Effectively Serving the Asian American Community
Friday, July 16, 2010
Pictured left to right are SILVAR President-Elect Gene Lentz, AREAA-SV Founding President Christine Kim and national AREAA Chair John Fukuda.
Approximately 80 people attended a seminar on “Effectively Serving the Asian American Community” hosted by AREAA-SV (Asian Real Estate Association of America – Silicon Valley) in partnership with SILVAR and the Santa Clara County Association of REALTORS® at the Cupertino Community Center on Thursday. John Fukuda, the national AREAA chair, delivered the presentation.
Fukuda noted 20 percent of Asian Americans feel discriminated in this country. AREAA seeks to make sure Asian Americans have a voice in the community and educate real estate professions on how to better serve the needs of Asian Americans in their market. Topics he covered included using cultural context to your advantage when building relationships with Asian American clients; tailoring business practices and office procedures to the needs of the American consumers; and working effectively with clients who do not speak or understand English as their first language.
Here are some general traits that are homeownership barriers for many Asian consumers:
• Asians need to feel financially ready, stable and secure before they consider buying a home;
• Over 60 percent of the entire Asian population is foreign-born, creating language and cultural barriers;
• Asians have an innate hesitancy to share financial information;
• Many Asians have a lack of understanding about the importance of credit history and credit scores because in their country, FICO scores don’t exist. Fukuda said many buyers will save up to 50 percent of the down payment and/or pay cash for a home because to them, “(paying) interest is a dirty word.”
Within Asia, cultures vary and are fragmented, but below are some of the common elements that bind Asians. Being aware of these nuances will help establish a good relationship with your client:
• Asians are very family oriented. They appreciate your taking an interest in their family, especially their children.
• They place great value on education, music and the fine arts. They measure success in academic achievement and the arts. Their children are often enrolled in piano, violin and other musical instruments.
• Living arrangements may often include extended family members. It is not uncommon to have a grandparent living in the same household.
• They are non-confrontational. They will avoid open disagreements at all costs. They may even nod even if they don’t agree or understand what you are explaining to them.
• Elders are highly respected, and often, they are the decision-makers when it comes to buying a home.
• Asians are very value conscious and like to feel they got a good deal when purchasing a home, so it’s good to provide them with perks and extras.
• Asians have a strong work ethic.
• They see rules and even laws, as guidelines.
• Trust is important. Once you gain their trust, they will take your advice to heart.
• Feng shui is important to many Asians when selecting and decorating a home.
• Many Asians place value on numerology and the impact of colors.
• Implied communication is preferred. Pay attention to non-verbal communication.
• Personal relationships are a precursor to business relationships, and often, business partners and clients are included in social gatherings.
Differences in the Japanese, Chinese, Vietnamese cultures were then discussed in detail by REALTORS® with the respective ethnic backgrounds. The REALTORS® stressed while you may not always agree with these cultural traits, if you want to establish a good relationship with your client, it is important to accept them and keep them in mind when working with clients.
Fukuda explained the seminar provided just a brief background for each culture, but he hoped the information would assist real estate practitioners in better serving Asian American clients.
The Silicon Valley chapter of AREAA was recently established with Christine Kim as founding president. Both SCCAOR President Karl Lee and SILVAR President-Elect Gene Lentz attended the event and congratulated the new chapter.
“The world is getting smaller and we all need to work together,” Lentz stressed. “SILVAR is here to help you better serve your clients. We are happy to be here and look forward to working with you and the Asian American community.”
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.
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