NAR, The National Association of Realtors (U.S.) published a comprehensive report 2017 PROFILE OF INTERNATIONAL ACTIVITY IN U.S. RESIDENTIAL REAL ESTATE, in which, among other things, researched the issue why some foreign buyers have not completed the purchase as planned.
The answers from about 6,000 participating in the survey American realtors have been summarized.
Here are the major reasons of failure to sell real estate to foreign buyers according to them (the total is more than 100% as multiple choices were allowed):
-Could not find a property (!) – 51%
-The property appeared to be too expensive – 31%
-Could not obtain financing – 29%
-Could not move the money from their country to the U.S. – 28%
-Immigration laws – 21%
-Exchange rate – 17%
-Property taxes – 14%
-U.S. tax laws – 11%
-Condo/maintenance fees – 10%
-Insurance costs – 6%
-Loss of home country benefits – 1%
-Personal reasons – 20%
Although the research is specific to American residential properties, it’s obvious that the major trends would be the same for any other markets, with some deviations of percentage points probably.
So, we all know that not every inquiry turns into a purchase – it’s a fact of life. But let’s see what you can do to improve your chances to sell a property internationally anyway.
While some circumstances are beyond your power, you can do a lot by adjusting your marketing to the needs of your potential foreign buyers.
Some examples:
Although you can’t change the laws of your own country and the buyer’s country, you can recommend a local professional (an immigration lawyer, accountant or mortgage broker) who might be able to help the potential buyer resolve his issues the best way possible and still go for a closing.
A very detailed description of your property including costs involved (maintenance, insurance, taxes, etc.) may save you from unnecessary inquiries of those who wouldn’t like the numbers from the start, and attract those who would become real buyers.
And the most important issue (51% mentioned it!) for the foreign buyers is an easily remedied fact that they could not find your property! Marketing is the King!
Happy blog reading,
Olga Kellen,
The Amazon Author
International Marketing Consultant and English-Russian Translator
Copyright © 2017 by Olga Kellen
All Rights Reserved
Secrets of Selling Real Estate to Foreign Buyers 