If you’re a real estate agent, it’s important to be aware of the needs and wants of foreign investors. Here are three things you should know.
Every year, buyers from countries like China, Brazil, Canada, and England spend billions of dollars (often in cash) in United States real estate. Foreign home buyers can be very profitable clients for real estate agents. Sources say the number of billionaires in China outnumber that of the United States. On average, foreign buyers pay $315,000 per property. Real estate agents should develop the knowledge and cultural expertise to successfully do business with these foreign home buyers. Here are three things a real estate agent should know about foreign investors.
1. Buyers from which country will be most interested in your home?
In order to determine the country to target for your property listings, first have an understanding of the city and its neighborhoods. Just as immigrants tend to cluster in their own communities, foreign buyers tend to buy near people from their own countries. For example, home buyers from Asian countries like China and Korea have the largest real estate presence in California. European buyers tend to cluster in East Coast cities like New York City and Boston. Florida has the most foreign buyers out of all the states and most of the action is by buyers from Canada and Brazil. Not all foreign buyers will have had a chance to live in the city they are investing real estate in, so word of mouth back at home is what they have to go by. If your city has a popular university for international students, like NYU in New York or Harvard in Boston, then your marketing material should be aimed at the parents of these students.
2. Have an online presence
Buyers from many countries use the internet to look for homes to buy. Sites such as Realtor.com and Zillow.com are used throughout the globe and are a starting point for many international buyers. Develop a good online reputation in these real estate listing sites to attract the most buyers. Put up high quality photos and videos of each property. If there is a messaging option, make sure to respond to potential buyers promptly. If you sense that the buyer does not have a good grasp of English, consider investing in a professional translator to help you communicate with your foreign clients.
3. Foreign buyers can qualify for mortgages
Not all foreign buyers will have millions or billions of dollars in cash to pay for their properties. Some buyers will be normal middle class people who want to invest their money in a safe real estate market. It is possible for foreigners to obtain a mortgage if they have at least a 30 percent down payment. Keeping this option open for your clients will broaden the range of properties that they can afford.
As you can see, foreign investors have poured billions into the American real estate market and make up an important client pool for real estate agents. A little effort into accommodating their special needs can result in big payoffs for real estate agents.
