First American’s Quarterly Summit yesterday included an overview of NAR’s Profile of International Home Buyers that identified where Arizona’s international buyers are coming from, which is primarily Canada, Mexico and China. There was a 24% increase in the purchase of real estate by international buyers from 2010 to 2011, totaling $82 billion in sales. The average value of a home purchased was $315,000.
I appreciated the presentation they offered on how different American perceptions are when it comes to negotiating styles and how important it is to distinguish the difference between price and value when dealing with an international buyer. Having a better understanding of communication styles (direct vs. indirect) and how people from other cultures view the use of time are both key elements to success in working with the international market.
It was fascinating to hear that the international student population at the college level has grown from 10,000 students in the 2005/2006 semesters to 67,000 in the 2010/2011 semesters. These are students whose parents are sending them here for an education, and guess what they are buying for their kids to live in? It’s time for real estate practitioners to spend some time getting to know the elements involved in this very important part of our market!