Passive vs. Active Real Estate Marketing to Foreign Buyers (Part 1)

Why would one choose passive real estate marketing to foreign buyers through foreign realtors over active real estate marketing actions on his own? A human’s nature… Maybe something good will happen to me without any effort on my side? A lottery win? But you have to buy a lottery ticket at the very least!

We have already given the definitions in the previous posts of this blog: Active real estate marketing is advertising to the foreign buyers on your own and at your own expense, and the reward will come at the end as there is no real estate commission to pay or share; passive real estate marketing is just waiting for your overseas partners – the foreign realtors – to send you their foreign buyers and paying them commission on sale at the end.

The most usual perception of passive marketing is like that: You are sitting doing absolutely nothing, then a buyer from abroad falls from the sky into your lap and you have a sale. Done! But this perception is so far away from the reality as the sky is from the earth. You do nothing and for that you get nothing and this is quite fair.

The author receives requests from all kinds of international sellers almost daily: “Why do not you just send me a Russian buyer and then you get rich overnight with the huge commission?” Yes, of course, the author can just produce this buyer from her pocket… Just kidding.

The sellers who pursue the road of passive marketing to the foreign buyers usually do not come to think of the promotional work that those foreign realtors – his partners overseas – should do and the money they should spend to get this buyer, and that’s exactly because of the work and expenses incurred in marketing to find you the buyer they claim their commission on sale which is never small.

The foreign realtors have nice offices to maintain where buyers-prospects come with their needs for international real estate; they have to advertise their services to general public online and in print, and to participate in real estate shows – well, the usual overhead as for any other company; plus salaries or commissions to pay to their own agents for courting the potential buyers for international real estate, serving the buyers’ needs in information and offering any professional help before those buyers are ready to go abroad and buy any international property, and their staff should be good and thus properly paid not to let prospects escape to any competing realtors.

(To be continued)

Copyright © 2017 by Olga Kellen
All Rights Reserved

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