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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 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 ClientsA 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


Miami71% Condo; Florida Condo Overall49%

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 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 and projected home prices. Residence requirements/immigration issues. Language and diversity of culturescan 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 importantparticularly 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.