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REALTOR®: International sales climb in the U.S.

Wednesday, June 27, 2012

Low home prices and a relatively weak dollar are fueling more purchases of U.S. property by international buyers and investors. The National Association of REALTORS®  2012 Profile of International Home Buying Activity indicates total residential international sales in the U.S. for the past year ending March 2012 equaled $82.5 billion, up from $66.4 billion in 2011. Sixty-two percent of international purchases were all cash.

Total international sales were evenly split between non-resident foreigners and recent immigrants. California was second after Florida in attracting many international buyers, and accounted for 11 percent of foreign purchases.

At a program jointly presented by the Women's Council of REALTORS® Santa Clara Valley Chapter and the Silicon Valley Association of REALTORS®, Jennifer Tasto, a REALTOR® with Property Services, Inc. in Burlingame, and Juliana Lee, a REALTOR® with Realty World in San Jose, said Asian buyers tend to purchase property in California because the state is close to their home country, they already have relatives and friends in the state, and they prefer the climate in the West Coast.

In some countries like China, homeownership is not an option because land is government owned and controlled. "When foreigners consider buying property here, they often ask if the land is included," said Lee.

The growing interest in the purchase of U.S. property by international buyers has prompted local real estate professionals to expand international operations. "We are in the middle of Silicon Valley. If you don't pay attention to what's going on right now, it will pass you by," said Tasto.

Tools are available to prepare REALTORS® to work with international buyers. NAR's Certified International Property Specialist (CIPS) designation educates REALTORS® on culture, exchange rates, investment trends, and legal issues.

An international multiple listing service (MLS) makes U.S. residential listings available to buyers across the globe. Janet Case, CEO of Proxio, said the international MLS currently promotes listings in 19 languages in over 100 countries. In addition to increasing exposure of U.S. properties in global markets, Proxio connects REALTORS® with each other globally. The international MLS "reaches across the borders that are disappearing, allowing REALTORS® to connect to each other," said Case.

International buyers still experience many financing challenges when purchasing a home in the U.S., due to lack of U.S.-based credit history, mortgage requirements, taxes and immigration laws.  Ken Chan of HSBC said requirements of mortgage lending are different for new immigrants and foreign nationals (tourists). He also cautioned against large deposits.

Chan advises REALTORS® to educate their foreign clients on how home purchases are done in the U.S.  "Make sure they get organized, that they get their account in order before applying for a mortgage," said Chan.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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