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With more foreign buyers pouring into the Philippine real estate, brokers will soon find themselves dealing with a foreigner. Here’s a list of the skills they need.
It is common knowledge among real estate brokers and property developers that Metro Manila’s luxury condos are becoming attractive to foreign buyers. In fact, up to 20 percent of their high-end properties are purchased by international buyers, and other developers are reporting even higher figures.
Many of these foreigners see Metro Manila’s luxury condos as viable investment vehicles that will offer them handsome returns in the long run. With the ASEAN integration happening in 2015, licensed real estate brokers will find themselves servicing more and more foreign nationals looking into investing in properties in the Philippines.
Therefore, handling and negotiating with a foreign buyer are important skills that every licensed real estate broker should learn. Lamudi lists down ways a broker can effectively handle a foreign buyer of real estate.
1. Be Sensitive to Other Cultures
Start by researching cultural practices of the countries where your clients are from. For example, although a Japanese client is unlikely to get offended if you casually hand over a business card, he would be impressed if you present your business card with both hands and a slight bow of the head.
Pay attention to things like if and when to make eye contact, dress standards, when to ask about income, and even personal space. It will also help you a great deal if you take time to research what buyers are specifically looking for. Buyers from China, Hong Kong, and Singapore, for example, value education, so make sure to point out the good schools near the property you are pushing.
2. Be Ready to Discuss Financing
Financing is perhaps one of the biggest concerns of every real estate buyer, and one of the trickiest issues to resolve for a broker. We spoke to several Filipino real estate brokers and agents and this is often the first question that foreign buyers ask them.
Many licensed brokers recommend having a list of “partner” loan officers or banks to refer to their clients. Arranging one-on-one meetings with these loan officers will make clients feel that their needs and concerns are being addressed.
However, explain as early as possible that most Philippine banks are not as lenient to foreign buyers as they are to Filipinos when it comes to requirements; for example, a larger down-payment is usually required, which sometimes can go as high as 50 percent of the property’s purchase price.
3. Have a Full Understanding of Ownership Laws
A real estate broker must also be able to explain clearly Philippine ownership laws. For example our constitution explicitly reserves the right to own land to those deemed citizens of the country (with a few exceptions).
Condo units, however, can be owned freehold so long as foreign ownership in a single project will not exceed 40 percent, as stipulated by the Condominium Act. In addition, foreigners can own a house, but can only lease the land on which the structure is built (for 25 years, which can be extended for another 25 years).
4. Be an Expert at What You Do
How titles are transferred, what is a tax declaration, how properties are appraised—these are just some of the questions a foreign buyer will surely ask. Hence, aside from impeccable selling skills, a licensed broker must be a real estate expert who can answer any of these questions.
The broker must also be able to educate the client not only about the property itself but also about the neighborhood. This may seem like a lot of work, but licensed professionals are home-buyers’ go-to people when they are ready to purchase a home; hence, they deserve somebody who can help them before they fork over their life savings.
5. Learn to Enjoy the Experience
Working and negotiating with a foreign buyer may be challenging, but it can also be rewarding both for the broker and the buyer. By becoming the well-rounded professional who can easily deal with both local and foreign buyers, licensed brokers can unofficially be the real estate sector’s most effective endorsers.
All it takes is for them to really enjoy the experience. Indeed, a broker who can educate a foreign buyer on the Philippine real estate and close a sale in the process, in our opinion, thoroughly deserves his or her sales commission.
Sources: Rappler, ABS CBN News
Read our previous journal for more real estate tips and features.
