For those that might have missed it, this article by Jim Woodard was published over the weekend. It shows the clear connection between the resort and second-home sector with the inbound international investment into the United States. If you want to add to your toolkit be sure to checkout the great courses offered as a part of the Certified International Property Specialist (CIPS) Designation at realtor.org/global. Two of the newly revised regional courses along with the At Home With Diversity Course will be offered at the REALTORS Annual Conference in New Orleans the first week of November — at a tremendous discount through the NAR initiative Right Tools, Right Now.
A growing segment of todays homebuyers are citizens of foreign countries. The international appeal of U.S. residential properties is driven by the strength ofthe dollar, the increasing value of properties in some regions ofthe country, the emerging economic recovery, and the rising worldwide popularity of owning a home in the United States.
This trend was documented in the recently released National Association of REALTORS’ 2010 Profile of International Home Buying Activity.
More than a quarter of REALTORS (28 percent) reported working with at least one international client in the past year. This is a significant increase from fhe 2009 report, when 23 percent of REALTORS worked with foreign clients. Eighteen percent of all REALTORS were estimated to have completed at least one sale, compared to 12 percent last year. Continue reading »
Here’s a great article from our friends at RISMEDIA. It focuses on Coronado, CA but can apply all over the US. Enjoy.
RISMEDIA, August 11, 2010—As the real estate market continues its bumpy road toward recovery, the vacation home market is heating up, causing homeowners around the country to seriously consider buying the vacation home they’ve been eyeing.
Margaret La Grange and Christine Van Tuyl, an award-winning mother-daughter team with Prudential California Realty in Coronado, CA, offer the top six reasons why now is the best time to buy a vacation home. Continue reading »
At the May 2010 REALTORS(R) Midyear Governance and Legislative Meetings, the Western Mountain Resort Alliance reported survey results regarding the lack of liquidity when it comes to condo financing. It was clear that this issue is regretfully hurting the resort and second-home REALTOR(R) — additionally, all REALTORS involved in condo transactions.
Please be aware that your REALTOR staff is “on the case” and sensitive to this issue. Look out for a webinar in September to update you on the latest news involving condo financing and the actions that NAR is taking.
In the meantime, this article by Lew Sichelman offers some helpful hints on the value of the FHA backing and tools to see if a property is eligable for FHA Approval.
Enjoy.
Reporting from Washington — Condominium owners who are trying to sell in today’s agonizingly slow housing market should make sure that their community is on the Federal Housing Administration’s approved list. Ditto for someone who is thinking about refinancing a condo.
Under a little-noticed edict put in place in December, the FHA is no longer approving mortgages on condominium units on a spot, loan-by-loan basis. Now the entire project must be cleared by the agency before a buyer can purchase a unit in the community with a government-insured mortgage or an owner can trade in his loan for a less expensive one backed by the FHA. Continue reading »
Consider the international investment that comes to your community. Are you capturing those clients? See latest research on the international sector nationally.
International home buyers are increasingly attracted to property in the U.S., according to NAR’s 2010 Profile of International Home Buying Activity. “While all real estate in the U.S. is local, the same is not true for property owners,” said NAR President Vicki Cox Golder. “The U.S. continues to be a top destination for international buyers from all over the world.”
VIEW TEXT: http://insight.vmsinfo.com/image_clipbook/show_article_specs.cfm?show=ocr&article_id=33163240&clip_site_id=2672&user_id=4727
Check out this post originally published in the Tahoe Daily Tribune by Richard Bolen, REALTOR(R), McCall Realty.
(A quick “shout out” to all our friends in the Lake Tahoe area who helped NAR host the 2010 Resort and Second-Home Symposium. We couldn’t have done it without you! We have only heard wonderful comments about the successful event with 214 participants in attendance. Lake Tahoe is truly a national treasure — both in its natural beauty and the hospitality of its residents!)
SOUTH LAKE TAHOE, Calif. — About 65 percent of South Lake Tahoe Homes are second homes or vacation properties.
I often write about, or use the phrase second home buyer characteristics, which makes sense. South Lake Tahoe is very much a second home resort real estate market.
Some 65 percent of area homeowners live elsewhere. This means that about a third of South Lake Tahoe homes are primary residences.
The National Association of REALTORS did a specific study on vacation or second home buyers. I thought it would be of interest to look at the most recent findings.
Before looking at the particulars, there are a few key characteristics of the vacation and second home buyer to always have in mind. These are important, especially as it relates to style and manner when representing a buyer:
• The vacation or second home buyer lacks urgency.
• The vacation or second home buyer is overqualified financially.
• The vacation or second home buyer is looking for a family retreat.
