Arcadia REALTOR Magazine - July/August 2016

REALTOR®

OFFICIAL PUBLICATION OF THE ARCADIA ASSOCIATION OF REALTORS®

PROUDLY SERVING THE REALTORS® OF ARCADIA, BRADBURY, DUARTE, MONROVIA & SIERRA MADRE

ANNUAL GLOBAL ISSUE!

HOW FOREIGNERS BUY HOMES IN THE US See page 12

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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

JULY/AUGUST 2016 · ARCADIA REALTOR®

REALTOR® 2016 ASSOCIATION OFFICERS Roy Blume 2016 PRESIDENT Sylvia Ramos PRESIDENT-ELECT Kelvin Chang TREASURER Joseph Pacilio IMMEDIATE PAST PRESIDENT BOARD OF DIRECTORS Ryan Asao Julie Bencosme Cecil Griffin Fred Madjar Yvonne Rosas-Petty Irene Truong Mike Vachani

C.A.R. DIRECTORS Ryan Asao Andy Bencosme Julie Bencosme Roy Blume Margaret Garemore Joseph Pacilio Sylvia Ramos Randall Traw Mike Vachani Kelvin Wong

ASSOCIATION STAFF

Robin Allen Ext. 307 Director of Finance / Office Manager Robin@TheAAR.com Michael Beltran Ext. 302 IT Director / Webmaster Michael@TheAAR.com Brenda Faltes Ext. 304 Director of Membership & Professional Standards Brenda@TheAAR.com Jamie Hu Ext. 309 Director of MLS Data Integrity & Affiliate Liaison Jamie.Hu@TheAAR.com Stephanie Maertens Ext. 303 Director of Education & Commercial Real Estate Stephanie@TheAAR.com Laura Thai Ext. 304 Director of Broker Compliance & Member Outreach Laura@TheAAR.com Andrew Cooper Ext. 308 Chief Executive Officer Andrew@TheAAR.com

ARCADIA ASSOCIATION OF REALTORS® 601 South First Avenue Arcadia, California 91006 626.446.2115 626.446.4072 FAX www.TheAAR.com

Cooper’s Comments Thinking Globally, Acting Locally Welcome to the annual Global Issue of the Arcadia Realtor® Magazine! What a crazy and fun international summer we’ve had so far; Brexit, the European Soccer Championships, the Copa América Soccer Championships and we strategically came out with this magazine’s edition smack-dab in the middle of the Summer Olympics. Speaking of the Olympics and first place finishes, did you know the AAR was one of the very first local Realtor® associations in the entire country to start a full-fledged Global Real Estate Committee? We’ve been recognized both statewide and nationally for our global achievements and accomplishments. As an example, the AAR has won the prestigious NAR Platinum Global Council Award 2 years in a row. Less than 1% of local associations around the country receive this award so we’re very proud of these achievements.

The AAR is also the only AOR in the country to have 3 NAR President’s Liaisons to other countries. Kelvin Wong is the PL to Singapore, Nick Zigic is the PL to Austria and Fred Madjar is the PL to Bulgaria, respectively. PL’s are hand-chosen by the incoming NAR President and their role is to assist the President in fostering and continuing relationships between NAR and each respective country. The AAR is the Ambassador Association to Singapore and we’ve held this proud distinction for many years. In our ongoing efforts to help our members increase their production, the AAR is hosting another Certified International Property Specialist (CIPS) Designation Course designed to help you sell more real estate to global clients. Please see the ad located on page 14 of this magazine for more details. As a proud CIPS designation holder myself and also a CIPS segment instructor, I encourage you to consider this worthwhile course.

The AAR’s Global Business Committee has even more great events coming up including “The 2016 International Buyer Profile” class on Tuesday, September 13, “What We Can Learn From China” on Thursday, September 22, and an exclusive upcoming symposium on “Real Estate in Cuba” facilitated by NPR’s Deepa Fernandez - stay tuned for more details on that one.

The AAR is also the very first AOR in the country to offer zipForms Plus training in another language! The next training is Tuesday, September 6.

This is yet another example of the AAR being on the cutting edge when it comes to servicing our foreign-language speaking members. Continuing that theme, by design our staff speaks 6 different languages to serve our diverse membership: English, Spanish, Taiwanese, Cantonese, Mandarin and Chiu Chow. Now while I don’t speak a foreign language I do hold dual citizenship between the United States and the United Kingdom. So if you have a client from East London and you can’t understand their Cockney accent, give me a call and I’ll help translate!

