Buyer Information for Foreigners

U.S. Real Estate Market Offers Great Opportunities for Canadians, Foreign Nationals

 Have you heard? Real estate prices in the U.S. are lower than they have been in years. For savvy foreign national investors and buyers, it’s a great time to check out the U.S. market. Canadians and Australians, in particular, can take advantage of great currency exchange rates right now.

From the first look to getting your new property in the U.S. closed, we can assist you with every step of the process. Need help with financing? We can help you find lenders experienced in (and open to) offering foreign nationals credit and pre-approvals. We can guide you through what to expect from U.S. property tax requirements and how you can leverage local rental markets. Our team also offers inside knowledge of short sale and foreclosure opportunities.

Here are a few things to keep in mind:

• Do some research first – we can help you narrow down your search so that you have a good understanding of home values by area.
  
  
• Prepare written offers for the properties you are interested in and expect to include a good faith deposit (also called ‘earnest money’) of 3-5% of the purchase price. If the offer is accepted, this money will go towards the purchase of the property.

• Be prepared to pay as much as 50% down in order to qualify for U.S. based financing.

• Plan on paying for a home inspection of the property – this inspection will point out defects and give you the opportunity to negotiate the purchase price of the property or the repairs needed. We can help you find a licensed professional inspector.

• Learn about Home Owners’ Associations – also called HOAs. HOAs determine the architectural standards of the neighborhood and may impose membership fees. We’ll let you know if the home you have selected is part of an HOA.

• Make sure the home has a clear title so that you can purchase it free and clear with no obligations to previous owners or lien holders. We can facilitate a title search for you if needed.

• Plan on anywhere from 45-60 days to close on the property (short sales may take up to six months or longer) – and you do not have to be present at closing. Our team can help you manage the documentation process.

If you have never owned property in the U.S. before, here is a guideline for some of the costs associated with purchasing and maintaining your new home:

• Home Inspection - $400-$500 per inspection.

• Property Taxes – Vary by location but usually start at 1.25% of the property value of the home.

• HOA fees - Vary widely based on the location and don’t apply to every neighborhood, but can be as little as a few hundred dollars per year to a few hundred dollars per month, depending on the type of property and services associated with the membership. Note – membership in an HOA (if one is in place) is NOT optional.

• Landscaping and pool maintenance for a single family residence - $300 - $500 per month depending on the size of the lot and the existing landscape.