Multiculturalism: Making Diversity Your Business
Doing business in a multicultural market requires more than just speaking the language.

Arthur R. van der Vant, managing broker at Major Enterprises Inc. in Chicago, is providing better service to some of his clients thanks to his ability to speak Polish and Russian. That fluency is gaining him additional opportunities beyond talking with clients in their native tongue. During an October visit to Warsaw with a group of REALTORS®, van der Vant talked with an Israeli developer about his four-building condominium development in Warsaw. The result was that van der Vant gained the exclusive rights to sell the property in America to clients who are looking to buy investment or retirement property in the old country.

“There are a lot of American Poles interested in buying retirement property in Poland because their pensions are worth a lot more there,” he says. “There also are some Poles who have immigrated here who still own property in Poland and are looking to sell it. So my trips there three or four times per year are very beneficial.”

REALTORS® who take advantage of the cultural diversity in their markets are learning that there are a wide range of opportunities awaiting them throughout Illinois. But aiding clients with different cultural backgrounds takes more than simply speaking the language, especially when those languages have no direct translation for such terms as “down payment” or “contingency.” “We do business in this country in a way that’s not the same as in some other countries,” says Maria Davies, CIPS, a REALTOR® with Coldwell-Banker Residential Brokerage in Chicago. “We need to explain those differences and work to understand the subtleties of the clients’ needs—and also understand the nuances of our own laws as they apply to immigrants and other foreign nationals looking for our help.”

The growing ethnic market

The size of that culturally diverse opportunity continues to grow, according to the Real Estate Division of Cendant Inc. It reports that three out of every five first-time home buyers during the next decade are expected to be minorities. Within that market, the Hispanic community is the fastest-growing demographic group in the country and in Illinois, according to the U.S. Census. Between 1990 and 2000, the Hispanic population in Illinois grew by 69.2 percent, the largest increase anywhere in the Midwest. And the population of Polish Americans in Illinois, although it has leveled off from past growth, represents nearly one million people, making Illinois the state with the second-largest Polish population after New York.

These statistics don’t simply represent the multiculturalism of Chicago, although the city is a great international melting pot. The largest percentage increase in the Hispanic population between the 1990 and 2000 Censuses came in Cass County in western Illinois, where the Hispanic population grew from about 50 people to 1,162 in 2000, according to the Center for Family and Demographic Research. Likewise, Census data indicate that the Hispanic population of the Diocese of Belleville, comprising the 28 southern counties of Illinois, grew by 62.4 percent in that decade, according to the Office of Hispanic Ministry in Belleville.

As van der Vant’s experience indicates, the cultural exchange can work both ways, with immigrants interested in buying property or selling what they own once they are settled in America. Corporations looking to establish overseas branches also need help in learning how to buy property, what to buy and how to help employees find housing. They often look for an expert who can represent them overseas while still servicing them locally, adding to their comfort factor.

Tapping into these growing markets requires understanding the languages and the real estate business of other countries, as well as the cultural differences, say REALTORS®. “Being Puerto Rican and bilingual, I have a niche market that I have always taken advantage of,” says Alex Chaparro, general manager for RE/MAX Alliance in Chicago. “As a result, my business has become more sophisticated, and so has that of the industry overall in serving these customers. The real estate industry has come light-years in the past 10 years in the way we provide service to these consumers.”

Understanding the culture

Understanding the client’s culture is as important as knowing the lingo, REALTORS® stress. “Being bilingual is only a start,” says Davies, who speaks fluent Spanish, Hungarian and German. “But it does give me an extra sensitivity in addressing clients.” She notes that Americans tend to be informal in addressing each other, using first names predominantly. Many countries are more formal and use first names either for those with a lower socioeconomic status or for friends and family. “You don’t want to get off on the wrong foot of that strict hierarchy,” she says. “Knowing the culture you’re dealing with establishes a better relationship and sets a tone that will be helpful throughout.”

Contractual law also may need more than an explanation of terms, which can be daunting. In Germany , for instance, a one-page, typewritten sheet may serve as the contract, Davies notes. “In many countries, a verbal agreement is worked out and a notary signs off on it,” she says. “The concepts of earnest money, walk-throughs, title and title insurance are things we take for granted, but in many cultures, they don’t exist. You need to work closely with ethnic clients to ensure they know what will be coming and why things are done as they are. They have to understand that although business is conducted differently in their lands, they are buying property in this country, and they must be prepared to follow our cultural system.”

Van der Vant adds that the cultural difference can make things smoother in some cases. “Many people from ethnic backgrounds save a lot of money upfront before considering a home purchase,” he says. “They have a different lifestyle that allows them to save more for the down payment.”

His ability to speak another language also has brought him customers who speak other languages. “I have had clients who were Chinese, Filipino, Puerto Rican and other nationalities,” says van der Vant. “They feel comfortable working with me, because even though our backgrounds aren’t the same, they know I’m used to working with clients who are not in the mainstream of American life. Having a sensitivity to that and to ethnic cultures in general makes them feel more comfortable.”

