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REALTOR®: Silicon Valley REALTORS® learn about doing business with Chinese clients

Wednesday, October 8, 2014

Rising home prices haven't deterred foreign interest in U.S. property, with Chinese buyers as the biggest international players. Last year, 32 percent of international buyers who purchased real estate in the U.S. came from China. That number is up to 36 percent, according to the California Association of REALTORS®.

California is the biggest market for Chinese buyers because they are attracted by the state's proximity to their homeland, its climate and excellent educational institutions. There are large Chinese-American communities in the major cities. In Silicon Valley, the region's economy is booming and the many high-tech jobs here are a draw.

It's worth noting that you don't need to be a Chinese agent to cater to a Chinese buyer. More important than language, you need to respect them and their culture.

"Not all Chinese buyers are looking for Chinese speaking agents," Amy Sung recently told members of the Silicon Valley Association of REALTORS® (SILVAR).

Sung, who was born in Taiwan, is a REALTOR® with Pacific Union International Real Estate in Menlo Park. She stressed the importance of showing respect for Chinese buyers who are not well-versed in English. Just because they don't speak English well does not mean the Chinese buyer is not educated.

"Remember that they are eager to practice their language skills. Do not treat them like slow understanding children," said Sung.

Sung, along with Hong Kong native Mark Wong, a REALTOR® with Alain Pinel Realtors in Saratoga, were members of a panel on "Doing Business with China." The program presented at SILVAR featured real estate professionals familiar with China's real estate rules and regulations who shared experiences and challenges encountered when closing a deal. Other panelists were Kenneth Chan, premier mortgage consultant with HSBC in Palo Alto, and Jessie Wu, escrow officer with First American Title Company in Cupertino.

Wong emphasized establishing trust is important to the Chinese. Learn about the Chinese culture, including the principles of Feng Shui and what numbers and colors mean to the Chinese, and be sensitive to Chinese gestures, said Wong. He explained since they dislike confrontation, the Chinese won't say "no." "Maybe" probably means no. A nod may mean that they are listening, but not necessarily agreeing.

Chan reminded agents that lenders require two months of bank statements. Large deposits during that period are flagged. He said this can be a challenge because the Chinese are very investment conscious and are accustomed to moving their money around.

"The client needs to present clean bank statements," said Chan.

Wu reminded agents to verify their Chinese client's legal name, since Chinese names are different from Western names. It may not matter much when the client buys a house, but it will matter when the client sells the property.

Wu also stressed money transfers require a third party transaction document, similar to a gift letter. With no escrow number, no name of buyer, and no property address, the escrow company will return money it receives from overseas. This could delay or even kill a transaction.

Presented by SILVAR's Global Business Council, "Doing Business with China" is the first of a quarterly series exploring different aspects of doing business with clients from other countries. A second program focusing on Mexico will be presented early next year.


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.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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