Did You Know: in 2010 … … $82 billion in US residential property was sold to foreign buyers from 70 different countries? … 62% of these sales were all cash? … foreign buyers paid $97,000 more than the US national median price? ($315,000 v $218,000) … $5 billion was paid in real estate commissions? What are you doing to take advantage of it? (Source: The 2011 NAR Profile of International Home Buying Activity.)
With the influx of global companies and new technology coming to our regions, we must embrace and celebrate diversity to sustain and compete. Lets take a look at some critical tips and techniques about intercultural communication, business practices, customs and behaviors.
Global Means More than Foreign 22% of New York residents are foreign born. Foreign-born New Yorkers account for 22% of the states home ownership. 30% of New York households speak a non-English language. (Source: NY Business Data for International RE Transactions 2010) for example…… in my state, New York, consider this:
NY Immigration/Naturalization Patterns: More than Meets the Eye Roughly 90,000 new immigrants in % from Dominican Republic. 30% (3,100-6,000 each) from Jamaica, China, Guyana, Ecuador, India, Haiti
Your Challenge… Compile this kind of data about YOUR state! NAR Research (www.realtor.org/global)www.realtor.org/global Your state and local websites Other sources? Census.gov………… so much info!! Example: Foreign languages spoken by your residents
In the USA 20% of Americans speak a language OTHER THAN ENGLISH at home! Spanish 34.5 million Chinese 2.5 million Five other languages have at least 1 million speakers: Tagalog 1.5 million French 1.4 million Vietnamese 1.2 million German 1.1 million Korean 1.1 million (Source: Census.gov American Community Survey)
In fact……. The US population speaking a language other than English at home increased by 140 percent in the past three decades!
Incredible, exponential growth! The number of people 5 and older who spoke a language other than English at home has more than doubled in the last three decades and at a pace four times greater than the nation's population growth over a time period from 1980 – In that time frame, the percentage of speakers of non-English languages grew by 140 percent while the nation's overall population grew by 34 percent. (Source: Census.gov American Community Survey)
Yes, Virginia… the world is flat! This is known as Globalization!
Factors Promoting Globalization Unrestricted boundaries for capital flow and investment Round-the-clock financial markets New alliances and agreements
Everybody Loves our Real Estate! The USA provides healthy returns on investments. The USA provides a safe haven for many foreign investors. Few barriers to foreign individuals or entities investing in the USA.
Everybody Loves our Real Estate! US markets welcome foreigners. Foreign capital contributes to our nations health by putting a downward pressure on long term interest rates. 70% of immigrants own their own home!
Why Buy American? Two major criteria drive inbound international home ownership: 1. Proximity to home country. 2. Convenience of air transportation.
Some data from NAR 2011 Profile of International Home Buying Activity Purchases of U.S. Real Estate by International Clients for the 12-Month Period Ending March 2011 NATIONAL ASSOCIATION OF REALTORS®
Whos Buying ….. by Region
Whos Buying ….. By Country
Where Are They Buying? Florida, California, Texas, and Arizona: 58% of sales
Do Your Own Research! Who are the foreign buyers and sellers in your market? Where are they from? What language do they speak at home? What do they buy? Glocal market clues are all around!
Certified International Property Specialist
Building Relationships In international real estate, if there is no relationship, there is no business!
Learn about ……. Language Religion Social structure Values, customs, and attitudes Historical predispositions Stereotypes and prejudices
Are you ready for the QUIZ?!?
True or False Saudi Arabians dont eat lobsters. Question #1
True Muslims do not eat animals that scavenge such as lobsters, pigs and goats. Answer
In what order do the 7 courses in a formal French dinner arrive? A) Soup, Salad, Meat or Fowl, Sorbet, Fish, Dessert & Coffee. B) Soup, Fish, Sorbet, Meat or Fowl, Salad, Dessert & Coffee Question #2
B) Soup, Fish, Sorbet, Meat or Fowl, Salad, Dessert & Coffee Answer
MATCH GAME Kidney Pie Haggis Grasshoppers Sheeps Eyes Mexico Oman England Scotland Question #3
MATCH GAME Kidney Pie = Haggis= Grasshoppers = Sheeps Eyes = England Scotland Mexico Oman Answer
True or False Dinner reservations in Spain are generally for 8 PM. Question #4
False Dinner reservations in Spain are generally for 10 PM. Answer
True or False Since flowers are universal, the giving of flowers is a safe bet for a nice gift in any culture. Question #5
False Be wary about giving flowers anywhere. In some Scandinavian countries, white roses are associated with mourning while purple blooms are in many Latin American nations. In France, white lilies and chrysanthemums are signs of death. And in Latvia, funeral flowers are red. Answer
True or False The Chinese are impressed by the gift of a clock in business transactions. Question #6
False In China clocks are a symbol of death. Answer
True or False In Japan, repeatedly tapping ones finger on the table signifies agreement and support of the speakers statement. Question #7
True This type of mini-applause reportedly was started in one of the courts of a Japanese emperor. Answer
Which is larger- A square foot or a square meter? Question #8
A Square Meter One square meter = square feet Answer
Which is larger- An acre or a hectare? Question #9
A Hectare hectare = acres Answer
In the UK, a savings & loan is known as a a) Savings & Loan b) Bank c) Building Society Question #10
c) Building Society Answer
True or False In Mexico a notario is comparable to the USAs notary public. Question #11
False A notario in Mexico conducts title searches, registers property titles, assures that taxes are paid, and must hold a law degree and be appointed by the state governor. (In Germany a notar draws the contract and applies for the title registry.) Answer
True or False Many cultures consider a real estate contract a beginning of the negotiation of the details of the transaction. Question #12
True Many foreign clients consider the commonly used fill-in-the-blank boilerplate contract as cursory and unbinding. Furthermore, in the UK gazumping is an accepted practice! Answer
Did You Pass?
Adapting to Cultural Differences It is the real estate professionals responsibility to research the culture and current business practices.
Culture Can Affect the Process Colors Numbers Orientation
By Morrison & Conway
By Roger E. Axtell
Certified International Property Specialist
Citizenship I am not an Athenian or a Greek, but a citizen of the world. Socrates ( BC)
Personal Commitment I learned / was reminded of: I will:
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