On behalf of our 2016 Global Business Committee Chair, Val Wong, and the entire Global Business Committee we look forward to seeing you at some of our many Global events very soon.

Giving you a world of thanks for being a valued member,

Andrew Cooper 2

ARCADIA REALTOR® · JULY/AUGUST 2016

Chief Executive Officer

JULY/AUGUST 2016 | VOLUME 20 | NUMBER 4

Contents 7

Regular Features

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On the Cover 12 How Foreigners Buy Homes in the US When buying a home in the United States, foreign buyers often pay cash because it’s a much easier, quicker process...

Additional Content

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Cooper’s Comments

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Market Matters

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Attorney Comments

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Through the Lens

11 Online Property Portals Around the World Just like buyers in the U.S., buyers across the world tend to begin their search for the perfect home online.

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Affiliate Corner

13 Introducing the 2016 Global Real Estate Committee Our goal is to develop real estate sales and investment opportunities in the international area.

Andrew Cooper, Chief Executive Officer

Market Statistics for the San Gabriel Valley

Dave Freeman, AAR Legal Counsel

A Look at What’s Happening Around the AAR

“Twelve Questions to Ask a Moving Company” Stefanie Shook, TWO MEN AND A TRUCK®

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Six Things You Need to Know about International Real Estate Like the rest of the real estate marketplace, international real estate is shifting. Read on for a few hard facts you need to know.

10 AAR New REALTOR® Members The AAR welcomes its newest REALTOR® Members of 2016.

JULY/AUGUST 2016 · ARCADIA REALTOR®

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Market Matters Market Statistics for the San Gabriel Valley - May 2016 Single Family Homes

City

Arcadia Arcadia Duarte El Monte El Monte Glendora Glendora Monrovia San Gabriel San Gabriel San Marino Sierra Madre Temple City

Zip Code

91006 91007 91010 91731 91732 91740 91741 91016 91775 91776 91108 91024 91780

Condominiums

Sales of Price Price % Single Family Median SFR Chg from Homes ($1,000) May 2015

28 26 15 6 7 17 28 22 20 5 15 18 16

$878 $1,162 $437 $435 $445 $445 $678 $574 $875 $600 $2,160 $1,235 $738

-35.1% -8.5% -14.3% 7.4% 21.9% 0.0% -3.1% -7.1% 13.6% 3.4% -26.0% -5.7% -1.8%

SFR Only

Price Median Price & Median Condo Chg from Home Price/ ($1,000) May 2015 Sq. Ft.

Sales Count Condos

9 12 8 1 9 5 5 11 3 5 0 8 2

$669 $545 $350 $420 $440 $403 $500 $475 $385 $574 n/a $479 $570

-19.3% 6.3% -22.5% n/a -2.8% -2.4% 17.6% 1.6% n/a 17.1% n/a 10.4% -1.7%

$480 $599 $408 $392 $353 $348 $332 $437 $509 $411 $881 $550 $504

Market Statistics for the San Gabriel Valley - June 2016 Single Family Homes

City

Arcadia Arcadia Duarte El Monte El Monte Glendora Glendora Monrovia San Gabriel San Gabriel San Marino Sierra Madre Temple City 4

Zip Code

91006 91007 91010 91731 91732 91740 91741 91016 91775 91776 91108 91024 91780

Condominiums

Sales of Price Price % Sales Single Family Median SFR Chg from Count Homes ($1,000) June 2015 Condos

30 17 15 8 8 23 29 35 16 14 14 13 26

$1,154 $1,170 $458 $440 $427 $529 $670 $648 $789 $638 $2,250 $905 $777

ARCADIA REALTORŽ ¡ JANUARY/FEBRUARY 2016

-11.3% -16.3% 0.5% 9.6% 1.3% 16.3% 11.2% 9.4% 7.1% 15.2% 7.7% -2.1% 12.9%

5 6 8 1 11 9 7 7 1 3 0 2 7

SFR Only

Price Median Price & Median Condo Chg from Home Price/ ($1,000) June 2015 Sq. Ft.

