The United States continues to be an attractive place for international home buyers whether purchasing for use as a primary home, vacation home or investment property. Using photos, statistics and detailed descriptions, this guide will help you navigate the U.S. real estate market.
INTERNATIONAL GUIDE HOMEBUYER’S
YOUR GUIDE TO BUYING A HOME IN THE UNITED STATES
Brought to you by
2021 Edition
Diversity strengthens all of us. Lennar International works hard to reflect the global diversity of the people around the world we work with, day in and day out. One of the central principles of Lennar Corporation is integrity, and at the core of that principle are two very simple, but powerful, words: WE CARE. Lennar International was founded on those two words. We care about all the immigrants we help to find new homes in the United States. We care about the parents looking for a safe and comfortable home away from home for their children who are in the U.S. to get the best education the world has to offer. We care about the talented men and women who are coming to work in one of the most innovative economies on the planet. We care about tourists and vacationers looking for a place to escape their hectic life and relax. We care about the citizens of the world who seek out investment opportunities in the U.S. - one of the best real estate markets in the world. We care about everyone seeking to improve the safety, security, and future of their families. We care. Lennar International has an unwavering commitment to all people who seek to buy homes in the U.S., and to those real estate professionals around the world who help them achieve that dream every single day. We will continue to support the well-being of our homeowners, future homeowners, and our valued global partners all around the world. And we will continue the good work of enhancing the diversity – and promise – of America, which strengthens us all.
WHYBUY INTHE U.S. By the Numbers From the Experts Where to Buy The U.S. Marketplace Educational Opportunities WHYBUY LENNAR Lennar By the Numbers International Appeal Options for Every Buyer NextGen Everything’s Included® Why Buy New Virtual Sales
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HOWTOBUY Six Steps to Buying a Home Workingwith a Real Estate Professional Homebuying Checklist Glossary
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YOUR GUIDE TOOWNING AHOME INTHE U.S. The United States continues to be an attractive place for international home buyers. Using photos, statistics and detailed descriptions, wewill help guide you through the home buying process. The International Homebuyer’s Guide is provided by Lennar, one of the largest andmost innovative homebuilders in the United States. Wewelcome your feedback. Contact us at International@Lennar.com
INTERNATIONAL GUIDE HOMEBUYER’S
Sincerely,
YOUR GUIDE TO BUYING A HOME IN THE UNITED STATES
Chris Marlin President Lennar International
2021 Edition
www.linkedin.com/in/chrismarlin/ @lichrismarlin
Statistics and data regarding international home sales sourced from the National Association of REALTORS® 2020 International Transactions in U.S. Residential Real Estate (https://www.nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate) and the 2020 Profile of International Residential Transactions in Florida (https://www.nar.realtor/research-and-statistics/research-reports/profile-of-international-residential-real-estate-activity-in-florida). Other sources include Open Doors 2020 Report on International Educational Exchange (https://opendoorsdata.org/), Investopedia (https://www.investopedia.com), Forbes (www.forbes.com), U.S. Census Bureau (www.census.gov), Public Policy Institute of California (www.ppic.org), United Nations (https://www.un.org/development/desa/pd/) and TheWorld Bank (https://databank.worldbank.org/reports.aspx?source=2&series=NY.GDP.MKTP.CD&country=).
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POPULAR PLACES
WHY BUY IN THE U.S.?
BY THE NUMBERS: April 2019 – March 2020
HOME SALES INTHE U.S. April 2019 – March 2020
TOP COUNTRIES BY DOLLAR VOLUME (USD)
TOP STATES FOR INTERNATIONAL PURCHASES (by number of homes April 2019 –March 2020) WHILE INTERNATIONAL BUYERS PURCHASE HOMES THROUGHOUT THE U.S., FOUR STATES RECORDED MORE THAN HALF OF THOSE SALES: FLORIDA, CALIFORNIA, TEXAS, AND NEW YORK.
International purchases of U.S. homes $74B (USD)
ANYONE CANBUYANDOWNPROPERTY INTHE UNITED STATES REGARDLESS OF CITIZENSHIP.
