Urgent Update for Realtors that have Foreign National Clients

Reblogger Lenn Harley
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

ATTENTION AGENTS IN AREAS SELLING TO FOREIGN NATIONALS.Cash


I'd love to get comments about the exchange rate matter from some real estate agents involved in these sales.

Countesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

 

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Original content by Moneycorp USA

Attention Realtors!

We have had many calls this week from concerned clients over the falling Pound, Euro and Canadian Dollar. Many of our clients who are set to close in the comings weeks are worried that the rates will fall even further, and it is really affecting the amount of money they need to raise in their home country.

The pound has fallen 10 cents in the last month – meaning a $250,000 is now costing them $25,000 more. See a quote from a client today:

We are progressing this; however have run into a slight obstacle with our bank and the exchange rate they are offering us. 


Can you recommend a Forex company that may speed up the process?

 

The Realtor and the Title company here in Orlando referred Moneycorp, we contacted the client and were able to get them a batter rate then the bank, we are also able to do same day transfers to avoid unnecessary delays.

If you are working with a client, make sure you refer them to Moneycorp before the rate falls even further. We can lock rates in now, even if the closing is not yet scheduled.

http://moneycorp.orbhostingsolutions.com/

 Follow our main blog at 

Laura McLoughlin

Country Manager – USA

Cell:+1 863 370 3176

 

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Rainmaker
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Terry McCarley
REMAX Realty Team - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

I have a Canadian couple under contract right now on a short sale and if this situation gets worse they will probably withdraw the offer.  I also have several other Canadians that are putting their search on hold.

Sep 30, 2011 04:34 AM #1
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

We live in some scary times.  We also are working with foreign buyers that cannot take funds out of their country to buy here.  They are now limited by law in their own country!  If they remove or transfer funds they will be taxed exorbitantly!

Sep 30, 2011 04:36 AM #2
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Terry.  I see a pretty bad trend here with so many foreign nationals taking advantage of the fire sales in American real estate.

Jim.  GEEZ!  That doesn't help, does it.

Sep 30, 2011 04:39 AM #3
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Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Nope!

Sep 30, 2011 04:43 AM #4
Rainmaker
598,724
Mitchell J Hall
Compass - Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

International buyers in Manhattan usually pay cash. Right now Latin Americans are buying follwed by the Russians followed by the Chinese. A few years ago The Irish were buying and trying to flip new condos. There is much less inventory now. They are back but looking for long-term real estate investments. Manhattan real estate is a better bet to park your money right now than in Europe.

Sep 30, 2011 04:46 AM #5
Rainmaker
498,361
Terry McCarley
REMAX Realty Team - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Your right Lenn - the foreign nationals are loving the prices!

 

Sep 30, 2011 04:47 AM #6
Rainmaker
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Mitchell J Hall
Compass - Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

@Jim #2. I had a foreign buyer recently that bought one of my listings. They couldn't take personal funds out of their country to buy. The funds were wired through a business to a business partner or supplier here. The funds came from the business based here. Aparantly that is allowed. Also foreign buyers set up and buy through LLC's here for tax purposes.

Sep 30, 2011 04:59 AM #7
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

It just goes to show that we are involved in international trade on different level... We don't export jobs!

Sep 30, 2011 05:45 AM #8
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Mitchell.  In that case, the exchange rate appears to not be a barrier.

Terry.  And have been for a couple of years.

Mitchell.  HA!  Which just goes to show that the folks finding alternatives to the laws are a lot smarter than the folks who think them up.

Paul.  Well, we surely can't export our real estate.

Sep 30, 2011 08:54 AM #9
Rainmaker
798,813
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

There are many different foreign exchange companies, you usually need to open an account, and their rates vary by the minute, not like banks who may have a weekly rate or worse. When I was an antique dealer in my old life I was always transferring funds back and forth, there is usually a way to do it even when governments say no. Like many above we had clients who paid cash when their governments were strict. These laws usually encourage people to go outside the normal transaction routes and today it is harder with all the anti-terror rules.

Sep 30, 2011 09:44 AM #10
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Nick and Trudy.  Indeed. 

The anti-terror rules also affect American to American transactions any time large funds are transferred and any cash over $XXX amount.

Sep 30, 2011 10:08 AM #11
Rainmaker
1,157,274
FN LN
Toronto, ON

Lenn - The Canadian / US exchange rate has been very favourable to Canadians over the past couple of years.  About 8 to 10 years ago (I'm doing this from memory and have not checked actual dates), we would pay $1.60 CAD for $1 USD.  In the past couple of years, it has hovered around par, but usually a bit more CAD for $1 USD.

Two months ago, right before I went to the US on vacation, I paid $0.96 CAD per $1 USD cash at a local bank which I think was about the best rate in quite a while.

The rate has since gotten worse and is now around $1.05 CAD per $1 USD (I haven't looked at rates very closely since I'm not currently in the market for USD).

In the grand scheme of things, the current CAD / USD exchange rates are still extremely good for Canadians and Canadians are still doing a lot of cross border shopping. 

Oct 01, 2011 12:13 AM #12
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Marc.  Thanks for the update.  In my last visit to Canada, Quebec for a fishing trip at a lodge in the north, the rate at the hotel in Montreal, the exchange rate was about $1.10 USD for $1.00 per CAD.  I paid for everything in US Dollars and everyone loved it. 

 

Oct 01, 2011 02:59 AM #13
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Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Three are a bunch of rules and regs depending on the country the buyer is coming from. My advise would be to establish a dollar account with a bank in their country that has a US foregin correspondent or clearing bank. This way they will not get hammered by a change in the exchange rate. Also they should be able to have the funds readily available when it comes time to close

Oct 01, 2011 04:32 AM #14
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Charlie.  Makes sense to me.

Oct 01, 2011 04:41 AM #15
Rainmaker
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Rodney Mason
Guaranteed Rate - Atlanta, GA
Licensed in AL, FL, GA, SC, & TN

Exchange rates are something that all foreign buyers have to be very aware of.

Oct 01, 2011 02:04 PM #16
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Rodney.  I suspect that most foreign buyers are.  It's the American citizen who doesn't since the foreign demoninations are always pegged to the UDS. 

Eurpeans have a lot of "exchange" experience although the EURO has lessened that.

Oct 01, 2011 10:48 PM #17
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