Real Estate Articles
REALTORS® Learn about Homeownership Barriers, Traits of Asian American Community
Pictured left to right: SILVAR President-elect Gene Lentz, AREAA-SV President Christine Kim and national AREAA Chair John Fukuda
John Fukuda, national chair of the Asian Real Estate Association of America, told REALTORS® at a recent seminar hosted by AREAA's new Silicon Valley chapter that 20 percent of Asian Americans feel discriminated in this country, so it is AREAA's goal to educate real estate professionals on how to better serve the needs of Asian Americans in their market.
The seminar entitled "Effectively Serving the Asian American Community" was held in partnership with the Silicon Valley Association of REALTORS® and the Santa Clara County Association of REALTORS®. Topics Fukuda covered included using cultural context to your advantage when building relationships with Asian American clients; tailoring business practices to the needs of the American consumers; and working effectively with clients who do not speak or understand English as their first language.
Fukuda shared general Asian traits that serve as homeownership barriers for Asian consumers. Over 60 percent of the country's Asian population is foreign-born, creating language and cultural barriers. Asians need to feel financially ready, stable and secure before they consider buying a home. They have an innate hesitancy to share financial information and may not always reveal all their finances, since some are set aside for family emergencies. Many Asians have a lack of understanding about the importance of credit history and credit scores because FICO scores don't exist in Asian countries.
"Many Asian buyers will save up to 50 percent of the down payment and/or pay cash for a home because to them, 'interest' is a dirty word," Fukuda said.
Within Asia cultures vary, but there are still common elements that bind Asians, Fukuda said.
- Asians are very family-oriented. They appreciate your taking an interest in their family. Living arrangements may include extended family.
- Asians place great value on education, music and the arts.
- Asians are non-confrontational. They may nod - even if they don't agree or understand what is being explained 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.
- Asians have a strong work ethic.
- Trust is important. Once you gain their trust, they will take your advice to heart.
- Many Asians rely on feng shui principles when selecting and decorating a home.
- Implied communication is preferred. Pay attention to non-verbal communication.
- Personal relationships are a precursor to business relationships. Business partners and clients are often included in social gatherings.
Nicholas Pham, who is originally from Vietnam and is a REALTOR® with PN Real Estate Group in San Jose, stressed, "You may not always agree with these cultural traits, but it's important to just accept them and keep them in mind when working with Asian clients."
The Silicon Valley chapter of AREAA was recently established with Christine Kim, principal broker with Bridgepoint Group in San Jose, as president. Silicon Valley Association of REALTORS® President-elect Gene Lentz congratulated the new chapter.
"The world is getting smaller and we all need to work together," said Lentz, a REALTOR® with Red Hawk Real Estate in Menlo Park. "We are here to help you better serve your clients. We 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.
Variations of this article have appeared in local area newspapers.
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