CIPS designation helps Realtors expand their business to global real estate

Certified International Property Specialist (CIPS) courses offered by the Silicon Valley Association of Realtors began last week, with students logging on to classes virtually from the San Francisco Bay Area and other parts of California, Arizona, Florida, Chicago, Ill., and Texas. The CIPS Institute provides training in international business issues, including currency conversion, cultural awareness, legal and tax requirements, transaction principles of international real estate, and specifics about the real estate markets in Europe, the Americas, and Asia.

Taking two required core courses and three electives will fulfill the classroom requirements to earn the National Association of Realtors CIPS designation. The core course on Global

Real Estate: Local Markets taught by CIPS instructor Christel

Silver last week, is an introductory course providing students an overview of the international real estate business environment, including capital flow, currencies, government regulations, and cultures around the world.

“The CIPS designation gives Realtors an edge over other agents when dealing with foreign clients,” said Silver, who is based in Florida and has been teaching CIPS courses for over 10 years. “Global real estate opportunities are everywhere.

People move from other countries to the U.S. and foreign-born individuals residing here move to new markets. Others look to invest in property overseas. The training Realtors receive and tools they learn in these courses will bring value to their clients.”

Anita Rodal, president of SBPI Services, Inc., was the course Sponsor of the Day. Rodal spoke on the foreign currency exchange market, an important topic in the CIPS curriculum.

“Currency exchange matters because your potential clients move around the globe every day for both personal and business reasons. The exchange rate affects real estate investors, those seeking to find a safe haven for cash taken out of their home country, importers, manufacturers, multinational corporations,” Rodal told Realtors attending the class.

Rodal indicated the foreign currency exchange market is the largest financial market in the world, with over $5 trillion dollars traded daily, more than 24 hours a day, six days a week. Factors that affect the exchange rates include inflation, interest rates, credit ratings, political turmoil, natural disasters, international trade laws and war.

The exchange rate seen on online rate websites are interbank rates. “Only banks get those rates,” Rodal pointed out.

Rodal explained rates fluctuate second by second. The interbank rate is frozen at the beginning of the day. Fees are imposed and vary by

bank, amount and type of account, so the exchange rate for consumers will not be the same as the online rate.

Rodal stressed the timing of a foreign exchange matters. She gave the example of a Canadian buyer who purchased a home in Miami with all cash. In July, the exchange rate was a favorable CAD/USD .9377 and the buyer’s cost would have been $533,220 CAD.

The buyer did not lock in the rate. In August, at closing, the exchange rate

was at the unfavorable rate of CAD/USD .9112. The buyer’s cost amounted to $549,028 CAD.

The exchange rate raised the cost of the buyer’s home by 3% in just a single month, amounting to $15,808 CAD or $14,422 USD.

To mitigate risks of rate fluctuations, Rodal advises buyers of foreign currency to lock in for up to two years with forward contracts. She suggests using a holding account, like Moneycorp, which provides this service and does not charge incoming or outgoing foreign wire transfer fees.

In 2021, NAR reported 4,100 of its four million members have earned the prestigious CIPS designation. Anyone can register for the CIPS

courses, but only Realtors can earn the NAR designation. For more information on the CIPS global real estate courses, contact SILVAR at (408) 200-0100.