RE/MAX Lands in China | ABOVE | The RE/MAX Magazine

By Deborah Ball Kearns

 

The network is still buzzing with the news that RE/MAX has expanded into China, Hong Kong and Macau, a move that capped years of hard work and an arduous search for the right master franchise leadership.

With a population of more than 1.3 billion people and a booming economy that’s second only to the U.S., China has a vibrant, developing real estate market fueled by the growing prosperity of its middle class. Affluent Chinese nationals are also investing heavily in real estate outside of their home country – namely in the United States and Canada.

The RE/MAX system is a clear fit for Chinese real estate entrepreneurs looking for a global brand that will multiply their opportunities to do more business, says Larry Oberly, RE/MAX Vice President of International Development. “RE/MAX agents understand the power of the international network,” Oberly says. “This expansion is a win-win for new agents in China, as well as RE/MAX agents in other countries who can grow their referral database in a major way.”

Even with the new RE/MAX China operation still in development – the first offices should open in early 2013 – many RE/MAX Associates are already working with Chinese buyers.

 

Tapping into the Chinese market

Gloria Young and Omar Kinaan, for instance, work as a team with RE/MAX Distinctive Properties in Menlo Park, Calif., and 40 percent of their clients are international buyers – mostly from China.

“Culturally speaking, Chinese people like to plan ahead – way ahead,” Young says. “Stanford University is one of the top choices Chinese parents consider for their children. It’s also the engine that drives the Silicon Valley’s venture capital and tech firms.

“When we point out all of these benefits, coupled with the outstanding public schools and laid-back lifestyle, Chinese buyers see the value in investing or buying real estate here.”

Young is Chinese; she was raised in Beijing and Hong Kong, and speaks fluent Mandarin and Cantonese. She is responsible for building relationships with Chinese buyers. She culls leads from years of international travel and referrals from friends and relatives who are still living in China. Kinaan, who has worked in real estate for nearly a decade, takes the lead on transaction negotiations and moving the process to closing.

 

Building on Momentum

Together, Young and Kinaan have created a successful business model, and now that RE/MAX has entered into China they expect to make even more connections.

“We share the mindset of focusing on quality instead of quantity,” Young says. “In our luxury market, we target an intimate circle of high-net-worth Chinese buyers as opposed to dozens and dozens of people.”

Kinaan adds that the RE/MAX global presence is one of the leading reasons Chinese buyers work with the team.

“Many affluent Chinese people travel the world and have heard of RE/MAX, although the brand isn’t yet up and running in China,” he says. “They’re more open to working with us than if we were affiliated with a lesser-known brand. Our office specializes in The RE/MAX Collection, and that’s another key advantage. Chinese buyers expect a sophisticated, luxury experience in all of their dealings, and that’s what we deliver.”

Working with Chinese Buyers

Young and Kinaan offer these tips to help prepare agents interested in working with this wave of buyers.

Partner with someone

“There’s a huge advantage to partnering up with another agent who already knows the language, understands the culture and has connections in China, because there are subtle yet important nuances to Chinese business relationships,” Kinaan says.

Listen closely and be patient

“Chinese buyers view the negotiation process as the beginning of the transaction,” Kinaan says, “so you need to have more patience and listen to really understand their objections.”

Do the research

“You have to do your homework, as you would in any transaction, and really take the time to understand the cultural differences and international lending and financing requirements,” Young says. “The more solution- and fact-oriented you are, the better your chances are of convincing Chinese buyers that they should work with you.”

Anticipate their needs

Young says the Chinese buyers she works with are typically looking for newer homes in great condition, modern architecture and a strong emphasis on Feng Shui (for instance, house numbers and their relation to good chi, sun exposure, furniture setup and location of entry door, among other factors).

via abovemag.remax.com