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They live 1,000 miles apart, but Kim Marr and Barbara Vance enjoy a mutually beneficial relationship. The RE/MAX agents exchange frequent referrals, with each doing her part to ensure a smooth closing and, most importantly, a satisfying result for their buyers.
And they do it all from different sides of the U.S./Canada border.
Marr, a Hall of Fame member with RE/MAX Professionals in Mississauga, Ontario, and Vance, a Sales Associate with RE/MAX Properties SW in Orlando, have worked together since 2010, assisting Canadian clients in the purchase of Florida properties. Over time, both women have built a strong cross-border referral base that positions them nicely to meet the growing demand of Canadians buying second-home and investment properties in the U.S.
Other agents would be wise to follow their lead. International clients purchased $82 billion in U.S. real estate from March 2010 to March 2011, up from $66 billion in the previous year-over-year time period, according to the National Association of Realtors. Canadians accounted for 23 percent of those purchases.
The uptick in international buyers scooping up U.S. real estate shows no signs of slowing, and RE/MAX agents are in a prime position to capture the business.
The upper hand
RE/MAX Associates have several advantages if they want to expand the global side of their business. In addition to global.remax.com, they have RE/MAX R4, which attracts thousands of attendees from around the world each year.
One session in particular – the Global Referral Exchange – provides a unique opportunity for Associates from any RE/MAX region to generate global business leads.
R4 aside, agents are finding all sorts of innovative ways to connect.
Take Marr, for instance, who has built an agent referral program for RE/MAX Associates in Canada and the U.S. It includes cross-border ancillary professionals and dozens of agents who work together in assisting Canadian buyers.
With so many Canadians heading south to purchase properties, agents who are not taking advantage of the growing cross-border business are “leaving money on the table,” Marr says. “Dealing with Canadian buyers takes unique expertise,” she says. “I highlight potential issues they need to consider when purchasing in the United States.
I also introduce them to independent cross-border professionals who can advise them on key legal, tax, estate and financial issues before they buy. All the U.S. agent has to worry about is finding the right property. The business comes gift-wrapped.”
Concierge service
In Orlando, before the clients ever meet her, Vance puts them on automatic drip emails so they receive customized information showing only the listings that interest them. Florida buyers are waiting for the economy and job situation to improve before taking the plunge, and sellers are reluctant to sell because of downward pressure on prices, Vance says. Her best chance of finding buyers for her luxury listings is marketing the properties to international buyers.
“When I’m in listing presentations, it’s a huge advantage when I explain that RE/MAX has No. 1 market share in Canada and that I receive a steady stream of leads from Canada,” says Vance, whose median listing price is about $700,000.
She refers to herself as a “concierge” for her Canadian agents. Special touches, like arranging hotel stays and car rentals during their initial visits, to stocking the refrigerator before arrivals and setting up lawn or pool services, make Vance’s clients understand that she’s truly looking out for them.
Seizing opportunity
Florida isn’t the only state attracting Canadian buyers. In Arizona and elsewhere, RE/MAX agents are assisting international clients.
A leader in the field is Kris Anderson of Scottsdale, Ariz., who eight years ago decided to take advantage of the industry-leading RE/MAX presence in Canada. She began traveling north to RE/MAX events to meet Canadian agents, resulting in buyer referrals that have expanded her business and increased her sales volume.
At the time, it might have seemed like an odd idea, flying all that way to generate new business. Not these days.
“Sixty percent of my business right now involves Canadian buyers,” says Anderson, a Lifetime Achievement Award recipient and Platinum Club member with RE/MAX Excalibur Realty. “And the key is knowing the agents who work with them. I’ve tried marketing directly to consumers in
Canada, but it doesn’t work nearly as well as setting up a booth at RE/MAX conferences up there and meeting with Canadian agents face-to-face.”
Arizona, California, Florida and Texas accounted for 58 percent of all international real estate purchases in the U.S. from March 2010 to March 2011, NAR reported.
If Anderson’s recent sales are any indication, U.S. Sun Belt states will see even more of their northern neighbors flocking south. And you can bet Anderson will be among the agents who are ready to work with them.
Canadian Clients are in ‘good hands’ with RE/MAX
Canadian couple Michael and Joanne Osatiuk are inching closer to retirement and decided to buy properties in the U.S. to build a bigger nest egg – and have a little fun.
The couple met Barry Giles of RE/MAX Saskatoon in their native Saskatoon, Saskatchewan, and told him what they were looking for. Giles, who had met Kris Anderson of Arizona during her many sojourns to Canadian RE/MAX events, immediately referred the Osatiuks her way.
The couple purchased a vacation home in Chandler, Ariz., through Anderson in 2007. In 2010, they called on her again to help them buy two investment properties, and now they rent those homes out to locals.
Each step of the way, Anderson anticipated issues the couple might encounter as Canadian nationals, and she had a top-notch list of people to assist them: an attorney, accountant, insurance agent and a Canadian monetary exchange firm.
All three transactions were seamless and smooth, leaving the Osatiuks with an indelibly positive impression of RE/MAX. Now, they’re soaking up the sunshine in Chandler (and playing a lot of golf), as well as earning income on the other two properties.
“Buying a property in another country is no easy feat, and I wanted to make sure we were completely comfortable with how everything was handled,” Michael Osatiuk says. “Not only was Kris knowledgeable about the market and the cross-border issues, she also listened to what we wanted and gave us options. We were in good hands the entire time.”
Common cross-border issues for Canadians buying in the U.S.
Canadian buyers have a number of considerations when they purchase a property in the U.S., Kim Marr says. They include:
How to title a property (U.S. estate planning)
Substantial presence test (time spent in the U.S.)
U.S. health insurance
Tax filing on rental income
Currency conversion rates
Property insurance
Where they’re buying
Here’s a look at the most popular U.S. states where international buyers purchased second-home or investment properties*:
31%………FLORIDA 12% ……..CALIFORNIA 9% ………TEXAS 6% ………ARIZONA
Where they’re from
Get a breakdown of international sales by country*:
23% …….CANADA 9% ………CHINA 7%………..INDIA 7% ……….UNITED KINGDOM 7% ……….MEXICO 5% ……….ARGENTINA & BRAZIL 4% ………FRANCE 4% ………GERMANY 1%…………JAPAN 1%…………RUSSIA
Source: National Association of REALTORS Profile of International Homebuying Activity 2011. *Numbers are based on a random survey of Realtors based on their experiences over 12 months ending March 2011.
Written by Deborah Ball Kearns
