Date here

Instructor name here

Course Objectives

1. Present a snapshot of the changing face of the real estate industry

2. Increase adaptability to market trends that can affect profitability

3. Become more effective service providers and community leaders

Learning Outcomes

1. Analyze U.S. demographic information2. Examine cultural stereotypes, assumptions

and biases3. Explain how inclusion practices will increase

your business4. Identify effective communication methods

that lead to improved service of a multicultural clientele

9

Learning Outcomes (continued)

5. Summarize the One America Principles and Fair Housing Laws

6. Describe a variety of business norms and etiquette considerations for working with multicultural clients

7. Develop a plan to incorporate inclusive practices into your business

9

• The Story of Your Name• About Me

OPENING EXERCISE

10

Section 1: Learning Objectives

1. Discuss the importance of diversity2. Explain how cultural sensitivity can increase

business3. Describe how certain values are viewed

differently by different cultures4. Examine stereotypes, assumptions and

biases

13

Diversity Definitions

– Culture– Ethnicity– Race– Minority – Generations– LGBT– Religion/Faith– Handicapped/Disabled

15

Black/African-American Hispanic-/Latino-American Asian-American White/Caucasian-American

RACE AND ETHNICITY

15-16

Is the U.S. a “melting pot” or a “stew”?

Why?

GROUP DISCUSSION

16

Generation Years Other NamesKey Formative

Events and Experiences

Civics (combination of two generations)

1901-24 (GI Gen)1925-45 (Silent Gen) Traditionalists, Greatest Generation

The World Wars, the Great Depression, GI Bill, the birth of television, the rise of the

suburbs

Baby Boomers 1946-64 Me Generation, Hippies, Love Generation

JFK assassination, Vietnam War, Cold War, Civil Rights

movement, rise of the counterculture

Generation X 1965-79 Xers, Baby Busters, Slackers

Hyperinflation and economic turbulence, Fall of Berlin Wall and Soviet Union, troubles in

Middle East, decline of “nuclear family”

Millennials 1980-95 Generation Y, Generation Next, Echo Boomers

Dawn of the Internet, 9/11, Hurricane Katrina, emergence

of mobile technology and social media, 2007-8 financial

meltdown

Generation Z (no agreed-upon name) 1996-present iGen, Global Generation,

Generation Wii

Election and re-election of Barack Obama, Arab Spring and turmoil in Middle East

(too soon to tell?)

“Home Buyer and Seller Generational Trends,” NAR

Research 17

LGBT

• Lesbian, Gay, Bisexual, Transgender• Diverse in terms of race, ethnicity,

age, education, political affiliation and income

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Additional Categories

• Religion/Faith• Handicapped/Disabled

As with LGBT, these categories show “diversity within diversity,” as they vary in terms of race,

ethnicity, age, education, political affiliation and income.

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Year U.S. White Black Asian Hispanic (all races) Other

2010(actual)

308,745,538 223,553,265 38,929,319 14,674,252 50,477,594 12,481,334

2020(projected) 335,805,000 260,629,000 45,365,000 17,988,000 59,756,000 11,822,000

% Change 8.90% 16.58% 16.53% 22.58% 18.38% -5.28%

Total U.S. Population by Race and Ethnicity

19

Source: 2010 U.S. Census

Impact of International Buyers

20-21

1. Using your laptop or tablet visit: www.realtor.org/global 2. Locate the International Business Report for your state.

International Real Estate Research Reports State by State International Business Reports

3. Once you find it, start filling out the table on Page 22.

EXERCISE: GLOBAL IMPACT

22

Changes in Buying Power

The $1.2 trillion Hispanic-American market in 2013 was larger than the entire economies (2012 GDP measured in USD) of all but 15 countries in the world.

In 2013, the combined buying power of African-, Asian- and Native-Americans was about $1.9 trillion.

By 2018, approximately 1 out of 5 Americans will be Hispanic and the total buying power of that group will be $1.6 trillion.

23

Source: The Selig Center, University of Georgia

Stereotypes, Assumptions and Biases

Generalizations are useful, as long as they don’t become rules

Use words like “many” or “some” and avoid words like “all” or “none” when talking about individuals/groups

Summarizing allows us to be open to revising our opinion

24

Write one stereotype you have heard for each group on a sticky note and place the sticky notes on the appropriate flip-chart pages.

The stereotype can be positive or negative.

EXERCISE: STEREOTYPES

25

The Role of Culture

• Culture is learned behavior, beliefs, attitudes, values and ideals shared by a group of people.

• Culture impacts how we view the world.

• Culture is the most basic cause of behavior and desire.

• Culture is hard to change because it is formed over a lifetime.

