Is the American real estate market your focus for starting 2020 by expanding your investment portfolio? Although the purchase process is less bureaucratic, you need to pay close attention to the details of the procedures. Especially when it involves an international purchase, such as between Brazil and the United States. 

In these cases, it is necessary to evaluate the legal issues in the USA, income tax in Brazil, translation of documents, sending remittances, among other issues. That's why today we're presenting all the important concepts to know about the American real estate market. 


Step by step 

Buying a house abroad involves:

1- hiring a real estate agent; 

2- finding the ideal house;

3- decide on the form of purchase (financing, cash, etc.);

4- check documentation and make a down payment;

5- take the keys.

We've already covered this step-by-step in detail on our blog, you can check it out in the article How to buy a house in Florida. Now let's look at other concepts and aspects of the American real estate market that are important to understand.

Multiple Listing Service

The MLS is a database of all the homes for sale on the American real estate market. In this way, all real estate agents have access to the same information. This is very positive because it creates transparency and horizontality in competitive market relations between these professionals. 

For consumers, the advantage is that they can choose a broker who offers services that best suit their needs, since there is no monopoly on real estate with certain companies. In addition, the prices are fixed (including commissions and fees). 



Around 6% of the amount you spend buying a property in the USA goes to the real estate agent and the company they work for. In addition, another 1 to 6% of the value of the property can be spent on notary fees. There are also insurance costs, a property manager (in the case of a Vacation Home) and IPTU. 



Unlike in Brazil, the US states have autonomy in relation to current legislation. In other words, in their 50 federal unitsThe country has different laws from place to place. That's why, when buying a property, you need to pay attention to the rules of the region you've chosen. That's why it's so important to rely on professionals who specialize in the American real estate market when making your purchase. This ensures that the procedures are legal.


Mortgage as financing in the American real estate market

The method of paying for a property over time in the USA is called a mortgage. In this model financing granted by US banks uses the property being purchased by the loan applicant as collateral. 

Loans for property financing can be up to 70% of the purchase price, with an interest rate of around 4.7%. The benefit can also be enjoyed by foreigners, and you don't even need to be a resident or have a residence visa to do so. All you need is a valid tourist visa.  

It's worth noting that in this model, the lender holds the title to the property until the debt is completely paid off. However, if payments are not made, the creditor bank has the right to sell the property to get its money back. 


Real estate professional

There are different classifications of professionals qualified in the United States to provide real estate advice, from real estate agents to realtors. The difference between them is the level of knowledge and the form of membership of the MLS database. 

The great advantage of having a real estate professional at your side during the process of searching for and purchasing a property in the USA is legal protection, negotiating with an experienced person who can help you, and the expertise needed to maximize your investment and save you money. 


For Brazilians 

In addition to all the aspects mentioned above, the most interesting thing for Brazilian investors is to find an agent who has experience in international procedures. To help with documents, translations and other legal issues between Brazil and the United States specifically. 

You can count on The Florida Lounge consultancy. Our professionals specialize in selling real estate to the Brazilian public and provide a completely personalized service. In this way, they can help you with all aspects of real estate investment and even with moving the whole family to the USA. 

In other words, we don't just help you buy the perfect house, but we believe that the whole experience involves much more than that. That's why you can count on us to advise you on schools and universities for your children, visas and much more. 

American Real Estate Market - Get in touch

Did you like the article? Keep an eye on our blog! Looking to invest in real estate in Florida? See the list of houses for sale in Florida we've selected for you!