2. welcome
A M E S S AG E F R O 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,
“There’s no limit
possible to the
expansion of
each one of us.”
- Charles M. Schwab
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 hardcore 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.
Yours in expanding your global reach,
Chris Heller
President of KW Worldwide
3
4. characteristics of
international buyers
LOWER PRICES ATTRACT A HIGHER
NUMBER OF BUYERS
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.
Two Types of Buyers
51%
Percentage of Purchases by Price Category
International Buyers by Year of Survey
49%
Foreign Nonresidents
International buyers with permanent
residence outside of the United States.
Immigrants and Visa Holders
Buyers who have lived in the United States
for more than six months for professional,
educational or other reasons.
Foreign nonresidents fall
into three categories
Recent immigrants fall
into three categories
2011
2012
1. Investors: Interested in return on
investment, portfolio diversification
and stability not otherwise found in
their home country.
2013
$100K – $150K
$200K – $250K $300K – $450K $500K – $750K
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.
In 2012
27%
KE :
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AC
6
of real estate professionals
worked with at least
1 international buyer.
In 2007
32%
3. Education Buyers: Interested in being
near their children who are attending
college in the United States.
(pre-recession)
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.”
International Buyers Are a Consistent Clientele
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.
What 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.
7
7
5. WHERE THEY’RE BUYING; WHERE THEY’RE FROM
BREAKDOWN OF INTERNATIONAL BUYERS
International buyers emanate from all over the globe. And they’re scooping up properties in cities
across the United States.
CANADIAN
buy in:
$1
82
,95
5
Detached Single Family
of international buyers
come from:
Canada, Mexico,
UK, India, China
MEXICAN
53%
$4
25
Build a Strong Cross-Border Referral Base
Between 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.
INDIAN
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.
0
Detached Single
Family & Multi-Family
$1
56
California (53%)
69% Cash, 31% Mortgage
California & Texas
(69% combined)
50% Cash, 50% Mortgage
California & Tennessee
26% Cash, 73% Mortgage
Florida, California,
Rhode Island
57% Cash, 40% Mortgage
,25
0
$3
00
,00
0
Detached Single Family
BRITISH
OUR NORTHERN NEIGHBORS ARE FLOCKING SOUTH
8
86% Cash, 14% Mortgage
,00
Detached Single Family
KE :
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AC
Florida (39%), Arizona (24%)
California, Arizona,
Texas, Florida
CHINESE
58%
Most Common
Type of Financing
$2
50
,00
0
Detached Single Family
9
6. factors that attract:
what international
clients want now
INTERNATIONAL BUYERS WANT A GOOD DEAL –
AND THEY’RE WILLING TO PAY FOR IT
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.
Why They Buy
39%
31% PROFITABLE INVESTMENT
22% SECURE INVESTMENT
Seek out a
desirable location
OTHER
All Existing
Home Sales
How Much They Pay
Avg. Price
21%
Condo/Apartment
9%
Townhouse/Row House
Purchase in a
Suburban area
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.
10
2013
2012
2011
2013
2012
Median Price
6%
Other
Where They Buy
50%
2011
64%
$200K
$170K $165K $180K
2013
What They Buy
$276K
$252K
$218K $212K $228K
2012
7%
more than $1M
$315K
2013
39%
$250K - $1M
A 9% increase over 2012
$354K
2012
Spend up to $250K
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2011
54%
Detached Single Family
International
Sales
$400K
2011
8%
Annual property prices for the 12 months ending in March over the past three years
AS YOUR GLOBAL REACH EXPANDS,
SO DOES YOUR INCOME
On average, selling a
$400,000
home at a
KE :
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AC
3%
commission rate
will earn you
$12,000!
Get Your Property on the Global Playing Field
Using 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.
11
7. PROPERTY MUST MIRROR PURPOSE
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.
2/3 1/3
are buying for
their personal
enjoyment
are buying for
investment
Commercial
Rental
42%
42%
17%
39%
2013
65%
Cash
Mortgage
35%
Mortgage
Cash
2013
2012
2011
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.
69%
20%
12
33%
said it was “VERY
SIGNIFICANT.”
