on making it easier for the investor to purchase real estate. Eventually, a solid system based on a central database and purchasing convenience and transparency are essential in international real estate trade.