Apart from pumping billions into the American economy, there is another reason as to why real estate professionals love Chinese buyers. This segment of foreign buyers really has money to burn.
Chinese buyers paid a median home price of nearly $523,148 against the America’s average of $199,575 in 2013. Though Canadians bought more residences in the USA, they legged behind in terms of total dollar value of investment, paying a median home price of $212,500.
Does the fact that Chinese are paying more mean they are buying homes much above the market price? Have they fallen prey to a rat race and are buying homes without doing their research?
Chinese buyers are usually very cautious and do their research before buying properties overseas. The higher median home prices paid by Chinese buyers tell us what types of homes they actually prefer.
Nearly 70 percent of the dwellings purchased by Chinese buyers in America in 2013 were detached single family homes. Condo/apartment purchases accounted for only 12 percent and townhouses/row houses for 10 percent. This fact is enough to prove what type of dwelling your Chinese clients may be looking for. The median home prices for a detached single family home will obviously be much higher than an apartment in the same locality.
Some of these buyers prefer two-storey residential buildings instead the ones having just ground level. The reason is that the tradition of joint families where two or sometimes even three generations live tighter still exist in China. They consider homes with two levels spacious enough to suit their needs. For cultural reasons, some buyers also prefer 5-bedroom houses or apartments.
Real estate professionals dealing with Chinese buyers for years have come to realize a fact that their clients strongly prefer newly constructed homes over the used ones. Chinese investors perceive new homes to last longer and have better values. If you have a historical home, you should educate your potential buyers on what historical value it has to make it appealing to them.
More recently, the property market has witnessed another trend. Some Chinese buyers, mostly those who are purchasing properties for the purpose of investment, bought homes built in 80s or 90s, razed them down and rebuilt them from the scratch.
It won’t be wise to have the same approach while dealing with each and every Chinese client as the preferences may change from one buyer to another, but having an understanding about their requirements may help you provide a better service as a real estate agent.