28%
Vacation
Home
residence has been trending upward since 2011.
of international buyers said
the value of their DOLLAR
IMPACTS THEIR BUYING
DECISION.
2007
37%
The number of buyers who purchased their homes as a primary
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.
CASH IN ON CASH-ONLY DEALS
Primary
Residence
Residential
Rental
CURRENCY COUNTS
77%
HOW THEY INTEND TO USE THE PROPERTY
5%
tout the value
of their spending power
13
8. 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.
Countries with highest and lowest transaction costs
Highest
Lowest
Russia
Bulgaria
Monaco
Belgium
Italy
France
Luxembourg
Greece
Croatia
Portugal
Spain
Austria
Germany
Cyprus
Netherlands
Hungary
Finland
Turkey
Malta
Czech Rep
Serbia
Romania
Denmark
Ireland
Slovenia
Poland
Sweden
Switzerland
Montenegro
Macedonia
Latvia
Norway
Ukraine
UK
Estonia
Slovakia
Lithuania
13.87
13.65
12.16
11.82
11.45
11.09
11.03
10.58
10.15
9.93
9.23
9.20
8.15
7.58
7.05
6.96
6.92
6.61
6.54
5.74
5.28
5.24
5.16
5.06
5.05
5.03
3.81
3.10
2.35
0
Registration Cost
14
5
10
Agent’s Fees
17.88
17.00
16.30
15.65
15.48
19.65
25.00
24.88
how to cultivate a
cross-border clientele
CULTURAL INTELLECT:
THE MORE YOU LEARN,THE MORE YOU EARN
International 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.
International
consumers want to
do business with a real
estate professional
who understands their
culture and speaks
their language.
15%
of those with
experience
• 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.
“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. proper ties now.” – Chris Heller,
President, KW Worldwide
15
Legal Fees
Sales and Transfer Fees
KE :
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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.
15
9. 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.
Signs/Ads on
boards/Yards
Other
9%
18%
Referral from a
domestic source
Friends/Families
8%
3%
Previous
contacts/Clients
26%
Website/
Online
listing
23%
Referral from
an international
source
Walk-in to office/
Open house/
Phone call
11%
2%
COURTSHIP ACROSS CULTURES
ENERGIZE YOUR BUSINESS WITH
INTERNATIONAL LEADS
Canada & KW Worldwide Master Franchisees
17 Canada
17 South Africa
18 Germany, Austria, & Switzerland
19 Indonesia
19 Turkey
20 Vietnam
O
ther Notable Countries for International Buyers
21 China
22 India
22 Mexico
23 United Kingdom
Ask for International Referrals
E : Leads are the lifeblood of any real estate business. Fuel your database with foreign
AK ON contacts by picking up the phone and calling on friends, family, previous clients
T I
T
and contacts. Then ask the question: “Who might you know from the international
AC
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).
16
CLIFF NOTES TO THE CULTURAL DIFFERENCES
EVERY SALESPERSON NEEDS TO KNOW
17
10. CANADA & KW WORLDWIDE FRANCHISEES
canada
C A P I TA L : OT TAWA
Typical Work Hours: 9 a.m. to 5 p.m., Monday through Friday
National Languages: English (60 percent) and French (24 percent)
What You Should Know When Working with Canadian Clients
1. 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 by
Canadian Investors
1. Las Vegas, Nev.
2. Miami, Fla.
3. Los Angeles, Calif.
4. Chicago, Ill.
5. Orlando, Fla.
south africa
Part of KW Southern Africa Region
Points of Interest
1. 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.
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 Friday
National Languages: Eleven official languages, however English is widely spoken.
What You Should Know When Working with South African Clients
1. 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.
18
south africa (cont.)
