Real Estate Agents Across Ethnic Subcultures

What are the opportunities and challenges facing housing lenders and real estate agents across ethnic subcultures?

Lenders and real-estate agents have many different opportunities and challenges among the African American and Hispanics in regards to the housing market. There are a few things to keep in mind, though, when it comes to housing, marketing and cultures. The lenders and real estate agents have many rules and regulations to follow, so if any rules or regulations are not followed, they could be facing a lot of trouble and fines. That said, lenders and real estate agents need to have the knowledge of each ethnicity, including, but not limited to: values, morals, ethics, ideas, standards, family importance, and anything that is extremely important to the subcultures. The American culture is similar, but has many differences to that of the subcultures, and any good lender or real estate agent will know the differences and adhere to them while working with anyone of a different culture.

African Americans make up one of the major ethnic subcultures, representing 13 percent of the American population, where on average, are younger than the white population, have less education, and lower household incomes. "One-third of black households earn $50,000 or more and nearly 10 percent earn $100,000 or more" (Hawkins, 2010). African Americans are segmented as market leaders or market followers. Within those are generational differences which pose challenges when it comes to marketing because they don't follow the stereotypical images that they have been subjected to. Many are "driving growth in income and purchase power through education and professional achievement. African Americans represent $799 billion in buying power, which is expected to grow by some 34 percent through 2011" (Hawkins, 2010). This fact gives lenders and real estate agents opportunity to implement specific marketing tactics. Internet usage among African Americans is slowly on the rise, allowing marketers to leverage online-based advertising.

Hispanics represent another major ethnic subculture and have diverse nationalities including people of Cuban, Mexican, Puerto Rican, South/Central America or any other Spanish ethnicity. "The Hispanic market is now the largest and fastest-growing ethnic subculture in the United States" (Hawkins, 2010). Hispanics are sensitive to nationality-based differences which can pose as a marketing challenge. Differences in language, acculturation and generational influences need to be considered when implementing a marketing campaign. As with African Americans, there are generational differences within the Hispanic subcultures that also need to be considered. Those born in the United States see themselves differently than those that migrated and speak English as a second language. Religion, income, education, language, and family beliefs are especially important when marketing to Hispanics and can be a challenge in determining how each are affected accordingly without offending anyone ethnic group. Different types of marketing strategies can be implemented for each type of subculture based on proper research and knowledge gained from the research.

Lenders and real estate agents have the potential to make any of the cultures and subcultures happy and feel that they are "living the American dream." Knowing what their opportunities and challenges are among all ethnic groups, not just African Americans and Spanish Americans, lenders and real estate agents can really develop their clientele if they research and really know their customers. I see the only challenge in this is knowing all the rules and regulations that the government has put in place because of the subprime lending problem from before.

Based on the information in Tables A, B, and C, develop an overall marketing strategy for targeting each of the following groups: African Americans, English Hispanics, and Spanish Hispanics.

Within surveys conducted by Fannie Mae, African Americans have different beliefs in regards to home-buying than do English Hispanics and Spanish Hispanics. Based on survey results, African Americans had the greatest responses that although purchasing a home is a safe investment with potential, the home-buying process is too complex. Almost 60 percent believe a lender is required by law to give the best rates on loans and the buyer. This shows that there is a lack of overall understanding of the home-buying requirements. A marketing strategy to overcome this could be to provide free seminars followed by an open house of properties available for sale in locations that may be of particular interest to the particular segment in attendance. Most people are gracious for professionals offering assistance and providing further knowledge. This offers two things for both the customer and the agent. The customer will gain the knowledge needed to purchase a home successfully and within their budget, and builds trust and comfort with the agent from start to finish. The agent is offering these services in hopes to close the deal and sell a house (with the hopes of making money), but they are also building the relationship with the customer in the hopes that they will refer their family and friends, therefore, making more business for the agent. Advertising to the African American communities can be done through social media, radio ads, direct mailing to increase attendance in the seminar-open houses. As with any subculture, it is important to understand differences in segments within the subculture so that the agent does not offend or say the wrong thing.

Another challenge to marketing and targeting the Hispanics is that there are many types of Hispanics and

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