China Canada Mexico India Colombia
$11.5 billion
$9.5 billion
A historically strong economy, investment security, moderate pricing, government stability and educational opportunities make the U.S. a globally attractive location for home ownership. Froma statistical perspective, the U.S. economy is the largest in the world, with a gross domestic product (GDP) that represents nearly one- fourth of theworld economy. For real estate specifically, that economic strength traditionally translates to advantageous housing prices, strong rental rates and good long-termappreciation. In fact, evenwhen the U.S. dollar strengthens in relation to some global currencies, international home sales continue to be a significant part of the U.S. housingmarket. Additionally, international buyers nowhave access tomore home financing options than ever before. Historically lowmortgage interest rates make the purchase of a home that muchmore affordable for international buyers wishing to finance their purchase. The economic strength of the U.S. helps to create investment security. There is a substantial and increasing level of global wealth, and the U.S. is considered a secure and attractive location for investing in real estate. Demand for single-family rental homes remains robust according to the (John) Burns Single-Family Rent Index ™ . Major international airports and an extensive interstate highway system makes travel to, and throughout, the U.S. safe and convenient. There are 46,876miles (75,440 kilometers) of state-operated highways in the U.S. Additionally, the U.S. has four of the top ten busiest airports in theworld - number one Atlanta (ATL), number three Los Angeles (LAX), number six Chicago (ORD) and number ten Dallas (DFW) - according to Airports Council International. Other reasons for the global popularity of U.S. real estate include access to top colleges and universities, employment opportunities and the ability to achieve a better quality of life.
$5.8 billion
$5.4 billion
Number of homes purchased in the U.S. by international buyers 154K
$1.3 billion
Florida
22%
TOP COUNTRIES BY NUMBER OF HOMES
California
15%
Texas
9%
NewYork
5%
China Canada Mexico India Colombia
12% 12%
Average purchase price of U.S. home by international buyers $480K (USD)
New Jersey
4%
9%
Arizona
3%
6%
Georgia
3%
4%
Illinois
3%
Minnesota
3%
NUMBER OF HOMES PER REGION
Estimated total number of foreign-born homeowners in the U.S. 10M
NorthCarolina
3%
Virginia
3%
Asia & Oceania Latin America & Caribbean Europe North America (Canada) Africa
29%
LOCATIONPREFERENCE OF INTERNATIONAL BUYERS
23%
13%
U.S. FAST FACTS
Suburban Central City/Urban Area Small Town/Rural Resort Area
48% 29% 15% 7%
Population = 331Million States = 50 Size = 9,833,517 km 2 (3,796,742mi 2 )
12%
3%
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Data provided by National Association of REALTORS® and the U.S. Census Bureau
FROMTHE EXPERTS
WHERE TOBUY PROXIMITY TO HOME COUNTRY, THE PRESENCE OF RELATIVES AND FRIENDS, CONVIENENT AIR TRANSPORTATION, CLIMATE, SAFETY, AND ACCESS TO COLLEGES AND UNIVERSITIES ARE PARTCULARLY IMPORTANT TO INTERNATIONAL BUYERS.
THE HISTORICALLY STRONG U.S. HOUSING MARKET HAS TRADITIONALLY BEEN A GOOD INVESTMENT. THIS TREND IS EXPECTED TO CONTINUE. HERE IS WHAT THE EXPERTS ARE SAYING.
“With (this) income growth and low interest rates, we project a continued increase in homeownership rates within our community across non-traditional markets, particularly in the Southwest and Southeast region of the country. States like North Carolina, Alabama and Texas are seeing an increase in net migration of Asian Americans.” - Amy Kong, President of the Asian American Real Estate Association of America (Forbes.com, December 16, 2020)
To provide perspective, a sample of notable trends include the following:
Fifty-four percent of California’s foreign buyers are from Asia. The state provides geographical proximity and direct air travel to China, as well as a vibrant Asian American population which is 15%of the total population of California according to the Public Policy Institute of California.
“Nationwide, low interest rates will fuel homeownership demand in the first half of the year while employment gains will keep demand high in the second half of the year. Texas, home tomany Latinos and a greater number of newcomers, will see the highest number of newhomeowners.” -Gary Acosta, co-founder and CEOof theNational Association of Hispanic Real Estate Professionals (Forbes.com, December 16, 2020)
Indian buyers are split between California (17%), New Jersey (14%), and Texas (12%). While the number of homes purchased by Indians in the U.S. declined slightly, buyers spent a total in excess of $1 billion more year over year.
