Beyond Buying: Understanding International Sellers in the U.S. Real Estate Market

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While much attention is given to the $56 billion inflow of international capital buying U.S. real estate, it’s equally important to understand the other side of the transaction: international sellers. These individuals, having previously invested in the U.S. market, play a crucial role in shaping supply and creating opportunities for new buyers. For property investors looking for a complete picture of global real estate dynamics, examining who these sellers are, where their properties are located, and why they are divesting offers valuable insights.

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The Other Side of the Coin: Who Are International Sellers?

The National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report provides a detailed profile of international sellers. These individuals are not merely selling, but often concluding a phase of their U.S. investment journey, making their motivations and behaviours critical to observe.

• Active Participants: International sellers typically handled a median of one international transaction over the last year, indicating their active, albeit perhaps occasional, participation in the market.

• Non-Resident Presence: Significantly, almost two out of ten (18%) international sellers resided outside the U.S. This segment represents foreign investors who acquired properties and are now choosing to divest, often from a distance.

• Ownership Tenure and Age: The typical international seller was 56 years old and had owned their property for an average of 8 years. This suggests a long-term investment horizon, where properties are held for a substantial period before being sold.

Related: Foreign National Mortgages: Your Essential 2025 Guide for Non-Residents

Where Do International Sellers Divest? (Location & Price)

The locations where international sellers are divesting provide insight into where they previously invested, and where new opportunities might arise for discerning buyers. While mirroring top buyer states, the types of areas reflect diverse investment strategies.

The top states where international sellers sold properties closely align with the most popular destinations for international buyers, reinforcing a cyclical pattern of investment and divestment:

Notably, the median price of property sold by international sellers was $350,000. This is higher than the median price of all existing-home sales in the U.S., which stood at $300,000 during the same period. This suggests that international sellers often hold more valuable or higher-end properties, indicating potentially profitable long-term investments.

In our own business, we’ve spoken to quite a few overseas owners that want to liquidate their existing U.S. properties in order to repurchase in more attractive looking regional markets. A good example of this is Florida. We’re speaking to families that bought back in 2020 who’ve seen the price of their property increase some 50% or more. Now they’re looking to take those profits and reallocate them into other regional markets in the Midwest with better price stability and long-term prosects for growth.

Likewise, we’ve engaged a few sellers that bought in Florida where the operational costs have gone through the roof. HoA fees, home insurance, and property taxes have all gone up – especially in coastal markets. Those properties that were purchased with financing and thin operational margins are now running at a monthly loss.

Related: The Best U.S. Real Estate Markets for Foreigners Seeking Cashflow and Equity Growth in 2025

Understanding Motivations: Why International Investors Sell

Delving into the reasons behind selling provides critical context for both investors and real estate professionals. The motivations often reflect the culmination of an investment strategy or a response to changing circumstances.

The predominant reason, “needed to liquidate assets” (31%), points to strategic financial decisions, perhaps cashing out gains, reallocating capital, or responding to personal financial needs. The second most common reason, “property was too expensive to maintain” (13%), highlights the ongoing costs of ownership, including property taxes, maintenance, and potential management fees, which can accumulate over an average 8-year ownership period.

Related: U.S. Real Estate Market Forecast and Expert Predictions for the Next 5 Years to 2030

Implications for the Market

The activity of international sellers contributes significantly to the liquidity and dynamism of the U.S. real estate market. Their divestments create new inventory, which can be particularly attractive to fresh waves of international buyers or even domestic purchasers. Understanding their patterns and motivations allows real estate professionals to anticipate supply trends and effectively market properties coming from international owners.

As Lawrence Yun, NAR Chief Economist, often reiterates, the U.S. real estate market benefits from its “strong protection of private property rights,” which encourages both buying and selling activity from global investors. The robust infrastructure for transactions ensures that the selling process, though potentially complex for non-residents, can be navigated successfully with the right expertise.

Previous Article: Why These Foreigners Struggled to Buy U.S. Real Estate

Frequently Asked Questions (FAQs)

Who are the typical international sellers in the U.S. residential real estate market?

The typical international seller in the U.S. residential real estate market is 56 years old and has owned their property for an average of 8 years. While many reside within the U.S., almost two out of ten (18%) international sellers are non-U.S. residents, highlighting a segment of foreign investors liquidating their assets.

What types of areas do international sellers typically divest properties in the U.S.?

International sellers are most likely to divest properties located in suburban areas (41%), followed by urban/central city areas (23%) and resort areas (23%). This distribution reflects a diverse range of previous acquisition strategies, from stable residential investments to vacation or city properties.

What are the main reasons international property owners sell their U.S. real estate?

The primary reason international sellers divest their U.S. properties is the need to liquidate assets (31%), indicating a strategic financial decision. Another significant reason (13%) is that the property became too expensive to maintain, which can be influenced by factors such as property taxes, insurance, and upkeep costs.

How does the median price of properties sold by international sellers compare to the overall market?

The median price of properties sold by international sellers was $350,000, which is notably higher than the median price of all existing-home sales in the U.S. ($300,000) during the same period. This suggests that international sellers often hold more valuable or higher-end properties, potentially reflecting premium investments or longer-term appreciation.