Realtors Offer Guidance for Foreign Buyers
Foreign buyers continue to see the U.S. real estate market as a secure and safe investment as Realtors®, members of the National Association of Realtors®, are experiencing an increase in the number of international clients over the past five years, according to a report from the National Association of Realtors®.
NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017.
“Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year, 18 percent reported closing a deal for an international client. Realtors® have the expertise and knowledge of working with clients from different countries and real estate practices, so international buyers using a Realtor® are at a true advantage and can rely on their global market perspective,” said Brian DiBartolomeo of Cherry Hill Real Estate in Pontiac, Michigan.
The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million. “Foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, helping the profile of smaller commercial markets grow,” said DiBartolomeo.
“Realtors®’ international clients found U.S. commercial real estate markets to be a good value last year. Seventy percent of Realtors® reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” said DiBartolomeo
The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).
Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
DiBartolomeo notes, “ On the single family home front, we see a greater concentration of Israeli buyers in the Metro Detroit area.”
Foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash.
NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.
Cherry Hill Real Estate | Aspect Properties are members of both the North Oakland Board of Realtors as well as the Commercial Board of Realtors and can help you with your investment questions.