“We expect to see the housingmarket continue its bull run from this summer and autumnwell into 2021. Home value appreciationwill approach 9%or even 10%by July, before cooling somewhat down toward 7%appreciation.” -Jeff Tucker, Zillow senior economist (Forbes.com, December 16, 2020)
The number of homes in the U.S. purchased by Colombians more than doubled year over year – from 2,300 in 2019 to 5,500 in 2020. Florida is the overwhelming destination for Colombians – 78%of Colombian homebuyers in the U.S. purchased a home in Florida.
“The housingmarket was a spectacular surprise in 2020—and the positive trendwill continue this year. Home sales in 2021 are expected to rise by around 10%.” “A typical (U.S.) homeowner in 2020, just by being a homeowner, theywould have accumulated around $24,000 in housingwealth.” -Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of REALTORS ® (abcactionnews.com, February 17, 2021)
Buyers from Latin America favor states in close proximity such as Texas and Florida. The majority of international buyers in Florida, 35%, came from Latin America and the Caribbean.
“The (U.S.) housingmarket has proven to be very strong andwe expect it to continue to be a significant driver in the recovery of the overall economy over the next several years.” -Stuart Miller, Executive Chairman of Lennar Corporation (Lennar.com, December 16, 2020)
Canadians typically seek winter vacation destinations buying in warmer climates. Roughly 500,000 Canadian “snowbirds” flock to Florida each year, according to the Canadian Snowbird Association. Fifty percent of Canadians who purchased a home in the U.S. last year, bought in the state of Florida.
Forty-nine percent of Brazilian buyers purchased homes in Florida spending $1.4 billion USD. Texas is also popular where 12%of Brazilian buyers purchased a home.
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Data provided by the National Association of Realtors®
THE U.S. MARKETPLACE
THE NORTHEAST
THE MIDWEST
The northeastern U.S. encompasses the states of Maine, NewHampshire, Vermont, Massachusetts, Rhode Island, Connecticut, NewYork, New Jersey, Pennsylvania, Delaware andMaryland. There is a
Themidwestern U.S. consists of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota andWisconsin. Illinois is themost
great diversity of landscapes — coastal plains to rolling hills that can peak up to 5,000 feet (1,524meters). Similarly, there are stark contrasts in lifestyles — from the large industrial cities of NewYork (themost populous city in the U.S.), Philadelphia and Boston to quaint rural towns. The climate across the region does not vary as much as the lifestyle. Winters are coldwhile the summers are generallywarmand humid. The autumn and spring seasons aremoremild.
populous of these states, with Chicago being the largest city. The landscape is mostly lowand flat with some rolling terrain. Summers are hot whilewinters are frigid. TheMidwest has the highest employment- to-population ratio in the country, and the central U.S. locationmakes it a transportation crossroads for riverboats, railroads, autos and trucks, and air travel.
THE SOUTHEAST The southeastern U.S. is a fast- growing region that includes Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia andWest Virginia. Florida
THE NORTHWEST
The northwestern U.S. is bordered by the Pacific Ocean to thewest and, loosely, by the Rocky Mountains on the east. The region — also sometimes called the Pacific Northwest — includes Oregon, Washington, Idaho, Montana andWyoming. The geography is especially diverse, dominated by several mountain ranges and broad plateaus. With plentiful rainfall andmild summers, the Northwest grows some of North America’s most lush and extensive forests. Bays, rivers, plains andmountains mark the coastline. The region is known as a U.S. hub for technology.
has the largest population, followed by Georgia and North Carolina. The terrain is largely flat, with a fewhilly exceptions. Theweather is humid and hot in the summer andmoderate for the rest of the year. In the past two generations, the Southeast has changed in character greatly, adding several industries to the region’s economy, such as finance, technology andmanufacturing. Southern culture is slow-paced and friendly.
THE SOUTHWEST The southwestern U.S. is a sprawling territory that takes up about one- fourth of the entire country. The region’s states are Texas, Arizona, New Mexico, Colorado, Utah, Nevada, Arkansas,
THE WEST COAST
Also known as the Pacific Coast, this region encompasses the state of Californiawhose largest cities include Los Angeles and San Diego to the south and San Francisco to the north. Twenty-seven percent
of California residents are foreign born – more than any other state. The Los Angelesmetropolitan area boasts the second largest population in the U.S. and is home toHollywood - known as the “Entertainment Capital of the World” for its numerous filmand television studios. San Francisco and Silicon Valley are leading financial, technological, and cultural centers. While the weather is quite pleasant throughout the region, there are subtle differences particularly in the northwhere the average temperatures tend to be cooler.
