Who pays?
Going on a viewing tour, the client should tune in for a business trip, not a pleasure trip. If you want to look at real estate and go on excursions, then this is a sign for the seller: the deal is unlikely to take place. There are no rules without exceptions, but customers who are determined to buy prefer to get acquainted with future housing, rather than historical monuments. Despite this, some companies add an entertainment part to the mandatory tour program. "It usually includes, in addition to traditional excursions, visits to the best restaurants and concert venues," explains Andrey Maslak, partner at A2Partners.
It is worth mentally preparing for the fact that the tour is quite a difficult task. It usually lasts three to four days, and some experts say that four days is a lot. By the end of the third day, fatigue sets in, perception is dulled, and it becomes more and more difficult to remember the pros and cons of each object. "In one tour, we show our clients the region as a whole and 10-12 real estate objects – their number depends on the distance," notes Yevgeny Simkin, CEO of Eurobereg.
It is better to plan such tours in advance and down to the smallest detail: you need to understand exactly in which part of the country, in which city and even, perhaps, in which area you want to live. It is worth voicing the "fork" of prices to the receiving party, leaving yourself some room for maneuver. It makes sense to ask in advance if there is the necessary infrastructure in the complex, to decide whether a shop, cafe, swimming pool next to the house are so necessary, or something may be located at some distance.
On the spot, you can discuss the legal aspects of the transaction, solve the problem of choosing an educational institution for children, and arrange a bank loan.
The buyers themselves usually pay for the entire tour – plane tickets, accommodation, meals. Sometimes the developer can arrange a festive lunch. "Usually the tour is paid by the client, sometimes the host party assumes the cost of accommodation, however, when buying real estate, the buyer is compensated for the cost of flight and accommodation, bonuses depend on the cost of the purchased object," says Elina Sivankova, managing director of InvestPravo Property.
However, everyone has their own conditions. Most often, if the viewing tour ends with a deal, the cost of not only the flight, but also the accommodation is reimbursed.
"Our company owns six hotels, so we have the opportunity to accommodate customers for a small fee," says Georgy Dokuchaev, director of Leptos Estates. – We also provide a free shuttle service. From the airport, we take customers to the hotel, then to the office, show the facilities, in between – lunch in our restaurants. But we don't do free tours, the client pays for everything himself. In case of purchase, we will refund the cost of economy class tickets and hotel accommodation. We do not refund money for business class tickets."
It is worth noting that the practice of refunding the cost of a viewing tour is common in countries such as Cyprus, Greece, Bulgaria, Spain, but not in all. In the markets of Western Europe, for example in the UK, Switzerland or France, the customer will not only not be refunded the money spent on the trip, but may even be offered to pay the cost of the services of an agent who will accompany the buyer on the trip.
15 tips from experts
Questions should be asked both before and during the trip. The quality of responses is the best characteristic of a real estate company.
What questions should not remain unanswered? Each expert has his own list. According to Evgeny Simkin, most of the questions should be asked in Russia. It is very important to find out:
• which company you are traveling with;
• does this company know the region;
• does the company have many objects that can be viewed;
• what is next to each of the objects;
• won't it be boring in winter in this region (if you are going to live in a new house permanently).
Georgy Dokuchaev addresses more questions to the construction company. The expert recommends:
• pay attention to the office of the construction company, whether many facilities have been successfully built and whether they have been completed on time, what quality they are, as well as the financial situation of the company;
• do not hesitate to choose finishing materials for your future home;
• find out the cost of utility bills, find out which management company is engaged in the house;
• achieve acceptable payment terms, negotiate discounts and installments;
• Find out how visas and residence permits are issued.
Elina Sivankova advises to focus on the financial terms of the future transaction:
• taxes;
• opportunities to get a mortgage or installment payment;
• possible discounts;
• the amount of monthly utility bills and annual taxes;
• absence of encumbrances.
Andrey Maslak also gave this advice: "Take the time to travel to different places, find the best and only then think about buying."
Organization issues
Which should I prefer – an individual tour or a trip with a group of clients? Group viewing tours, as Georgy Dokuchaev explains, are more often organized for buyers of economy class real estate (up to 100 000 – 150 000 euro) in Turkey, Bulgaria. This option allows the organizing company to recoup the efforts spent. But still, a tour with a large number of participants is a rarity, since it is difficult to coordinate travel dates with all participants.
With a budget of 150,000-200,000 euros, both group and individual tours can be organized, a budget above 300,000 euros always involves individual work with the client. "There are cases when potential buyers go on a group study tour, but realizing that this property does not meet their requirements, raise the purchase budget and switch to individual service," explains Elina Sivankova.
"Our company's clients prefer to work with them individually," says Andrey Maslak. – This form of work is preferable for the company as well. People's tastes are completely different, what one likes is not suitable for another. At the same time, during a collective viewing, even a casually thrown word from one customer can negatively affect the reaction of another customer. It is very important for the buyer to be sure of the right choice!"
The psychology of communication between clients is a very subtle and little controlled thing by the organizer. "We are using a comprehensive solution," the expert explains. "So, at our field exhibition in May, a number of events were held for all participants – for example, a meeting with representatives of a bank and a law firm. But our employees showed the real estate individually. The exception is such a form of work as a real estate auction."
What is the difference between the tours of developers and real estate agencies? Everyone has their own advantages. Georgy Dokuchaev believes: "There is no fundamental difference between an agency and a development company. It all depends on the client, on whom it is more convenient for him to work with – an agent or a construction company. Even when working with an agency, the client will actually work with the developer. It should be borne in mind that when working with a "developer – client", an unnecessary link in the transmission of information is cut off. Therefore, it is important how well the agency has established relations with the developer."
"Agencies have a wider choice," says Evgeny Simkin. – Developers, unlike agencies, usually have one or two large apartment complexes. We communicate with customers almost like tour operators: we help to apply for visas and solve other issues."
The disadvantage of tours from the developer is that the client will have to act within a strictly defined framework: it is unlikely that he will be able to see the facilities of other companies. When traveling with realtors, there is a risk that the seller will begin to persuade to buy the object for which a large commission is paid.
However, both viewing tours, as a rule, bring much more benefit to a sober-minded buyer than an independent trip or even more so home viewing of promotional brochures and information on the Internet.
