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Types of Services That Assist Foreigners in International Real Estate Transactions

Many foreigners need help when renting or buying property in a foreign country.

When foreign real estate clients (such as expats, digital nomads, and international real estate investors) try to buy or rent property abroad, they face challenges including: communicating in the local language, understanding the local real estate market, and navigating legal requirements associated with renting or buying overseas. To address these issues, there are various real estate companies that assist foreign clients with renting or buying property abroad.

Below we explain the different types of foreigner-friendly real estate companies, we show examples of each type of service, and discuss the different ways clients pay for help from local real estate providers.

Types of Services That Help Foreigners with International Property Transactions

Each transaction has its own unique context, and the client needs for that deal will depend on the location of the property and other unique circumstances. Different companies exist in each local market that offer a range of different types of services.

To better understand what services are available to help foreign buyers and renters with real estate, we can look at the different categories of companies that provide international real estate services.

Types of Companies that Provide Real Estate Services to Foreigners

Local Real Estate Agents That Speak English

English-speaking local agents in each country can usually help with the purchase of international real estate or to rent a local apartment. Some real estate companies that offer service in English (and Mandarin, Spanish, or other common foreign languages) are available in most major markets. For simple international real estate investments, or to find a residence in a foreign country, a language-capable local agent may be sufficient.

Example: You are a Canadian planning to move to a city in Spain. You’re able to find a local real estate agent that is foreigner friendly and that speaks both English and Spanish. That agent helps you find a local apartment to rent. As you’re ready to buy property, that same agent may also show you property for sale, provide information about buying property as a foreigner, and help you complete the transaction.

Real estate agents that speak the local language typically earn a commission from the owner of an apartment when they find a tenant for an unrented rental unit, or a commission (from the seller, the buyer, or both) when they help a foreigner to purchase local real estate. See this article for a list of commissions paid to real estate agents by country.

For expats, digital nomads, or freelancers working abroad, some of the details you need may be available online in expat communities or other resources. For help in a specific location, a local agent that speaks your language can be an ideal solution (and in some cases, is legally required). For more sophisticated projects (such as new construction or major remodels of property), or for larger foreign investments in real estate, local real estate consultants, real estate referral companies, or international asset managers may be a better fit.

Companies with Access to Global Real Estate Networks

There are some international real estate companies that are not in the target country, but can help arrange real estate transactions from the home country of the client, in the client’s native language. This kind of international real estate service provider may be familiar with several real estate markets in a range of countries. Real estate companies that work across borders often rely on a global network of other professionals. They may speak the local language of the target country, or work with bilingual local real estate professionals in the country where the client wants to invest in property.

Example: You are a citizen of the United Kingdom (UK), and you are considering buying property in either India or Hong Kong. There are UK-based companies that can help with transactions in those countries. A local UK real estate advisor shows you options in both countries, including online property listings, and helps you plan and make choices. As you decide on a location for investment, that agent then works with local professionals to help you complete the transaction, set up support services like property management, pay property taxes as a foreigner, etc.

Some of these providers may be licensed to work in multiple locations around the world. Others may provide planning and guidance, and then refer the client to local providers once the destination has been chosen. They may earn advisory fees, a commission for their work based on a percentage of the transaction (sometimes in addition to local agents commissions), or a referral fee as they pass the client on to local real estate provider.

In the best of circumstances, once a client is working with a reputable international provider, that provider can source all (or many of) the other professionals required for the client’s transactions.

Local Real Estate Referral Services

There are also country-specific services that make introductions or provide referrals within a local market. These companies may not directly provide services, and instead work as a third-party to discuss the client’s needs and make appropriate local introductions. Good local real estate referral companies have many local connections, and can refer pre-screened professionals that are prepared to help foreigners with real estate in the local market.

Example: You’re an American looking to buy a home in Japan, and then prepare that home for your family as you relocate to a Japanese city for work. A local real estate referral company in Japan discusses what you want, advises you about budget and location, and then makes introductions to local real estate agents in Japan. After the transaction, that same Japanese real estate referral company connects you to a local Japanese tax agent, and a local architect to help you make changes to the home. After some time, that same introduction service for foreigners recommends a visa specialist to help you obtain a long stay visa.

These types of companies may receive a referral fee at the time of the introduction, or a percentage of the real estate provider’s earnings after the local real estate provider completes a contract with that client.

