Daily Real Estate News  |  November 6, 2008  |   Doing International Business? Learn the Math
Specializing in international real estate is a smart business move, even if you never travel out of your local market, said David E. Wyant, CIPS, ABRŪ, broker of Wyant Realty in Ormond Beach, Fla.

But in order to succeed, you must know how to convert foreign currencies and foreign measurements, said Wyant, who instructed a two-day prerequisite course for REALTORSŪ seeking to earn their Certified International Property Specialist designation.

Tips for Working With Foreign Numbers

• Get real-time rates. American buyers who’re interested in properties across the border often ask: “How much does it cost in real money?” Of course, what they really mean, is how much does the property cost in U.S. currency. When converting foreign currencies to U.S. dollars, or vice versa, be sure to use real-time conversion rates. You can find such rates easily on Web sites such as www.XE.com, which is Wyant’s personal favorite.

• Know the magic number: 10.7639. U.S. buyers can’t always envision how large a square meter is. Yet that’s how properties in most countries are measured. Remember that one square meter is more than 10 times larger than a square foot. Just multiply the total square meters of a property by 10.7639 to calculate the number of square feet.

• Per month or per year? When evaluating commercial properties in other countries, you’ll find that rental rates are typically given on a per-month basis. U.S. properties use per-year figures. Be sure to find out how rates are calculated so your clients will understand the true cost of a rental property.

“Every market is becoming more and more international,” said course attendee Michael Petrone, a practitioner with RE/MAX Plus in Rochester, N.Y. “The CIPS designation absolutely gives you a marketing edge. It's the smartest thing you can do for your business.”

—Kelly Quigley