Chinese Buyers Palos Verdes Homes :: Do the math

Chinese Buyers Palos Verdes Homes

Would you make a FINANCIAL LIFE CHANGING DECISION based on a 5% probability of success?

chinese buyers palos verdesUpdate 11/5/2015 “Foreign home buying drops in California as China Slowdown Seen” [Bloomberg News]

This will be a controversial post and it will be based on facts as reported by the National and California Association of Realtors.  Allow me to share with you that as important as it is for me, as your advocate when you choose me to list, market and sell your home, to expose your home to the Chinese and Pacific Rim market, understand and this is IMPORTANT, Chinese buyers and the rest of the International Buying Pool of buyers account for a small percentage of sales.  About 65% of of international buyers are Canadian, Chinese, Mexican, Indian, and British.  And in fact only 36% of that 65% are Chinese.

This is important to understand for two reasons.

  1. If you choose a real estate agent based on their representation that they are the hot-shot “Chinese connection”, you are choosing a realtor that is causing you to miss out on a greater percentage of buyers coming from other countries!  I guess you should hire a Canadian broker, a Chinese broker, a Mexican broker an Indian broker, a Russian broker, an Italian broker, a French broker … ridiculous right?
  2. And, worse yet, did you know that the California Association of Realtors reports that only about 14% of all the sales are to International Buyers
  3. Nationally, it’s about 8% with 4% being resident foreign buyers and another 4% being non-resident

So let’s think about this, if only 14% of the sales are to international buyers and 36% of that group are Chinese, then basing your decision of which real estate broker to hire on that agent’s representation that they are “the Chinese Connection”, means you’re deciding on a factor that is only a 5.04% probability of your home selling!  Does that seem wise to you?

Chinese Buyers Palos Verdes Homes

chinese buyers palos verdes homesThe business media continues to harp on this subject and yet not once have I seen anyone do the real math as I’ve just done for you here.  Oh, you will see the stats I gave you, veiled in various articles, but you have to critically think before you invest a percentage of your home’s value in the services of a professional real estate broker.  Are you being told the truth or are you being played and sucked into a false premise that Chinese buyers are your key to the promised land of a higher priced sale of your home.

I realize that what I’m writing about today may be perceived as controversial, but it’s the facts folks.

A smart business person will study the market, understand the facts and invest their time and resources into tools that work for their clients.  And that’s what I do, there’s a whole other “universe” out there that I market my sellers’ homes to.  And when you hire me to market your home and get it sold for its maximum market price, I utilize a broad spectrum of crawlers on the internet to do the job and put it in the living room of buyers from across the nation and globe.  I don’t constrict the market for your home to one category of buyer (Chinese buyers in this case).  Rather I cast a wide net to attract buyers from anywhere.

  • Part of that “wide net” includes marketing to Chinese Buyers and I’ve partnered with a firm in China in which my listings reach nearly 400 million Chinese every day via their website
  • They have a call center which screens and qualifies leads before sending them to me
  • And they have a closing rate as a result that 75% of the buyers they refer to partnered agents here in the USA, close on a deal
  • And to help me with Chinese buyers not proficient in English, I partner with one of our top brokers here at Call Realty Company who is from Taiwan and continues to maintain her strong network of Chinese real estate brokerage houses.

Here’s an example of an ad I’m running (1st page placement for their website) on this Palos Verdes Zen Retreat Home

chinese buyers palos verdes homes zen retreat

Other interesting observations of Chinese Buyers Palos Verdes Homes

  • One of the interesting trends we’ve observed with Chinese buyers in the preference for 2 story, 5 bedroom homes. (see home search map below)
  • The number of multi millionaires in China has exceeded one million (according to Hurun Research Institute, the leading research firm around wealth/luxury in China).
  • Two hundred thousand Chinese students arrive in the USA every year and need a home.  Chines families believe in buying a house or condo, rather than renting a place for their children.
  • The Wall Street Journal reports that a new wave of buyers from China is snapping up luxury properties across the U.S., injecting billions of dollars into the country’s residential real estate market

Bottom line folks, hiring a real estate broker to get your home sold, is a HUGE deal.  There won’t be many more important decisions made in your life.  I consider this every time I go on an appointment to be interviewed by “you”.  Everything I do to market your home is based on creating more competition amongst buyers to own your home.  And that increased competition doesn’t come from excluding certain buyers and focusing in on only a small percentage, rather it is achieved by being inclusive and including buyers from all around the city, the state, the country and globe.  Base your decision to hire a broker on tactics and strategies they use to target all segments of the buyer pool.  You will sell your house faster and make more money because of that decision!

