Part 2 - The Free Property Inspection Trips to Spain - Warts N' All

I have written this section of the article with theThere has been a lot of thought put into the art
assistance of personal experience in the industry,of showing properties. The rep will have listened
having personally undertaken an inspection tour,to your preferences and listened to your opinions
family and friends who has toured and mostwhen on the area tour. You general chit chat will
importantly experienced sales reps who still workhave been noted and the answer to innocent
in the industry, so they have no axe to grind butsounding questions during dinner will have been
perhaps their conscience got the better of them.noted, analyzed and actioned.
The only remuneration they received was aWhen you arrive at a property you will be
couple of cafe con leche's each. The surprisingbrought in on a route that shows the property
thing was that I had arranged to meet two repsand area to its best. The show home will be
but when word spread half a dozen arrived withimmaculate; it will be on a nice big plot or have
offer from many others.great views and will invariably be the most
Your tour should proceed along these lines. Showexpensive plot on the site. The show home will
homes are close on Saturday afternoons and allhave been dressed by a designer. Your rep will
day Sunday and flights are more expensive overnow take you round room by room, telling you
the weekend so most tours tend to be during thewhat is included and what is not, what the
midweek. Tour duration is normally 5 days 4payment structure for this particular developer is
nights. For the purpose of this article I haveYou will never be shown the best property first.
formatted a Monday to Friday tour.The first property will often be chosen because it
MONDAY:does not match many of your requirements. You
A couple of years ago a trip to the arrival loungewill be asked for your comments regarding, size,
at Alicante or Murcia airport would have seen youlocation, views, rooms etc and asked to score the
rubbing shoulders with dozens of agents salesproperty on a whole out of ten and the area out
reps / salespeople / property consultants / toursof ten. If you score the property highly and area
guides ( I will call them reps from now on) allpoorly we need to look at similar properties in a
standing there with their clipboards with theirdifferent area. If you score the area highly and
clients names printed on them, often lookingproperty poorly, we need to look for different
nervously as passengers came through the slidingproperties in the same area.
doors. Similarly a trip down the coast road fromThe rep should note your thoughts, comments
the airport you would literally pass dozens ofand scores and move on to the next property
agents cars all brightly liveried and each companybased on your requirements.
with its own colour cars. The credit crunch hasAmazingly the reps I spoke to stated that if
killed off the numbers but made the agents needsomebody was genuinely interested in purchasing
to extract every last euro from clients almost anthat they only ever showed 3 or 4 properties
art.before they found the perfect place.
Your rep will great you with a big smile andDo not be surprised if at some point during this
engage you in small talk as they walk you backday that the reps manager accidentally bumps
to the car. The reps should also take the luggageinto you either in a show home or at a cafe
off you or at least the wife. During the journeysomewhere (those furtive phone calls the rep
back to the hotel it is taboo for the rep to talkmakes or receives when they slope off out of
about property for fear of the client feeling underearshot are the management gauging the
pressure. What the rep is doing here is sellingprogress of the tour. If you hear the rep saying
themselves, after all who would buy offamber or green you might know what they are
somebody that they either did not like or did nottalking about now). The manager is there to
trust? Your rep is sticking strictly to step one ofcheck on how well the tour is going, check up on
the seven steps. The holy gospel of the repthe rep and try and point the clients in a new
which is drilled into them from day one. The stepsdirection should they need to, or to reveal a deal
are as follows and I will refer to the as wethat can be done or a special offer that has only
progress. I will shortly be writing an article solelyjust become available.
covering the seven steps in much greater detail.The pressure will be really on the rep towards the
1. SELL YOURSELF - Make yourself likable to yourend of the day as you should have seen a
clientsproperty that meets all your requirements by
2. SELL THE COMPANY - We are established,now. The pressure exerted on the rep will be
trustworthy, large, family run, UK based....passed down to you in a more subtle way in the
3. SELL THE AREA - Sell the lifestyle, pace of life,form of more direct or leading questions.
cost of living, health, beaches........You will be dropped off again at 6pm and
4. SELL THE PROPERTY - Once sold on thecollected at 8pm for dinner. The conversation at
lifestyle find the property within budget.dinner will be a lot more focused. You may also
5. FINANCE - Sort out loans, mortgages,find that on this evening all the reps and their
affordability etc.clients eat in the same restaurant, often taking it
6. CONTRACT - Complete a property purchaseover. The reps are allowed to bring their partners
contract and get EUR3000 deposit.to this meal. This is all part of the sales process
7. CONSOLIDATION - Introduce to solicitors, openas the partner has been thoroughly briefed on
bank accounts and look after them.what to say. The reps manager and partner will
When you rep gets you to the hotel, they willalso be present, so the sales process continues
jump out of the car and open the door for you,until 10pm. You will be dropped off at the hotel at
they will get your bags and check you into a very10:30pm with another 13 hour day under your
swish 4 or 5 star hotel on the beach with stunningbelt.
views (see # 3). Once they have checked you inTHURSDAY.