Oklahoma and parts of California. Because of that vast landmass and diverse landscapes, natural resources play a big role in the region’s lifestyle and economy, including agriculture, manufacturing, healthcare, energy, and transportation.
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EDUCATIONAL OPPORTUNITIES THE U.S. HOSTS MORE INTERNATIONAL STUDENTS THAN ANY OTHER COUNTRY = 1,075,496 (2019-20 ACADEMIC YEAR)
THE STORY OF THE LARGEST U.S. HOMEBUILDER
HEADQUARTERED IN MIAMI, FLORIDA
FOUNDED IN 1954
LISTED IN 1972
Many families choose to purchase a home for their college/university students rather than pay for traditional student housing. Lennar builds homes in communities near some of the best schools that enjoy the largest international student enrollment including, but not limited to:
OVER 1 MILLION HOMES BUILT AND DELIVERED
1200+ ACTIVERESIDENTIAL PROJECTS
HOMEBUYERS FROM 135+ COUNTRIES
YOUR PREFERRED PARTNER IN THE U.S. CULTURAL AWARENESS, LANGUAGE CAPABILITIES, TRANSACTION EXPERTISE, ATTRACTIVE PRICES AND HOMES FOR EVERY LIFESTYLE.
Florida
Texas
University of Miami University of Central Florida
Rice University
Pennsylvania
University of Pennsylvania
California
University of California-Berkeley Stanford University University of California-Irvine University of California-Los Angeles Southern California University Georgetown University George Washington University American University
LENNAR CURRENTLY BUILDS IN21 STATES Arizona
New Jersey
Princeton University
Indiana Maryland Minnesota Nevada New Jersey Oregon Pennsylvania
South Carolina Tennessee Texas Utah Virginia Washington
California Colorado Delaware Florida Georgia Illinois
Maryland
Johns Hopkins University
Washington
University of Washington
Washington D.C.
North Carolina
Duke University
Illinois
University of Chicago
Georgia
Georgia Institute of Technology Emory University
HOMES FOR EVERYNEED Vacation, Second Home, Investment, Single Family, Multi-family, Multi-generational
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*Schools listed are within 20miles of a Lennar community with an international student enrollment of at least 11%according to U.S. News &World Report
LENNAR’S INTERNATIONAL APPEAL THE LEADING U.S. HOMEBUILDER’S DOORS ARE OPEN TO THE WORLD. Founded in 1954 and listed on the NewYork Stock Exchange (LEN) in 1972, Miami-based Lennar is the largest homebuilder in the United States having built more than 1million homes across the country during its 67-year history. Lennar has exclusive programs tailored to international buyers that focus on their specific requirements, country of origin and reasons for buying in the United States. With specialized skills such as language capabilities, cultural understanding and foreign transaction expertise, Lennar provides international buyers with the tools needed tomake the homebuying process easy. With communities in 21 states, Lennar offers homes in locations most sought after by international buyers. You can find Lennar communities near airports offering direct flights to international destinations, near top rated universities and employers and, of course, near world- renowned shopping and tourist areas. At Lennar, our goal is to create themost innovative homes and homebuying experience possible. That’s what has made us one of the leading U.S. home builders, without sacrificing our founding principals of Quality, Value and Integrity.
India
China
15%
26%
Canada
HISTORICAL SALES BY REGION (2011 – 2020)
8%
8%
Brazil
26%
2% United Kingdom 2% Caribbean
13%
LATAM
Other
DURING ITS 65+ YEAR HISTORY, LENNAR HAS SOLD HOMES TO BUYERS FROM THESE COUNTRIES:
Afghanistan Albania Algeria Angola Antigua And Barbuda Argentina Armenia Aruba Australia Austria Bahamas Bahrain Bangladesh Barbados Belize Benin Bermuda Bolivia Bosnia And Herzegovina Brazil Bulgaria Belarus Belgium
Colombia Comoros Congo Costa Rica Cuba Curacao Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Eritrea Ethiopia Fiji
Hungary Iceland India Indonesia
Mongolia Morocco Namibia Nepal
Spain Sri Lanka St. Kitts And Nevis St. Lucia St. Martin Suriname Sweden Switzerland Syria Taiwan Thailand Trinidad And Tobago Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom Uruguay Uzbekistan Venezuela Vietnam Virgin Islands (British)
Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan
Netherlands New Zealand Nicaragua Niger
Nigeria Norway Oman
Pakistan Palestine Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Saudi Arabia Senegal Sierra Leone Singapore Sint Maarten
Kenya Korea
Kosovo Kuwait Lebanon Liberia Libya
Finland France French Guiana Germany Ghana Greece Greenland Guadeloupe Guatemala
Liechtenstein Luxembourg Macau Macedonia Malawi Malaysia Mali Mexico Republic of Moldova Monaco
QUALITY We are dedicated to being an industry innovator, and are constantly focused on providing the highest quality homes.
