If you look back 15 to 20 years, you would likely see a trend of foreign buyers who, for the most part, were interested in purchasing luxury real estate or condominiums when investing in real estate here in the United States. However, this trend has changed in recent years, with more and more foreign buyers looking to purchase homes elsewhere. In order to best appeal to foreign buyers, it is important to know what they are looking for in the current housing market. Here are a few tips to appeal to the majority of foreign buyers in today’s purchasing climate.
1. The majority of foreign buyers are now looking to purchase homes as permanent residents, as opposed to a home where they reside for only part of the year. While there are still many people looking for luxury vacation homes or condos, most (~60%) are actually living full-time in the homes they purchase, either as recent immigrants or with work or student visas. While focusing on non-resident buyers can still be an important and lucrative aspect of your strategy, knowing that the majority are actually looking for something more permanent can help shift that focus to appeal to even more foreign buyers with a wider range of options.
2. Resident foreign buyers spend more on average than the typical U.S. buyer. A typical buyer will spend roughly $278,000, whereas a typical foreign resident buyer will spend around $473,500. Although not all foreign clients will spend more than your average American buyer, it is worth noting that many will be looking for homes in areas of town where the average price is within this range.
3. Not only are they spending more on average, foreign resident buyers are beginning to purchase homes in suburbs, small towns, and other rural areas more often than they purchase within larger cities. This could largely be accredited to things like a stable family situation and making sure they choose a home in a good school district with safe areas for their children to play, so keep these types of things in mind when looking to appeal to these buyers, especially those with school-age children.
Not every potential client you encounter will fall into the “average foreign buyer” category, of course, so the most important thing to consider will be each and every client’s individual needs and desires when it comes to home ownership. However, knowing what trends are current and on the rise when it comes to home ownership for foreign buyers in the U.S. can help put you a step ahead of your competition when it comes to appealing to this demographic, helping you become a leader in your area when it comes to foreign home buyers.