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2013-2014
BUYERS WITHOUT BORDERS
3
welcome
The outlook is bright for the real estate industry in the United States. Home prices and overall demand are accelerating in many areas of the country, signaling a real recovery for the real estate industry. As momentum builds for our domestic housing industry, so does the international playing field.
Foreign home buyers continue to identify the United States as a profitable investment. In the 12 months between March 2012 and March 2013, $68.2 billion came from international buyers – a number that accounted for 6.3 percent of the $1.08 trillion spent on residential real estate in the United States.
This flurry of activity on both sides of the border points to one thing: there is real opportunity to grow your business even further with foreign buyers.
In our endeavor to help you stay ahead of this market, we collected valuable insights and perspectives from the industry’s latest research on the state of this growing market of global real estate consumers. Throughout
the book you’ll also notice information on the KW Global Property Specialist Program, which provides members a unique value proposition and support system that includes training, networking, marketing and technology to take advantage of the global real estate market. We’re proud to say that in just our first year thousands have joined this community. One member, Mallina Wilson, an associate with the Bellingham, (Wash.) market center, had this to say:
“Being a member of the KW GPS program is an amazing opportunity that has contributed to hard-core results. The networking, marketing tools and unique branding allow me to generate more sales. Buyers, for instance, find and trust me because I understand the cultural differences and diverse nature of an international transaction and provide education to them throughout the entire process.”
We hope that the information in this year’s Buyers Without Borders report will prepare you to successfully market to and work with immigrant communities, foreign investors, education buyers, and other globally sourced buyer groups in your local markets.
Chris HellerPresident of KW Worldwide
A M E S S AG E F RO M T H E P R E S I D E N T O F K W WO R L DW I D E
Dear Readers,
Yours in expanding your global reach,
“There’s no limit possible to the expansion of
each one of us.”- Charles M. Schwab
54
INTERNATIONAL BUYERS ARE READY TO DO BUSINESS
6.3%of the $1.08 trillion spent on residential real estate.
International buyers accounted for $68.2 billion, or
Real estate is a hot commodity among today’s cash-rich foreign buyers. Though prices are on the rise in the United States and the overall number of international sales was down, foreign buyers – fueled by optimism in the global economy and a desire for security and profitability in their investments – are still buying. Research from a recent study by the National Association of REALTORS® (NAR) backed up the global trend in a big way.
According to NAR’s 2013 Profile of International Home Buying Activity, for the 12 months between March 2012 and March 2013, international clients accounted for an estimated $68.2 billion in international sales, down from 2012’s $82.5 billion, but up from 2011’s $66.4 billion.
global opportunities to gain market share
$82.5billion
24%Though
international sales dollar
volume among international
clients was down in 2013, the long-term
trend points toward a
continued upward
trajectory.
$66.4billion
2011 2012 2013
$68.2billion
table of contents 4 Global Opportunities to Gain Market Share Total International Sales Dollar Volume Percentage of Purchases by Price Category 6 Characteristics of Today’s International Buyer 7 Where They’re From 8 Breakdown of International Buyers by Country 9 Purchase Behavior Why They Buy Where They Buy What They Buy How Much They Pay 10 Annual Property Prices Purchased 11 Intended Use of Property 12 Tout the Value of Their Spending Power Currency Counts Cash Deals Versus Financed 13 Countries with the Highest and Lowest Transaction Costs 14 How to Cultivate a Cross-Border Clientele Impact of Experience on Number of Clients 15 Referral Method for International Clients 16 Courtship across Cultures Canada & KW Worldwide Master Franchisees Other Notable Countries for International Buyers
about this reportThe contents of this report released by Keller Williams Realty, Inc., are based on a report released by the National Association of REALTORS® (NAR). The 2013 Profile of International Home Buying Activity is based on a survey conducted annually since 2007 by NAR. The survey was conducted in April 2013 and collected information from REALTORS® on purchases of U.S. residential real estate by international clients for the 12 months ending March 2013. The Courtship Across Cultures portion of the book is based on the book Kiss, Bow, or Shake Hands by Terri Morrison and Wayne A. Conaway, as well as first-hand information from our KW Worldwide Master Franchise Partners.
Copyright © 2013 Keller Williams Realty, Inc. All rights reserved.