Top Five Internet Searches by
South African Investors
1. Cape Town
2. Johannesburg
3
. Dolphin Coast (Zimbali)
4. Whale Coast (Hermanus)
5. Sun City
Points of Interest
1. 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.
germany, austria & switzerland
Part of KW Germany, Austria & Switzerland Region
C A P I TA L :
GERMANY: BERLIN
AUSTRIA: VIENNA
SWITZERLAND: BERN
( D E FAC TO N OT D E J U R E )
Typical Work Hours: 9 a.m. to 5 p.m., Monday through Friday
National Languages: German; in parts of Switzerland, French and Italian
What You Should Know When Working with Germany, Austria and Switzerland Clients
1. 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 by
Germany, Austria & Switzerland Investors
1. Florida (Naples, Orlando & Miami)
2. New York, N.Y.
3. California (San Francisco,
Los Angeles & San Diego)
4. The Cape, Maine
5. Las Vegas, Nev.
Points of Interest
1. 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.
19
11. indonesia
Part of KW Indonesia Region
C A P I TA L : J A K A RTA
Typical Work Hours: 9 a.m. to 5 p.m., Monday through Friday
National Languages: Bahasa Indonesia and English (10 percent)
What You Should Know When Working with Indonesian Clients
1. 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 by
Indonesian Investors
1. San Francisco, Calif.
2. Los Angeles, Calif.
3. Seattle, Wash.
4. Boston, Mass.
5. New York, N.Y.
turkey
Points of Interest
1. 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.
C A P I TA L : A N K A R A
Part of KW Turkey Region
Typical Work Hours: 9 a.m. to 5 p.m., Monday through Friday
National Language: Turkish
turykey (cont.)
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 by
Turkish Investors
1. Manhattan, N.Y.
2. Miami, Fla.
3. Washington D.C.
4. Orlando, Fla.
vietnam
Points of Interest
1. 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.
C A P I TA L : H A N O I
Part of KW Vietnam Region
Typical Work Hours: 8 a.m. to 5 p.m., Monday through Friday
National Languages: Vietnamese; English and Russian are also widely spoken in major cities
What You Should Know When Working with Vietnamese Clients
1. 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.
What You Should Know When Working with Turkish Clients
1. 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.
20
21
12. china (cont.)
vietnam (cont.)
Top Five Internet Searches
by Vietnamese Investors
1. San Jose, Calif.
2. Garden Grove, Calif.
3. Westminster, Calif.
4. Houston, Texas
5. San Diego, Calif.
Points of Interest
1. 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.
OTHER NOTABLE COUNTRIES FOR INTERNATIONAL BUYERS
china
PE O P LE ’ S R E P UB L I C O F CH I N A
C A P I TA L : B E I J I N G
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 Clients
1. 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 by
Chinese Investors:
1. Las Vegas, Nev.
2. Los Angeles, Calif.
22
3. Irvine, Calif.
4. New York, N.Y.
5. Miami, Fla.
india
Points of Interest
1. 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.
C A P I TA L : N E W D E L H I
Typical Work Hours: 9:30 a.m. to 5:30 p.m., Monday through Friday
National Languages: Hindi and English (most common for commercial use)
What You Should Know When Working with Indian Clients
1. 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 by
Indian Investors
1. Los Angeles, Calif.
2. Miami, Fla.
3. Las Vegas, Nev.
4. New York, N.Y.
5. Chicago, Ill.
mexico
Points of Interest
1. 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.
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 Friday
National Language: Spanish
What You Should Know When Working with Mexican Clients
1. 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.
23
13. mexico (cont.)
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 Searches
by Mexican Investors
1. San Diego, Calif.
2. Miami, Fla.
3. San Antonio, Texas
4. Laredo, Texas
5. Chula Vista, Calif.
Points of Interest
1. 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.
united kingdom
C A P I TA L : L O N D O N
Typical Work Hours: 9 a.m. to 6 p.m., Monday through Friday
National Language: English
What You Should Know When Working with British Clients
1. 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 by
British Investors
1. Los Angeles, Calif.
2. Orlando, Fla.
3. Miami, Fla.
4. Las Vegas, Nev.
5. Kissimmee, Fla.
24
Points of Interest
1. 25 percent of London residents were born
outside England.
2. To signal that something is to be kept
confidential or secret, tap your nose.
To learn more about the resources available to
KW Global Property Specialists, visit kw.com/GPS
14. https://odams.officedepot.com/kw
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