$750 $583 $419 $388 $374 $345 $490 $450 $645 $513 n/a $638 $525

6.4% 6.2% 19.7% 37.1% -14.8% 11.3% 7.7% -4.7% 10.4% 22.1% n/a 72.4% 1.0%

$536 $566 $382 $375 $314 $332 $390 $485 $452 $423 $880 $567 $490

Source: CoreLogic.com

Attorney Comments

By Dave Freeman, Association Counsel

Tree Trimming Neighbors’ Trees

Seller Carry-Back / ”Subject To”

Recently, a homeowner (HO) mistakenly put up a wall on the Neighbor’s property and pruned the Neighbor’s olive trees, causing damage to the trees. The Neighbor sued, and the HO filed a claim with their insurance company. The claim for coverage was denied by the insurance company, and the court agreed with the insurance company.

“Seller Carry-Back,” refers to a seller being the bank and the buyer paying the loan to the seller. “Subject To,” refers to the buyer taking over the seller’s existing loan without formal assumption through the bank. It is usually done without the bank’s knowledge, to avoid costs, preserve a low interest rate, or because the buyer couldn’t qualify. The payments to the bank are routed through the seller, or the payer’s identity is otherwise concealed.

The wrongful act was not an accident/negligence, which is what a normal homeowner’s policy covers.

The court ruled the HO intended to erect the wall and intended to prune the trees. They did not accidentally erect the wall and prune the trees.

Suggest to your clients that they read their policies, and understand what is in them, and ask their agent, if in doubt. Never trim neighbors’ trees without a clear written agreement, or advice from your attorney.

This used to be done a great deal, years ago, when the interest rates were as high as 17% and 18%, and the existing loan frequently was 8% or 10%. The banks were not on top of recorded actions such as this kind of transfer, and some succeeded.

However, currently the red flags go up, and the lender can call the loan due, pursuant to the loan documents.

If the buyer can’t raise the money to pay off the loan, they can lose the property through foreclosure, and the SELLER’S credit is severely damaged.

If you see this type of transaction happening, strongly suggest that your clients (Buyer or Seller) consult with a knowledgeable real estate attorney BEFORE agreeing to this procedure.

City Code Requirements Different cities and counties have different requirements to close escrow. These requirements can cause last minute delays, or even prevent the close of escrow. Lenders can balk as well. All of this while time is usually of the essence.

Examples are: - Certificate of Occupancy required by some cities (can take more time than anticipated).

- Unpermitted additions that are discovered - How to compensate/ satisfy the Buyer?

- Earthquake Retrofit (mostly commercial and apartments…so far).

- Many other requirements and problems that vary from area to area.

Solution: Take your Buyer to the city early in the escrow, and convey any demands to the Seller in writing, as soon as discovered. But even more important: get help from an experienced agent in the locale and field of the property you are handling. You can’t know everything about every city and type of property, but you can bring in those that are knowledgeable where you need it.

JULY/AUGUST 2016 · ARCADIA REALTOR®

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through the lens

A Look at What’s Happening Around the AAR

“Signed Contract Now W

hat” Panel

Lunch & Learn with Matt Ahlmann &

iMortgage

Annual Membership Breakfast at Arcadia Masonic Center

ity Center AAR Receives Foothill Un

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Golden Plate Award

ARCADIA REALTOR® · JULY/AUGUST 2016

Commercial Mixer with

Committee Members

Six Things You Need to Know about International Real Estate

By Jose Perez, Executive Vice President of Global Sales, Proxio Like the rest of the real estate marketplace, international real estate is shifting.

Read on for a few hard facts you need to know.

#1

International Sales Volume Increased by 3 Percent

International real estate sales volume increased by 3 percent, while the dollar value decreased by a marginal 1 percent, largely due to a larger percentage of resident foreigners buying property compared to their non-resident foreigner counterparts.

44 percent of Survey Respondents Expect Increased Activity with International Clients this Year Agents are getting it - serving local multicultural and international client base is good for business.

#3

International Buyers Include More Resident Foreigners

Resident foreigners accounted for 59 percent of all international real estate buying in U.S. residential real estate, compared to 41 percent of non-resident foreigners. This was evenly split last year and in previous years. This means that there are more multicultural foreign buyers in your own backyard than overseas.