1221 S. Mopac Expressway, Suite 400Austin, Texas 78746(512) 327-3070 phone(512) 328-1433 fax
Indicates graphical element
76 7
Two Types of Buyers
characteristics of international buyers
Foreign Nonresidents International buyers with permanent
residence outside of the United States.
Immigrants and Visa HoldersBuyers who have lived in the United States for more than six months for professional,
educational or other reasons.
Foreign nonresidents fall into three categories
1. Investors: Interested in return on investment, portfolio diversification and stability not otherwise found in their home country.
2. Vacationers: Interested in finding a property that fits their family’s vacation needs. Distance from home country or word of mouth from family and friends are factors that impact their decision to buy.
Recent immigrants fallinto three categories
3. Education Buyers: Interested in being near their children who are attending college in the United States.
1. Students: Interested in finding a home while they study abroad.
2. Achievers: Interested in establishing themselves as citizens and achieving the dream of home ownership in America.
3. Opportunists: Interested in taking advantage of the EB-5 visa which can fast track a green card for foreign nationals who invest $1,000,000 in an area, or no less than $500,000 in a “targeted employment area.”
49%51%
International Buyers Are a Consistent ClienteleWhat if you could depend on an average of five more buyers per year? Over a five-year time frame, about 74 percent of survey respondents reported a constant level or an increase number of international clients, also unchanged from the responses in the previous periods.
LOWER PRICES ATTRACT A HIGHER NUMBER OF BUYERS
The KW GPS Program provides members with presentation materials for international buyers, presentation materials for sellers, as well as custom, targeted eEdge campaigns for promoting your international expertise.
27% of real estate professionals worked with at least 32%In 2007
In 2012
(pre-recession)1 international buyer.
International buyers purchased homes at lower price levels in 2013, all the more reason to understand your client’s preferred price point by conducting a thorough buyer consultation.
Percentage of Purchases by Price Category International Buyers by Year of Survey
$100K – $150K $200K – $250K $500K – $750K$300K – $450K
2011
2012
2013
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BREAKDOWN OF INTERNATIONAL BUYERS
Florida (39%), Arizona (24%)
California (53%)
California & Texas(69% combined)
California & Tennessee
Florida, California, Rhode Island
Detached Single Family
Detached Single Family & Multi-Family
Detached Single Family
Detached Single Family
Detached Single Family
86% Cash, 14% Mortgage
69% Cash, 31% Mortgage
50% Cash, 50% Mortgage
26% Cash, 73% Mortgage
57% Cash, 40% Mortgage
$182,955
$425,000
$156,250
$300,000
$250,000
CA
NA
DIA
NC
HIN
ES
EM
EX
ICA
NIN
DIA
NB
RIT
ISH
Most Common Type of Financing
California, Arizona,Texas, Florida
Canada, Mexico, UK, India, China
buy in:58%
of international buyers53% come from:
Canada is the No. 1 source of international buyers in the United States. Of the total international sales in the U.S., 23 percent involved Canadian buyers, making them the No. 1 source of international purchases. Canadians seek properties in hard-hit Sunbelt states such as Arizona and Florida and northern cities like Chicago, which are in close proximity to the country’s border.
OUR NORTHERN NEIGHBORS ARE FLOCKING SOUTH
Build a Strong Cross-Border Referral BaseBetween the thousands of Keller Williams associates serving clients in Canada and the ever-growing number of KW Worldwide international partners, an international buyer IS ONLY ONE REFERRAL AWAY. Increase your influence among Keller Williams Realty’s fast-growing international associate base at events such as Family Reunion and Mega Camp and take advantage of the opportunity to generate global business leads.
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International buyers emanate from all over the globe. And they’re scooping up properties in cities across the United States.
WHERE THEY’RE BUYING; WHERE THEY’RE FROM
1110
Get Your Property on the Global Playing FieldUsing keywords such as “good deal,” “bargain,” “great value for the money,” “cheap property,” “safe haven” and “high return on ROI” in property descriptions, Website details and blog posts are proven to capture consumers overseas.
According to the research, international buyers purchase homes that are nearly one and a half times as expensive as the average price of a home in the United States. Why the higher price? One word: value. Even higher ticketed homes in the U.S. are less expensive than those in their home country and are seen as a bigger bargain when combined with favorable exchange rates.
