If you're working with a foreign buyer, one of the most important considerations is getting their money into a US Bank or Title Company well before closing. At last week's International Congress & Trade Fair in Orlando Florida, Laura McLouglin, the Country Manager for MoneyCorp, spoke to a large group of International Realtors on how to make the process a smooth one and how to avoid common mistakes.
Currency Converstion Rates fluctuate constantly, sometimes going up or down within the same day. Timing is critical. Early planning for currency exchange can make a big difference for a foreign buyer, allowing them to buy or sell currency when rates are favorable. Often times they wait until the last moment, and because they feel pressured by their procrastination, they go to their bank rather than shopping for the best conversion rate.
Just like interest rates and loan origination fees for mortgages, currency conversion rates include a margin for the entity transacting the transfer, and shopping for the best rate early in the process can save them considerable money. Some Financial Institutions charge up to 2% to make currency transfers. They also can take up to 3-4 days, which can delay a closing.
The representative for MoneyCorp stated that a Foreign Exchange Broker like MoneyCorp charges .7% and can lock in an exchange rate for up to 2 years, a huge savings for customers.
The presentation was very informative and relevant for anyone who is considering expanding their real estate business to include International buyers. You can visit MoneyCorp's website for information on Currency Conversion or International money transfers.
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