Profile of International Home Buying in Miami 2011

7/31/2019 Profile of International Home Buying in Miami 2011

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2011 Survey of International Home Purchases in Greater Miami

Conducted October 2011 by NAR Research for

MIAMI Association of REALTORS

Summary of Responses

Lawrence Yun, Senior Vice President

Keunwon Chung, Statistical Economist

Jed Smith, Managing Director, Quantitative Research

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Introduction and SummarySurvey of Miami Realtors Concerning International Clients

Survey Conducted During October 2011.

Questions Focused on Experiences During PastTwelve Months.

Received a Total of 726 Responses. Analysis Indicates that International Sales Are

Important niche market for a number of Realtors.

Are to a large degree based on referrals. Are a growing market.

Result in transactions significantly above currentmedian prices.


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83 Percent of Miami Realtors Had Worked with an International

Client in the Previous Twelve MonthsThe comparable result for Florida Realtors overall was 77%


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Nine percent of Miami Realtors Closed 20 or More Domestic or

International Transactions in the Past 12 Months

56 Percent Closed 5 or Fewer Transactions


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Personal Contacts and Previous Clients are Important Sources

of ReferralsOnline Marketing Also Important


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International Sales Appear to Require Specialization6 Percent of Realtors Had More than 20 Clients

13 Percent had 1 Client


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Number of International Clients Purchasing

Property in Past 12 Months


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Types of International Clients Served by Realtors

Non-Resident Clients: the Typical Client for a Majority of Realtors

However, a Significant Number of Realtors Serve Both Types of Clients


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For Many Realtors: Occasional International

ClientsA Small Percent of Their Total Practice


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Commercial: Relatively Small Percent of International

Business


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Some Clients Involve Both a Residential

and Commercial Transaction


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Some Clients Do Not Purchase a Property


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Canada and South America Account for a Significant

Percentage of Sales


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International Transactions with Median Price of $222,500

Significantly Above U.S. 12 Month Median of $166,400


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Condos: The Majority of Properties in MiamiMiami71% Condo; Florida Condo Overall49%


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Commercial Property ClosingsMulti-family and Retail Account for 54 Percent of Transactions


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Projected Property Usage


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International Buyers in Miami

63% Urban Compared to 35% Urban Overall in Florida


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Approximately Two Thirds of Realtors had More than

5 Years of Experience


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Realtors With International Practices Have a

Variety of Designations

22. Do you have any designation listed below? Please check all that apply.

CIPS 50 15%

CCIM 9 3%

SIOR 3 1%

RSPS 14 4%

CRS 54 16%

CRB 15 5%

GRI 60 18%

CLHMS 13 4%

ABR ABRM 15 5%

SRES 9 3%

BPO 46 14%

ePro 55 17%

TRC 111 34%


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Percentage of Clients Who Are International Has

Changed in the Past Year


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Changes in Foreign Exchange Rates

Reported to Impact International Sales


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Major Issues Reported by Realtors

Majority of Purchases are Cash. International Buyerslimited mortgage availability.

Condo, property taxes, and maintenance feesUnexpected.Negative impacts on prospective purchasers.

Miami and Floridaperceived as highly desirable. Climate, amenities, international ambience. Legal protections and security from U.S. laws.

Concern by international clients concerning U.S. economy andprojected home prices.

Residence requirements/immigration issues.

Language and diversity of cultures

can be issues in completingtransactions. Diversity of expectations.

Language capabilities important.


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Conclusions

Miami International Clients and Market

International Sales are a Growing Market for Miami. A Niche Market: A relatively small percentage of Realtors seem to have a large number of sales.

Most Realtors encounter international opportunities.

However, many Realtors have only an occasional sale.

Language and cultural capabilities appear to be importantparticularlySpanish and Portuguese.

The Market presents challenges. Financing: Many buyers pay cash because credit scores do not transfer easily on an international basis.

Failure to find a property may indicate additional opportunities for Realtors to provide improved servicebeyond current offerings.

Many contacts initiated via personal relationships. Other sources include corporate relocation departments and Internet opportunities.

For Realtors with only an occasional sale, some study of foreign cultures and customers may improvecommunications.

Commercial transactions appear in a number of cases to be connectedwith visa and immigration opportunities.

Many Realtors with international practices have a variety ofdesignations indicating specialized expertise.

Profile of International Home Buying in Miami 2011

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