Brexit Changes Some Purchasing Dynamics

With the Brexit looming, most experts expect to see less buyers from the U.K. because of uncertainty and the continuing strength of the U.S. Dollar vs. the British Pound. Proxio has seen a noticeable increase in leads from the U.K. since the Brexit vote results. U.S. real estate has always been considered one of the safest real estate markets.

#5

#4

More Chinese, Less Canadians

U.S. real estate purchases by Canadians used to lead the way in international sales, but that’s clearly not the case anymore. Chinese buyers represented forty-five percent and $27 billion in sales, followed by Canada ($8.9 billion), India ($6.1 billion) the U.K. ($5.5 billion) and Mexico ($4.8 billion).

Over Twice as Many U.S. Clients are Looking to Buy Property in Foreign Countries Than Last Year

Perhaps because of property value increases and the strength of the U.S. Dollar, more and more homeowners are looking to purchase in other countries (233 percent more than last year). The countries that generated the most interest were Mexico, Costa Rica, Philippines, Colombia, Canada, Spain, Brazil, Thailand and Italy.

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#2

ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

For more information, visit http://proxio.com

#6

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ARCADIA REALTOR® · JANUARY/FEBRUARY 2015

AFFILIATE Corner

“Twelve Questions to Ask a Moving Company”

By Stefanie Shook, TWO MEN AND A TRUCK® It’s always difficult to decide what moving company your client can trust with their valuable possessions. Regardless of what company they choose, here is a full list of questions to ask when shopping around: 1. Is your moving company licensed? Only use licensed moving companies. You can look them up on the California Public Utilities Commission website. The moving company should have these license numbers displayed on their trucks and marketing materials, as well.

2. How does your company charge? For example, by the hour? Most relocation companies should charge by the hour for local moves, and often there is a one or two hour minimum. Long distance moves are regulated and will often be based on weight and miles.

3. Do you charge extra for larger items such as piano moving, large screen televisions, or any extra flights of stairs during the move? This is not unusual and will vary by company. Fees like this may be hidden - so make sure to ask!

4. What payment options do you offer? Reputable companies will accept all forms of payment. Be cautious of companies that only accept cash.

5. Is a deposit required? Most dependable companies require a deposit to hold your move. Most deposits are refundable within a certain number of days prior to your move if you cancel.

6. Do you have full-time employees or do you use temps and day labor? Be cautious of companies that use temps or day labor because they may not be properly insured or trained.

7. Do you carry Workers’ Compensation for your employees? Reputable companies will carry Workers’ Compensation giving you peace of mind as a customer.

8. What kind of training have your movers and drivers completed? Reliable companies should be able to tell you what training their employees have gone through to prepare them for the job. Again, be wary of temporary or day laborers, who have most likely not gone through proper training.

9. Are items insured during the move? Even if a mover is bonded and insured, it doesn’t mean your items are covered during the move. California requires a moving company to put a valuation of 60¢ per pound of coverage but if you think your items are worth more than that, you should be able to insure for more coverage.

10. What kind of cancellation policy do you offer? You should always be able to cancel or postpone up until a few days before your move without paying a cancellation fee. Most companies will require a cancellation fee if you cancel within 24 to 48 hours before your move, though.

11. Do you offer free moving quotes? Never pay for an estimate! For homes larger than three bedrooms, try to get an on-site estimate completed by the moving company. Be thorough in identifying all the items you need moved. Don’t forget the basement and the attic.

12. What is the contact number for the day of the move should any challenges arise? A reputable mover will provide a contact number in which you can reach a team member at any time.

It’s also wise to check with your state’s moving and storage association to learn local regulations that apply to movers in your area. After getting clarification on these 12 questions, your clients should be fully prepared to book their mover with confidence!

Stefanie Shook, TWO MEN AND A TRUCK®. For more information, contact Stefanie at: 626-765-3847 or Stefanie.Shook@twomen.com

JULY/AUGUST 2016 · ARCADIA REALTOR®

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Welcome, New Members!

