I met today with two wonderful real estate agents from The Netherlands – Rik Deutekom & Martijn Appleman.

These two guys are going to shake up the local real estate agents in their home town! They have come to America to explore how we Americans are using the Internet and technology in real estate.

My partner, Paul Mees, is Dutch. Rik & Martijn had contacted him via his Dutch blog and arranged this meeting. Unfortunately, Paul is in Italy, so, I got to take the meeting.

Rik & Martijn are enthusiastic about doing real estate differently in Holland. I think they are going to set the real estate world on it’s ear back home.

Paul and I will be working closely with these entrepreneurs to help them develop their web presence while we also develop an international referral business with them.

Two and a half hours in a conference room with me and my computer didn’t slow these guys down at all. Most real estate agents’ eyes roll back in their head with only an hour of technology talk!

Buying real estate in the San Francisco Bay Area is always a local experience. The San Francisco Bay area is rife with real estate micro-markets. In our region of the East Bay, we have local real estate markets where the drop in home values can vary by 30% or more – and these communities are only 30 miles apart. This is one reason why international buyers need local professional real estate agents to assist them with their purchase of U.S. eal estate.

Even when the buyer is from out of the area or out of the country, real estate is always a local affair. Many buyers and investors from China, Korea, The Netherlands, Germany, Russia, Ukraine, Canada and many other countries are in the process of buying or investing in U.S. real estate.

The National Association of Realtors reports that in the Spring of 2007 7.3% of homes sold in Florida were to foreign nationals. 65% of Florida real estate agents reported at least one transaction with a foreign buyer.

Nationally, almost one third of Realtors are reporting sales to international clients. 25% of responding Realtors report that their international business is increasing.

A rough profile of the typical international home buyer:

• the typical international buyer purchased a single-family home or townhouse
• the buyer’s primary purpose in purchasing the home was as a vacation venue for family and friends
• the median sales price paid by the typical foreign buyer was $299,500 and was financed through a mortgage loan
• the typical foreign buyer in the U.S. spends 4.2 months in their U.S. property

Sixty-nine percent of international home buyers used mortgage financing, while 28 percent purchased their home with cash. One positive consequence for U.S. housing markets – especially those that boast a significant share of foreign home buyers – is that such purchases lower the risk of mortgage defaults. As a result, cash purchases lessen the foreclosure risk against this group of buyers. Lower foreclosure risk, in turns, lessens the possibility of a price decline in a market. In the wake of the subprime mortgage fallout in the spring of 2007 and the subsequent increase in mortgage delinquencies and foreclosures, the healthy share of cash purchases by foreign buyers is a good sign for the future of those markets.

The reasons international buyers purchase U.S. real estate.

California is the #2 destination for international homebuers with 16% off all foreign real estate purchases. Asian buyers accounted for 44% of all international buyers purchasing California real estate.

The NAR’s conclusion from the survey:

We live in a global economy where there are virtually no trade borders. The Internet is accessible from nearly all countries around the world. Web sites display information about U.S. real estate to any potential home buyers regardless of where they live. And as more and more people in different nations recognize the value of owning property, the opportunities and challenges for real estate professionals to broker U.S. property to foreign home buyers are numerous.

While U.S. housing markets are no longer performing at record-breaking levels, U.S. real estate is still considered a prime investment opportunity for foreign buyers and a “safe haven” in which to put their money. Whether they use their U.S. home as rental/investment property, as a vacation home or both, non-U.S. residents account for a significant share of home buying activity. It is likely they will continue to do so. With the weakened U.S. dollar against foreign currencies, those currencies buy a lot more than in previous years. For example, the British Pound Sterling was worth $1.44 in 2001; by 2004 it was worth $1.83. As of mid-year 2007, the pound was worth nearly $2.00. The euro has also increased in value against the U.S. dollar. More purchasing power for foreign buyers mean they can afford “more house” – particularly in a stabilizing U.S. housing market.

Another factor drives international participation in U.S. residential real estate markets. The U.S. market contains a large supply of real estate. It is also fairly easy to purchase a home in this country; the U.S. does not restrict or scrutinize most property purchases by foreigners, as happens in other countries. There are few barriers to owning a property. Except to the extent necessary to enforce U.S. laws and regulations (including immigration and homeland security), foreign participation in the U.S. housing market is largely free. Foreign investors have the same property rights in the U.S. as Americans do.

Foreign nationals purchasing real estate in the U.S. benefit from engaging the services of professional Realtors with international experience like our own Paul Mees. Paul is a native of The Netherlands. He has an international business background and owns homes in the U.S., Holland and Italy. You can contact Paul at (925) 963–4246

Related Article:

Dollar, real estate slump make American property appealing to foreigners 

The term "shaken not stirred" has taken on a new meaning on the set of the latest James Bond movie "Quantum of Solace". A stunt driver crashed 007's Aston Martin into Lake Garda in northern Italy. The driver was delivering the Aston Martin to the film set in heavy rain when he lost control around one of the lake's narrow curves: he wasn't hurt but the $300 000 car was a write off.

My wife Ginny happened to be in Riva del Garda (visual tour here) where the crew is filming; she and a couple of our friends are staying at our house ‘Villa Teggiole’ to get the house ready for the rental season; if you are interested in renting a villa overlooking the largest and most beautiful lake in Italy than check out our website www.VillaTeggiole.com where you can read all the details and see the pictures.

Ginny told me that my Italian cousin, Mauro Morandi, who is an ambulance driver, is present at the film set in case somebody would get hurt. Yesterday, they were filming in Limone; a quaint little town right on the lake. I have always loved this part of Italy. Ginny saw the ambulance go by with sirens on and and Mauro driving. Most likely he was taking the injured driver from the second crash in two days to the hospital.

In my previous life when I worked for KLM Royal Dutch Airlines, I used to travel all over the world but every time when I came back to Lake Garda I thought this is one of the most beautiful places I have ever been. For Ginny’s friends, Rebecca and Michelle, it is their first time at our house and they are both blown away by the beauty of the area. The last couple of days they have visited: Malcesine, Limone, Torbole and Riva del Garda. Tomorrow they will be in Venice which is only 2 hours away and on Friday they will visit Verona, the town of Romeo and Juliette, at the south part of Lake Garda.

Ginny and I are Realtors in the Bay Area. Together, with our partners, we form the real estate team Harper Mees and Associates. In addition to being experts on local residential real estate, we specialize in international real estate and foreign investors, people that are relocating for work or people that are looking for properties abroad. Since we are opening our first European office in The Hague in The Netherlands later this year, we have decided to sell the villa; a great opportunity for anybody who is looking for a brand new villa on a private location, with a pool and overlooking vineyards and amazing views of the Dolomites and Lake Garda  - details here.