they will take you up to the room, open the doorBy this point in the tour, if you have not
and take you in. You will often find that thepurchased the chances of you doing so are
curtains will be closed in the room. This is anminimal. Not only will you be feeling the effects of
arrangement that the agent will have with thethe long days, but so will the rep as their working
hotel. This enables the rep to do the great reveal.day is on average 15 hours a day. Be prepared
They will walk to the window and pull the curtainsfor a battle of wills.
back with gusto revealing a beautiful view of theYours reps phone will be a lot busier today as
beautiful blue Mediterranean Sea. Having just left athey are pressured from above to get a sale.
grey, miserable, cold, wet and windy UK, thisYou will almost certainly call into the office to
reveal makes the client feel that they have foundhave a look around, with the real intention of
heaven.putting some pressure on from the manager,
Most clients arrive late afternoon, so the rep willfinance person, company owner etc. This
leave you for a couple of hours to rest and comepressure will never be too excessive as this could
and collect you for dinner (the tour will include allbe off-putting, but it will be pressure none the
meals). The rep will still not be speaking aboutless. "We have found you the property within
property, they will, still be selling themselves andyour budget in an area that you loved that meet
the business. They will tell you about how theyall your criteria... its what you asked us to find and
came to live in Spain, how great it is, how theirwe have, so lets do the paperwork!" The rep will
kids love it...... this is undoubtedly true as I ampull out the property scoring sheets with you
willing to testify but it is all part of the salesfavorable comments and score on the top
process. The rep will also start telling you howproperty. You will be told that if you do not buy
great the company is and how good they are tonow then you never will. Your "bottle" will be
work for and how well they treat their staff. Thequestioned and you will be asked why you
truth is that they are all non contract, commissionbothered coming out if you had no intention of
only sales people who are in fear of their jobspurchasing I the first place.
from tour to tour because if they do not sell andThis is the make or break part of the tour. The
hit targets they are out! The rep will also outlinepressure to purchase will be considerable but not
the itinerary whilst you are with them:overbearing, more subtle than high pressure.
Monday: Arrive, settle in and go for dinner.You will find yourself looking at properties that
Tuesday: Pre tour meeting and area tour, go forhad previously been rules out because of
dinner. Wednesday: Look for properties in areascomments made in other properties. If you
you have expressed an interest in. Thursday:comment in one property that the kitchen is too
Continue search, or if purchasing completesmall, the rep will then rule out taking you to
contracts, payments etc. Friday: Continue searchdozens of properties that have small kitchen and
or if purchased, consolidate and back to airport.will only take you to properties that have bigger
Following your nice evening meal you will bekitchens.
dropped off at the hotel and arrangements madeThe rep will keep going because they are paid on
to meet you in the hotel reception at 9:30am thea commission only basis and have nothing to lose.
following morning. As they leave the rep will be onAs a self employed, commission only sales
the phone to their manager telling them whatperson, if you do not buy, they will not be getting
they think of you and the likelihood of youpaid for working some 60 hours and they could
purchasing. You will be graded as red, amber orbe one step closer to getting fired, especially if
green or on a scale of 1 to 10 as a prospect withthe sales manager thought you were a good
red or 1 being no chance. All clients start aspurchasing prospect. In Spain if you are not on a
amber or a 5 on the scale.contract you have to pay approximately EUR250
TUESDAY.per month to the tax office to cover social
A good hour or so before the rep collects you onsecurity as well as EUR50 towards your
Tuesday they will have a breakfast meeting withaccountant. Even if they do not work or earn no
their manager where they will discuss in greatmoney one month they still have to pay out
detail their impression of you. The manager willEUR300. Their company will say that this keeps
produce all the paperwork that they have on you.them lean and eager. The reps will say that it
This will be notes and transcripts of conversationsleads to unnecessary pressure and often hardship.
that you have had with the companies telesalesWith the realization that there is no prospect of a
staff, or the home visit rep or even with thesale, most reps will give up come the end of the
manager when they called to confirm yourday. You will find that you will be dropped off at
attendance a couple of days ago. All the questionsthe hotel at 4pm, the rep will offer you the
that you have been asked no matter howchance of going for a meal on your own (at your
innocent have the intention of garnering as muchown expense) and you will be given the
information as possible. This meeting that the repopportunity of a later collection on the final day.
ha with their manager will determine the courseThe meal on this last evening if taken will be a
of action that they will be taking with you overmore casual affair as the rep is resigned to a "no
the next few days!sale" tour. The meal will be taken earlier and
The rep will come and collect you on time. Theyfinished quickly. The rep out of spite will often
will be in their uniform, light pants, either white ortake you to a restaurant that you have
blue shirt/blouse, brown shoes, sunglasses andexpressed that you do not like. If you don't like
immaculately clean company car (the cars areChinese food guess were you will be eating come
inspected each day and reps fined EUR50 forthe last evening if you have not purchased.
dirty cars). Your rep will then take you to a lovelyFRIDAY.