Real estate companies that make local recommendations for foreigners hand the client off to a local provider and rarely remain involved as the transaction proceeds. For foreigners that want a local connection that can guide them along the way, or continue to manage communication or local real estate projects, a country specific real estate consultant may be a better choice.

Local Real Estate Consulting and Project Management

In many countries, foreigners can find a local real estate consultant that will offer planning, coordination, and management for that client as they buy foreign property, build a vacation home in a foreign country, or set up a real estate investment. These companies may provide more strategic planning and research about the local market than a real estate introduction service or a local agent. Local real estate consultants operate in similar ways as “global” real estate service providers (discussed above), but are located within the country where the transaction is to take place; they not only provide advice and guidance, but also make introductions, and then sometimes manage the international real estate transactions through to completion (and beyond).

Example: You are an international investor that wants to buy a multi-family property in Costa Rica to use as a vacation home, and also for a short-term rental business for tourists (using Airbnb, etc). You do not have a lot of experience in Costa Rica, or with managing this kind of investment, so you hire a local real estate consultant to help you choose your location, find property, prepare the units for rental, set up a local business, and manage guests. That consultant also introduces you to a local tax specialist, and sets up tax payments, local banking, and income remittance to you as the owner.

Real estate consultants may receive a fee for planning only, they may be paid on retainer or by the hour, or they may take a percentage of the total transaction. These consultants may also have a local real estate license, and may help foreigners find, buy, and improve a piece of property. They may not do any of the work themselves, but rather “project manage” the transaction, and charge the client an additional percentage on top of all the fees paid to the local providers. Extra real estate consulting fees make the project themselves more expensive, but make the process much easier and faster, can often save the client money by negotiating better fees with the local providers, and may help the client make much better decisions.

If you want to limit fees, and are ready to deal with local real estate agents on your own, a local real estate agent or referral company may be ideal. If you want more help planning, making choices, and managing the transactions, a local real estate consultant that works with foreigners may provide more service. If you’re planning a bigger project, if you’re buying property internationally for investment only, an asset manager may be more appropriate.

Relocation Coordinators and International House Movers

For clients making international moves, full-service relocation coordinators and international house moving companies may be part of the plan to get you set up in a home in a new country. These companies may only handle moving your furniture and other belongs to your new home, or may include assistance in the search for housing, applications for a visa, registration with the local government, move-in logistics, and more. Some large employers may pay for these services for their employees when the employee is transferred to a new job in the foreign country.

Example: You work for a university in Australia, and are taking a temporary position as a professor in China. The university in China has a local relocation specialist that will help your family with the move. That specialist shows you several nice apartments near the university, arranges the contract for the apartment you like best, helps enroll your children in the local international school, arranges visas for your family, and helps to ship (by boat) some belongings from Australia to your apartment.

Relocation coordinators usually have a price-per-service-fee structure. In most cases, several services are bundled into a package, and the more services in the package, the less each service costs. Depending on the needs of the client, relocation coordinators may offer custom packages to make their services more attractive.

For individuals or families moving to a new country, these services could end up saving them large amounts of time, effort, and stress compared to facilitating everything by themselves.

Expat Advisory Services

There are a lot of resources that cater to various expatriate groups that move to foreign countries. There are real estate companies in various locations, as well as websites, that provide suggestions, advice, examples, and services for those that are, or would like to be, expats. The most common type of expat service is a website, app, or online forum that offers access to information, a community of others focused on expat life, recommended services for expats in various countries, or sometimes even consulting or help executing a plan.

Example: You are a remote worker from Singapore, and want to live and work in a foreign country. You visit several online expat communities, and read about countries that offer opportunities for a long stay, and the requirements for permanent residency for those countries. After some weeks online, you choose a country, and then read more about the best plan to move to that country. Finally, through that online expat community, you are referred to a local real estate specialist in the chosen country, and that person helps you make smarter choices about a visa, and also helps you find a short-term furnished apartment where you can live until you find property to buy.

There are a wide range of expat advisory services, and each have a different commission structure. There are websites that support themselves with affiliate links and advertising, consultants that charge for individual planning and guidance, and communities that charge a monthly fee for online access; different forms of services have different structures for compensation. Consulting calls may be charged by the hour or as part of a package, and referrals to local professionals may be paid for by the client or by the professionals, depending on the business model.

