Property ManagementTreat Hispanic Home Buyers/Sellers with Respect
The real estate industry is acknowledging the latest trend in demographics - that the Hispanic population of the nation is growing faster than any other ethnic group. With lower interest rates, more affordable housing being built, and other economic factors that favor the first time homebuyer and move-up buyer, the Hispanic customer is becoming increasingly important to the industry.
According to the U.S. Census Bureau, Hispanics make up nearly half (46%) of all foreign-born residents and 12 percent of all legal immigrants. Mexico is America"s largest source of legal immigrants, constituting one fourth (27%) of foreign-born residency.
Hispanics represented about 11 percent of the U.S. population in 1997 at over 29.7 million,
Hispanic households are more likely than other populations to have married couples heading a household with children. The non-Hispanic population shows children in only 1/3 of households, while they are present in over half of Hispanic households.
Persons of Mexican origin were the largest Hispanic group in the United States in 1996, comprising 63% of the total Hispanic population.
According to the National Association of REALTORS®, Latinos, Spaniards, or Hispanics made up 8% of home buyers in 1997. In past markets, approximately half of Hispanics rent their homes and the other half purchases their homes, but by the time the 1999 homebuying/selling survey comes out, evidence may show that more Hispanics are becoming homeowners. The reason? More than half of Hispanics are born in the United, and the U.S. Census shows a distinct economic advantage for native-born Hispanics over foreign-born in terms of completion of education and economic security. Over one third of Hispanics are under the age of 18, and over half of all Hispanics 25 years and over have a high school diploma and one fourth work in technical, sales and administrative support positions.
Authors Terri Morrison, Wayne A. Conaway, and George A. Borden, Ph.D. suggest in their book, Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries that the Mexican customer, in particular, may have reason to be suspicious of American business that dates back as far as the Spanish conquerors of five centuries ago and their murder, rape, and theft of ancient civilizations. Independence was not obtained until 1811 and only two generations later, Mexico went to war with the Texicans and the United States, losing priceless territories throughout California, the Southwest and Texas to its larger neighbor.
Skepticism toward North Americans is supported by evidence that despite the fact that 39% of Hispanics are foreign born and most have lived in the U.S. long enough to qualify for citizenship, less than 18% are naturalized citizens, and this figure is in spite of the amnesty of a few years ago for illegal immigrants from Mexico.
Hispanics of Mexican heritage tend to form strong bonds with the family and support their community. 90% of Mexicans are Roman Catholic, which also serves to bond the community even tighter and serves as a foundation for many cultural attitudes and beliefs.
The first thing Realtors must do when working with an Hispanic customer is to establish trust. The pace of business moves more slowly and thoughtfully with those of Mexican heritage. Mexican-Americans place a high value on personal relations.
The dignity of the individual is highly respected, so there will be no gain in telling a Mexican client that you are busy or important in any way, and it would not be wise to turn a Mexican customer over to an assistant as this would be an indicator that you do not believe their business is important enough for you to handle yourself. Use assistants behind the scenes, but make all calls and contacts yourself.
Be patient and understanding that time and decision making take place more slowly in the Mexican-American culture, but the reward could be a higher number of referrals than usual, as the Hispanics only do business with people they trust and community word-of-mouth is invaluable.
Decision making such as contract review or home selection will be subjective and based on perceptions rather than laws or truths. What is in the best interest of the family will dominate any decision, including which location is better, or whether one house is likely to appreciate more than another.
Mexicans are reluctant to say no, and may substitute "maybe" or "I"ll think about it" and may even say "yes" out of politeness. Don"t think you have a deal until the papers are actually signed. Take hesitation as a sign of withdrawal, and move on. If you are convinced that a certain property or negotiation meets the needs of the family, stress the benefits in terms of how the transaction will benefit the family. Emotions will sometimes overcome bottom line types of proposals.
Be careful of criticisms especially of other persons. This can have an extremely negative impact on relations, and cause you to appear disloyal or untrustworthy.
Acceptance and intimacy can be reached very quickly in the Mexican-American culture. Conversations can take place at very close personal distances. Mexican men make a lot of physical contact on the shoulder or arm. Shake hands with everyone, and be prepared for an affectionate greeting punctuated with a hug after three or more meetings.
These courtesies toward Hispanic customers will be appreciated, but the greatest courtesy of all is treating any customer, whether foreign-born or native-born, as if they are the most important customer a Realtor can have, and making sure that they every access to the best services in loan processing and other transaction services possible.