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When you’re buying, selling, or renting a property in Canada, here are a few things to keep in mind when dealing with people whose culture or background isn’t the same as yours. This article will look at:
- Different negotiation tactics
- Ways of making decisions
- How real estate processes may differ
- Working with a REALTOR® with cross-cultural competency
Canada is one of the most multicultural countries in the world: almost 25% of the population was born outside our borders, according to Statistics Canada. That diversity influences our lives every day, from interactions with colleagues, to buying and selling real estate with people of different backgrounds.
When it comes to real estate, you might face anything from different negotiation tactics to misunderstandings about how the offer process works in Canada. A little knowledge and understanding can help you interact comfortably—without offending anyone or being offended yourself—and ensure you don’t miss out on opportunities.
“Local is global, especially in Canada,” says Sharon von Schoenberg, Associate Director of Global and Commercial Programs at the Canadian Real Estate Association (CREA). “It’s vital to have an open mindset about how people can be different and how they can work together.”
You may face different negotiation tactics
If you get a low-ball offer on your home, try not to see it as an insult. In many countries, a low offer is simply an accepted starting point when you’re negotiating.
“At the end of the day, everybody likes to negotiate,” says Dimitrios Andrianakos, a REALTOR® and broker at Royal LePage du Quartier in Montreal, Quebec. “But there are cultures where it’s more pronounced and bargaining is customary. So if you get a low offer, don’t be offended or reject it outright. It could be the start of a negotiation that gets both parties what they want.”
After one of Andrianakos’ clients received a low-ball offer, he counselled them to counter, and they went back and forth multiple times.
“Finally we came back firm and final and the buyers said yes,” he says. “Sometimes that kind of negotiation is just part of the process. It gives the buyers the sense they did everything they could to get the best deal.”
People have different ways of making decisions
In some cultures, big decisions aren’t always made by individuals: the whole family gets involved. When someone is buying a property, they may defer to the wishes of their elders: parents, grandparents, older siblings. So even if they’re keen on a specific property—and are paying for it themselves—they may back off if their family disagrees.
“In hierarchical cultures, people show great deference to their superiors,” says Terri Morrison, author of Kiss, Bow or Shake Hands and an expert on doing business across cultures. “In China, for example, Confucian precepts mandate that there is always someone senior in a relationship: father to son, older sister to younger sister, etc. Sometimes, these cultures are also consensus-based, and individuals derive their identities from their relationships to others. So if you wanted to buy a Jeep, but your family wanted you to buy a Jaguar, you’d buy the Jag. If you went against your family and lost those relationships, you would essentially lose your identity.”
Real estate processes can differ dramatically from country to country
When you have people from other countries buying properties in Canada, there’s bound to be some confusion around everything, from the role of a REALTOR® to the buying process. For example, licensing requirements can vary: some countries are super-strict about professional licensing, while others don’t require a license to buy and sell real estate at all.
“In [some countries], buyers may need to go to multiple agents to see what is available for sale in their area,” says von Schoenberg. “Agents here can get confused when their clients contact multiple REALTORS® to find out what’s available. But really, there’s nothing underhanded going on, the clients may not realize REALTORS® in Canada have access to all of the listings on the Multiple Listing Service® (MLS®) System in their area.”
Attitudes towards contracts can be surprisingly different as well. It’s not unheard of to have non-Canadian buyers change their mind after an offer has been accepted. Working with a REALTOR® who can educate clients on how things are done here can help smooth out the process.
“Contracts are considered a Western convention,” says Morrison. “In countries that don’t abide by common law or civil law, people may have no trouble saying, ‘Yes, we signed that, but now we would like to renegotiate a bit.’ They’re not trying to be difficult, they’re simply coming from a different legal system, or culture, where contracts aren’t as binding as they are in North America.”
Getting pre-approved for a mortgage is also not a universal part of the process. Andrianakos says some buyers think it means their ability to afford a property is in question, and they’re insulted.
“Of course, that’s not the case at all,” he says. “It’s simply a level of due diligence many REALTORS® in Canada like to see, since pre-approval makes the process faster, and can give buyers an edge when multiple offers are involved.”
Working with a REALTOR® with cross-cultural competency can really help
CREA Global helps build that cultural competency and sensitivity. They provide REALTORS® with resources, referrals to professionals in other countries, and host events and courses that help build global real estate knowledge, including the Certified International Property Specialist designation courses that are recognized worldwide.
Whether you’re looking for a REALTOR® with a good understanding of Canada’s multicultural market or you’re thinking about buying a property in another country, REALTORS® in Canada have access to extensive knowledge not only around the homebuying process, but also in how to negotiate and navigate cultural differences.
Remember, there’s no negotiation technique or approach to real estate that’s inherently good or bad and, more than likely, nobody is out to insult or offend anyone. Difference is something to be celebrated, and being open to it can open everyone’s eyes to what they might encounter—and maximize the chances of mutual success.