VALUE At Lennar, we always strive to deliver the best possible home value to each of our customers.
INTEGRITY All of us at Lennar are committed to doing the right thing for the right reason.
Cambodia Cameroon Canada Cayman Islands
Yemen Zambia Zimbabwe
Guinea Guyana Haiti Honduras Hong Kong
Chad Chile China
Slovakia Slovenia South Africa
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OPTIONS FOR EVERY BUYER NO MATTER WHAT YOU ARE LOOKING FOR IN YOUR NEWHOME, THERE IS A SIZE AND STYLE TO MEET YOUR NEEDS.
Condominium Condominium: also referred to as a condo, this is a single unit within amulti-unit complex that is individually owned.
Single-Family Home Also known as a single-family detached home, this is a stand-alone structurewith its own lot/land intended for one family.
Multi-Family Real Estate Separate units contained in one building or several buildings within a common complex. Examples include, but are not limited to, apartments, condominiums and townhomes.
Townhome A home that may have a narrow footprint andmultiple floors, this home typically shares interior walls with other adjacent units and is sometimes referred to as a rowhouse or terraced home.
Multi-Generational Homes A single home designed to accommodate extended family and typically includes a separate exterior entrancewith limited interior access between living spaces. Readmore about Lennar’s NextGen® homes on the next page.
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EVERYTHING’S INCLUDED ® LENNARHAS REIMAGINED THEHOMEBUYING EXPERIENCE BY INCLUDING THEMOST DESIRED FEATURES ATNO EXTRA COST TOYOU.
NEXT GEN ® : THEHOME WITHINAHOME ™ IMAGINE A HOME FOR THE FAMILY YOU ARE RAISING AND THE FAMILY THAT RAISED YOU.
Our homes includemany popular features at no extra cost that are expensive options on other builders’ homes. The features listed below vary by community and home. Check with a Lennar NewHome Consultant for details.
Next Gen® homes allowdifferent generations of a family to live under one roof without sacrificing privacy or independence. Sharing a homewith loved ones offers a variety of financial and logistical benefits. Your family can share a singlemortgage, as well as homecare and utility costs. Next Gen® suites feature their own private entrance, living area, kitchenettes, laundry area, bedroom and bathroom, so everyone gets a place to call their ownwith all the privacy and space they need. And, family visits no longer require a tank of gas or plane ticket. Instead, loved ones are just a few steps away. With all this andmore, Next Gen® homes are the perfect fit for muti-generational lifestyles.
CONNECTIVITY: The Connected Home by Lennar® keeps you connected to themost desirable technology brand devices, all of which are includedwith your newhome at an outstanding value.
• Ring alarm security kit • Ring video doorbell pro • Level Lock – The Invisible Smart Lock • eero Pro 6Meshwifi System • LiftMaster ® myQ ® Smart Garage Control
EFFICIENCY: Lennar homes are built with energy-conscious features to enhance the quality of your home, decrease your monthly utility bills, and reduce your carbon footprint.
MEET THE CHOWFAMILY
Tomand Rebecca Chowemigrated to California fromHong Kong over two decades ago as students. Now, their two children are students themselves. While the NextGen® suite makes a great teen escape space for Tiffany and Ryan, the family’s primary use for it is to host visiting family and friends fromHong Kong, Canada and Saudi Arabia. It was home at first sight for the Chows. “Wewalked in and wow – somuch openness in one roomand the layout really made sense. We can all hang out together and have a great time and still offer family and friends a private space to relax.”
