WE MARKET TO GLOBAL BUYERS. WHY IS THAT?
We do this for several reasons. Often buyers from other countries are as strong as or stronger than US buyers. A high percentage of the Global buyers pay cash. One of our marketing strengths is the ability to contact global buyers. With the Certified International Property Specialist designation, we have opportunities to utilize marketing venues that focus on Global markets. While all property is local – our buyers aren’t.
WHY DO FOREIGN BUYERS PREFER THE UNITED STATES?
For years and for a variety of reasons, buyers from different countries have been purchasing real estate in the United States and specifically, in Florida. Florida is the country’s # 1 destination for foreign buyers followed by California. Florida’s weather, diverse population, amenities, and good transportation choices have contributed to the desirability of Florida. One of the most compelling reasons that buyers consider the US in general is that they perceive that we have a stable and safe investment climate because our markets are backed by real estate law and because our dollar is relatively stable. According to the National Association of Realtors, over the last year, we have experienced a record 49% foreign investment surge.
Statistics provided by the Miami Association of Realtors – Miami, a World Class Global Market – indicate that three of the most important factors impacting a purchase by a foreign buyer are:
1. Desirable Location
2. Secure Investment
3. Profitable Investment.
According to the National Association of Realtors, 50% of the global buyers in the United State in 2016 purchased with cash. Highlights from the NAR study indicate that Florida is the leader when it comes to Global buyers with 22% of all Global buyers purchasing in Florida.
A few facts………………….
1) Foreign buyers purchased $102.6 billion of residential property from April 2015–March 2016, a decrease from $103.9 billion in the previous 12-month period. Lawrence Yun, NAR Chief Economist indicates that this decline was primarily due to” both the increase in U.S. home prices – up 6 percent in March 2016 compared to one year ago – and the depreciating value of foreign currencies against the U.S. dollar made buying property a lot pricier last year,” says Yun. “Led by Venezuela (45 percent) and Brazil (24 percent), at least eight countries, including China and Canada, saw double-digit percent increases in the median sales price of a U.S. existing-home when measured in their country’s currency.”
2) Foreign buyers purchased 214,885 residential properties, an approximately three percent increase from 208,947 in the previous 12-month period.
3) Foreign buyers typically purchase more expensive properties.
4) Although foreigners purchased property nationwide, five states accounted for 51 percent of total residential property purchases: Florida (22 percent), California (15 percent), Texas (10 percent), Arizona (four percent), and New York (four percent).
HOW TO ATTRACT FOREIGN BUYERS
Anne Barnett took the education and training necessary to obtain the Certified International Property Specialist designation. In addition to learning and understanding that dealing with the different customs and perceptions held by buyers from different countries, we also have the opportunity to advertise in venues/media that target buyers from different countries.