International buyers are back! C’est vrai!
It’s been some time since we’ve talked about foreign investors. We now have good reason to revive the conversation. According to Urban Digs, much of the uptick in activity we’ve seen over the last six months has come from foreigners swooping in for pied-a-terres, looking to buy their piece of the Big Apple. Indeed, even in our business, we’ve seen an uptick of investor activity coming from abroad, particularly Brazil and the Middle East, with a Greek and Turk here and there. What this means for you sellers is a bit of cultural sensitivity of what this may mean in the course of a deal:
- Though still a rarity, it’s not unheard of to have offers made on apartments sight-unseen by buyer’s brokers who understand their clients’ needs inside out. Maybe they lost out on a previous deal, maybe they have a friend in the building. Nonetheless, don’t be surprised if they don’t need to see the apartment, either to make an offer or gulp to sign the contract.
- Many foreigners find the concept of divulging all of their financial information to be considered for a property … well … just foreign. Be sensitive to the fact that they may feel offended by the idea of showing all their cards. Take care when asking personal information and assure them that this is to simply understand who they are and weigh their qualifications against those of other interested buyers.
- Lastly, most foreigners will be purchasing properties in cash versus opting for some financing vehicle. This is particularly the case for pied-a-terres, where one NYC apartment might represent a mere fraction of their world-wide real estate holdings. Don’t discount an all-cash offer with minimal supporting documentation behind it. Instead, explain your reasons for requiring more information of the buyer to ensure you don’t hit a sensitive spot
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