International Real Estate: More Overseas Buyers for American Properties

MarquetteTurner.com reports that a recent survey of the National Association of Realtors for American properties, found that in the 12 months to March 2010, real estate professionals saw a marked increase in the interest of buyers from overseas. And just four states — Florida, California, Arizona and Texas — accounted for 53% of all purchases!

“The figures suggest that foreign buyers, witnessing a depressed US housing market, were bargain shopping, and there were plenty of bargains to be had,” states MarquetteTurner.com on its site. “And with credit being harder to come by, with more hoops to jump through, there’s no surprise that with 55% of foreign buyers purchasing in cold, hard cash, that they managed to squeeze bargains.”

In fact, I have witnessed this myself — for years — in our Los Angeles markets and have had many occasions to help investors from other countries “get in on” the opportunities provided by our LA lifestyle! Los Angeles holds great appeal for the rest of the world, and every day someone is relocating here from overseas, or buying an additional home in one of our Southern California communities.

I recently participated in the coursework that will complete my requirements to receive the Certified International Property Specialist (CIPS).

This particular designation is offered by the National Association of Realtors, and requires intensive class time as well as significant experience working in transactions with buyers from overseas.

The last round of classes I attended were held at the South Bay Board of Realtors in Torrance, California, and provided me with an opportunity to spend a few days with a talented, dynamic group of Realtors — from different parts of the world — who have chosen to focus a segment of their real estate business on serving the needs of clients wanting to transact internationally.

While many interesting and valuable topics were discussed, what I found most intriguing was the opportunity to learn about the cultural differences among real estate investors from different countries.

Signified in the title of Terri Morrison’s book, Kiss, Bow or Shake Hands, the question of how to greet and conduct ones self in cross-cultural relationships is imperative.

To learn that crossing my legs in a meeting with clients from some middle-eastern cultures would be hugely insulting to them was both interesting and hugely valuable. (Morrison’ book is a must read for anyone going into an interaction with a client from another culture).

Having had the opportunity to refer clients to real estate professionals in other countries in the past, it was most helpful to learn there are professional associations, much like the National Association of Realtors in the US, in most foreign countries, which, like NAR, require members to agree to adhere to a strict code of ethics. For me, this will simplify the process of referring clients internationally in the future and help me to know that I am introducing my clients to overseas professionals who have been vetted, and meet a high standard of criteria.

These courses are packed with intricate information about international real estate, and are not for the feint of heart! We learn about:

• the influences of our global markets on real estate trends and values
• critical aspects of transnational transactions
• real estate ownership requirements in other countries
• regional market conditions
• trade alliances and growth triangles
• investment performance
• tax issues
• religions of the world
• and financing opportunities at home and abroad.

To learn more about the requirements to earn a CIPS designation — which include historical experience transacting internationally — or if you or someone you know has questions about investing internationally or experiences to share, please leave a comment or phone me at 310-345-6911. I’d love to hear from you.

David Findley grew up on a farm where, every morning before sunrise, he would share a bowl of Neopolitan ice cream with his grandfather. Today, David loves high-technology and gadgets, and he wonders what his grandfather would say if he could hold an iPad.

David is a Founding Partner of Partners Trust; he specializes in Los Angeles Estate and Lifestyle Properties; you can connect with David on Facebook.

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