Everyone loves surprises (except in property)
Hey guys,
My biggest bugbear in property is having surprises. In any other aspect of life I love the joys or challenges a surprise can bring, but when it comes to property it is just something I try to avoid.
In working with clients I adhere (as best as possible) to the service promise that simply says ‘When you work with me, you will be told upfront and to the best of our knowledge (and experience) exactly what to expect at each point along the portfolio process.’
Effectively I simply say that dealing with me you will experience – NO SURPRISES…
No surprise costs, fees, charges nor expenses. No surprise dates, changes nor amendments. But most of all No blank looks, vacant stares nor excuses in the times when life does throw a surprise at us.
Afterall when you deal with property there are so many interested parties, so much legislation as well as the natural force of the open market. The trick to these surprises is communicating upfront and honestly and then when things do happen communicating immediately and fully.
Its all about relationship, you expect to be told the truth so that you can make an informed decision all along the process. Without this communication the trust falters and eventually breaks down.
I actually (sometimes) enjoy telling clients things have gone wrong as I can enlist their help in solving it and generally (because I have been honest) the relationship strengthens.
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Surprises appear in so many ways in our industry that you would think that it was the first time anyone had bought a property.
- Told that a property is valued at X and find out that after you have committed funds it is only worth X less 10%.
- Quoted one rental figure then finding out you actually recieve considerably less (See my The 2 Rents of Property explanation).
- Recieved my completion statement and had so many unexpected charges. things like engrossment fees, telegraphic transfers, apportionments, local and land searches, incidentals and funds transfer fees.
- An unexpected letter requesting more details for stuff l have already provided.
- Having to pay my ground rent and service charges as part of the settlement funds.
- Not being told l need to provide certified copies of passports before completion or that l need to sign documents.
The trick with all this is to have a competent portfolio manager that owns and is currently building their own portfolio. That will keep them up to date with the current practices.
It never ceases to amaze me how many time that clients tell me they just spoke to some snotty nosed kid barely out of nappies who is telling them about a place they have never been and providing ‘advice’ about property which they dont own.
As an experienced portfolio manager I am constantly buying property, refinancing, restructuring, strategising and cashflowing my own portfolio. I also undertake a quarterly roadshow around the country to visit our various developments and clients getting a feel for the areas and keeping abreast of changes.
This way I can put my clients minds at ease that when I say NO SURPRISES, I mean no surprises.
Live with passion and merry Christmas!
Brett Wood
