Interest grows with international buyers
Do you speak more than one language? If you’re in the real estate business or just selling your home or investment property, knowing a second language could prove to be very helpful. The problem is the language you might need to know is Chinese.
According to the National Association of Realtors, interest in U.S. properties continues to grow in the international community. Wealthy Asian buyers from mainland China, Singapore and South Korea are buying up both big ticket commercial real estate as well as residential properties with a motivation and savvy not seen before. They are, in fact, the world’s fastest growing property buyer demographic with one third of Chinese millionaires having overseas assets.
The U. S. is viewed as a desirable location to invest in real estate where the market is regarded as profitable for investment. Although buyers come from many countries, the five countries that have historically accounted for the bulk of purchases are Canada, 23 percent; China, 12 percent; Mexico, 8 percent; India, 5 percent; and the United Kingdom, 5 percent. These five countries account for approximately 53 percent of transactions.
Canadian buyers purchase primarily in Florida, Arizona and California. Chinese buyers who tend to purchase in the upper price ranges typically purchase in California and Mexican buyers purchase in California and Texas. In addition, five states make up 61 percent of reported purchases by international buyers: Florida, 23 percent; California, 17 percent; Arizona, 9 percent; Texas, 9 percent; and New York, 3 percent. The majority of international buyers purchase single-family homes, and 63 percent use all cash.
So what do all these statistics mean to Florida and specifically to Anna Maria? Essentially, it means that with Florida the leading state for international buyer’s real estate professionals and private sellers need to maximize their efforts to attract these buyers to their properties.
Because of the Internet marketing, properties internationally is easy and cost effective, which may actually be sparking this interest with international buyers. Easy access is the key with user friendly web-sites that come up fast and contain a high number of online photos and videos.
If you’re aiming at the international market, it is important to provide a very detailed description of the property, its assets and location. Obviously, on Anna Maria, proximately to the beach and detailed descriptions of water views and water access for boating are mandatory.
Also, if the property has been used as a rental or has the potential for a rental, indicating the approximate income an international buyer can anticipate, will make the property stand out for international buyers who will be part time residents and investors.
Since many of the international buyers on Anna Maria come from Canada and the United Kingdom, print advertising in targeted regions should be considered, as well as print advertising in local Florida media that are traditional vacation areas for these buyers. This latest international buyer trend reminds me of the Japanese purchasing high end real estate in the U.S. early in the 1990s. The preferred marking tool at that time was print advertising in Japanese newspapers, which I must admit I did. It’s interesting to see your name stand out at the end of the property description in Japanese.
International buyers bring with them good news for the real estate market. There are a lot of them, their numbers are increasing and they come with cash. You may not really need to learn Chinese, but you will need to learn to think like an international buyer but it will be worth it.