A friend of mine from London recently bought his first property here in the United States and said the house was exactly what he expected but the neighborhood wasn’t.
“Whatever you thought the house was going to be like, it’s probably exactly that. But the neighborhood, God help you.”
At first, that sounded strange.
Many homebuyers study listings, compare home prices, look at photos of homes, and read up on local real estate market news before making a decision about whether or not to buy a home.
But for many international buyers, it isn’t.
International homebuyers have many different reasons for purchasing property in the U.S., whether it be a vacation home, investment property, or primary residence, and typically research much more than simply the property itself.
And that’s often where the biggest surprises happen.
The United States remains an extremely popular country for international home buyers with many purchasing the property as a vacation home, renting out as investment properties, and even moving from abroad for work, to continue education, or for family.
Regardless of the reason, successful buyers usually learn the same lesson:
A good property decision involves much more than finding a good property.
International home buyers to the U.S. should know the following before purchasing a home:
1. The Neighborhood Matters as Much as the Property
Overseas homebuyers generally start off by taking a good look at the property itself.
Comparing prices, studying floor plans and viewing images of interior and exterior perspectives of a home all play important roles in a home buyer’s decision process.
Those details matter.
Experienced property buyers, however, know that daily life is often spent within the boundaries of a neighborhood and that a property and its location can provide vastly different living experiences.
Two homes of similar price and specifications can provide very different lifestyles.
One area may feel quiet and family-oriented.
Another may feel energetic and fast-paced.
Some areas are more community-oriented than others and attract more renters and transient individuals.
These differences rarely appear in listing descriptions.
Furthermore, many buyers relocating abroad will examine the neighborhoods over an extended period of time before deciding on the best property for them.
In addition to the information provided about a property, also important are the people, the atmosphere and the way of living in the surrounding area of a property.
2. Online Listings Don’t Tell the Entire Story
Property platforms have become incredibly sophisticated.
Now buyers all over the world can look at virtual tours, maps of neighborhoods, schools and even statistics of the market when buying properties.
That level of access is remarkable.
Yet every experienced buyer eventually realizes something.
Listings are designed to showcase properties.
There are many questions which remain unanswered by property listings, such as the following:
Questions such as these often remain unanswered:
- How responsive is building management?
- Is the area quiet during evenings?
- What do current residents love about living there?
- What challenges do they experience?
This information is often not provided until you speak with current residents of the building or neighborhood.
This is particularly relevant for international buyers, whose first hand experience of the local area can provide critical context to information provided on property websites and databases.
3. Local Knowledge Can Save Costly Mistakes
Interpreting unfamiliar information is a major problem for foreign buyers.
A location that seems perfect on-line may not fit the Buyer’s way of life.
Additionally, an area that initially seems less ideal can sometimes end up being the buyer’s perfect match.
Local knowledge helps bridge that gap.
Residents understand things visitors often miss.
They know traffic patterns.
They know which amenities people actually use.
They can tell you whether the area is developing, improving or having problems.
This kind of information is difficult to find using normal methods of researching a place.
Many relocators successfully find their dream home by seeking advice from people that have recently moved to the same area.
4. Lifestyle Should Influence Your Decision
International relocations often begin with practical considerations.
Employment opportunities.
Educational institutions.
Investment potential.
Tax considerations.
All of these factors matter.
However, long-term satisfaction usually depends on lifestyle compatibility.
Imagine moving from a dense European city to a suburban American community.
Or from moving from the quiet of a rural area to a metropolitan complex like a district of a big city.
The adjustment can be significant.
The list of needs and preferences for a home can extend well beyond the four walls of the property itself.
Consider daily routines.
Consider transportation.
Consider recreation, restaurants, schools, healthcare, and community culture.
Your ideal property may not be ideal for your way of life.
5. The Smartest Buyers Gather Human Insights
Technology has transformed real estate research.
Technology has revolutionized the research process for real estate buyers today.
Despite all the technology surrounding real estate, most of the most relevant information still comes from people.
Current residents can often provide the answers to questions that listings do not even address.
They can explain what daily life feels like.
They can share practical advice.
They can help the buyer determine if the community in which a property is located is also the community that the buyer wants.
The growing demand for the human perspective on property has created a number of new platforms aimed at connecting buyers with people who live in properties of interest to them.
For example, a buyer searching for a property to living in the USA can use a platform like Leevli which provides property information combined with insights gathered from current residents and people who know the area best.
Why International Buyers Face Unique Challenges
Domestic buyers can view a number of properties before deciding on the right one for them.
International buyers frequently don’t have that luxury.
Distance creates uncertainty.
Time zones create challenges.
Travel costs limit opportunities for in-person research.
This information the international buyer uses mainly to find information on properties on the internet.
Despite technology’s advances, local insight to a property location continues to be highly valuable and the main criterion by which to judge the quality of on-line property research information.
The more information a buyer has prior to purchasing property, the better he or she will feel after the purchase.
Final Thoughts
Buying property in the United States can be an exciting opportunity.
Buying property in the United States can be an exciting opportunity to invest, to relocate to, to retire to or simply to buy a second home. The United States offers up one of the largest and most diverse real estate markets in the world.
Many of the challenges that make purchasing property so difficult for international buyers are unique to them and are different than those that are faced by home buyers from within the US.
However, the most successful purchases occur when buyers seek out more than simply listing photos and property specs.
They take time to understand neighborhoods.
They seek local perspectives.
They evaluate lifestyle compatibility.
They gather as much information as possible about the property, as well as the neighborhood surrounding it.
Because in the end, people don’t simply buy houses.
They choose places where life will happen.