INTERNATIONAL BUYERS WANT A GOOD DEAL – AND THEY’RE WILLING TO PAY FOR IT
AS YOUR GLOBAL REACH EXPANDS, SO DOES YOUR INCOME
Annual property prices for the 12 months ending in March over the past three years
All Existing Home Sales
Avg. Price Median Price
$400,000$350,000$300,000$250,000$200,000$150,000$100,000
$50,000$0
2011
$218K
2011
2013
2013
$170K
$228K
2012
$212K
2012
$165K$180K
International Sales
2011
$315K
2011
$200K
2012
2013
$400K
$354K
2012
$252K
$400,000On average, selling a
home at a3% commission rate $12,000!will earn you
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2013
$276K
factors that attract: what international clients want nowWhy They Buy
39%$250K - $1M
7%more than $1M
25% Urban, 14% Resort, 11% Rural
Big Picture: International purchasers typically buy detached single-family homes, which they intend to use for primary residence or for longer than six months.
Purchase in a Suburban area
Detached Single Family
50%
64%
Where They Buy
What They Buy
How Much They Pay
22% SECURE INVESTMENT31% PROFITABLE INVESTMENT
54% Spend up to $250KA 9% increase over 2012
21%Condo/Apartment
9% Townhouse/Row House
6%Other
8% OTHER39%
desirable locationSeek out a
1312
tout the value of their spending power
28%
69%Cash
Mortgage
2007 2013
35%Cash
Mortgage
65%
The number of international real estate transactions financed through a lender has dropped by nearly half since the real estate bust of 2007. But that hasn’t stopped consumers from scooping up properties across the United States. They’re motivated, ready to buy and they’re paying with cash. In fact, more than half of today’s international buyers skipped the mortgage process entirely.
CASH IN ON CASH-ONLY DEALS
CURRENCY COUNTS
International buyers want to know that their money is being well spent. Currency exchange rates are in constant flux. In fact, 77 percent of international buyers said currency counts toward their final purchasing decision.
33% said it was “VERY SIGNIFICANT.”77% of international buyers said
the value of their DOLLAR IMPACTS THEIR BUYING
DECISION.
37%
39%
42%
The majority of international buyers are searching for homes as a primary place of residence or as a vacation home. The number of primary residences rose 3 percent in 2013. People are also staying for longer periods – 41 percent intend to stay more than six months. Nonresidents are limited to a six month stay, and typically use their residence as a vacation or investment property.
are buying for investment
are buying for their personal
enjoyment
2/3 1/3
Primary Residence
42%
VacationHome
20%
ResidentialRental
17%
Commercial Rental
5%
The number of buyers who purchased their homes as a primary residence has been trending upward since 2011.
HOW THEY INTEND TO USE THE PROPERTY
PROPERTY MUST MIRROR PURPOSE
2011
2012
2013
1514
CULTURAL INTELLECT: THE MORE YOU LEARN, THE MORE YOU EARNInternational customs may seem a world away, but the U.S. real estate process is just as foreign to buyers from across the border. From unique contractual differences and currency calculations to immigration laws and international restrictions and requirements, real estate professionals must be proficient in explaining the procedures and navigating the clients from contract to close.
how to cultivate a cross-border clientele
International consumers want to
do business with a real estate professional
who understands their culture and speaks
their language.
Speak Their “Language”Does your city attract one nationality over another? Get to know that particular country’s real estate process, its potential pitfalls and any other unique characteristics that might stand in the way of a seamless transaction.
“Real estate professionals who are fluent in the minute cultural differences among buyers from other countries will be able to distinguish themselves as the first choice among a group of international consumers who are ready to buy up U.S. properties now.” – Chris Heller, President, KW Worldwide
of those with experience 15%
• in a foreign language,• with a cultural affinity or orientation to the buyer, or • skilled at explaining the U.S. real estate process to a
foreigner
worked with more international buyers in the past year than those who did not.
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ntri
es w
ith h
ighe
st a
nd lo
wes
t tr
ansa
ctio
n co
sts
NAVIGATE, EDUCATE AND STAY IN CURIOSITY Taxes, registration costs, sales and transfer fees, association fees, as well as legal and agent fees are often the hardest concepts for international buyers to grasp. As their real estate professional, knowing which countries have the highest and lowest barriers and becoming educated on navigating these contingencies carefully is key to successfully closing the deal and building clients for life.