NEW REALTORS® JULY 2016 Iyen Boon, Century 21 Adams & Barnes; Evelyn L. Chan, Coldwell Banker Arcadia; Jeremy Chang, Re/Max Omega; Theresa M. Chen, Long Dragon Realty Group, Inc.; Jack Y. Cheng, Re/Max Omega Monrovia; Jade N. Chu, Century 21 Dynasty; Lourdes I. Dedicatoria, Century 21 Adams & Barnes; Li He, Re/Max Omega; Joshua D. Irvine, Berkshire Hathaway Home Service; Ru Jia, Highland Real Estate; Tory J. Klein, Dilbeck Real Estate;

Allen Lee, Re/Max Omega; Hector Lee, Long Dragon Realty Group, Inc.; Tse-Yu Lee, Highland Real Estate; Ngai M. Li, Supreme Investment Corp.; Qian Li, Highland Real Estate; Qiong Li, Coldwell Banker George; Tiffany Y. Li, IRN Realty; Zion S. Lin, IRN Realty; Zhixiao Liu, Highland Real Estate; Debra J. Vovett, VasTree Real Estate; Binglin Lu, Treeline Realty & Investment;

Steven L. Martin, Keller Williams Realty; Edgardo R. Sabocor, Century 21 Ludecke Inc.; Matthew B. Salisian, Foothills Property Management; Ceecee Y. Shan, Highland Real Estate; Kelly M. Soliman, Keller Williams Market Center; Paul L. Tran, Supreme Investment Corp.; MingMing Wang, Highland Real Estate; Yang Wang, Treeline Realty & Investment; YongQin Wang, Treeline Realty & Investment; Kevin L. Wheeler, Century 21 Village Realty; Verna W. Wong Hsueh, Re/Max Premier Prop.

Primelending offers a wide variety of loan products Whether you are a first time homebuyer or looking to refinance your current mortgage, We can offer you step-by-step personalized guidance throughout the entire loan process.

Call for the best choice in home loan options!

Diane Balsamo Senior Loan Originator Direct: 626-755-5764 10

dbalsamo@primelending.com NMLS: 482962

ARCADIA REALTOR® · MAY/JUNE 2016

• FHA Loans • Conventional Loans • Renovation Loans

• Jumbo Loans • Rate Float Down • Refinancing Programs

Online Property Portals Around the World

By Charlee Gibson, Marketing Coordinator for the National Association of REALTORS® Commercial & Global Services Just like buyers in the U.S., buyers across the world tend to begin their search for the perfect home online. However, in many cases these buyers are in countries that might not use the same listing websites commonly used in the U.S. It is easy for us to assume that what is familiar is ubiquitous as well, but this is simply untrue. These websites, known as property portals, are your link to global buyers. What sites are worth your time and how do you assess them?

To start, it is always good to remember that U.S. agents are at an advantage thanks to the MLS. In the U.S. any property entered into the MLS will also appear on realtor.com and realtor.com/international, which syndicates listings from 46 different countries and attracts over 1 million monthly visitors from outside the U.S. While this is impressive, it still does not guarantee global buyers are seeing your listings. To ensure you are reaching buyers abroad you must cover all your bases. You can start by simply asking the right questions:

Who are your buyers?

Identifying what country your global buyers are coming from is the first step. If the answer is not obvious, there are reports and studies that can help. The recently published NAR 2016 Profile of International Activity in U.S. Residential Real Estate is a great place to start in researching who makes up the global buyers in your area. Another helpful outlet are statistics released from realtor.com/international on a monthly basis. These statistics show the most popular search locations in the United States and what countries these searches originate from. Click here to view the most recent report.

4. Idealista.com

- Leading property portal in Spain - Nearly 1.3 million listings (buy/rent/share), both residential and commercial. (International properties powered by ListGlobally.com) - More than 5.5 million unique users each month, viewing over 140 million pages

5. Realestate.com.au

- Australia’s No. 1 property site - 3 million unique visitors/month - Owned and operated by REA Group (which also operates realcommercial. com.au, as well as various affiliated international sites)

6. Zoopla.co.uk

- No. 2 property portal in the United Kingdom - Over 660,000 properties displayed - Estimated 8.7 million visits/month - Zoopla Property Group also owns and operates uSwitch, PrimeLocation, SmartNewHomes and HomesOverseas

7. Realtor.ca

- No. 1 property portal in Canada - Over 260,000 residential properties displayed - Estimated 5.2 million visits/month - Includes links to two other sites: over 80,000 commercial listings at ICX.ca and international listings at Worldproperties.com

What property portals do they use?

