International buyers are more likely to make all-cash purchases when compared to domestic buyers, data from the National Association of Realtors 2014 Profile of International Home Buying Activity showed.
In the first months of this year, nearly 60 percent of reported international transactions were all cash, compared to only one-third of domestic purchases. Mortgage financing tends to be a major problem for international clients due to a lack of a U.S. based credit history, lack of a Social Security number, difficulties in documenting mortgage requirements and financial profiles that differ from those normally received by financial institutions from domestic residents.
“Foreign buyers who choose to work with a Realtor have a substantial advantage,” said NAR President Steve Brown, co-owner of Irongate, Inc. Realtors in Dayton, Ohio. “Realtors who have completed the Certified International Property Specialist designation have received specialized training and are prepared to help clients with the unique difficulties of being an international buyer. CIPS designees understand the challenges buyers face when purchasing property in the U.S., and have the experience and expertise to help them navigate the complex, time-consuming and overwhelming world of international real estate.”
Most homes purchased by foreign buyers, about 42 percent, are used as a primary residence. Non-resident foreigners are limited to 6-month stays in the U.S., so these buyers largely use the property for vacation or rental purposes or as an investment. Approximately 65 percent of purchases involved a single-family home. Nearly half of international clients preferred properties in a suburban area, about a quarter preferred a central city or urban area, and about 13 percent choose to purchase in a resort area.
International buyers come from all over the world, but Canada, China (The People’s Republic of China, Hong Kong and Taiwan), Mexico, India and the U.K. accounted for approximately 54 percent of all reported international transactions. Canada maintained the largest share of purchases, dropping from 23 percent in 2013 to 19 percent in 2014; however, China held the lead in dollar volume, purchasing an estimated $22 billion with an average sale cost of $590,826.
China was also the fastest growing source of transactions, now accounting for 16 percent of all purchases, up four percent from last year. Mexico ranked third with 9 percent of sales and India and the U.K. both accounted for five percent.
Foreign buyers who are looking for property or offshore investors who want to make real estate investment in the U.S. but has no time to make on-site visits of the properties they are eyeing can take opt to take online virtual tours instead.
RealBiz Media Group, Inc. (OTC:RBIZ) provides real time customized videos, an intuitive analytics dashboard, and professional video creation, editing, rendering and syndication functionalities. RealBiz’s solutions allow real estate investors to view the property at the comfort of the Internet.
Nestbuilder.com was developed by Florida-based digital media company RealBiz The company is also known for creating proprietary video marketing systems such as the Microvideo App, a platform which agents can use to create dedicated pages for their listings, as well as videos, events and news entries that they can cross-post on their social media accounts. The platform is also equipped with an analytics dashboard that agents can use to monitor and customize their campaigns.
Several studies suggest that potential home buyers watch virtual tours before visiting a property. Realtor.com found in 2006 that 54 percent of home buyers “will not look at a property unless it contains a virtual tour.” It also found that listings were visited by 87 percent more “if they include a virtual tour.”
RealBiz, a real estate digital media and technology company has a pool of over 250,000 real estate agents and brokers readily accessible and legitimate.
