The Global Market is in Your Backyard…

Can You Compete?

Presentation by Roseann Farrow, CIPS

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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?

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We hope you enjoyed the webinar, and if you have any questions, please don’t hesitate to

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до сбиданця

Adiós

Goodbye!

Thank You!