How does the American real estate market work?

How does the American real estate market work?

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

In these cases it is necessary to evaluate US legal issues, income tax in Brazil, translation of documents, remittance of values, among other issues. Therefore, today we present all the important concepts to know about the American real estate market. 


Step by Step 

Purchasing a home abroad involves:

1- hiring a real estate agent; 

2- finding the ideal house;

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

4- prove documentation and make an entry;

5- get the keys.

In our blog we have already done this step by step in detail, you can check it in the article How to buy a home in Florida. Now let's deal with some other important concepts and aspects to understand about the American real estate market.

Multiple Listing Service

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

For the consumer, the advantage is to be able to choose a broker who offers services that best suit his or her needs, since there is no monopoly of real estate with certain companies. In addition, the values are fixed (including commissions and fees). 



About 6% of the amount spent for you are purchasing a property in the USA is for the real estate broker or agent and the company he or she works for. In addition, another 1 to 6% of the value of the property can be spent on notary fees. There are also insurance costs, property management fees (for Vacation Homes) and IPTU. 



Differently from Brazil, the US states have autonomy in relation to the legislation in force. That is, in their 50 federative unitsThe country has different laws from place to place. Therefore, when purchasing a property, it is necessary to pay attention to the norms of the region chosen. That is why it is so important to have professionals specialized in the American real estate market when making the acquisition. This ensures that the procedures are legal.


Mortgage as financing in the American real estate market

The form of installment payment for a home in the USA is called a mortgage. In this model the financing granted by American banks uses the property itself that is being acquired by the loan applicant as collateral. 

Home loans can be up to 70% of the purchase price, with an interest rate of around 4.7%. The benefit can be enjoyed even by foreigners, and it is not even necessary to be a resident or have a residence visa to do so. A valid tourist visa is all that is required.  

It is worth pointing out that in this model the creditor is the one who holds the property title until the debt is fully paid off. However, if the payments are not made, the creditor bank has the right to sell the property to get the money back. 


Real Estate Professional

There are different classifications of professionals qualified in the United States to provide real estate consulting, from the real estate agent to the realtor. The differentiation between them is the level of knowledge and how they are affiliated with the MLS registration database. 

The great advantage of having a real estate professional by your side during the process of searching for and purchasing a property in the USA is the legal protection, the negotiation with an experienced person who is able to help you, and also the necessary competence to maximize your investment and save your money. 


For Brazilians 

Besides all the aspects mentioned above, for the Brazilian investor the most interesting thing is to find an agent that has experience in international transactions. To help with documents, translations, and other legal issues between Brazil and the United States specifically. 

In this sense you can count on The Florida Lounge consulting. Our professionals are experts in selling real estate to the Brazilian public and provide a completely personalized service. In this way, they help in all aspects that involve real estate investment and even moving with the whole family group to the USA. 

In other words, we offer assistance not only in buying the perfect house, but we consider that the experience to be complete involves much more than that. Therefore, count on us to advise you about schools and universities for your children, visas, and much more. 

American Real Estate Market - Contact Us

Did you like the article? Keep an eye on our blog! Wanting to invest in Florida real estate? See the list of houses for sale in florida that we have selected for you!

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