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| As a follow up to this Survey, the NAR Research Division created "The 2004 National Association of REALTORS® International Real Estate Profile" in July, with an introduction by Ellen Roche. Access this new report (in PDF format)>> 
NATIONAL ASSOCIATION OF REALTORS® International Business Survey Survey Findings Presented to International By Marketing Research May 2004 To understand the international real estate needs of NAR’s members, nearly 30,000 REALTORS®, including all U.S.-based CIPS Network members, were invited to respond to an online survey in the spring of 2004. The response rate resulted in the survey having a 95% level of confidence, meaning you can be 95% certain that the entire relevant population would respond the same way as did the survey respondents. The survey was designed by NAR’s Research group with input from the International Operations group. Below is the final survey data report. An executive summary and analysis section is currently being prepared by NAR Research and will be added to this site when it is complete. Purpose and Scope A total of 453 Residential members and 102 commercial members participated in this survey. This number is a large enough response rate for answers to be considered statistically significant. At the 95% level of confidence, the statistical error is: +/-4.5 for Residential and +/-9.7 for Commercial The purpose of the survey was to gage how well NAR is serving International members’ interests and meeting their specific business needs. Findings are presented in a Summary of Key Findings followed by details in the Key Findings section. Sample Size Terminology As an example: The confidence interval is the plus-or-minus figure usually reported in survey results. For instance, if you use a confidence interval of +/-4.5 and 47% percent of your sample picks “answer B”, it is highly likely that if you had asked the question of the entire relevant population between 42.5% (47%-4.5) and 51.5% (47%+4.5) would have picked that answer. The confidence level provides a percentage of likelihood that the entire relevant population will respond within the percent range of the confidence interval. The 95% confidence level means you can be 95% certain. In this survey, when you put the confidence level and the confidence interval together you can say that you are 95% sure that between (X% - 4.5) and (X% + 4.5) of the entire relevant population would respond in the same way. ‘X’ equals the percentages reported in this summary for each individual question. Other Terminology Throughout this report you will see references to the statistical median and mean. The median is the middle of a distribution: half the scores are above the median and half are below the median. The median is less sensitive to extreme scores than the mean and this makes it a better measure than the mean for highly skewed distributions. The median income is usually more informative than the mean income, for example. The majority are not at all familiar with the International Consortium of Real Estate Associations (ICREA) and/or www.WorldProperties.com. Commercial Findings: Permanent Resident Aliens Fifty-six percent (56%) of respondents attribute 1-20% of their 2003 inquiries to permanent resident aliens. Forty-three percent (43%) attribute 1-20% of their 2003 commercial transactions (sale or lease) to permanent resident aliens, on at least one side of the transaction. Referrals helped commercial respondents attract the business of permanent resident aliens (70%). The following property types were often the focus of transactions with permanent resident aliens:
Commercial Findings: Nonimmigrants Forty-one percent (41%) of respondents attribute 1-20% of their 2003 inquiries to nonimmigrants. Thirty percent (30%) attribute 1-20% of their 2003 commercial transactions (sale or lease) to nonimmigrants, on at least one side of the transaction. Referrals helped commercial respondents attract the business of nonimmigrants (74%). The following property types were often the focus of transactions with nonimmigrants:
Commercial Findings: Foreign-Born U.S. citizens with unique needs Forty-one percent (41%) of respondents attribute 1-20% of their 2003 inquiries to foreign-born U.S. citizens. Thirty-four percent (34%) attribute 1-20% of their 2003 commercial transactions (sale or lease) to foreign-born U.S. citizens , on at least one side of the transaction. Referrals helped commercial respondents attract the business of foreign-born U.S. citizens (51%). The following property types were often the focus of transactions with foreign-born U.S. citizens:
Commercial Findings: Foreign Companies or Agencies Forty-two percent (42%) of respondents attribute 1-20% of their 2003 inquiries to foreign companies or agencies. Thirty-one percent (31%) attribute 1-20% of their 2003 commercial transactions (sale or lease) to foreign company or agency , on at least one side of the transaction. Referrals helped commercial respondents attract the business of foreign companies or agencies (73%). The following property types were often the focus of transactions with foreign companies or agencies:
Commercial Findings: U.S. citizens purchasing or leasing foreign property Fifteen percent (15%) of respondents attribute 1-20% of their 2003 inquiries to U.S. citizens purchasing or leasing foreign property. Nine percent (9%) attribute 1-20% of their 2003 commercial transactions (sale or lease) to U.S. citizens purchasing or leasing foreign property, on at least one side of the transaction. Referrals helped commercial respondents attract the business of U.S. citizens purchasing or leasing foreign property (88%). The following property types were often the focus of transactions with foreign companies or agencies:
Commercial respondents identified the primary purpose for purchasing or leasing for each of the following groups.
