The Eager International Buyer

The pandemic has impacted each buyer persona—none so heavily as the Eager International Buyer. As the name suggests, the Eager International Buyer is keen to buy real estate in the Americas after international mandates and travel restrictions have limited their buying power. The National Association of REALTORS® (NAR) reported that the dollar volume of foreign buyer purchases was $54.4 billion USD from April 2020 to March 2021, a 27% decline. NAR’s data also reveals a 31% decline in sales volume.8

This story changed, however, throughout the end of 2021 and the beginning of 2022 as travel restrictions were lifted globally. The Eager International Buyer became just that—eager (and now able) to buy property around the world. These buyers purchase properties for a number of reasons, most commonly to rent out the property, live there, or use it for business purposes. Rentals and vacation homes led the pack, accounting for 42% of international sales in 2021.9

Many of these foreign buyers originate from China, Canada, the United Kingdom, India, and Mexico and are looking to invest in industrial real estate, multifamily properties, apartments, and offices in central business districts—with a preference for new construction.10 While some of these buyers are looking for personal residential properties, a large number are searching for investment properties for themselves or on behalf of their employer. These investment properties provide a stable, consistent, passive income for an individual or organization, and given the economic fluctuations that have characterized these past few years, a “bubble proof” investment is more important than ever.

The Eager International Buyer will be knowledgeable about property buying and selling processes in the United States. After a year on the sidelines, they are one of the best-prepared buyer personas as they actively and extensively research the Americas’ real estate landscape to identify markets with the greatest investment potential.

Once specific markets have been identified, investors look for top real estate talent to provide local expertise.

Real estate advisors working with international buyers, should understand the intricacies of international property transactions, as well as have a comprehensive understanding of their local market. In 2021, personal contacts, former clients, and referrals from former clients and business contacts accounted for 65% of leads and referrals among real estate professionals who worked with foreign clients who purchased residential property. Website and online listings accounted for 17%.12

As frequent travel may not be plausible, the Eager International Buyer relies on their real estate professional to visit property sites for them, cementing the importance of digital property showings. Real estate professionals should be prepared to share their observations and insights on home features that may not have been noticeable through a virtual tour. Once several potential properties have been identified, the Eager International Buyer may make the trip to the Americas to view their options in person. Often, however, this is not plausible given the competitive nature of these purchases. In these cases, the Eager International Buyer will purchase the property sight unseen.

§ Top real estate agencies in [city/neighborhood].

§ Market growth and ROI in [city/neighborhood] real estate.

§ Emerging US real estate markets.

§ US cities by economic growth.

Typically, international property buyers are known to invest in cities like New York, Chicago, and Los Angeles. In 2022, international real estate investments have shifted to secondary markets. These markets have the potential to become the next luxury hot-spot and international buyers are purchasing homes left and right to ensure they are in on the latest trend. The following cities have been identified for their investment potential or were noted to be popular markets among international buyers:

Boise, Idaho

Seattle, Washington

Austin, Texas

Dallas, Texas

Bentonville, Arkansas

Atlanta, Georgia

Phoenix, Arizona