Highest
Lowest
RussiaBulgariaMonacoBelgium
ItalyFrance
LuxembourgGreeceCroatia
PortugalSpain
AustriaGermany
CyprusNetherlands
HungaryFinlandTurkeyMalta
Czech RepSerbia
RomaniaDenmark
IrelandSlovenia
PolandSweden
SwitzerlandMontenegro
MacedoniaLatvia
NorwayUkraine
UKEstonia
SlovakiaLithuania
0 5 10 15
Registration Cost Agent’s Fees Legal Fees
25.0024.88
19.6517.88
17.0016.30
15.6515.48
13.8713.65
12.1611.82
11.4511.0911.0310.5810.159.939.239.20
8.157.587.056.966.92
6.616.54
5.745.285.245.165.065.055.03
3.813.10
2.35
Sales and Transfer Fees
1716
CO
URT
SHIP
AC
ROSS
CU
LTU
RES
CLIFF NOTES TO THE CULTURAL DIFFERENCES EVERY SALESPERSON NEEDS TO KNOW
Canada & KW Worldwide Master Franchisees
17 Canada 17 South Africa 18 Germany, Austria, & Switzerland 19 Indonesia 19 Turkey 20 Vietnam
Other Notable Countries for International Buyers
21 China 22 India 22 Mexico 23 United Kingdom
ENERGIZE YOUR BUSINESS WITH INTERNATIONAL LEADS
According to NAR’s research, international clients are captured and cultivated the same as homegrown ones: through consistent lead generation.
Relationships with friends, family, previous contacts, clients, as well as a comprehensive Website presence were the most common ways real estate professionals connected with international buyers.
Friends/Families18%
Previous contacts/Clients
26%
Referral from a domestic source
8%
Referral from an international source 2%
Website/Online listing
23%Walk-in to office/Open house/Phone call 11%
Signs/Ads on boards/Yards
3%Other 9%
Ask for International ReferralsLeads are the lifeblood of any real estate business. Fuel your database with foreign contacts by picking up the phone and calling on friends, family, previous clients and contacts. Then ask the question: “Who might you know from the international community that is looking to buy or invest in real estate in our country?”
ProxioPro: KW GPS Member Benefit Gain the global reach that sets you apart with ProxioPro, a KW Approved Vendor. As a KW GPS member, you’ll have the ability to syndicate around the world properties globally, market to multicultural and foreign buyers, build a global referral network and engage clients through social media to create new income opportunities. Learn more at (kw.com/gps).
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G E R M A N Y: B E R L I NAU S T R I A : V I E N N AS W I T Z E R L A N D : B E R N ( D E FAC TO N OT D E J U R E )
Typical Work Hours: 9 a.m. to 5 p.m., Monday through FridayNational Languages: German; in parts of Switzerland, French and Italian
germany, austria & switzerland
C A P I TA L :
south africa (cont.)
What You Should Know When Working with Germany, Austria and Switzerland Clients1. Citizens of Germany, Austria and Switzerland generally are reliable and exact.2. Germans take great pride in their cars and the speed they are allowed to drive them on the
Autobahn.3. Swiss people take pride in their country’s independence and banking.4. The common business greeting is a handshake.5. Neither agreement nor disagreement in a business setting is an offense.6. When reporting to Germany, Austria and Switzerland people, make it short, sweet and based on facts.
Do not honey-coat anything.7. Punctuality is essential in business relationships. Arriving to appointments a few minutes early is
standard. If you are running late – even if it is just three minutes – it’s important to inform the other party.
8. Saving money is a national sport in Germany. They like to save for the sake of saving.
Top Five Internet Searches byGermany, Austria & Switzerland Investors 1. Florida (Naples, Orlando & Miami)2. New York, N.Y.3. California (San Francisco, Los Angeles & San Diego)4. The Cape, Maine5. Las Vegas, Nev.
