Using the Web and social media to sell real estate

Today I have begun my formal training as a CIPS (Certified International Property Specialist) which is the official US designation for Realtor that are specialized in dealing with transactions that involve foreigners and that can also involve properties abroad. There area about two thousand professionals with the CIPS designation throughout the world and therefore I am getting ready to join a very selected group.

One of the first key elements that I have discovered and that I want to share with you is the importance of the Corruption Perception Index is securing the trust of your potential buyer or investor. It evaluates the desirability of a whole nation as an investment platform so it is obviously the first thing the potential investor would consider before even deciding on which property to invest.

As a matter of fact, the first hurdle I have to overcome when talking to my Italian investors is convincing them that the US is a safe place for their money and that they will be able to get their profit back once the project is completed successfully or that they will be able to continue to enjoy the property they have bought for long time to come.

But now I have a new tool that I can use: the Corruption Perceptions Index calculated and published by Transparency International, a non profit organization located in Berlin that calculates every year a sort “transparency vote” for 180 nations, combining different factors like the behavior of government, the ease to conduct business or transactions, the availability of public information and so on.

The United States are classified at position 19 with a 7.5 score, as compared to New Zealand that scores at the top with 9.4 and Somalia with 1.1 at the very bottom. The vast majority of countries score below 5, like for example Italy is placed at position 63 with a score of 4.3. The UK and Germany are respectively at position 17 and 14.

The strength of the US is that it provides a very solid protection on property rights and often very transparent information on past transactions and the market and the overall perception is improving since it has climbed one position since 2006: from 20 to 19, despite the real estate bubble.

So this index can be used effectively to enlighten investors who maybe are thinking in putting their money in some other emerging markets or that reluctant in crossing the ocean.

Roberto Mazzoni