Although foreigners are not allowed to own land in the Philippines, they are very much a key component of the local real estate market, and making a good impression on them can be beneficial for real estate brokers
Although the 1987 Constitution presently states only Filipino citizens are allowed to own land in the country, it has not prevented foreign buyers from taking interest in living and/or acquiring property here.
Condominium units remain one option for an expatriate, as they can own them freehold, provided foreign ownership does not exceed 40 percent as stipulated in the Condominium Act. They can also opt to build a house on land leased for 25 years (with the choice of extending the lease for another 25 years), or just outright an already built residence. Of course, there is also the less complex option of having their spouse officially own the land, provided the latter is a Filipino citizen.
The concept of having foreign clients is actually not that foreign, and the following are some ways to be ready to always make a good impression and obtain or maintain their business.
Know Where Most of Them Come from
In the last Census of Population and Housing (CPH) in 2010, the National Statistics Office (NSO) reported that the largest number of foreign nationals in the Philippines came from the United States, with 29,959 individuals, followed by China, with 28,750. Others making their way into the Philippines have been Japan, India, and Canada.
These numbers are expected to increase upon the NSO’s completion of the CPH conducted in 2015. It is recommended to stay updated of these, as it will help in recognizing what the likely nationalities of potential clients are, to be better prepared to deal with them.
Have an Understanding of Where They Will Be Staying in the Philippines
NSO’s CPH report also indicated which regions have the most resident foreign nationals. The National Capital Region (NCR) had the largest population of foreigner residents. This is expected as many foreign companies invest and set up shop in the country’s financial capital. It has the highest concentration of condominium units, the one property foreigners can own.
The second region with the most foreigners tallied was the Autonomous Region of Muslim Mindanao (ARMM), followed by Central Luzon, then CALABARZON. Knowing where there is a high concentration of foreigners will give you an idea of the market depth your area/s, as well as some insight on property and lifestyle preferences that they have.
Increase Your Knowledge of Their Countries of Origin
Upon initial contact with or recognition of a potential foreign client, try to learn more about their country of origin. Apart from common customs and possible cultural dissimilarities, research on their countries’ political and economic situations, particularly factors such as currency fluctuations and a need for market stability, as these may also influence their decision.
Become Familiar with Their Language
In line with knowing more about their culture is knowing more about their language. While for the most part, many Filipinos speak English sufficiently, not all foreigners who arrived in the Philippines use it as a primary or even secondary language.
You don’t have to be too adept, especially in the likelihood that foreign buyers will also have someone familiar with the Philippines guiding them along. However, knowing words which correspond to phrases like hello, thank you, and goodbye would go a long way in helping them feel more comfortable working with you.
Be a Reliable Expert
While interest in the property may mean familiarity with real estate, it may not be Philippine real estate. In-depth expertise, especially that is outside of the information clients can find online, is paramount in ensuring foreigner clients are guided accordingly, and that they actually trust you enough to do so.
Apart from helping navigate the local market and purchasing process, be ready to share geographical, social, political, and economic data about the Philippines and the areas that they are interested in. Basics about government and tax regulations that apply to them will be helpful and make you their reliable partner.
Prepare to Bridge Differences
Also, expect to help bridge differences when working with foreign clients by addressing even simple details. These include but are not limited to converting Philippines pesos to other currencies, converting square meters to square feet or units of measurement, or spelling out local real estate terms and acronyms which they may not be familiar with.
Have All the Right Connections to Recommend
Reliable tax, mortgage, and legal experts to recommend to your foreign clients is also essential for maintaining trust. Some aspects of property acquisition are better left addressed by experts, and being able to point foreign clients to the right resources will not only benefit them but also strengthen your reliability addressing their real estate concerns.
Maintain an Easy Pace
While completing a real estate transaction is the end goal, recognize that some foreign clients may require more consultation and additional time to reach a decision. While their need for information and understanding of local real estate is a given circumstance, the process of their acquiring property may take a little longer, especially if they are not always in the Philippines.
Use Visual Aids to Overcome Language Barriers
Detailed photos and videos can help overcome the language barrier between you and your foreign client. In the event that there are no linguistic challenges, producing an extensive amount of visual aids will still prove useful in helping clients feel well-informed about their choices, especially when they are inquiring from another location and cannot see the property in person.
Legitimize Your Foreign Buyer Expertise as Much as You Can
Foreign clients tend to look for international expertise. The previously mentioned suggestions to help gain and maintain foreign clients came from “Expand Your Market,” a course developed by the international section of the National Association of Realtors (NAR) in Chicago, USA, and were expounded and adjusted to suit Philippine real estate. Completing the official course results in elective credit towards NAR’s Certified International Property Specialist (CIPS) designation.
Another way to increase knowledge and credibility when dealing with foreign clients is by joining organizations such as the Philippine chapter of the International Real Estate Federation, which provides access and opportunity for real estate professionals interested in gaining knowledge, sharing information and conducting international business with each other.
Lamudi is awarding the top real estate professionals who have shown excellence in their practice in the past year through The Lamudi Broker Awards Night, happening on February 21, 2019, at Makati Shangri-La Makati. To know more about the event, visit the official page.
Sources: creba.ph, fiabci.org, fiabci.ph, realtor.org