Top Five Internet Searches bySouth African Investors 1. Cape Town 2. Johannesburg 3. Dolphin Coast (Zimbali)4. Whale Coast (Hermanus)5. Sun City
Points of Interest1. South Africa has 11 different official languages. 2. Golf, rugby and soccer are the national sports. The country is well known for its number of successful Olympic athletes.3. Table Mountain is one of the Seven Wonders of the World.4. The South African coastline stretches 2,798 kilometers.5. South Africa’s gross domestic product (GDP) in 2011 was $408.2 billion (USD).6. Approximately 50.59 million people live in South Africa.
Points of Interest1. Germany has roughly 80 million people. Switzerland
and Austria each have a population of 8 million people.
2. Germany‘s favorite sport is soccer. They are also known for their wide variety of beers and some of the best cars in the world.
3. Austria and Switzerland are both known for their world-renowned skiing resorts.
Part of KW Germany, Austria & Switzerland Region
south africa C A P I TA L : P R E TO R I A
Typical Work Hours: 8 a.m. to 5 p.m., Monday through FridayNational Languages: Eleven official languages, however English is widely spoken.
What You Should Know When Working with South African Clients1. Not all South Africans speak English as their first language, but people will accommodate their guest
or company and speak the language that suits the guest, even if it is difficult for them.2. English is the official business language in South Africa and all legal documents are drafted in it. 3. Punctuality is a personal preference and isn’t held in as high regard as other countries. If you’re
running late, use the same level of courtesy that you would to your current clients.4. When starting a conversation with a South African, it is important to ask, “How are you?”5. Generally, South Africans are tech-savvy and incorporate it into their everyday lives.6. The average South African is cash-strapped due to the current economy; however, there are a large
number of wealthy South Africans who tend to invest locally or abroad.
CANADA & KW WORLDWIDE FRANCHISEES
canada C A P I TA L : OT TAWATypical Work Hours: 9 a.m. to 5 p.m., Monday through FridayNational Languages: English (60 percent) and French (24 percent)
What You Should Know When Working with Canadian Clients1. Canadians often exhibit a strong “Canadian identity” and a strong patriotic demeanor.2. English-speaking populations tend to be more polite and rarely interrupt another person’s conversation.
In contrast, French-speaking Canadians will often interrupt each other and find a more lively conversation more appealing.
3. In general, Canadians prefer objective information rather than subjective. When conversing, stick to the facts, as communication styles tend to be more reserved and understated.
4. Punctuality is important in business relations, especially for English-speaking Canadians. Be sure to arrive for appointments a few minutes early.
5. Canadians tend to save a larger share of their income than Americans. 6. Consider having all of your documents prepared in both English and French, especially if the person is
from the province of Quebec.
Top Five Internet Searches byCanadian Investors 1. Las Vegas, Nev.2. Miami, Fla.3. Los Angeles, Calif.4. Chicago, Ill.5. Orlando, Fla.
Points of Interest1. While Canada is the second-largest country in the world in
terms of area, its population density is 8.6 people per square mile, which makes the country the ninth-most sparsely populated in the entire world.
2. Hockey is the national sport of Canada.
Part of KW Southern Africa Region
2120
Typical Work Hours: 8 a.m. to 5 p.m., Monday through FridayNational Languages: Vietnamese; English and Russian are also widely spoken in major cities
What You Should Know When Working with Vietnamese Clients1. The Vietnamese are patriotic, particularly in the northern area of the country. This patriotism makes
them very competitive with other Southeast Asian nations.2. Conversation is always lively and people tend to interrupt each other often. Don’t be surprised or
offended if people answer calls, hold multiple conversations at once or abruptly end meetings – this is normal.
3. In general, people in the north (Hanoi) tend to be more conservative. Building trusting relationships may take longer than the more entrepreneurial people in the southern cities such as Ho Chi Minh City.
4. Relationships are more important than punctuality, and the Vietnamese are often very flexible with their time. Always leave plenty of time between meetings to avoid seeming like you’re rushing off.
5. The Vietnamese tend to make decisions far more quickly than Americans, and often without much information. They expect transactions to move quickly and they will grow impatient if there are too many details to deal with.
6. Consider having all of your documents prepared in both English and Vietnamese. It’s also helpful to have a Vietnamese speaking person on your team if at all possible.
vietnam C A P I TA L : H A N O I
turykey (cont.)
Points of Interest1. Connecting two Europe and Asia, and surrounded by three
seas, Turkey is an attractive destination known for it’s near perfect weather conditions.
