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The Global Market is in Your Backyard…
Can You Compete?
Presentation by Roseann Farrow, CIPS
WELCOME !WELCOME !
ACCUEIL
EMPFANGПРИЕМ
BIENVENIDA
BENVENUTO
Het welkom
mottakelse
Did You Know: in 2010 …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.
Let’s 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 state’s 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 2008.
• 15% 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)
• 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 - 2007 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 – 2007. 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 - 2007 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
Factors Promoting Globalization
• Economic specialization
• Floating currency exchange rates
• Increased demand/population growth
USA - brainpower
real estate!
……. and then there’s
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 nation’s
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®
Property Types
Intended Use
Who’s Buying ….. by Region
Who’s 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
www.realtor.org/global
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 don’t 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
• Sheep’s Eyes
• Mexico
• Oman
• England
• Scotland
Question #3
MATCH GAME
• Kidney Pie =
• Haggis =
• Grasshoppers =
• Sheep’s 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 one’s finger on the table
signifies agreement and support of the speaker’s 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 = 10.763910.7639 square feet
Answer
Which is larger-
An acre or a hectare?
Question #9
A Hectare
1 hectare = 2.4712.471 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 USA’s 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 professional’s
responsibility to research the culture and
current business practices.
Culture Can Affect the Process
Colors
Numbers
Orientation
www.getcustoms.com
By Morrison & Conway
By Roger E. Axtell
Certified International Property Specialist
www.realtor.org/global
Citizenship
“I am not anAthenian or a Greek, but a
citizen of the world.”
Socrates (469-399 BC)
Personal Commitment
• I learned / was reminded of:
• I will:
QUESTIONS?
Thank you for being a McKissock customer!
Please fill out the evaluation form. We value your input!
We hope you enjoyed the webinar, and if you have any questions, please don’t hesitate to
call us at 1-800-328-2008.
до сбиданця
Adiós
Goodbye!
Thank You!
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