Cross-culture miscommunication can derail house sale negotiations in Vancouver, where new immigrants and offshore buyers make up a substantial sector of the residential market, according to Ross McCredie, president and CEO of Sotheby's International Realty.
McCredie explains that many new immigrants see protracted and aggressive negotiations as a natural part of a real estate purchase, and they often begin with a low-ball offer that Canada-born vendors may find dismissive. He cites cases where the vendor withdrew from negotiations after receiving an offer they believed was "insulting and financially impossible to consider." The potential buyer, in turn, was surprised when talks broke off because they considered negotiations were moving along smoothly. Canada-born vendors are also often surprised that foreign buyers expect all the home's furniture and other personal items to be included in the sale price.
McCredie notes that seven out of 10 foreign-born residents buy in just three Canadian cities: Vancouver, Toronto and Montreal, so it is important for local vendors in these cities to educate themselves on dealing with new immigrants. "Home sellers need to understand this means being prepared to engage in cross-cultural negotiations with buyers, " he said.
See McCredie's advice on selling homes to newcomers in the December 2011 issue of Western Investor.