2. While Ankara is the capital city, Istanbul is the heart of Turkish economy, history and culture.
3. Turkey is populated by 75 million people.
2. In general, Turks are friendly and generous as a country. However, they can be emotional, sometimes even temperamental in certain situations. Overall, they are friendly and generous as a country.
3. Turks prefer a face-to-face discussion or negotiation; however, email communication with periodic follow-up is crucial to keep the business relationship on track.
4. Around 60 percent of real estate transactions are paid using cash. These cash investors are likely to negotiate hard on prices.
5. Turks prefer to work with someone they know, usually a direct referral or someone who has been referenced by a trusted source.
6. Many Turks take vacation in July or August, so it is best not to try to schedule appointments at that time.
7. Business is personal. Although this is changing with the influx of big multi-nationals and a more corporate culture in some of the larger companies, many businesses are still family owned and run.
Top Four Internet Searches byTurkish Investors1. Manhattan, N.Y. 2. Miami, Fla.3. Washington D.C.4. Orlando, Fla.
Part of KW Vietnam Region Points of Interest1. Indonesia is an archipelago with more than 13,000 islands all
together The total population is now about 250 million, with 70 percent of people living on Java island. The other major islands are Sumatra, Kalimantan, Sulawesi, Bali, Maluku and Irian Jaya.
2. The capital city is Jakarta, which serves as the center of business activities and also as the center of government offices. Jakarta has a population of 14 million.
3. Real estate prices in Indonesia are still low compared to surrounding countries like Singapore, Thailand, Hong Kong and
Australia. Foreigners are eligible to own land or already built properties; however, foreigners are only allowed a long-term lease hold (30 to 100 years) on high-rise properties.
4. Most foreigners are investing in high-rise buildings in Jakarta and resort properties and developments in Bali.
Typical Work Hours: 9 a.m. to 5 p.m., Monday through FridayNational Languages: Bahasa Indonesia and English (10 percent)
What You Should Know When Working with Indonesian Clients1. Indigenous Indonesians make up 85 percent of the population and are mostly Muslims. The rest are
Christian, Catholic, Buddhist or Hindu. 2. Chinese Indonesians tend to be better educated and speak English. They remain the major players in
the country, controlling the mining, real estate, banking and agriculture businesses. 3. Indonesians are naturally soft-spoken people who tend to be shy and closed off when communicating
their ideas. Many times, a “yes” can mean “no” in an attempt to be polite to others. Sensitivity to their body language during the negotiation process is a more accurate measure of their intentions.
4. Indonesian clients can come from one of two categories: cash-rich government officials or the more business-oriented Chinese Indonesian. Having extra patience and confidentiality during the transaction encourages trust and the likelihood that they will refer more business.
5. Never address Indonesians by their name. Always use “bapak” for mister and “ibu” for madam. 6. When dealing with Muslim Indonesians, avoid offering them food that contains pork or any alcoholic
beverages. They also require breaks to pray, especially Fridays at noon. 7. Ninety-five percent of the population in Bali is Hindu. They are also more open to the Western
culture and the majority of the people speak English. 8. The local currency in Indonesia is rupiah. The exchange rate is approximately 1 USD for Rp 10,000. 9. Most affluent Indonesians buy properties in the United States or Canada. Typically the properties are
purchased as an investment or for their children while they are studying in the United States.
Top Five Internet Searches byIndonesian Investors1. San Francisco, Calif.2. Los Angeles, Calif.3. Seattle, Wash.4. Boston, Mass.5. New York, N.Y.
indonesia C A P I TA L : J A K A RTA
turkey C A P I TA L : A N K A R A
Typical Work Hours: 9 a.m. to 5 p.m., Monday through FridayNational Language: Turkish
What You Should Know When Working with Turkish Clients1. Considered the capital of civilizations, Turkey is one of the oldest settled regions in the world.
Blending the traditional Ottoman, Greco-Roman and Islamic culture with Western traditions, the country offers an exciting cultural mix.