8. Sreality.cz

Once you identify these buyers, have a look at what property portals are commonly used in their country, and market yourself there. What websites are they searching for listings? Are there any sites that are favored in their country? Do these sites also promote international listings? It is easy to forget about the basics in this day and age. We are always trying to think of new and creative ways to put our listings in front of buyers, and while this is certainly a good idea, we must also keep in mind the property portals that may be less obvious to the American eye. To help get you started, below are the top 10 property portals from around the world:

9. Otodom.pl

1. rightmove.co.uk

- No. 1 property portal in the United Kingdom - Roughly 1 million residential listings - Estimated 17.5 million visits/month - Companion sites display over 40,000 commercial properties and more than 95,000 overseas properties in over 75 countries

2. Immobilienscout24.de

- Germany’s largest real estate marketplace - Roughly 512,000 properties (limited overseas listings) - Over 12 million unique visitors/month - Owned by Scout24 Holding GmbH, which also operates AutoScout24 (vehicles) and FinanceScout24 (financial services) and licenses other Scout24 marketplaces

3. Funda.nl

- No. 1 property site in the Netherlands - Over 230,000 residential properties, plus commercial, agricultural and limited listings in other parts of Europe - Estimated 4.2 million visits/month

- Leading property site in the Czech Republic - Over 190,000 properties from more than 2,700 real estate agents and individuals - Estimated 2.7 million visits/month

- Poland’s leading property site - Over 170,000 homes for sale, and more than twice that number of apartments, plus nearly 40,000 commercial listings (also displays extensive rental opportunities) - Estimated 4.3 million visits/month

10. Cian.ru

- Largest property site for Moscow region - Originally launched for rental housing; property sales added in 2009 - Estimated 4.4 million visits/month Once a potential buyer finds you through the property portal it is vital to creating an impressive first-impression. Don’t let your efforts on property portals go to waste by having a less than impressive website. Proudly display your CIPS designation on your site so potential buyers know you are a global expert and are capable of handling their business. Additionally, ensuring your website is user friendly is just as important. Does your area serve a large amount of Chinese buyers? Having a website that is easily translated to Mandarin can help attract these buyers. Having presence on property portals is important, but creating a lasting impression afterward is what will win you their business.

JULY/AUGUST 2016 · ARCADIA REALTOR®

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How Foreigners Buy Homes in the US International homebuyers have been pouring billions of dollars into the U.S. housing market as they take advantage of lower home prices and a weaker dollar. But many foreigners find it difficult to navigate the complex homebuying process when living abroad -- especially when they want a mortgage to finance the home.

“I get phone calls from people who are lost and don’t know where to start,” says Judy Hamblen, vice president of Foreign National Mortgage in Fort Lauderdale, Fla. FIND THE RIGHT PEOPLE They should start by finding the right professionals to guide them through the process, including a real estate agent and an attorney who are experienced in working with foreign homebuyers, says Mike Xylas, a real estate and banking attorney at AGMB in New York. “The assemblage of a good team is crucial,” he says.

The easiest way to find a good agent is through referrals, he says. The National Association of Realtors lists agents that specialize in working with foreign buyers on its website. These agents usually are certified “international property specialists,” and often travel abroad to promote their services and properties. Real estate agent Wei Min Tan says he usually travels to Asia and Europe to meet with potential buyers. Tan is a broker at Castle Avenue Partners, which is part of Manhattan-based Rutenberg Realty.

He represents buyers from various parts of the world, including Singapore, Hong Kong, Australia and the United Kingdom.

“Most of them get to me through word of mouth, referrals, Google,” he says. “They want someone to guide them, someone who can identify a good deal and negotiate price.

They worry about who is going to take care of everything for them.”

Like Tan, most of the agents who represent foreign buyers know attorneys, loan officers and accountants to help the buyers through the process.

GETTING A MORTGAGE When buying a home in the United States, foreign buyers often pay cash because it’s a much easier, quicker process, says real estate agent Baro Shalizi of Shalizi Real Estate, 12

in Santa Fe, N.M. But with mortgage rates so low, many international buyers opt to finance their purchase.

“The market as a whole has seen a significant increase in demand for a foreign national product,” says James Campanella, residential mortgage manager at City National Bank of Florida in Miami.

The lender says it sees borrowers from a wide range of countries, but most applicants are from Brazil and the United Kingdom.