• Energy Star ® Appliances • Flo by Moen ™ Smart Water ShutoffValve • Resideo’s Honeywell Home T6 Pro Z-Wave Thermostat
• MoenWaterSense ® Faucets • Visual Comfort Group Lighting • Ferguson ® WaterSense ® Commodes • Low-EWindows • Sherwin-Williams ® Low-VOC Paint
THE GARDNER FA Home plan GENESIS THE GARDNER FAMILY HOME
LUXURY: From the exterior to the interior of your home, Lennar includes luxurious, modern designs and top-of-the-line features without compromise or additional cost.
Meet The Chows
• GE ® and Electrolux ® Kitchen Appliances • Moen ® Kitchen and Bath Fixtures • Upgraded Countertops • Upgraded Flooring • Upgraded Kitchen Cabinets • Washer &Dryer
Tom and Rebecca Chow emigrated to California fromHong Kong over two decades ago as students. Now their two children are students themselves. While the Next Gen suite makes a great teen escape space for Ryan and Tiffany, the family’s primary use for it is to host visiting relatives from Hong Kong, Canada and Saudi Arabia.
All included features, options and upgrades vary by community. Please check with a Lennar representative for more information and availability.
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• A newhome gives you the roomyou need to live, work, play and entertain. A used homewill always be someone else’s home, with their tastes and fingerprints throughout. A newhome is yours from the start, so you don’t have to settle for less thanwhat you reallywant your dreamhome to be. • A newLennar home features The Connected Home by Lennar®which keeps you connected to new technology brand devices, all of which are includedwith your newhome at an outstanding value. • Updating and remodeling older homes is costly and inconvenient. New homes are built at or above today’s more strict building codes, costing less to insure, and newLennar homes include structural and appliance warranties used homes can’t offer. • Used homes have been built with older materials that could soon need replacing and cost youmoney in energy costs. Lennar’s newenergy- efficient features enhance the quality of your home, decrease your monthly utility bills, and reduce your carbon footprint. • NewLennar homes are easier to tour than existing/pre-owned homes, where you have towait for residents to leave and you are unsurewhat has been cleaned. Schedule a Private Self-Tour fromLennar for a safe and simpleway to tour select homes at a time that works for you. WHY BUYNEW ANEWHOME IS A CLEAN, SAFE ANDHEALTHY, MORE ENERGY-EFFICIENT AND TYPICALLY COSTS LESS TO MAINTAIN THAN AN EXISTING/PRE-OWNED HOME.
VIRTUAL SALES MORE THAN EVER BEFORE, FINDINGA SAFE AND SIMPLEWAY TO CONNECTWITHBUYERS, ESPECIALLY INTERNATIONAL BUYERS, IS ESSENTIAL.
For the health and safety of our buyers, associates and partners, Lennar has reimagined the home buying process. We’veworked hard to convert what was once a high-touch transaction into awell-designed virtual home buying process. Nowyou can shop for, select, and close on your newLennar dreamhome, all from the comfort and safety of your current home, nomatter where in the world you are.
VIRTUAL CLOSING: A virtual home closing process may be available for some international buyers. Lennar has the tools and support services in place to helpmake home closings happen safely and on schedule fromalmost anywhere in theworld: • Onlinemortgage approvals • Document notarization via Remote Online Notary at a U.S. Embassy • Home inspections via video call • Digital document signing of all title and escrow documentation • Express drive-thru or virtual signing of all closing documents • Remote access to your newhome, with sanitized keys left in the home for the newowner
VIRTUAL TOURS: Visit Lennar.com to access digital tours of Lennar homes from community pages, from the comfort and safety of your current home, 24 hours all day. VIRTUAL SALES APPOINTMENTS: Schedule a video call with one of our NewHome Consultants to tour model homes, reviewfloorplans and select a homesite. NewHome Consultants are available seven days aweek to help you find the Lennar home that is perfect for you. PRIVATE, IN-PERSON, SELF-GUIDED TOURS: Tour model homes privately, without a Lennar associate, at your convenience. Tours are booked online and homes are sanitized between visits. Access the home via key code provided just before your scheduled appointment. IN-PERSON, GUIDEDTOURS: Schedule a tour of a model home with a Lennar associate there to greet you. Lennar associates follow strict safety protocols, including wearing a mask and gloves, and observe strict social distancing practices.
Our commitment to support our global broker partner network continues to evolve to address changing needs and requirements. Lennar has introduced live virtual sales seminars andwebinars to give foreign buyers and brokers the opportunity to learnmore about Lennar, tour homes, and even purchase a Lennar home digitally.