Real estate companies encourage agents to gain fluency in other languages to expand their potential client base as well as make the agency stronger overall. Such diversity within an office can help by making a wider range of fluent agents available to help with a few key points, even if the client is working with another representative. For that reason, managing brokers make a point of seeking out as many agents as possible who speak other languages and encourage training whenever possible.

Bilingualism spreads

Bilingual fluency has extended to related professions, too. “What I find exciting is that in the last five years or so, many times I discover that I’m not the only one in the room who can speak Spanish,” Chaparro says. Van der Vant has worked with attorneys who also speak polish and other languages. Some lenders also will take applications for mortgages over the phone in Spanish.

Fluency is important, but so is understanding the client, Davies stresses. “There’s a vast difference between a rural Mexican family and a university professor from Chile, even though they both speak Spanish,” she points out. “Knowing the subtleties and needs of each client is critical.” That becomes more critical as the types of clients with ethnic backgrounds expands, she adds. The immediate past chair of the International Section of the Chicago Association of REALTORS®, Davies has dealt with clients who were foreign nationals who were residents, non-residents, investors and even diplomats. “These clients have a whole variety of needs, and we need to know how to serve them, or they will go somewhere else.”

Chaparro agrees. “In some cases, they feel insulted if you try to speak to them in their native language, as they want to be treated like an American,” he says. “They have to be the driving force in how they are treated. That’s true of any relationship that a good REALTOR® develops, but it’s even more important with ethnic clients.”

Overseas opportunities

That variety in needs indicates that the market is opening up dramatically. Overseas potential is a key area that is expanding, especially due to Internet accessibility and cheap air fares that make visiting other countries easier.

The Chicago Association of REALTORS® (CAR), for instance, entered into a cooperative agreement with the Warsaw Association of Real Estate Agents to work together on various programs. A group of Polish officials visited Chicago in June of 2002, while Chicago REALTORS® went to Warsaw last October for a joint conference. CAR also held a conference with the Irish Real Estate Institute in April of 2003.

The purpose of these agreements is twofold, says van der Vant, who served as the 2002 chairman of CAR’s International Committee. First, they establish international contacts and help build an information bank about real estate opportunities in the foreign land. This creates a framework so American corporations can find housing and commercial property through an existing network. And, as van der Vant discovered, it also allows foreign companies to expand their market by finding qualified local representatives.

“The needs go both ways, and the number of companies that I have worked with in other countries continues to grow,” he says, pointing to his database of more than 200 American client companies that have worked with him overseas. “The needs are definitely there.”

To serve this market, REALTORS® recommend several key actions

Training. Chaparro, a past chair of CAR’s Cultural Diversity Committee, has begun developing training modules in Spanish to encourage Spanish-speaking agents to develop their expertise. Many real estate franchises can provide affiliates with training materials to expand their educational and marketing resources. These can include awareness-training programs, materials for seminars in ethnic communities and strategies for approaching ethnic media.

Recruitment. “A REALTOR® whose first language is Spanish thinks in the same terms as Spanish clients and understands how to talk with them well,” says Chaparro. He often buys a Spanish-English dictionary of real estate terms as a gift for agents to help them better understand the nuances. Van der Vant, too, has a multicultural office, with REALTORS® who speak Russian, French, Chinese, Polish and Spanish. “We don’t make bilingualism a requirement or use it as a point in hiring,” he says. “But agents who do speak other languages gravitate to our office because they know we appreciate that skill, and it can expand their own business.”

Advertising. Using foreign-language advertising and promoting the company in ethnic magazines and media sources stresses the company’s commitment to serving these customers just as fully as English-speaking clients, REALTORS® agree. Chaparro is expanding on his current Hispanic advertising by upgrading his Web site to provide the English-language pages in a Spanish version as well. “I want to offer the entire suite of services in Spanish at my Web site that English-speaking clients receive via this technology: technology, marketing, follow-up, communication and weekly reports.”

Involvement and Certification. Participating in the international committee or ethnic diversity programs at your local REALTOR® association expands expertise and creates a network that aids professional development. Becoming a Certified International Property Specialist (CIPS) provides more than the in-depth educational expertise available through the training program, says Davies. Certified REALTORS® with the designation have access to a worldwide directory and network that allows them to market themselves to a wide range of international clients. The CIPS designation also provides credibility when foreign nationals are selecting their representatives.

Any program or initiative that reaches new clients and makes them feel more comfortable with your services will pay dividends, REALTORS® say. “Many REALTORS® already are marketing to an international client base and don’t realize it,” says Davies.

Says Chapparo: “Technology has enhanced our ability to communicate, and the industry has become aware of the potential. The American dream is now open to anyone of any culture."

About the author: Craig A. Shutt is a free-lance writer in Chicago. He writes articles on a number of business-related areas including real estate and construction.

July 2003 Illinois REALTOR magazine