International Real Estate: Your Passport to Heightened Business

Agents interested in international real estate should be aware of the cultural differences that can obstruct positive interactions with clients. At the start of every international real estate venture is a foundation of multicultural awareness. This includes knowledge of your client’s religious beliefs, language, and the history, economy and government of his or her home country.

“You need to be familiar with the culture,” said Jim Ascot, Ascot Realty Group, Chicago. “Much information and worldwide news can be obtained from the Internet. Continuing Education courses and the Certified International Property Specialist (CIPS) program are other great starting points.”

The following four REALTORS® have generously shared what they know about international real estate.

Paul Byron, Park Place Realty International, Ltd., Chicago

Founding his company in 1980, Paul Byron took a sharp turn from his former career in finance and business. From the late 1950s until 1980, Byron was heading worldwide planning for a pharmaceutical company—a job that included much international travel.

By 1980, the corporate climate of mergers and acquisitions was leading Byron to believe his career might not be secure. “I knew my employer was planning to sell the company,” he added.

He resigned and began focusing on the company he founded in 1979—Paul

Byron Associates, Inc. The business involved financial consulting and tax consulting. “Some of the tax consulting involved getting people to invest in real estate,” he said. To complement his business, Byron founded Park Place Realty & Management in 1980.

“In 1990, I was in my late 50s and I started to explore other business options.” An NAR article about international real estate and the Eastern European Real Property Foundation reminded him of his international experience.

“I joined the International Real Estate Federation (FIABCI) and I started working on my CIPS designation,” Byron said. FIABCI is the French acronym for an international organization that includes over 100 different national associations. FIABCI promotes international real estate networking and provides worldwide information to REALTORS® and other professionals.

Byron’s international involvement in real estate kicked off in 1996 with a conference he organized in Chicago, bringing heads of the Czech real estate association to speak about the opportunities that exist in the Czech Republic.

Since the Czech government shifted from communism to capitalism, several natives—who had settled in the United States to realize the benefits of capitalism—are now ready to return home and purchase property.

When the Chicago Association of REALTORS® (CAR) formed an international section and Byron served as first chair, Byron and CAR organized additional conferences for countries such as Ireland and Poland. “These conferences were designed for people going back to their homelands,” Byron said. “They were educated about buying property in their homeland and prepared for the opportunities and difficulties they will face.”

One obvious difficulty is the fact that the Czech and Slovak Republics have no license law, so anyone who claims to be a REALTOR® can practice. In addition, these countries have no title insurance.

Byron is now representing people who wish to buy or sell property in their homeland. “I’m helping them deal with the transition in government and real estate.”

One thing Byron has learned is the importance of gaining trust from clients. “Personal relationships are everything, because you’re asking someone of a different culture who speaks a different language to do business with you,” he said.

“You’re dealing with a mindset raised under communism and English as a second language,” he added. “Unless you develop a close relationship, there are so many opportunities for misunderstandings.”

Byron travels a lot for NAR, because he is Reciprocal Director to the Czech Republic. He serves as a conduit between the Czech Republic Association of REALTORS® and the National Association of REALTORS®. “I attend the Czech Association meetings at least once a year to answer any questions or provide guidance,” Byron said. He also attends Central European Real Estate Association Network meetings.

Also as Reciprocal Director, Byron hosts Czech Association representatives attending NAR meetings in the states. “I sometimes pick them up at the airport, and I always have at least one dinner with them to answer any questions,” he said.

Byron is also a CIPS instructor—a position that requires a CIPS designation, intensive training, and ongoing training to maintain the position.

He claims his work is not done for purely financial reasons. “It is very personally rewarding. I’ve learned a lot from the people and the friendships.”

Mary Ellen Shine, RE/MAX Plaza, McHenry

Mary Ellen Shine has been a REALTOR® since 1977 and entered the international market about four years ago. Shine has a bachelor’s degree in German from Loyola University in Chicago and she lived and studied in Germany for three-and-a-half months.

“I have a real interest in cultural differences and in meeting people from all over the world, so it seemed natural to combine my international interests with real estate,” she said. Shine helps international clients from India, Ireland, England, Mexico and the Netherlands who are buying real estate in the United States. “I worked with an Irish family that bought a house in Crystal Lake,” she said. “Currently I’m working with a client from the Netherlands who needs space for a wholesale European antique business.”

She is a member of FIABCI and the NAR International Operations Committee. She also helped form the Chicago Association of REALTORS® (CAR) International Section. She recently joined the Chamber of Commerce of the Netherlands in Chicago.

“I’ve learned that with people from certain cultures, negotiating is not done even though we’ve signed a contract. They continue to negotiate until the closing,” she said. In the fast-paced business climate of the United States, Americans are more direct, she said. “We get to the point and get the contract signed, but conducting business with other cultures is more a relationship-building process.”

Most foreign clients find it essential to become personally acquainted with the agent before discussing business. In fact, some clients avoid talking business during the first meeting, opting instead to converse on a personal level, Shine said. “There are many customs they have that we don’t know about.”

Shine said that greetings with Asians should include no eye contact. “That’s considered rude. When someone from Asia hands you their business card, it’s like handing you an extension of themselves,” she added. “It’s a very personal thing.” Upon receiving the business card, you are to set it on the table, look at it and refer to it. Asians want you to treat the card with a great deal of respect, Shine said. “We need to be aware of feng shui and we must realize they won’t buy a house if the wrong numbers are in the address or if the home is facing the wrong way.”