Part of KW Indonesia Region
Part of KW Turkey Region
2322
Points of Interest1. Over the next three years, up to 25 percent of the world’s new
workers will be from India. 2. GDP per capita in India is expected to quadruple from 2007 to
2020, according to Goldman Sachs. 3. India’s Cherrapunji is the wettest place on Earth, receiving 425
inches of rain every year.
mexico C A P I TA L : M E X I C O C I T Y
Typical Work Hours: 9 a.m. to 5 p.m., Monday through FridayNational Language: Spanish
What You Should Know When Working with Mexican Clients1. Mexico is a country built on connections and family. Because of that, referrals are common and
relationships are incredibly important. During the first meeting, for example, be sure to mention the mutual connection as a conversation icebreaker.
india C A P I TA L : N E W D E L H ITypical Work Hours: 9:30 a.m. to 5:30 p.m., Monday through FridayNational Languages: Hindi and English (most common for commercial use)
What You Should Know When Working with Indian Clients1. India is one of the largest and oldest countries and possesses a diverse background. 2. Some topics are considered taboo in this country. These include the caste system, disputes with
neighboring countries (especially Pakistan), religion, poverty, transportation or red tape. Mentioning any of these topics might result in a strong backlash from your counterpart.
3. In the Indian culture, the cow is regarded as a sacred animal and is never used for meat. This is a widespread belief that is often a trouble spot for Westerners who are accustomed to consuming beef.
4. The Indian culture does not hold punctuality in as high regard as Westerners. It is common to expect delays during business dealings.
5. Use “sir” and “ma’am” when speaking to a native of India; otherwise, you run the risk of being perceived as disrespectful.
6. Be aware that contact between men and women is not as common among Indians. Use discretion before extending your arm to shake hands with a member of the opposite sex. It is usually better to wait and see if the other person, especially women, extend the invitation to shake hands first.
7. Indians are not always direct, so it’s important to ease into negotiations. Engaging in small talk before jumping in can be an excellent way to build trust among clientele.
8. The word “no” is a four-letter word and has a negative connotation in the Indian culture. Avoid using the word “no” in conversation and, instead, try to find a more polite way to show objection.
Top Five Internet Searches byIndian Investors1. Los Angeles, Calif.2. Miami, Fla.3. Las Vegas, Nev.4. New York, N.Y.5. Chicago, Ill.
3. Irvine, Calif.4. New York, N.Y.5. Miami, Fla.
Points of Interest1. One in five people in the world are citizens of China. 2. The fortune cookie was invented in San Francisco and has no tradition in China. 3. The Chinese are responsible for inventing the compass, paper and printing. 4. Even though China is the fourth-largest country in the world in terms of area,
the country only has one time zone.
china (cont.)
Points of Interest1. In 2012, overseas Vietnamese remitted approximately $9.5 billion
(USD) back to the country. About $4.1 billion (USD) went to Ho Chi Minh City, of which 70 percent went into manufacturing and business and 23 percent into real estate.
2. Buying residential property overseas, especially in the United States, is the new fashion for wealthy Vietnamese. A key target market are the parents of children studying overseas.
Typical Work Hours: 44 hours (varies considerably)National Language: Standard Chinese (based on Mandarin)Local Dialect: Zhong Guo (Zhonghua Renmin Gongheguo)
What You Should Know When Working with Chinese Clients1. China has a storied history boasting the world’s oldest continuous civilization with more than
4,000 years of history. Unlike most Western governments, China is a Marxist-Leninist single-party Communist state.
2. The Chinese pride themselves on understanding foreign customs and cultural identity. Be prepared to know as much as possible about their customs and cultural identity.
3. China is a hierarchical culture and it is customary to address elder statesmen with the upmost respect. The eldest member of your party should also be the first person to enter or exit a room.
4. Punctuality is cherished in China. In contrast, lateness is considered an insult. Be on time whether the occasion is business or social.
5. The Chinese are very sensitive to status. Always use official titles when addressing a client. 6. Face, which is characterized as public perception, social role and self-esteem are important concepts
to understand in the Chinese culture. Any action can either add or detract from a counterpart’s face. 7. With 1.3 billion people, there is no such thing as a typical Chinese person. Be sure to listen carefully
and act accordingly. 8. Show your commitment to the transaction by following up with the client. The Chinese culture tends
to operate at a slower pace and showing interest over a longer period of time could reap many rewards.
9. Trading business cards is a respected tradition. Make sure the card is translated into Chinese on one side and has the native language on the other. Present the card with two hands and take a few seconds to read and comment on it.