Over the past five years, respondents’ businesses have not experienced change when dealing with permanent resident aliens (39%), nonimmigrants (42%), foreign-born U.S. citizens (49%), foreign companies and agencies (51%), and U.S. citizens purchasing or leasing property in a foreign country (76%). Residential Findings: Permanent Resident Aliens Sixty-one percent (61%) of respondents attribute 1-20% of their 2003 inquiries to permanent resident aliens. Fifty-eight percent (58%) attribute 1-20% of their 2003 residential transactions (sale or lease) to permanent resident aliens, on at least one side of the transaction. Referrals helped residential respondents attract the business of permanent resident aliens (74%). Residential Findings: Nonimmigrants Forty-seven percent (47%) of respondents attribute 1-20% of their 2003 inquiries to nonimmigrants. Thirty-eight percent (38%) attribute 1-20% of their 2003 residential transactions (sale or lease) to nonimmigrants, on at least one side of the transaction. Referrals helped residential respondents attract the business of nonimmigrants (79%). Residential Findings: Foreign-Born U.S. citizens with unique needs Forty-two percent (42%) of respondents attribute 1-20% of their 2003 inquiries to foreign-born U.S. citizens. Thirty-eight percent (38%) attribute 1-20% of their 2003 residential transactions (sale or lease) to foreign-born U.S. citizens , on at least one side of the transaction. Referrals helped residential respondents attract the business of foreign-born U.S. citizens (75%). Residential Findings: Foreign Companies or Agencies Nineteen percent (19%) of respondents attribute 1-20% of their 2003 inquiries to foreign companies or agencies. Thirteen percent (13%) attribute 1-20% of their 2003 residential transactions (sale or lease) to foreign company or agency, on at least one side of the transaction. Referrals helped residential respondents attract the business of foreign companies or agencies (80%). Residential Findings: U.S. citizens purchasing or leasing foreign property Fourteen percent (14%) of respondents attribute 1-20% of their 2003 inquiries to U.S. citizens purchasing or leasing foreign property. Seven percent (7%) attribute 1-20% of their 2003 residential transactions (sale or lease) to U.S. citizens purchasing or leasing foreign property, on at least one side of the transaction. Referrals helped residential respondents attract the business of U.S. citizens purchasing or leasing foreign property (83%). Residential respondents identified the primary purpose for purchasing or leasing for each of the following groups.
Over the past five years, respondents’ businesses have experienced some change:
Respondents Overall – International Business Respondents, as a whole, were asked to indicate if they’ve been involved in International transactions. Thirty-four percent (34%) have conducted transactions with permanent resident aliens purchasing or leasing property in the USA. Permanent resident aliens are defined as non-citizens residing in the U.S. with no intention of returning to their countries of origin who may or may not seek future citizenship. Percents may not add to 100% because respondents were able to select more than one answer. The survey defined nonimmigrants and foreign-born U.S. citizens as follows: Nonimmigrants Nonimmigrants are defined as aliens residing temporarily in the U.S. for reasons such as vacation/work or other, but who have retained a permanent address in their country of origin with intentions to return in a specified time frame. Foreign-born U.S. citizens with unique needs Foreign-born U.S. citizens with unique needs are defined as those whose native culture featured predominantly in the transaction in some way, e.g., language, cultural norms (feng shui, extended family needs, gender based decision making process), foreign source of financing, etc. The majority are not at all familiar with the International Consortium of Real Estate Associations (ICREA) and/or www.WorldProperties.com. Those who are very familiar, somewhat familiar, or somewhat unfamiliar with ICREA and/or www.WorldProperties.com indicate that they have not registered at www.WorldProperties.com (81%).