Shine helped an Irish family find the best school possible for their children. “I gave them tours of the school buildings, introduced them to the administrators and made sure their questions were answered. She also tells international clients how to get a driver’s license. “I think of these things, because I know what it’s like to move to a completely different country.”

Jim Ascot, Ascot Realty Group, Chicago

President and founder of Ascot Realty Group, a commercial brokerage services company, Jim Ascot became involved in international real estate when he was president-elect of the Chicago Association. “The CAR president at the time, Sheldon Good, was installed in Tokyo as the world president of FIABCI, and I attended the ceremony.”

At that ceremony in 1996, Ascot was introduced to the FIABCI organization and he realized how important it was to expand his awareness to an international level. “When I was president of CAR, we created an international committee and focused on information gathering for our members,” he said.

Another incentive for Ascot to begin international work, is the fact that he is a native of Greece. “I was born in Greece, and my dad brought the family here when I was 9 years old,” Ascot said. “My native language is Greek, but at that time I was young enough to assimilate quickly.”

Once Ascot decided to begin international real estate, he joined FIABCI, attending annual meetings in different parts of the world, such as Dublin, London, Seville and Paris. He also attended FIABCI local chapter meetings in the states.

During his presidency, CAR became an Ambassador Association for NAR. As an ambassador, CAR was paired with the Czech Republic to act as host to foreign association delegations at the NAR convention, to organize trade missions to the country and to provide basic interface on behalf of NAR.

“As a member of FIABCI and as president of CAR, I was creating relationships with people who do brokerage business in other countries, so international real estate naturally became an extension of my business,” he said.

Ascot received his CIPS designation, an achievement that requires the completion of five courses, as well as some experience with international transactions. Course topics include Essentials of International Real Estate, Europe and International Real Estate, Asia/Pacific and International Real Estate, The Americas and International Real Estate and Investment and Financial Analysis.

The CIPS program helps REALTORS® understand cultural differences and the business practices of various nationalities. “Developing an attitude of understanding is critical,” he said.

Ascot assists international clients who are seeking real estate investments and those who are relocating to the United States and need brokerage services. He also works with clients in the United States who are evaluating properties in Greece for future developments and sales.

Ascot said it’s important to obtain general knowledge about the clients’ countries. “You have to be sensitive to the different needs of international clients,” Ascot said. “Their laws and the way they acquire property are different. You have to make them aware of how real estate transactions work in the United States.”

One way to gain multi-cultural information is to contact chambers of commerce and other local organizations that support other nationalities. “There are so many ethnic groups in our cities. It’s a matter of how you tap into that resource.” Ascot also suggested patronizing ethnic restaurants and reading foreign newspapers.

There will be an additional 1.5 million immigrants coming to Chicago in the next 20 years, according to the Chicago Metropolis 2020 Report. “That means more demand for housing, retail, office and industrial real estate.” Ascot anticipates an influx of foreign manufacturing plants, headquarters for distribution facilities and office headquarters. “There are tons of people that can benefit from the demographics and economics of the city.”

  V. Joseph Lane, Coldwell Banker Heart of America REALTORS®, Bloomington

With partner and mentor Tom Ochs, Sr., Lane serves State Farm Insurance employees who have been transferred from Ontario to Bloomington. Canadian employees are transferred to the Bloomington office for two-three years. After their relocation assignment is complete, they return home and other Canadians are assigned a transfer.

Lane and Ochs have worked to transfer 20 individuals. “We’ve been doing this about three years,” Lane said. “Tom established a relationship with one of the first Canadians that relocated to Bloomington, and that first business transaction taught him what he needed to know about conducting business with Canadians.

“If there are any similar cultures, it would have to be Canada and us,” Lane said. He is careful, however, not to call himself American and his client Canadian, because they consider themselves Americans too.

Lane receives new leads from current Canadian customers. “I start each business relationship with a phone call introduction and I obtain the client’s e-mail address for regular communication,” Lane said. During the one- to sixth-month period when they are waiting for their visas, Lane keeps in touch with them via e-mail.

He educates them about the home-buying process and determines their home selection criteria. He will also e-mail occasional listings to give them a feel for the market and to let them plan ahead.

“Once they have their visas, they schedule a four or five-day visit to find a home. I normally start the first day with a breakfast meeting,” he said. The first hour is spent visiting before getting down to business. After breakfast he takes them to the social security office to get their cards and he takes them to a local bank so they can open accounts and apply for a credit card and an ATM card.

Lane provides these added services to internationals because of their need for guidance. “If you were in a foreign country, wouldn’t you be a little nervous walking alone into a government office? Before showing them any homes, we take care of all the things they’ll need when they move here.” Then he shows homes for about the next four days. This full-service approach is what builds a strong reputation among the Canadians.

A personal touch helps set them apart. By remembering all Canadian holidays and sending e-mail cards to past and present clients for every occasion, Lane and Ochs are helping to maintain relationships.

“Once a year we host a golf outing for Canadian clients with dinner following.” Lane said they are always available for them to help answer questions they have.

By Betsy Reeves, assistant editor

Nov., 2000 Illinois REALTOR magazine