1. UNDERSTANDING THE INTERNATIONAL REAL ESTATE BUYER

2. Survey Methodology The survey was sent via email to a random sample in October 2013, and 218 valid survey responses were received. All eligible respondents closed escrow within twelve months prior to October 2013.

3. International Buyers are Getting a Bigger Slice of the Market than Last Year Q. Was the buyer an international buyer – a person who was a citizen of another country who wished to purchase residential real estate in the U.S.? SERIES: 2013 Housing Market Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

4. Many REALTORS® worked with International buyers in the 2013 Q. How many properties have you sold to an international buyer in the last 12 months? % Who Sold to International Buyers # of Properties Sold to International Buyers in the Last 12 Months SERIES: 2013 Housing Market Survey SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®

5. China, Canada, and Mexico are still the major sources of international buyers Please tell us about your last closed transaction with an international client. What is your client’s country of permanent residence?

6. Most international buyers are individual buyers Was your last international client an:

7. The Typical International Buyer

8. For half of all international buyers, it was their first time purchasing a property in the U.S. In your last closed transaction with an international client, was that the buyer’s first home purchased in the U.S.?

9. Other Properties International Buyers Own How many other properties does your last international buyer own?

10. WHY THE UNITED STATES?

11. Majority only considered the U.S. In which other countries did your last international buyer consider purchasing real estate?

12. Why the United States? Q. Why did your last international buyer choose to purchase in the U.S. as opposed to the other countries he/she/they considered?

13. International buyers purchased primarily for investment purposes What was your clients’ main reason for buying now in your last closed transaction with an international client?

14. Traditional buyers purchased because … SOURCE: 2013 Annual Housing Market Survey What was your clients’ main reason for buying now in your last closed transaction with an international client?

15. Reasons to Buy in California  Mild year-around weather  Amazing outdoor environment  Advanced Educational Opportunities  Easy access to variety of entertainment throughout California

16. Climate in California Moderate temperature year round Dry weather Clear Skies

17. Amazing Outdoor Environment

18. Advance Educational Opportunities System# of CampusesExamples University of California10 University of California, Berkeley University of California, Los Angeles University of California, Riverside University of California, San Diego California State University23 Cal State University, Fullerton Cal State University, Northridge Cal State Polytechnic University, Pomona California Community College109+ Santa Monica College Pasadena City College Private UniversityHundreds California Institute of Technology Pepperdine University Stanford University University of Southern California

19. Easy Access to a Variety of Entertainment

20. Most international buyers did not purchase their properties as a primary residence What was the intended use of the property in your last closed transaction with an international client?

21. Southern California is a popular destination for international buyers Where was the property in your closed transaction with an international client located?

22. Top Counties where International Buyers Bought Where was the property in your closed transaction with an international client located?

23. International buyers are heavily concentrated in suburban and urban areas Please select the category that best describes the location of the property in your last closed transaction with an international client?

24. Seven out of ten of international buyers purchased an equity sale What type of purchase/sale did your last international client(s) make?

25. Majority Bought a Single Family Home What type of property did your last international client purchase/sell?

26. A typical international buyer purchased a property with …

27. Square Footage of the Property What was the square footage of the property in your last closed transaction with an international client?

28. Square Footage of the Lot What was the square footage of the property in your last closed transaction with an international client?

29. Number of Bedrooms How many bedrooms did the home in your last closed transaction with an international client have?

30. Number of Bathrooms How many bathrooms did the home in your last closed transaction with an international client have?

31. Garage Size What was the size of the garage in your last closed transaction with an international client?

32. What amenities did international buyers want in their properties? Please check all the amenities of the property in your last closed transaction with an international client.

33. Initial Listing Price What was the initial listing price of the property in your last closed transaction with an international client?

34. Final Sale Price What was the final sale price of the property in your last closed transaction with an international client?

35. More than half of international buyers paid at or above the asking price Long Run Average = 18%:

36. International Buyers vs. Traditional Buyers

37. THE BUYING PROCESS

38. International Buyers Found Their Properties from the MLS How did you find the property for your international buyer in your last closed transaction?

39. Weeks Spent Looking for Property How many weeks did you spend looking for a property with your last international buyer?

40. Number of Properties Viewed How many different properties did you view with your last international buyer prior to the client making a purchase? Median: 9

41. Offers Made on Other Properties How many offers did your last international buyer make on other properties (in addition to the one purchased)? Median # of offers made = 2

42. Properties sold to an international buyer typically stayed on the market for a month How many days was the property on the market in your last closed transaction with an international client? Days on market (median) = 30 days

43. International Buyers vs. Traditional Buyers

44. All Cash International Buyers How did your last international buyer pay for the property?

45. All Cash International Buyers SOURCE: 2013 International Client Survey, 2013 Annual Housing Market Survey How did your last international buyer pay for the property?

46. Source: National Association of Realtors®

47. Down-Payment as Percentage of Sale Price How much was the down payment for the home purchased (as a percentage of the sale price) in your last closed transaction?

48. Sources of Down-Payment What was the source of the down payment in your last closed transaction with an international buyer?

49. Difficulty in Obtaining Financing Please rate how easy or difficult it was for your last international buyer to obtain financing. Median = 5

50. Difficulty in Obtaining Financing SOURCE: 2013 International Client Survey, 2013 Buyer Survey Please rate how easy or difficult it was for your last international buyer to obtain financing.

51. Only a few international buyers had difficulty in bringing funds from outside the U.S. Did your last international buyer encounter any difficulty in bringing funds from another country into the U.S. in your last closed transaction with an international client?

52. What other problems did international buyers encounter? What, if any, other problems did your last international buyer encounter? Please select all that apply. Difficulty in finding a property Problems with immigration Financing Challenges finding insurance Documentation Decide on which city to buy

53. Most did not hire an attorney or a tax professional to facilitate their transaction Did the international client hire an attorney to help facilitate your last closed transaction? Did your international client hire a tax professional (i.e. accountant, financial consultant, etc.) to help facilitate your last closed transaction?

54. Many international buyers did at least some work on their properties, which typically costs them $10,000 What type of rehabilitation / remodeling was done on the property in your last closed transaction with an international client? How much money did your client invest in rehabilitating/remodeling the property in your last closed transaction with an international client?

55. Property Management Who will manage the property in your last closed transaction with an international client?

56. CLIENT/AGENT RELATIONSHIP - COMMUNICATION

57. International buyers relied more on referral and relationship when connecting with their agents SOURCE: 2013 International Client Survey, 2013 Buyers Survey How did you find your last international client?

58. International buyers relied more on referral and relationship when connecting with their agents How did you find your last international client?

59. Primary Language of International Buyers What is your last international client’s primary language?

60. … but most of them were communicated in English In which language did you primarily communicate with your last international client?

61. Use of Translators Did you use a translator in your last closed transaction with an international client?

62. Email Communication How did you primarily communicate with your last international client?

63. Email Communication How did you primarily communicate with your last international client?

64. Devices of Communication Which technological device did you utilize the most in communicating with your last international client?

65. CONCLUDING REMARKS

66. The Takeaway California housing market will continue to draw interests from international buyers International buyers purchased primarily for investment purposes International buyers relied more on referral and relationship when connecting with their agents

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