5 Reasons Why You Should Sell Real Estate to Chinese Exchange Students
1. Sheer numbers
There are 320,000 Chinese exchange students in America in 2016. Over 750,000 applied to higher education institutions. Every good school in the UK, Canada, USA, Europe, Australia, New Zealand are targets. Forget about weather and if you think “Chinese will like your area” and look at the schools. A Chinese mother will choose a better school in the coldest, miserable location over Los Angeles if she thinks it will be better for her children’s future. Students also think the same way. The goal is simple, get into the best school they can. If you have a house listing and school year is starting, it can be an easy sale indeed.
2. Fast decisions
Chinese students and Chinese parents are not going to sacrifice a year of their children’s lives because they lost a bidding war on a perfect student home. They will win. Period. If it’s your listing, you win too. Expect very quick decisions. If you are worried that Chinese buyers will waste your time, try focusing on student housing. (which can be a $10,000,000 house in Newport Beach) You will find the buyers respond quickly to WeChat texts and don’t miss deadlines. Bam! Sold!
3. Great for getting listings
Knowing that you can sell a listing gives you that extra motivation will on a listing presentation. You know you can sell it and the sellers will agree. Also, getting listings in a particular area gives you something to focus on. One goal. Get listings near good schools! Boom
4. Better for WeChat
“I have great homes for students near xyz school. Contact me now. Moving fast” When it comes to good listings near good schools, you can be more salesy on WeChat without sounding like a salesman. 59% of Chinese overseas buyers were motivated by education so even if they don’t want that area, they will likely have a friend who does. And could very likely forward you listing. This is a dream situation for you.
5. Higher commissions = a better life for you and your family
In China, housing prices are on average 20% higher in good school districts. Chinese parents are used to this situation. They will even buy a rat infested hovel the size of a bathroom to get an address in the district.
Beijing’s Xicheng district, Dongcheng district and Zhongguancuan neighborhood are already well known for selling “houses” the size of toilets in order to secure an “address” for their children to attend prestigious schools like Beijing Number 2 Experimental Primary School and Beijing Peixin Elementary School. Chinese mothers are ready to do battle for their kids. Make no mistake. They know the game and are ready to go. You should also have a good game plan and mercenary attitude to show the potential Chinese real estate buyers that you get it and are ready to move very fast and decisively to get what they need. Think special opps more than realtor and you will stand out in Chinese education buyers minds. Also, don’t keep secrets. Be open about your plan. Show it to the students and mothers. Constantly send WeChat updates. Make a war room. Ask them for their ideas. Make it a team effort.
I promised 5 but here’s a bonus. Win auctions!
Like everyone, Chinese don’t want to overpay. However, in this case, the motivations and benefits are different from locals. They have more to win and more to lose. If there is one place Chinese will over pay for, it’s near a good school before school starts. The reason? TIME It’s a year of their kids life.
If they want to go to Boston University and you have a listing, they will very likely choose yours. As they are usually paying cash, they are not restricted by bank valuations and can bid what it’s worth to them. For course, you don’t want to exaggerate this one or revel in it. Always do your best to get the best price but if push comes to shove, let the client know the situation ASAP and let them decide. Never push. Especially for students it’s very important to be friendly, helpful but being a bit conspiratorial and working as a team has often worked for me. Either way, be transparent and move fast.
Hope that motivated you to get started! I know it did for me. Now you know the ‘why’ to learn ‘how to sell to Chinese exchange students’, join our members area and get started!