Foreign buyers are attracted to the homes available in the United States. Over $102 billion was spent by international buyers in the mortgage industry last year. Over 40 percent of people in this demographic chose to purchase properties in warmer climates, typically for investment or vacation purposes.
Looking abroad for potential clients is the key. As the reason to purchase a new property varies with Americans, it varies with global buyers as well. Some are interested in investment properties, others may want a residence while working in the U.S., or they may be purchasing a home for their children attending school here.
Foreign buyers spend an average of $477,500. The average American spends $266,683, when comparing all existing-home sales.
Identify the Markets
Find the markets in your area that attract foreign buyers.
Identify Countries of Buyers
Utilize a resource for this task rather than guessing. The U.S. Census Bureau’s American FactFinder, maps from the Migration Policy Institute, and NAR are each great starting points.
Connecting with people is crucial, especially face – to – face. Try reaching out to local companies that employ workers from abroad.
Most international buyers will share and network for you, so stay connected to them. For many, this business relationship will be their foundation in America for themselves and their family.
Check the Laws
Real estate laws and practices differ significantly from country to country, and various government regulations are required of foreign buyers in the U.S. (Establishing a relationship with an attorney who is knowledgeable of foreign tax laws and treaties will be additionally helpful.)
Educate the Client
Educate foreign clients on the basics of the U.S. real estate industry. For example, explain licensing requirements, agency relationship, commissions, and that real estate laws are all state-specific. Additionally, an explanation of financing may need to take place as well.
In 2016, 50 percent of foreign buyers paid cash for their properties. All cash transactions over $10,000 must be reported to the U.S. Federal Government.
Working with foreign buyers may require a large devotion of time and research, however the housing market is full of opportunities to capitalize upon.