In a relatively uncertain real estate market with lenders exercising strict lending practices, finding qualified home buyers can be daunting. However, there is a pool of qualified buyers who are otherwise neglected: International Buyers.
With a continually expanding global economy, local real estate has the potential of reaching home buyers anywhere in the world. The U.S. real estate market has always been an attractive investment vehicle for foreign buyers, who place emphasis on America’s strong private property rights and historically, long-term market stability.
According to a report by the National Association of Realtors®, for the time period ending 1Q2010, purchases by foreign buyers (those whose main residence is outside of the United States) accounted for $907B, a 4.45% share of the residential market. And although purchases by foreign buyers were reported in 39 states, there was a heavy concentration in California, Florida, Arizona, and Texas.
Furthermore, 55% of foreign buyers are cash buyers, due in large part to difficulties in financing real estate purchases in the U.S. Compare that to 92% of Americans who finance their home via a mortgage.
So how can real estate professionals market to international buyers? Continue reading this post