Few lenders in the United States offer home loans to foreign buyers, but this type of loan is available. It’s just a matter of finding the right lender, says Hamblen. When buying a condo in a recently built development, buyers will find that some developers have already lined up lenders who are willing to offer mortgages for international buyers.

“I get a lot of calls from Realtors, attorneys (representing foreign buyers), and I’m getting a lot of phone calls from developers,” Hamblen says.

REQUIREMENTS TO GET A MORTGAGE A foreign buyer should expect to pay at least 30 percent of the value of the home as a down payment. The borrower will be asked to provide documentation to show sufficient income, bank statements, reference letters from their banking or credit institution, and two forms of identification, Campanella says.

“The foreign applicant should be aware that it is extremely important for the lending institution to know their borrower,” he says.

The lender is required to conduct detailed reviews of the borrower’s income and asset documentation.

“The review is looking for transparency of the borrowers, getting an understanding of where (and) how their income and wealth is generated and how their assets move around,” Campanella says.

Depending on the buyer’s nationality, a visa will be required, Hamblen says.

“We’ll need a copy of their passports (and) a B-1 or B-2 (visitor’s) visa,” she says.

LENDING COSTS Hamblen says borrowers are required to

ARCADIA REALTOR® · JULY/AUGUST 2016

By Polyana da Costa, Bankrate.com establish a bank account in the United States and deposit the down payment into the account to be able to get a mortgage.

Foreign borrowers are charged slightly higher interest rates than U.S. residents. But since rates in the United States are near alltime lows, borrowers may get a mortgage with an annual interest rate ranging from 4.5 percent to about 6 percent, Hamblen says. Mortgages are commonly available with rates fixed for a period of five, seven and 30 years.

Like U.S. residents, foreign borrowers are charged closing costs on a mortgage, including lender fees and third-party fees.

Total closing costs vary, but it’s typically about 2 percent of the loan amount, Campanella says. Nationwide, the average origination and title fees on a $200,000 purchase mortgage total about $4,070, according to Bankrate’s 2011 annual survey of closing costs.

INSURANCE Every lender in the United States will require borrowers to buy homeowners insurance to protect the home from any potential damage. Insurance costs vary depending on the size of the home and state. They tend to be costlier in areas prone to natural disasters, such as Florida.

PROPERTY TAXES International buyers must consider property taxes when buying a home in the United States. The taxes vary by state and county, from a few hundred dollars to thousands of dollars a year, depending on the area and value of the property. Depending on the buyer’s nationality, the property taxes in the United States can be perceived as high. To others, they sound like a bargain.

“We had a buyer from Jamaica who paid the equivalent of $6 to $7 per month in property taxes (in Jamaica), so he was shocked with our property taxes,” Hamblen says.

Manhattan has some of the highest property taxes in the United States, but Tan says some of his clients find the taxes there cheap when compared to their city of origin.

“Compared to Hong Kong and London, Manhattan is actually affordable,” he says.

INTRODUCING The Global Real Estate Committee

Meet The Committee Members Val Wong

2016 Global Committee Chair

It is my pleasure to introduce the 2016 Global Real Estate Committee: I am your Chairperson, Val Wong, and the team consists of vice-chairs Fred Madjar and Nick Zigic, along with the following committee members: Jill Askren Adelina Oyama Roy Blume Khanh Tran Larry Han Randall Traw Wen Chuan Jen Kelvin Wong Patrick Law Ann Xu

The AAR Global Committee Presents:

INTERNATIONAL BUYER PROFILE FOR 2016 WHERE ARE MOST INTERNATIONAL BUYERS FROM? AND HOW YOU CAN BENEFIT!

Tuesday, September 13, 2016 3:00pm - 5:00pm

Arcadia Association of REALTORS® 601 S. First Ave., Arcadia, CA 91006

Who Are We And What Do We Do?

Cost: AAR Members: FREE | $15 for Non-Members

Our goal is to develop real estate sales and investment opportunities in the international arena, facilitated by learning different cultures and their respective business practices, and utilizing existing modes of transacting business between international and 2015 Global Business Council domestic clients. Education is a strong Achievement Program component of this committee.

PLATINUM The Global real Estate Committee meets on 1st Tuesday of each month at 11:00 a.m. at the AAR Building.