Of these, lack of urgency is really important to understand to best represent a buyer. What I like to do is “mirror” a buyers pace if I can. If a buyer seems to want to move quickly, I quicken my pace. If the buyer moves slowly, I respond in kind.
Sometimes, though, a particular house or situation does require urgency. An underpriced house, or one that is right priced and exceptionally attractive can require immediate action to get it.
In cases such as this, I do recommend that the vacation or second home buyer move as quickly as they possibly can.
If I ever quicken my pace, it is because I don’t want a buyer to miss out on something they obviously really like. I am never in a hurry just to make a sale. Buyer comfort to me is king.
2010 Vacation Home Buyers Survey (based on 2009 buying trends)
Sales and prices:
• Some 10 percent of U.S. home sales were vacation or second home properties.
• 1 percent more vacation or second homes sold in 2009 compared to 2008.
Buyer characteristics:
• The median age of the vacation or second home buyer in 2009 was 46 years of age.
• 28 percent of vacation orsecond home buyers were older than 55.
• The median household income of 2009 vacation or second home buyers was $87,500.
• 39 percent of vacation or second home buyers had a household income that exceeded $100,000.
• 73 percent of 2009 vacation or second home buyers were married.
• 49 percent of 2009 vacation or second home buyer households had no children younger than 8.
• 86 percent of 2009 vacation or second home buyers were Caucasian.
Property characteristics:
• 55 percent of 2009 vacation home sales were in a small town or rural area.
• 50 percent of 2009 vacation home sales were in the South.
• 71 percent of 2009 vacation or second home sales were single-family homes.
• 74 percent of 2009 vacation or second home sales were existing properties (not new).
• The median distance away from primary residence was 348 miles.
Method of Purchase and Financing:
• 54 percent of 2009 vacation or second home buyers used a real estate agent or broker.
• 10 percent of 2009 vacation or second home sales were a foreclosure or trustee sale.
• 27 percent of 2009 vacation or second home sales were directly from an owner (17 percent that buyer knew, 10 percent that buyer didn’t know).
• 32 percent of 2009 vacation or second home buyers looked first on the internet to shop for a home.
• 12 percent of 2009 vacation or second home buyers contacted a real estate agent first to shop for a home.
• 26 percent of 2009 vacation or second home buyers found the home they purchased on the internet.
• 25 percent of 2009 vacation or second home buyers found the home they purchased with a real estate agent.
• 70 percent of 2009 vacation or second home sales used a mortgage.
Internet use:
• Nine out of ten home buyers use the Internet in their home search process.
• Is our experience that buyers contact us after internet searching first.
• More often we find the home the buyer buys, rather than what they exactly saw on the Internet.
Buyer Motivations and Expectations:
• 89 percent purchased their vacation or second home as a family retreat.
• 29 percent purchased their second home because it was a “good investment” opportunity.
• 25 percent purchased their second home to rent to others.
• 14 percent purchased their second home for tax benefits.
• 26 percent purchased their second home as a future primary residence.
• 80 percent purchased their second home because they believe now is a good time to purchase.
This article offers a great summary of the new FHA lending rules for condos. It was printed on 20 June 2010, The Atlanta Journal – Constitution (Gary A. Poliakoff, Ryan Poliakoff).
New FHA lending rules for condos could stall the housing recovery: Restrictions open door to heavier weight being placed on owners. Commercial activity limits will add to crisis. Continue reading »
In 1911, W.G. Tarrant changed real estate history when he purchased almost a thousand acres near London and turned it into the immediately-successful St. George’s Hill. Claimed to be the first golf community and designed by Harry Colt, it’s still a success, with home selling for about $5 million. The rest is history, with golf communities developed around the globe. (www.usatoday.com May 14, 2010)
http://www.usatoday.com/travel/destinations/secondhomes/2010-05-13-global-golf-getaways_N.htm
This article, from the Legal News Weblog, is a great example of why one needs to understand the cultural issues and the property laws of a country before doing business abroad OR what assumptions a client might have when purchasing property within the US.
http://blog.taragana.com/law/2010/05/15/fake-divorces-the-way-round-chinas-home-restrictions-22263/
If you are looking to broaden your perspective and business acumen outside the US, check out the courses as a part of the NAR Certified International Property Specialist (CIPS) designation at http://www.realtor.org/global/cips/classes_overview
If you couldn’t participate in the “How to Expand Your Referral Network” RSPS webinar on April 28, don’t worry. Just download it. This free Right Tools, Right Now offering, led by Deb Howard, RSPS, examines how you can build business by enhancing your network of professional contacts.
To download the webinar, click here.