Percents may not add to 100% because respondents were able to select more than one answer. Restaurants were most commonly mentioned under “other.” Few participants provided information on location and the permanent resident aliens’ countries of origin. Conducting business in another country comprises a median of one percent (1%). Those who shared this information mentioned Africa, South America, and/or Asia. Forty-one percent (41%) of respondents attribute 1-20% of their 2003 inquiries to nonimmigrants. Thirty percent (30%) attribute 1-20% of their 2003 commercial transactions (sale or lease) to nonimmigrants, on at least one side of the transaction. Referrals helped commercial respondents attract the business of nonimmigrants (74%). Percents may not add to 100% because respondents were able to select more than one answer. Those that selected “other” mention trade shows, signs, floor time, and a 1031exchange. The following property types were often the focus of transactions with nonimmigrants: · Retail (36%) ; Office (36%) · Industrial (31%) · Multifamily (28%) Percents may not add to 100% because respondents were able to select more than one answer. Residential property was most commonly mentioned under “other.” Few participants provided information on location and the permanent nonimmigrants’ countries of origin. Conducting business in another country comprises a median of five percent (5%). Those who shared this information mentioned South America, Australia, Europe and/or Canada.
Over the past five years, respondents’ businesses have not experienced change when dealing with permanent resident aliens (39%), nonimmigrants (42%), foreign-born U.S. citizens (49%), foreign companies and agencies (51%), and U.S. citizens purchasing or leasing property in a foreign country (76%).
Over the past five years, respondents’ businesses have experienced some change: · slightly increasing business with permanent resident aliens (42%) · slightly increasing business with nonimmigrants (41%) · no change in business with foreign-born U.S. citizens (50%) · no change in business with foreign companies or agencies (72%) · no change in business with U.S. citizens purchasing or leasing property in a foreign country (80%).
The top four U.S. states in which business is conducted are:
Fifty-eight percent (58%) get their information on foreign markets from the Internet. Percents may not add to 100% because respondents were able to select more than one answer. The most common responses listed under “other” were NAR, CIPS, and/or trade magazines. Seventeen percent (17%) of respondents indicate that their gross personal income in 2003 from all real estate activities was between $75,000-$99,999. Eighty percent (80%) indicate that their race/ethnicity is white. Percents may not add to 100% because respondents were able to select more than one answer. Hispanic was listed under “other” most often. Overall respondents are not of Latino, Spanish, or Hispanic background or ethnicity (86%) Thirty-nine percent (39%) indicate that they are somewhat aware or very aware of the services the Certified International Property Specialists (CIPS) Network offers real estate practitioners. Respondents indicated the three most important products/services that NAR could provide its members in the international arena as: · National and International networking opportunities with non-U.S. professionals (55%); A secure, reliable transnational referral system (55%) · Information on country business practices worldwide (38%) · Other (39%) - Referrals and translation services were mentioned most often under this category. Fifty-eight percent (58%) belong to an independent non-franchised firm. Those belonging to a franchised firm indicate that they are part of Century 21, Prudential, ReMax, Coldwell Banker, Keller Williams, or ERA. Among the most important action steps NAR’s International Operations can take would be to offer networking sessions, more events other than NAR meetings, property listings worldwide, referral services, education, and/or market studies. Download this report in MS Word: |
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