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Chinese homebuyers say feng shui is imperative

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China surpassed Canada as the foreign country that spends the most on residential properties in the U.S.; Chinese buyers comprise 16 percent of international homebuyers.

According to the 2015 Profile of International Home-buying Activity published by the National Association of Realtors (NAR), Chinese buyers spent an estimated $28.6 billion on residential U.S. real estate.

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Impressive numbers, but what do these Chinese buyers look for when shopping for a house? What type of house do they prefer? Do they like a house at the end of the street, close proximity to a hospital, a sloped or flat backyard, a bathroom facing the entrance, and so on?

These are key questions that agents need to know to sell to Chinese buyers. Understanding feng shui will help in answering these questions.

Better Homes and Gardens Real Estate and the Asian Real Estate Association of America (AREAA) conducted a survey and released their findings. It turns out feng shui is the second-most important consideration, only behind neighborhood safety, for Chinese buyers.

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Of survey respondents, 86 percent stated feng shui will play a role in future home-buying decisions; 79 percent are willing to invest more for a home that incorporates feng shui principles.

Respondents are willing to pay an average of 16 percent more for a home that complies with feng shui philosophies; 90 percent of Chinese-Americans believe implementing its principles increases a home’s resale value.

Agents with knowledge of feng shui are especially prone to success with Chinese buyers, as 36 percent said they wouldn’t even work with an agent who has no knowledge of feng shui.

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Feng shui is a centuries-old philosophy that originated in China. It’s composed of two Chinese words: feng (wind) and shui (water), two of the most basic elements for human survival.

Chinese people believe good feng shui of a home has positive energy, and it will bring health, wealth and good luck to the owner.

Below are some examples of deal-breakers that go against feng shui and the reasoning behind those principles:

There are also some good feng shui features of a property:

Having knowledge of these feng shui principles would greatly assist in dealing with Chinese homebuyers.

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Sam Van Horebeek is a director at East-West Property Advisors, a U.S. real estate advisory firm based in China. You can follow on Facebook and Twitter.

Email Sam Van Horebeek.