Online expat communities can often provide unbiased reports of relocation options across a range of countries, and a more communal experience where you can ask questions and learn from the experiences of others. Many of these communities also make formal and informal introductions and recommendations for local help to find an apartment, buy property, and make real estate investment choices.

International Real Estate Investment Firms

There are foreigners that are interested in international real estate solely for investment purposes. Some of these investors may decide to buy real estate in an international city after having visited that city as a tourist. Other investors are seeking international diversification, or better returns, and will make overseas real estate investment decisions based on those criteria only. In most countries, there are both real estate brokers and international real estate investment advisors that can provide recommendations and help to complete real estate investments in foreign countries.

Example: You are a German citizen, that appreciates real estate as an investment strategy, owns real estate in Germany and other countries in Europe, and is interested in reports of high-yield real estate investments in Vietnam. You contact a local international real estate broker in Germany, and that broker shows you some real estate investment opportunities in Vietnam that are open to foreign investors. The local real estate investment advisor then connects you with a local broker in Vietnam that shows you properties, helps assess profit and loss statements for those properties, and helps you choose an investment.

Whether it be asset management companies or real estate investment firms, these companies mainly cater to investors who need professional assistance managing and growing their real estate portfolios abroad. Some of these companies can offer help with a range of investments, and real estate is one of many choices presented to the clients. These companies may be paid for consultations, may receive referral fees for connecting the client with a local real estate professional in a foreign country, may conduct a transaction for a client and take a commission as the agent, or may receive an annual percentage for managing that client’s assets.

For a hands-off approach, where the client is primarily only interested in the rate of return from an investment in real estate in a foreign country, an asset manager may be the right choice.

Property Management and Accommodation Management for Foreign Owners

After foreigners purchase property abroad for investment, there is often a need for a property manager to handle the paying of bills for taxes and local utilities, rent collection, tenant placement, and maintenance on the property. The quality of the property manager significantly affects the overall success of the investment, and finding a reliable manager can mean the difference between a profitable venture and a costly mistake.

Example: A French couple visits Mexico on vacation, enjoy the lifestyle and culture there, and decide to buy a vacation home. As they speak some English, but not Spanish, they find a local real estate agent that can do business in English, and buy a home in a Mexican city near the beach. Because they will only be using the home a few weeks a year, their real estate agent introduces them to a local property management company. That property manager receives their tax notices and other bills, makes payments, maintains the property and the landscaping, and prepares the home each time before the couple comes to visit.

Local property management companies usually charge a monthly fee for their services. If the property is a rental property, they may charge a fee per unit, as well as an additional fee as a leasing agent each time there is a vacancy in the building and a new tenant has to be found. Additional services like property maintenance, repairs, and seasonal services can be arranged by that property management company, and fees for those services are usually paid separately to the property management company, which then pays local vendors.

In some cases, the original real estate company that helps you buy property may also offer property management, tenant leasing agent services, and/or accommodation management. There are also other individual services that only make tax payments, or provide a local contact for other official communication.

Hiring a Local Japanese Real Estate Agent

Real estate referral companies exist to accommodate a large range of needs. For introductions to local real estate agents or other professionals in Hokkaido, contact us, we are happy to help. Our services are always free to you.

We work for you, not the real estate companies.

We provide person-to-person introductions to prescreened agents that help you sell, buy, lease, or rent property in Hokkaido. We search our custom database to connect you to real estate professionals that speak your language, address your needs and are available now to help you find what you want.

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For More Information:

— See our piece about various Taxes in Japan
— Our detailed Guide to Paying Property Taxes in Japan
— We provide a list of Sapporo Tax Offices
— In Hokkaido, there are areas with special rates for property taxes
— Our review of the role of Property Management Companies in Sapporo
Buying Property in Hokkaido as a Foreigner
— Our list of Tax Accountants for Expats Living in Japan
— Our complete guide for Buying a House in Sapporo
— Our report on How to Rent an Apartment in Sapporo and Move-In Costs for Sapporo Apartments
— Find Lawyers in Hokkaido
Tax representatives in Japan

See also:
— A guide to the concept of Domestic Contacts in Japanese Real Estate
Off-market Properties in Osaka

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