Truth hurts, but saves

Truth hurts, but saves, especially in real estate business
On Friday evening I submitted to a client a market report and an unofficial evaluation of his property in another city of Romania. (I remind you that we do not have a license for official evaluation reports, but I have tens of clients who trust my company’s opinion for their properties, especially for the other cities, where we are very proud of our expertise). So, Saturday morning I had a long discussion with him, so as to explain to him all I was presenting in the 20 pages of the report.
Many foreign investors suffer from one “disease”: They come here in Romania and they try to understand the situation by adjusting the reality to their own standards. Watching the life in Romania as a comparison to another country, matching areas of Bucharest or other cities with the cities we know at home is the safest way to reach wrong, dangerous conclusions.
I had to disappoint him, but I never regret saying the truth: We can not develop the project he wants, with large apartments and luxurious finishings, when the demand is for smaller surfaces and “more reasonable” construction. If the clients can pay a price, we have to focus on this reality, no matter how much it can disappoint us. In the end he understood my point of view, which was supported by strong arguments and figures. Although now he has to change all his plans, at least he will feel more secure for his project, one of the biggest ones in this medium sized Romanian city.

Romanian medium class rocks…
Saturday night I was in a nice central restaurant. I was very happy to find out that this place is also “conquered” by Romanians. Although many foreigners continue closing their eyes to reality, Romanians, and especially the medium class of this country, live / feel / enjoy / consume exactly like as the medium class does in most of European countries. There is nothing healthier than people living a better life, especially people working hard during the week (for demanding employers such as me – or… even worse!).
No country can establish a steady growth for its future without the majority of the population participating in the produced wealth. Despite the (many) problems, Romanians earn today much more than the past, with the wealth spreaded to millions all around the country…

“The owner hates the banks”
Friday evening I found out by my agents that I lost an apartment that I was sure I will buy (for my new project of apartments to rent in daily basis). The owner has changed his mind and now he wants all the money paid in cash. “I don’t like the banks, they are crooks, I hate them” he is supposed to declare to my agent, as he announced to me with a tone of voice similar to the one he would have if someone close to him would die.
Give me a break… “The owner hates banks”… This means two things: Either he knows that we would search deep and find problems at his property (through all the controls that the bank requires) or he is simply not a serious person, who found an excuse to step back or to raise the price (in half of the cases, when they see that you agreed on a price, they use 1.000.000 excuses so as to “step back” and force you to pay more. Do they succeed? Depends on the buyer. In my case NEVER).
There is also a third alternative: Many Romanians are afraid of the banks, they have extremely bad experiences from the past. But someone who wants to receive over 300.000 euros for an apartment MUST be able to do serious business. If not… “la revedere” (= bye).

Valentine’s day in Romania is expected to boost sales
3 days before Valentine’s day, shall I predict something? It will be the new record in consumption for any shop dealing with presents for each one’s beloved. Shops will establish new records; all restaurants and other places suitable for dates will be 100% reserved. Especially the raise of spending in the luxurious segment of the market is projected to “reach the sky”…