Palos Verdes homes 2 story 5 bedrooms

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$23,888,000 - 5Br/9Ba -  for Sale in Palos Verdes Estates
$23,888,000
MLS# PV18085906

2729 Via Oleadas
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$8,000,000 - 5Br/6Ba -  for Sale in Palos Verdes Estates
$8,000,000
Open House
MLS# SB18104456

145 Rocky Point Road
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$7,950,000 - 5Br/6Ba -  for Sale in Rancho Palos Verdes
$7,950,000
MLS# PV17257026

67 Paseo Del La Luz
Rancho Palos Verdes, CA 90275

Property Type: Single Family Residence
$7,600,000 - 5Br/6Ba -  for Sale in Palos Verdes Estates
$7,600,000
MLS# SB18104873

856 Rincon Lane
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$6,995,000 - 5Br/6Ba -  for Sale in Rolling Hills
$6,995,000
MLS# PV18011595

8 Upper Blackwater Cyn Road
Rolling Hills, CA 90274

Property Type: Single Family Residence
$5,980,000 - 5Br/7Ba -  for Sale in Rancho Palos Verdes
$5,980,000
MLS# 18340648

63 Paseo Del La Luz
Rancho Palos Verdes, CA 90275

Property Type: Single Family Residence
$5,900,000 - 5Br/8Ba -  for Sale in Rolling Hills
$5,900,000
MLS# PV18015772

83 Crest Road E
Rolling Hills, CA 90274

Property Type: Single Family Residence
$5,750,000 - 5Br/5Ba -  for Sale in Rolling Hills
$5,750,000
MLS# PV18045669

7 Crest Road West
Rolling Hills, CA 90274

Property Type: Single Family Residence
$5,500,000 - 5Br/8Ba -  for Sale in Rancho Palos Verdes
$5,500,000
New
MLS# SB18113408

2822 Colt Road
Rancho Palos Verdes, CA 90275

Property Type: Single Family Residence
$5,375,000 - 5Br/6Ba -  for Sale in Rolling Hills
$5,375,000
MLS# PV18044254

6 Chesterfield Road
Rolling Hills, CA 90274

Property Type: Single Family Residence
$4,499,000 - 5Br/6Ba -  for Sale in Palos Verdes Estates
$4,499,000
MLS# SB18017025

980 Via Rincon
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$4,380,000 - 5Br/7Ba -  for Sale in Rolling Hills
$4,380,000
MLS# WS18032603

2 Bowie Road
Rolling Hills, CA 90274

Property Type: Single Family Residence
$4,195,000 - 5Br/7Ba -  for Sale in Rancho Palos Verdes
$4,195,000
MLS# PV17238572

12 Via Del Cielo
Rancho Palos Verdes, CA 90275

Property Type: Single Family Residence
$3,887,000 - 5Br/6Ba -  for Sale in Rolling Hills
$3,887,000
MLS# PV18097200

2 Outrider Road
Rolling Hills, CA 90274

Property Type: Single Family Residence
$3,695,000 - 5Br/4Ba -  for Sale in Palos Verdes Estates
$3,695,000
MLS# SB18109839

2901 Via Anacapa
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$3,499,000 - 5Br/6Ba -  for Sale in Palos Verdes Estates
$3,499,000
Open House
New
MLS# PV18119297

1429 Via Zumaya
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$3,490,000 - 5Br/5Ba -  for Sale in Palos Verdes Estates
$3,490,000
MLS# WS18017607

412 Via Almar
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$3,299,000 - 5Br/6Ba -  for Sale in Palos Verdes Estates
$3,299,000
MLS# PW18100300

2312 Via Pinale
Palos Verdes Estates, CA 90274

Property Type: Single Family Residence
$3,200,000 - 5Br/6Ba -  for Sale in Rancho Palos Verdes
$3,200,000
MLS# PV18088306

6106 Via Subida
Rancho Palos Verdes, CA 90275

Property Type: Single Family Residence
$3,188,000 - 5Br/4Ba -  for Sale in Rancho Palos Verdes
$3,188,000
MLS# PV18051766

3 Park Place
Rancho Palos Verdes, CA 90275

Property Type: Single Family Residence

chinese buyers palos verdes homes

 

 

 

 

 

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