SPEAKER: Randall Traw

JOIN US TO LEARN:

- Where foreign capital is coming from - How you can increase your production with international buyers - How to benefit from international buyers - To be on the cutting edge of global real estate

Former NAR® President’s Liaison to Singapore

Register online at www.TheAAR.com by clicking the event name under “Upcoming Events” www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 ~ 626-446-2115 ~ Fx. 626-446-4072

Meet NAR’s President’s Liaisons from the AAR! As AAR CEO Andrew Cooper mentioned in his column in this month’s magazine, the AAR is proud to be the only local Realtor® Association in the U.S. with 3 President’s Liaisons. President’s Liaisons are NAR members, appointed by the NAR President to serve as his or her liaison to real estate professionals in their assigned country. Appointees are generally CIPS designees and, ideally, have some knowledge of the country’s culture and language. Appointments are made each year prior to NAR’s Annual Convention and run concurrent to the NAR presidential term. The following outlines the responsibilities of the position. President’s Liaisons serve at the discretion of the President for a term of one year, and may be re-appointed. President’s Liaisons work to help maintain NAR’s important relationships with foreign real estate associations.

Kelvin Wong

Fred Madjar

Nick Zigic

SPEAKER:

Bruce A. Lazenby

CHINA The AAR Global Committee Presents:

THINGS WE CAN LEARN FROM Thursday, September 22, 2016 3:00pm - 4:00pm

Arcadia Association of REALTORS® 601 S. First Ave., Arcadia, CA 91006

Cost: AAR Members: FREE $15 for Non-Members

Register online at www.TheAAR.com by clicking the event name under “Upcoming Events”

www.TheAAR.com ~ 601 S. First Ave. Arcadia, CA 91006 626-446-2115 ~ Fx. 626-446-4072

Liaison to Liaison to Liaison to Singapore Bulgaria Austria 2015 13 ARCADIA REALTOR® · JANUARY/FEBRUARY

Executive Director of

Business Development,

Rose Hills Memorial Park

Join us to hear our featured speaker discuss the challenging topic of building business relationships within a culturally diverse community.

You will learn the significance of openness, patience, good listening skills and personal relationships in building strong, vibrant communities.

JULY/AUGUST 2016 · ARCADIA REALTOR®

13

Arcadia Association of REALTORS® 601 South First Avenue Arcadia, California 91006

CERTIFIED INTERNATIONAL

PROPERTY

SPECIALIST COURSE OCT. 10, 11, 17, 18, 24

Attend the 5-Day CIPS Institute and fulfill the classroom requirements for the CIPS Designation.

- Grow Your Business By Leaps and Bounds

How YOU - Expand Your Real Estate Reach Will BENEFIT - Learn Unique Marketing Strategies - Double Your Production Potential

THE CIPS PROGRAM The Institute is a focused 5-day program, administered by NAR® (National Association of REALTORS®) Global, that incorporates the vital elements of transnational transactions. Attendees study currency and exchange rate issues, cultural exchange factors, regional market conditions, investment performance, and tax and legal issues.

The CIPS education is valuable to a wide variety of professionals including U.S. practitioners, non-U.S. practitioners, lenders, developers and Association Executives. CIPS designees enjoy CIPS Network membership privileges, international marketing and research services, as well as peer events.

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All classes are 8:30 a.m. - 5:00 p.m.

Oct. 10 - CVAR - Global Real Estate: Local Markets Oct. 11 - CVAR - Global Real Estate: Transaction Tools Oct. 17 - AAR - Europe & International Real Estate Oct. 18 - AAR - Asia/Pacific & International Real Estate Oct. 24 - PFAR - The Americas & International Real Estate

$399!

FULL 5 DAY INSTITUTE: INDIVIDUAL CLASS: $90

*This is a multi-Association event and each Association will share hosting of the classes. Per the above schedule, locations noted are as follows: AAR Arcadia AOR 601 S First Ave Arcadia, CA 91006

PFAR Pasadena-Foothills AOR 1070 E Green St #100 Pasadena, CA 91106

REGISTER Visit www.TheAAR.com and click on the course title under “Upcoming Events”

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(626) 869-8787 33 East Huntington Drive • Arcadia, CA 91006 romy@rahmanianlaw.com • www.RahmanianLaw.com

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