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


Introduction and Summary
Survey of Miami Realtors® Concerning International Clients

• Survey Conducted During October 2011. • Questions Focused on Experiences During Past Twelve 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 current median prices.

83 Percent of Miami Realtors® Had Worked with an International Client in the Previous Twelve Months
The comparable result for Florida Realtors® overall was 77%

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

Personal Contacts and Previous Clients are Important Sources of Referrals
Online Marketing Also Important

International Sales Appear to Require Specialization
6 Percent of Realtors® Had More than 20 Clients 13 Percent had 1 Client

Number of International Clients Purchasing Property in Past 12 Months

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

For Many Realtors®: Occasional International Clients—A Small Percent of Their Total Practice

Commercial: Relatively Small Percent of International Business

Some Clients Involve Both a Residential and Commercial Transaction

Some Clients Do Not Purchase a Property

Why Clients Did Not Buy
Financing Problems/Unable to Find a Property Key Issues

Canada and South America Account for a Significant Percentage of Sales

International Transactions with Median Price of $222,500 Significantly Above U.S. 12 Month Median of $166,400

Condos: The Majority of Properties in Miami
Miami—71% Condo; Florida Condo Overall—49%

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

Projected Property Usage

International Buyers in Miami
63% Urban Compared to 35% Urban Overall in Florida

Approximately Two Thirds of Realtors® had More than 5 Years of Experience

Realtors® With International Practices Have a Variety of Designations
• • • • • • • • • • • • • • 22. Do you have any designation listed below? Please check all that apply. CIPS CCIM SIOR RSPS CRS CRB GRI CLHMS ABR ABRM SRES BPO ePro TRC 50 9 3 14 54 15 60 13 15 9 46 55 111 15% 3% 1% 4% 16% 5% 18% 4% 5% 3% 14% 17% 34%

Percentage of Clients Who Are International Has Changed in the Past Year

Changes in Foreign Exchange Rates Reported to Impact International Sales

Major Issues Reported by Realtors®
• Majority of Purchases are Cash.
– International Buyers—limited mortgage availability.

• Condo, property taxes, and maintenance fees—Unexpected.
Negative impacts on prospective purchasers.

• Miami and Florida—perceived as highly desirable.
– Climate, amenities, international ambience. – Legal protections and security from U.S. laws.

• Concern by international clients concerning U.S. economy and projected home prices. • Residence requirements/immigration issues. • Language and diversity of cultures—can be issues in completing transactions.
– Diversity of expectations. – Language capabilities important.

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 important—particularly Spanish 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 service beyond 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 improve communications.

• Commercial transactions appear in a number of cases to be connected with visa and immigration opportunities. • Many Realtors® with international practices have a variety of designations indicating specialized expertise.

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