25 clients desperately searching to investbut they still find “all the mistakes of the past”…

This summer was quite a busy one for my company. But except the deals we got involved in, there were also plenty of cases where we received requests from potential clients, for which we did not proceed. Mainly because we do not broker the "normal" apartments that you find in the adds, we have redrawn ourselves from this market segment (we pay attention only to properties with very low prices, or foreclosures). But as we started offering consulting to people on this field, plenty of complains came to my attention.

25 clients sharing the same agonies…
I receive calls, emails or SMS by people. Some of them I know, while many others are completely unknown to me. Except plenty of other issues, I think that there were about 25 people who contacted me this summer, searching for apartments. Some are located in Bucharest, while one third of them live in other Romanian cities, but all shared the same agonies: "Can you tell me who can help me to find a good property to buy? Can you point {C}to me some good properties with accessible prices? Why do I still see so much crap around me, combined by incredibly wrong behaviours?"

While we talk about crisis, what do we really find in the market?
According to their opinion, despite the major crisis we all live in, when it comes to small apartments to buy, the situation in the Romanian Real Estate market is the following:

1. There is too much bad product. Properties that are really looking bad and their condition is even worse. They are offered at (still) high prices.

2.Too many people continue making all the mistakes of the past. A very big number of people involved in the market continue behaving how they used to do in the past. They appear to have learned nothing from the crisis, probably because this is simply the only way they know to make business.

3. Despite the crisis, a whole "army" of Real Estate agents seem to behave as they used to. Or even worse. I receive too many complains for bad behaviours, (ridiculous, useless) lies and brutal attempts to trick a client and present to him a property using false data.

4.Many owners discuss seriously for selling only when they are under stress to sell quite soon. If they are not, they stick their expectations to an unrealistic price, trying to cover the disadvantages of their property with "not very serious" arguments.

5.More than half of the residential developers keep on offering a wrong product. It costs more than the market can pay, it is presented in a wrong way, while the "ability for negotiation" does not exist.

Clients becoming desperate from what they experience…
I know people who are even… stressed to invest, due to banks etc. Some have a deadline by their bank, or simply want to invest paying cash. (Plus don't forget that here in Romania people are quite impulsive; if they decide to buy something, they want to do it NOW, without waiting and searching for so long). But they end up having 10 – 20 "bad moments" each, plus too many stories of wrong treatment (by brokers etc) which they want to share. Quite a big part of them declared to me that they are almost desperate after all they experience. "I simply can not find something decent to invest my money in" they say.

If you don't find what you want, simply don't invest!
Before I reach the conclusion that they are right, I tried to identify the prices they are willing to pay and the type of property they are searching for (because if someone wants to buy a garsoniera p.e. in Tineretului with 10.000 Euro, then it is his mistake that he does not find one). After this check, I could not blame them. They were offered old apartments in correct areas, or new apartments in wrong areas, both with high prices. There were very few cases when the prices reflected the quality of the offers. "And then what should we do?" is their typical question.

The answer is simple: Do not invest! Wait. You don't have something to lose.

The rental prices will remain low, or maybe will drop even more
Meanwhile you can rent a place to stay, if this is the issue. The rental market will be weaker in the winter and prices might drop even more comparing to the current levels. Why? The demand is poor and the income of people is constantly reduced. (Plus the new austerity measures we expect this autumn will deteriorate this situation)

Wait, time is on your side
I am not prophet, but I strongly believe that time is on your side. Romanian economy has very difficult moments to face over the following months and this will cause problems to many people. This means that if you don't get what you want today, tomorrow (or next month – months) things might be better for your target. So, when you don't find what you are searching for, you don't have to get upset or desperate. Simply wait.

This autumn and winter we will live historical moments, as the country will face new challenges and difficult decisions. If you really want to invest and you are not happy with the supply, it is very probable that soon you will find more properties according to your standards. Time is on your side. Take advantage of it.

PS. Punishing the bad professionals does not mean that you should not pay commission to the serious Real Estate brokers and consultants that you will find out there. Please don't consider them all bad, they are not.