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HOWTOBUYA HOME INTHE U.S.
THE EXPERTS: WORKING WITH A REAL ESTATE PROFESSIONAL THE INTERNATIONAL HOME BUYING PROCESS CAN BE CHALLENGING AND COSTLY. FORTUNATELY, THERE IS HELP AVAILABLE.
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FINDAN EXPERT
MAKE THE PURCHASE
As you begin your home search, seek help from a professional with expertise in U.S. real estate. If you choose to purchase a newLennar home, there aremany authorized and trained Lennar representatives located around theworld. You may alsowork directlywith a Lennar NewHome Consultant in the U.S.
Youwill sign a purchase and sale agreement which identifies the final closing date. Based on the type of home you are purchasing (existing or new construction), you can anticipate that your closing will take place anywhere from30 to 120 days from the signing of your purchase agreement.
Real Estate professionals with expertise in the U.S. real estate market offer many benefits.
• Access and convenience: they are familiar with what types of homes are offered in an area and can efficiently direct your home search based on your needs. • Negotiating: with a great understanding of the U.S. market, professionals can potentially save you money by negotiating a better price.
• Legal protection: an experienced professional is familiar with contracts and conditions required to purchase a home.
• Lennar has a global network of real estate professionals that can assist you with your home purchase. Lennar works with certified and/or authorized representatives that are trained to help with your home purchase.
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DETERMINE PAYMENTMETHOD
OBTAINYOURMORTGAGE
(If you are purchasing your home with cash, please go to Step 6.) An international homebuyer should expect to make a down payment that is typically between 20 percent and 45 percent of the value of the home being purchased. Also, some financial documents will be necessary, including proof of income, bank statements, reference letters fromyour banking or credit institution, and two forms of identification.
Using cash is the quickest and easiest way to purchase your home. Mortgage loans are also available from lenders who are familiar with workingwith international buyers. If you plan to obtain amortgage loan, do not begin your home searchwithout knowing howmuch you can afford to spend (and howmuch the lender will loan you). This can be done by receiving a pre-approval for a mortgage loan fromyour lender.
EveryU.S. real estate professional is regulatedby state governmentswhichhave requirements to earn a license. There are several professional titles used in theU.S. and eachhave different responsibilities.
Real Estate Broker
Real Estate Agent
Anyone who earns a real estate license can be called an Agent. An Agent must complete a minimum number of classes and pass an exam to earn a license. Agents help people buy, sell or rent real estate.
Lennar NewHome Consultant (NHC) A Lennar Associate who guides a buyer through the homebuying process. NHCs have a real estate license and are either an Agent or Broker. NHCs will work with buyers’ Agents/Brokers, or can provide professional guidance directly to a buyer. A Broker has completed classes beyond the Agent level. They must have experience as an Agent before taking a Broker’s exam. Brokers have more knowledge of real estate laws and practices and may have Agents working for them. Like Agents, Brokers also help people buy, sell or rent real estate. Agents are typically managed by a Broker who handles the earnest money deposit and establishes the escrow account.
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SHOPWISELY
FINALIZE THE CLOSING
REALTOR®
Prior to the closing, a home inspectionmust be completed by you or someone appointed by you. Your real estate professional (and/or a Lennar NewHome Consultant) will guide you through the closing process.
Before you get started on your home search, determine the type of home youwant — townhome or condominium, vacation or investment home, or single-family or multigenerational. You should also consider what amenities youwould like to have in your community such as a gated entrance, pool, tennis courts and/or golf course.
This is the official designation for a real estate agent who becomes a member of the National Association of REALTORS®, and upholds the standards of the association and its code of ethics.
