How to Attract International Real Estate Buyers

South Africa remains one of the most popular long-haul destinations for holidays and retirement. In addition to the favourable exchange rate which offers non-resident investors lifestyle options which may otherwise have been unaffordable at home, South Africa also offers a world of variety of sights and activities, making it a tourist Mecca.

For many who live in the northern hemisphere, South Africa also affords them the opportunity to live like swallows – chasing endless summers and making the most of our warm climate, picturesque landscapes, and beautiful beaches. 

Tips for targeting the international market

When considering non-South African residents, it’s important to consider what will make your property attractive to international buyers: how you present it visually and the narrative you create for it. 

1) Partner with a professional with global reach

If you’d like to sell your property to an international buyer, the first and most important tip is to draw on professional help from a globally recognised brand like RE/MAX. RE/MAX has offices in over 110 countries and territories and is the largest real estate franchisor in the world. In addition to each region's own localised websites, the global website (global.remax.com) is tailored for international property listings and geared for international buyers.

2) Prepare your home for sale 

Even if you are trying to attract local buyers, presentation is key. To prepare your property ahead of your listing photoshoot, get it in tip-top shape, addressing all maintenance issues and getting the home as tidy as possible. Keep in mind that some  international clients may be looking for an investment that doubles as a holiday home, which means that they might want to purchase properties “as is” – contents, décor and all. 

3) Create a virtual window into your property

Since most international buyers will most likely be unable to walk through your home in person, you could consider a virtual show house and/or a virtual 3D tour that “walks” prospective buyers through the home. It is also important to add video to your property listing. Video tours provide the opportunity to combine drone photography that illustrates not just the interior and exterior of the property, but showcases the surrounding neighbourhood and landscape.

4) It's about location, location, location

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa points out that “sellers will need to highlight the appeal of their suburb as well as their homes. Sellers need to remember that buyers are not only purchasing the property, but they’re purchasing the location as well – especially when a location is entirely unknown to him/her.  When marketing the property abroad, it is therefore advisable to include links to interesting things to do in and around the area or to share video clips that highlight the appeal of that suburb.”

5) Identify your target audience

Personal preferences will play an important role. For example, the prospect of open-plan living and al fresco dining will appeal to buyers from some regions and not to buyers from other regions. The type of buyer you hope to attract is also important. Holiday makers, for example, will want to be closer to tourist attractions and might prefer proximity to sand, sea and mountains. Prospective retirees who have an active lifestyle could be looking for a combination of security and seclusion but with access to walks, hikes and/or cultural activities. On the other hand, if you are hoping to attract a young family moving for professional reasons, your property listing should highlight nearby education opportunities, health facilities and access to shopping for their daily needs. Whoever your target audience may be, it is important to tailor your listing description to highlight the features that will be most appealing to them. 

Try to avoid potential contractual conundrums

Property transactions, by their very nature, are complex and even more so when they cross international borders. That’s why it is so important to select the correct transferring attorney. This is the seller’s responsibility, and in this instance, it is critical to select a conveyancer with experience in international transactions. 

Some administrative aspects that are helpful to be familiar with when selling to an international buyer include:

• When a non-resident buys property in South Africa, they do not need their spouse’s signature. However, the transfer documents will have to indicate where they were married, and how that country’s law impacts the transaction. 
• Because no provision has yet been made for electronic signatures, if foreign buyers are not completing the paperwork in South Africa, they will have to do so at the closest South African embassy or consulate.
• Seek advice to ascertain the tax implications of the transaction. For example, if this is not your primary residence, you will be liable for Capital Gains Tax. Similarly, international buyers need to be aware of what local tax laws apply to them. SARS (South African Revenue Service) will take into account factors such as the number of days spent in South Africa, the investor’s country of origin, and the source of their funds.

What are you waiting for? Reach out to RE/MAX

If you’re ready to sell to an international audience, partner with RE/MAX a real estate agent and ensure the broadest possible exposure to potential buyers. To begin the process, contact your nearest RE/MAX office and ask for a free Market Analysis to find out the value of your property.

Have more unanswered questions? Here are some related questions – and answers – that might help…

Can a foreign company buy a property in South Africa?

Yes, a foreign company can buy a property in South Africa, but it will also have to be registered in South Africa in terms of the Companies Act, and have a local representative. The entity will also have to have Exchange Control approval from the South African Reserve Bank.

Can non-South African citizens buy agricultural land in South Africa?

At the moment there is no law prohibiting foreigners from owning agricultural property in South Africa. However, the Regulation of Agricultural Land Holdings Draft Bill (2013), which has yet to be promulgated, proposes that foreign nationals will only be able to lease land on a long-term basis rather than owning land in freehold.