Working with Foreign Buyers

Living in a border city and tourist area makes working with foreign buyers a natural fit for Jonathan Lindley, Broker at RE/MAX Platinum in McAllen, but he didn’t start out with that goal. “I wasn’t really marketing myself to international buyers,” he says. “I was just marketing my properties.” Over time, though, potential buyers from out of the country contacted him about his listings. Even if the property that initially caught a buyer’s eye didn’t work out, Lindley often was able to find the right one. “That’s when the referrals started,” he says.

Get Them Talking

“What I have learned about working with international buyers is it’s all referrals,” says Lindley. “If you treat them well, they’re going to tell friends and family about you. I sold a little condo to a couple from Canada, and next thing you know, within six to eight weeks, I already had eight Canadians that were looking to buy. They were all from the same town. So, word of mouth is big in the international community.”

Susan Annoura, Broker at Annoura Realty Group, can trace much of her extensive client list back to one referral. She knew she wanted to specialize in helping international buyers, but was unsure of how to start. Annoura speaks fluent Japanese, which she listed in her profile on the Houston Association of REALTORS® website. She thinks that is where a colleague found her, when the CEO of a Japanese company needed help with a relatively minor transaction. “And because I didn’t have any other clients,” she says, “I kind of just stuck around. Every time he had an issue, he’d call me.” She sent a cousin over to fix his mini blinds and told him how to deal with a tricky thermostat. “He ended up telling all the other CEOs of Japanese companies in Clear Lake, ‘Hey there’s a kid here who speaks Japanese and she’s super helpful.’ So then whenever new Japanese expats came in, they would hire me to do their housing.”

Use What You Know

Pius Dawson, Agent at The Virtual Realty Group, is an expat himself. Born in the U.K., Dawson spent 26 years in Germany, where he became fluent in German and gained deep insight into European culture. “I travelled all over Germany and over to East Germany when the wall came down in ’89 and saw all the changes that happened over there,” he says. Dawson came to real estate and to Texas at the same time, through his work as marketing director for a development company. Once he got his real estate license, it made sense for Dawson to work with international clients. “I had a lot of connections around Europe and the U.S.,” he says, “and that’s really all I focused on.” Dawson has been happy with his choice. He is heavily involved in the Texas REALTORS® Global Committee. And as an NAR global ambassador, he travels to Germany and Austria each year to represent NAR at real estate organization functions in those countries. “I have a lot of fun with it,” he says. “I enjoy what I do tremendously.”

Commercial Real Estate Draws International Interest, Too

Cesar Cepeda, Broker Associate at RE/MAX Associates, started working with foreign clients before he became a real estate agent. His international background in franchises and business brokerage led him to commercial real estate, where he now specializes in income-producing investment properties. Cepeda says that he was hooked on real estate as soon as he closed his first commercial deal. “I loved it,” he says. “It was not emotional. It was black and white. It was numbers.”

While “numbers don’t have language,” Cepeda says, the international element can add another level of difficulty. Clients from other countries may need help navigating unfamiliar U.S. systems, like banking. Deals may fall through because the buyer doesn’t realize how long it can take to transfer funds into a U.S. account. “That transfer may take three weeks or two months because banks don’t open accounts for foreign nationals just because they’re nice people,” says Cepeda. “Banks have regulations, so they need to follow a process,” he says. And REALTORS® can help clients understand those requirements and potential delays.

Connect with Culture

Cepeda says the key to working well with foreign investors is understanding their culture. “Cash flow is going to be the same in any language. But different cultures tend to negotiate differently or approach the investment in a different way,” he says. With that in mind, Cepeda is sometimes able to keep deals on track by spotting potential misunderstandings before they arise. “We have foreign clients who feel it’s completely natural to go back and forth in the negotiation four or five times,” he says. “And we have some sellers in America who are not willing to do that. The second time, they shut the door and say, ‘That’s it.’”

Dawson finds that his clients are pleasantly surprised when he is sensitive to their culture. “In Germany, for instance, you would never, ever call them by their first name,” he says. “Not like here in the United States, where everybody’s on first-name terms.”

Lindley agrees that it’s essential to be mindful of your client’s culture. “If you don’t know their culture, their ways, it’s an uphill battle,” he says. “Working with someone who is from just across the border is very different than working with somebody who is from interior Mexico.” Sometimes small social adjustments can make a big impression, he says. With clients from southern Mexico, “I like the approach of always going to the elder, whether it’s a grandparent or a parent. I like breaking the ice with them,” Lindley says. “Even though they may not be the buyer, they’re the ones typically that I would give my first business card to.”

Keep Learning

Lindley encourages REALTORS® who want to work with foreign buyers to take Certified International Property Specialist classes. He learned a great deal about other cultures there and developed a keen appreciation for the importance of culture. “I have to attribute my success with international buyers to my CIPS courses and designation,” he says.

Dawson also earned the CIPS designation and now teaches the classes. He is particularly proud that the course now offers students a full year of follow-up support “to make sure that they land on their feet,” he says. “There’s no other designation that has that mentorship program in place.” Dawson also encourages all members who are part of the CIPS network to stay in touch and call on their colleagues for resources, like referrals to translators. “We have 96 consulates here in Houston,” he says. “We’re at the source of a lot of information. And we’d be more than willing and happy to give it to them, because it’s our goal to make sure that they are successful.”

Show Up to Build Trust

Annoura, who also teaches CIPS classes, says one of her biggest tips for success in international real estate is to show up where the clients can see you. That starts online, she says. “Being searchable in their language is important,” Annoura says. “Most of them are going to Google you before they come, and you need to pop up when they do.” Her website, blog, and newsletter are available in Japanese, which she says helps her information surface more readily in Japanese web searches.

Showing up in person is important, too, Annoura says. “I participate in, for example, the Houston Livestock Show and Rodeo’s international committee,” she says. She also joined the Japanese Business Association of Houston, attending and supporting their golf tournaments and Japan Festival. By branding yourself as an international real estate agent and getting involved in the community, “you’re always out in front of the client,” she says.

It’s easiest to build trust with foreign clients when you can meet them in person, says Cepeda. Before the pandemic, he says, video calls were “almost offensive.” Now clients are more receptive to them, “but at least the first time, we have to do some kind of face-to-face,” he says. He finds that there is no substitute for a true social connection. “The most complicated business in the world boils down to personal relationships,” he says. “At the end of the day, a cup of coffee or a glass of wine will do the job.”

Provide Concierge Service

Knowing your clients as people can also help you see the full picture, so you know what resources to provide. “Whoever is dealing with foreign investors should be a concierge,” Cepeda says. In addition to pointing clients toward specialized professionals, like bilingual CPAs who understand international tax concerns, he says “sometimes we refer clients to schools, to doctors, or even to the priest because they don’t know anybody. They rely on you.”

Be a Lifeline

Caring for clients moving from abroad can be complicated, Annoura says. Often they need advice on “not only where to live, but how to live here.” She and her team step up to be their lifeline, she says. “We help them with their electricity and their water and their gas and their renter’s insurance and all that extra stuff.” They also give clients a special housewarming present when they move in: a bucket filled with essentials for starting their new life. “They can get that bucket and just survive for a day or two until they can get their bearings,” she says.

“When you work with foreigners, you need to be extra considerate, because they’re at such a disadvantage,” Annoura says. “They need a lot more help. So, it’s important to have a spirit of volunteerism and be willing to step up. As long as you have that helping spirit, you’ll succeed.”