26

Categories

• Self expression• Outlook on life• Racial attitudes• Honesty and

reliability• Character• Time orientation

• Social classes• Religion• Orientation to

nature• Group objectives• Work ethic• Talents and skills

26-27

Honest vs. Loyalty

Rank them in order of importance.

Why did you put one over the other?

GROUP DISCUSSION

28-30

Section 2: Learning Objectives

1. Discuss the One America Principles and Fair Housing laws

2. Describe the Philosophy of Inclusion

3. Review the Equal Service Model

4. Examine Fair Housing cases

33

Read the case study on page 35.Do you believe this is an example of aFair Housing violation? Why or why not?

EXERCISE: FAIR HOUSING CASE STUDY

35

The One America Principle

One America Principle

Celebrate

Differences

Embrace Shared Values

Opportunity

Responsibility

36-37

Beginning on Page 39, answer “True” if you believe the action is a Discriminatory Act or “False” if you do not believe the action is discriminatory.

EXERCISE: DISCRIMINATORY ACT OR NOT?

39

▪ Defined as the unlawful practice of guiding potential homebuyers toward or away from certain kinds of neighborhoods and/or housing based on their belonging to one of the protected classes.

▪ Can be positive or negative, and in some cases can be prompted by the buyers themselves. In any event, this is illegal under the Fair Housing Act.

Steering

40

Typical violations:

–Selective use of geographic placement, media outlets and human models in advertising.–Actual discriminatory language in ads.

* Note: There are a few exceptions to this.Check local, state and federal laws to find out

if your listing may qualify.

Advertising

41

Article 10 of the NAR Code of Ethics:Reaffirms NAR’s commitment to Fair Housing

Outlines REALTORS®’ unequivocal commitment to equal opportunity in housing

Includes sexual orientation and gender identification in the list of ways REALTORS® will not discriminate

NAR Code of Ethics

42

YES

YES

YES

1. Do I have systematic

procedures?

Equal Professional Service Model

2. Do I have objective

information?

3. Has my customer

set the limits?

4. Have I offered a variety of choices?

NO

44-46

EXERCISE: PROFESSIONAL DEVELOPMENT

Read the exercise on page 47.

Devise at least one strategy for educating and cultivating inclusion practices among your colleagues.

47

Business Building Block:Personal Practice

In an effort to provide equal service, we must begin to think of the type of questions we ask potential clients. In each of the categories beginning on Page 50, create questions that can be used with any customer.

50

Section 3: Learning Objectives1. Discuss the significance of understanding cultural variations

2. Explain the influence of culture on the home buying process

3. Describe the role of verbal and non-verbal communication

4. Demonstrate appropriate cultural business etiquette

53

High Context vs. Low ContextPrevalent in: Asia, Russia, Middle East, Latin America, Southern Europe

Prevalent in: United States, Canada, Northern Europe

Nonverbal communication is important.

Precise verbal agreements are important.

A contract is the basis of a relationship.

A contract is binding and exists apart from a personal

relationship.

Time is fluid and schedules tend to be flexible.

Time is treated as a commodity and schedules are observed.

Formality, face-saving communication and relationships

are valued. A slower pace is needed to build relationships.

There is a preference for informality and direct communication. Results

are valued and punctuality is observed. Accustomed to doing

business fast-paced. 55

Non-verbal Communication

80-90% of a culture is reflected in non-verbal communication.Are there any non-verbal messages that can be considered universal? Are there any positive non-verbal signals in your culture that would be considered an insult in others?

56-57

Comparing Cultures

Self and Space Time and Time Consciousness Relationships Communication and Language

58-60

EXERCISE: COMPARING CULTURES

Step 1: In each of the four areas, review both columns and underline the characteristics that best fit your culture.

Step 2: In each of the four areas, review both columns and underline the characteristic that would likely be most challenging.

Step 3: How can you adapt?

58-60

Different Perspectives

• Numbers

• Location and Orientation

• Offers and Contracts

61

Build Cross-Cultural Communication Skills

• Pay attention to the person as well as the message• Don’t assume you know what the other person

wants• Emphasize and create rapport• Share meaning• Request info in a way that doesn’t inhibit the

person’s response or create bias

62-63

Top 10 Basics for Multicultural Business Norms and Etiquette

1. Talk less, listen more

2. Be sure to use correct names and titles

3. Show deference to the elderly

4. Learn at least a few phrases in a client’s native language

5. Respect the concept of “face”

6. Don’t try to create an instant friendship

7. Use common sense

8. Do not make jokes

9. Show appreciation for the other’s customs, music and art

10. Acknowledge mistakes and apologize when appropriate63

Business Building Block:Exposure To Other Cultures

To enhance our understanding of diversity, this exercise requires you to:

1.Identify two ways you will learn more about and/or experience other cultures.2.Describe the action steps you will take. 3.Establish a plan for completing the action steps.