café by the beach, or on a golf course or withIf you have purchased you will have spent
fantastic views. This helps sell the lifestyle, but theThursday completing paperwork and contracts in
choice of cafe is determined following yourthe office. On the Friday the rep will have you out
conversation the previous evening when theyof bed at 5am and standing outside the local town
gleaned the information out of you to make thishall in a queue to get your NIE number (needed
choice.for purchase). You will be taken to a bank to
The purpose of the meeting is to determine whatopen a bank account and introduced to a solicitor.
you are looking for i.e. holiday home, relocation,If you want the solicitor to have power of
investment or business, your budget and yourattorney you will need to go to the notaries
preferred location. The rep already has thisoffice as well.
information as this information has already beenAs a word of caution I would always advise you
obtained from you when you arranged the trip into seek out your own solicitor rather than one
the first place. The one thing that the rep will dosuggested by your agent. Your solicitor should be
is promise never to show you properties aboveworking exclusively for you and some agents
your budget, they will site affordability issueshave far to a cosy relationship with their solicitors.
however the truth is that people who overJust check out some of the internet forums for
extend when in Spain are 4 times more likely todetails.
cancel when they get back to the UK.If you have not purchased, this will be a more
Meeting over you will jump in the car. One thingrelaxed day. You will have to check out of the
to note here is that the rep will always have ahotel by 11am but the hotel or rep will take your
cool box or paperwork on the seat behind them.cases. You will need to fill in an end of tour report
This means that the clients will sit in thewhere you can comment on the rep, company
passenger seat and the seat behind. This stopand tour. You will have a little time to sunbathe,
them being able to make eye contact with eachgo shopping, go for a walk. The chances are that
other, communicate without the rep hearing andyou will be dropped off at the airport a good 3
the rep will be able to see the client in the rearhours before your flight and your reps car will
view mirror.disappear in a cloud of dust ready for the next
The day will be spent completing an extensiveclients.
tour from Alicante in the North to Cartegena inIN SUMMARY
the south and up to 50km inland. You will visitTaking everything into account would I
town, villages, beaches, golf courses, mountains,recommend partaking in an inspection tour?
you name it they will cover it. Anything or placeThe case for yes: If you are looking for a new or
you express an interest in will be noted for useoff plan or key ready property, the prices are set
later. If you like a particular village or beach, theyby the builder not the agent, so you will be paying
will stop for a look around or a coffee. Althoughthe best price for the property. Despite the sales
you do not know it you will be following atactics, the reps in general have a fantastic
predetermined route aimed at showing the area inknowledge of the area, builders and developments
its best possible light.and despite what you may think, they are chosen
Whenever you do stop the rep will be glued tofor their personality more than sales skills. The
your side at all times. They do not want youagents can use their size and power in your
talking to the natives because they may tell youfavour and you do get free flights,
something that you do not want to hear (i.e. howaccommodation and use of car and tour guide.
much commission the agents charge/make). TheYou will cover more area and see more in one
rep will always seat you away from other people,day with a good rep than you would do in a week
never at a café with free papers (other agentson your own. If you do purchase you are actually
advertise in them) and never near an estatepaying for your free tour out of the agents
agent window because invariably they could havecommission. It's a great way to learn the area
the same properties for sale for considerably lessand see property at their expense, however
money! (most properties for sale are on withplease remember that your rep will not earn a
many agents).penny if you do not buy.
Following completion of your area tour you areThe case for no: You only get to see the side of
returned back to the hotel at 6pm, some 8 1/2Spain that the rep wants to show you. You are
hours after you were picked up and informednever on your own and are always being
that the next couple of hours are your own andquestioned as to your opinions. If you are
that the rep will pick you up at 8pm for dinner. Asconsidering a resale property then you will have
a parting shot the rep will warn you about "barto pay the agents fees not the seller. Agents can
stool Johnny's". They will tell you to be suspect ofcharge up to 20% commission. One a villa valued
anyone who approaches them in the hotel bar orat EUR200,000 the agent will put it on the market
foyer as they could be a con merchant who willfor EUR240,000. An agent can make EUR20,000
know that they are on an inspection trip and willon a small apartment. If you have an idea of the
coerce them out of thousands of euros. Therearea or what you want and the sort of property
may be a modicum of truth in this, however itsyou are after you can save a fortune doing it
main reason is to stop clients talking to eachyour self.
other and comparing experiences. One rottenThere is an alternative. There are now companies
apple can spoil a barrel..... You will be picked up atwho offer the best of both worlds. They are
8pm and taken to a nice restaurant for a threeindependent of any builder, promoter or agents.
course meal and wine and taken back to the hotelYou pay for your flights and accommodation and
at 10:30pm. You have been with you rep for 13meals. They pick you up and take you out looking
hours.at areas and properties and charge you a day
WEDNESDAY.rate. The late afternoons and evenings are yours.
Following the extensive and tiring area tour youPeople come out for 7 days, spend 3 looking at
will be hoping for an easier day today. Your repproperties and the rest of the time on the beach.
will collect you again at 9am fresh from a debriefBecause they are independent they have no
with their manager where the plan of attack willloyalty other than to you and could save you
have been drawn up. Today is all about property,thousands. In these times of hardship it really is
after all, this is the third day you have been inthe best solution to a problem you never even
Spain and you have not seen any property yet.knew existed...Until now.