10. Patience is a virtue among Chinese clients. Avoid being too eager to pull out a contract right away. Work on the relationship before diving into business.
11. Western notions of the contractual process are not always viewed the same by Chinese, making negotiations a lively event. Last-minute changes and even post-close changes to agreements are often requested.
12. Color matters. Avoid using white, which is associated with death. Avoid writing a living person’s name using red ink, as red can be associated with someone who has died. However, red is acceptable for writing anything other than a person’s name. Gold and yellow are considered to be lucky.
Top Five Internet Searches byChinese Investors:1. Las Vegas, Nev.2. Los Angeles, Calif.
china PEOPLE’S REPUBLIC OF CHINACAPITAL: BEI J ING
vietnam (cont.)
OTHER NOTABLE COUNTRIES FOR INTERNATIONAL BUYERS
Top Five Internet Searches by Vietnamese Investors1. San Jose, Calif.2. Garden Grove, Calif.3. Westminster, Calif.4. Houston, Texas5. San Diego, Calif.
24
To learn more about the resources available to KW Global Property Specialists, visit kw.com/GPS
mexico (cont.)
Points of Interest1. Over the last three decades, two of every five newcomers were
Hispanic, according to the National Association of Hispanic Real Estate Professionals.
2. Mexico is one of the best countries for bird watching with more than 50 different varieties of hummingbirds and countless other species that do not live in any other country.
3. Mexico is responsible for introducing the world to chocolate, corn and chilies.
Typical Work Hours: 9 a.m. to 6 p.m., Monday through FridayNational Language: English
What You Should Know When Working with British Clients1. Many Britons speak a dialect of English called “The Queen’s English” (formally known as Received
Pronunciation [RP]). The dialect includes various slang terms that most Westerners will not understand. It’s important to listen carefully and build context when speaking with clients.
2. The British culture is traditionally more formal in terms of communication and etiquette. As a result, punctuality is important to Britons, so be sure to arrive on time.
3. When greeting someone from the UK, use a common greeting such as “how do you do?” rather than “nice to meet you.”
4. Never directly call someone from Scotland, Wales or Northern Ireland British or English. Instead call them Scottish, Welsh or Irish. They appreciate their own cultural differences and expect others to as well.
5. The British are known to hold a stereotype that Western businesspeople are condescending. 6. The British are known to be very direct – more so than Americans. Do not be offended if an idea is
shot down abruptly.7. Privacy is important to Britons. Avoid being perceived as intrusive by asking too many questions. 8. The British tend to be self-critical, but do not be tempted to join in. Politely listen but never partake.
Top Five Internet Searches byBritish Investors1. Los Angeles, Calif.2. Orlando, Fla.3. Miami, Fla.4. Las Vegas, Nev.5. Kissimmee, Fla.
united kingdom C A P I TA L : L O N D O N
Points of Interest1. 25 percent of London residents were born
outside England.2. To signal that something is to be kept
confidential or secret, tap your nose.
2. Accept social invitations as often as possible. Be flexible on weekends, which are peak times for building relationships and closing deals.
3. Avoid long periods of eye contact, which can be perceived as insolence, intimacy or adoration, depending on the two parties involved.
4. Arrive on time and be prepared to wait for the client.5. In Mexico, a person’s name includes both the father and mother’s last name. It is incorrect to call
someone by their mother’s last name, so always use the second-to-last name when greeting your client.6. Titles are critically important in executive circles. Wait for your client to move to a first-name basis
before you do.7. A phone message to a client in Mexico may not always receive a callback. It is generally expected that
you will call them back in a proactive manner.8. Though a person is responsible for his or her own actions, the prevailing consideration will most always
be for the best interest of the group or family.
Top Five Internet Searchesby Mexican Investors 1. San Diego, Calif.2. Miami, Fla.3. San Antonio, Texas4. Laredo, Texas5. Chula Vista, Calif.
Disclaimer : Neither Keller Williams Realty, Inc. nor its affiliated companies warrant any prod-uct or service delivered under this program. All products and services are provided by Office Depot Business Solutions Division. A Keller Williams Approved Vendor Program member is a business entity independent from Keller Williams Realty, Inc. and has no agency, par tnership, or joint-venture with Keller Williams Realty, Inc.
* Some exc lu s ions app ly – see webs i t e fo r de ta i l s
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