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PREPARING Seek help froma real estate professional / Lennar New Home Consultant Determine howmuch you can afford (total price and monthly payment) Determine howmuch you can spend on a down payment Determine payment method (cash or mortgage loan) Get information of collateral expenses (furniture, cookwear, etc.) QUESTIONS TOASKWHENSEARCHING What location or neighborhood is it in? Howmuch does it cost? What interior and exterior features do I want? HOMEBUYING CHECKLIST
GLOSSARY
HomeWarranty – a residential service contract that covers the cost of maintaining/repairing household systems or appliances for a set period of time Lender – an individual, a public or private group, or a financial institution that makes funds available to another with the expectation that the funds will be repaid, typicallywith interest Mortgage Insurance – an insurance policy, paid for by the borrower, typically required by a mortgage lender if a down payment does not meet a required minimum; it protects a mortgage lender if the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mortgage Pre-Approval – apreliminaryevaluationof apotential borrower by a lender todetermineanestimateof theeligibleamount of a loan Pre-Qualification – the first step in themortgage process; the evaluation of the credit worthiness of a potential borrower by a creditor for the purpose of providing a pre-approval Principal – the amount on amortgage loan that has not been repaid, excluding interest Property Insurance – provides financial reimbursement to the owner or renter if a home and/or its contents are lost due to damage or theft Property Taxes – a fee, calculated by a local government, which is paid by the owner of the property Purchase Contract – the legally binding document that includes the terms of the sale, establishes the rights and obligations of the parties involved, specifies the actions to be taken in order to close the sale, and establishes the time frames for those steps to be completed Seller Property Information Report (SPIR) – a report disclosing information about the condition of a property based on the seller’s knowledge; this report does not replace the need for a property inspection by a professional Settlement Statement – a document that summarizes all of the fees and charges that a borrower and lender are responsible for during the purchase/sale of real state Title Insurance – protects real estate buyers and/or mortgage lenders fromfinancial loss if defects of a property title are discovered Wire Transfer – electronic transfer of funds
Adjustable-RateMortgage – real estate loan inwhich the interest rate applied on the outstanding balance varies throughout the termof the loan Amenity – a feature of a property or community that makes it more valuable to potential buyers or tenants such as pools, clubhouses, fitness facilities Appraisal – a requirement for a loan/mortgage, a valuation of a home based on examination of the property/structure as well as comparativemarket analysis Assessed Value – the dollar value assigned to a property by local government to determine applicable taxes Closing – ameeting at which a sale of property is finalized by signing documents/contracts; the buyer pays closing costs and the down payment; the seller transfers the deed to the buyer Closing Costs – the expenses, over and above the price of the property, that buyers and sellers incur to complete a real estate transaction ComparativeMarket Analysis (CMA) – an examination of the prices at which similar properties in the same area recently sold Contingency Clause – a contract provision that requires a specific event or action to take place for the contract to be considered valid Down Payment – a cash payment made during the onset of the real estate purchase Earnest Money Deposit – a deposit made by the home buyer to demonstrate intent to buy a home Equity – the difference between the fair market value of a home and the amount remaining on amortgage loan Existing Home – a home that has previously been constructed and had at least one owner Fixed-RateMortgage – amortgage loan that has the same interest rate throughout the termof the loan Homeowners Association (HOA) – an owner-lead organization in a community that makes and enforces rules for the properties and their residents; these organizations typically collect dues used for the upkeep of common areas of the community (playgrounds, parks, etc.) Home Inspection – an examination of the condition of a home to determine if repairs and/or updates are necessary prior to closing
FINANCING/LEGAL PROCESS Securemortgage loan by providing proof of good credit, income, etc. Stay in contactwith lender/bank throughout buying process Get an appraisal Meet with an attorney or tax professional to discuss how titlewill be held (i.e. individual, LLC, etc.) Set up bank account in U.S. if needed CLOSINGYOURHOME Stay in contact with the title company throughout the buying process Prepare necessary documents
Schedule a final walk-through/inspection Sign closing paperwork and finalize sale
Howmany bedrooms/bathrooms? What are the community amenities? What is the school rating in the neighborhood?
NEEDEDFORMORTGAGEPRE-APPROVAL Good credit
Income information Asset information Personal information Passport and/or other citizenship documentation
This presentation includes “forward-looking statements,” as that term is defined in the Private Securities Litigation ReformAct of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially fromthe activities and results anticipated in forward-looking statements. These factors include those described in our Securities and Exchange Commission filings, including those under the caption “Risk Factors” in our most recent Annual Report on Form10-K filedwith the Securities and Exchange Commission. We do not undertake any obligation to update forward-looking statements, except as required by federal securities laws. This presentation includes macro-economic and market share information that was obtained from independent sources. While we believe those sources are reliable and we have no reason to think that the information we have included in not accurate, we were not involved in developing the information that was obtained from independent sources, and do not have the ability to confirm its accuracy. Therefore, we cannot be responsible for the accuracy of informationwe obtained from independent sources.
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