International buyers invest billions of dollars in the U.S. housing market. They view the United States as a place offering favorable opportunities.
Attracting foreign buyers has its challenges, but the benefits should not be ignored. According to the National Association of Realtors (NAR), the national dollar volume of foreign buyer residential purchases during April 2019 to March 2020 accounted for $74 Billion.
With this, the top destinations for international buyers are Florida attracting 22% of foreign buyers, California with 15%, Texas 9%, New York accounted for 5% of foreign buyers and New Jersey at 4%. Other major destinations include North Carolina, Arizona, Minnesota, Georgia, Illinois and Virginia.
“NAR reports that foreign buyers tend to flock to specific areas of the country. For example, many buyers from Asia purchase property in California. Mexican buyers tend to buy homes in the Southwest, while Canadians and Europeans are attracted to the East Coast.” Thus, publishing your properties internationally is a start but it is necessary to be aware of some tips for success to connect with the buyers.
Know Your Buyer
It is important that when you work with foreign buyers, you remain persistent. Get to know your buyer as well as their property requirements, hobbies and culture. Then, prepare for potential questions your clients may have. Such questions include the cost of living, educational opportunities, healthcare system and possibly things to do in the area.
Respect Cultural Differences
Succeeding in the global real estate market entails a lot of patience and respect for cultural differences. Consumer behavior is strongly influenced by culture, where the western culture is different from the eastern culture. Thus, understanding the clients’ customs are one major skill that directs the success of acquiring an international buyer.
It is important to build a network across the globe. Partnering with other real estate agents in the country of your potential buyer is important. Establishing partnerships also increases your knowledge of your potential buyer’s culture. Having a website or a social media platform where you
can showcase your listings allows you to connect with almost anyone in the world. This will surely help define your overall marketing strategy.