65

Section 4: Learning Objectives

1. Summarize the importance of understanding the local market

2. Find sources of local demographic information and analyze the data

3. Describe the dynamics of multicultural marketing

69

Local Demographic Trends

Identify trends to expand your business

Develop needed services for different cultural dynamics

Remain mindful of Fair Housing Law

70

Demographic Do’s and Don’ts Don’t use your findings as a basis for treating certain people

differently or providing less service

Do use the information to understand, reach out and expand your efforts

Don’t provide demographic information directly to clients (instead refer to a reliable source)

Do stay current on state and local laws on the collection and use of demographic data

71

1. Using the circle on Page 72, estimate the population percentages of your market.

2. Visit one of the sources in your course book to find the actual percentages.

3. How did you do on your estimate?

EXERCISE: LOCAL DATA

72

A new international business is coming to town.

After reviewing the case study on Page 73, your job is to identify how you should best prepare for the increase and change in real estate needs and the diverse client base it may bring.

EXERCISE: A NEW MARKET

73

Multicultural Marketing

– Learn as much as possible about that culture– Do not assume all minorities are alike– Be careful when translating– Use native-language media appropriately– Consider recruiting sales associates and staff who

speak the language

74-75

Multicultural Marketing (continued)

– Be sensitive of cultural slurs, clichés and taboos– Be prepared to educate– Consider hiring a marketer who specializes in a

particular culture– Explore ways to get involved in the community

74-75

Community Outreach

• Immediate family• Friends and neighbors• Places of worship• Medical professionals• Schools and teachers• Government offices

• Local media• Attorneys• Bankers• Retailers• Other service providers• Multicultural real estate

professionals

76-78

Advertising and Fair Housing

• What do potential customers think your ads say?

• Is it possible the ad excludes any potential prospect or group?

• With regard to property ads, does the ad focus on the attributes of the property OR on the person who might own/rent the property?

79

Read the exercise explanation on page 81. Create a marketing plan that promotes homeownership to this growing minority population.

EXERCISE: MARKETING HOME OWNERSHIP

81

Business Building Block:Local Data and Advertising

Three major areas were covered in this section. In this exercise, you will be asked to:

1. Identify what other local market data you will use to grow your business

2. Describe how and when you will expand your community outreach

3. Review and modify (if necessary) your current advertising

82

Section 5: Learning Objectives

1. List business goals that reflect the One America Principles2. Summarize the variables within an inclusive business plan3. Develop strategies that reflect a commitment to

inclusiveness4. Produce an action plan

85

Translate Into Goals

Services, Customers and Clients

Reaching the Community

Professional Development

The Company

86

Services, Customers and Clients

Promoting homeownership

Promote listings

Marketing listings and obtaining buyers

Obtaining listings

Facilitating closing

86

Reaching the Community

Getting to know the community

Getting the community to know me

87

Professional Development

Improve language and communication

Increase cross-cultural awareness

Develop cross-cultural relationships with potential customers and other multicultural businesses

87

The Company

Recruiting and hiring

Training

Providing administrative support

Developing a company image

87-88

Read the exercise explanation on page 89. Devise strategies for increasing the visibility of you and your company within a particular community.

EXERCISE: REACHING A NEW COMMUNITY

89

Your Business Plan People Resources Services Plan Components

90

People You Your company Potential buyers, sellers, renters,

landlords Your community

90

Resources Time Money Real estate skills Cultural skills and awareness

90

Services Listing properties Communications Marketing Servicing skills Community outreach

90

Plan Components Mission and goals Strategies to attain the goals Action plans to implement the strategies

91

Sample Strategies for Inclusive Business Plans

• Marketing Homeownership• Working With Buyers• Marketing Listings• Improving Post-Contract Assistance• Prospecting and Listing Sellers• Reaching Your Community• Developing Professional Skills• Fostering Inclusion Throughout the Company

92-94

Read the exercise explanation on page 95. Come up with strategies for fostering inclusion within your company.

EXERCISE: DEVELOPING INCLUSIVE STRATEGIES

95

There is no value without goals, or without action plans to reach those goals. What actions will you take, and when will you take them, to achieve your goals?

LAUNCHING YOUR PLAN

96

Business Building Block:Launching Your Plan

In this final Business Building Block exercise, you will be asked to:

1.Review the Business Building Block Exercises from each section2.Establish measurable diversity goals for yourself and your business3.Develop actions to reach your goals

96-97

Thank You!