EXCLUSIVE INVESTORS REPRESENTATION

REAL ESTATE MARKET

Ivana Grković, Sales Consultant at West Properties, explains why it is critical for an investor to engage a sales agent while there is still no building permit and how challenging it is for the representative to meet the expectations of both investors and purchasers

Text by: PETRA VASILJEVIĆ

Ivana Grković Sales Consultant, West Properties T

he growing trend of building large residential complexes in our country over the last fifteen years has necessitated the hiring of exclusive sales representatives by investors. This delicate business, which requires extensive experience and a comprehensive approach to mediation between investors and future buyers, is one of the most challenging in the real estate sector and high-quality representatives are today a valued staff in the market due to many years of experience gained through participation in various projects. Ivana Grković started her career at the right moment and at the right place, when huge construction projects were just getting started. She spent her first several years working in a foreign company’s representative office, which was a pioneer in delivering this type of service. Working with well-known companies in the investment and construction industries gave her invaluable expertise. She joined West Properties in 2017 as an exclusive sales representative on the Panorama Voždovac project. Following the successful sale of this project, which considerably improved the micro-location of Trošarina and made it more appealing, Ivana Grković deals with the exclusive representation of investors as a permanent member of the West Properties team. Her current project involves representing the investor Coherence Group d.o.o in the sale of the residential complex Atria Residence in Zvezdara, which she describes as a new challenge for her.

How different is the sale of apartments in Atria Residence from the others, to be precise, more challenging?

— The micro-location is interesting because it offers what is in short supply in Belgrade: a combination of nature and well-integrated

architecture. Location conditions in this part of Zvezdara allow the construction of buildings with a maximum height of three floors. In a sea of multi-story buildings, the structure is a breath of fresh air. The complex consists of 85 residential units, six retail spaces and 127 garages, along with space for sports facilities such as a swimming pool, gym, spa center. In terms of characteristics, the Atria Residence meets many high-end project requirements. The most difficult part is making it accessible to a wider city audience who are accustomed to the bustling life of the capital and are unaware of the advantages of living in an area that has not yet been fully developed in terms of construction. The chances increase when potential buyers come to the presentation, get acquainted with the technical characteristics of the facility, apartments, visit the location itself. This location offers precisely what they lack and what they may not even be aware of, and that is to live surrounded by nature, with reduced noise levels and cleaner air.

When should an investor hire an exclusive representative?

— One option, which is best for us as representatives, is to become involved early on when the building permit is still pending. It’s an important step since, based on our knowledge and experience, perceiving the project allows us to spot potential problems in future sales. We are optimizing apartments so that they can subsequently be recognized as a commercial quality product. It is the best sort of representation since we provide the investor with a product that will sell well while also making our job easier. Another option is representing the finished product when there is already a project and a building permit. Then we try to make the most of the situation by identifying which units may be more difficult to sell. As a result, we devise a price that compensates for their deficiencies.

Who determines the price of apartments?

— Representatives, in general, because investors do not have access to the market information as we do. It can sometimes be demanding because you need to meet the investors’ expectations in terms of the expected earnings while also avoiding disappointing customers by entering the market at an excessively expensive price. When it comes to sales, it’s critical to start with a price that’ll be acceptable. We can always adjust the price upwards when we position ourselves on the market and catch the momentum. The construction progress follows this growth trend. In practice, the worst-case scenario would be to start with overly high expectations of the investor, which is why a considerable amount of revenue may be lost in the beginning, such as during pre-sale, and then decline.

How much do our investors rely on this type of representation?

The sale of apartments starts at the earliest immediately after obtaining a building permit — It is still frequent for investors to sell their facilities by themselves, but usually when smaller facilities are being built. When the investor plans to start a project of 80, 100, 150 apartments, and more, he entrusts the sale to the sales representative. The sales process is becoming more complex due to the number of customers and the variety of requirements. Then it is easiest to entrust the entire process to a representative and be sure that each segment will be completed correctly. It’s also crucial to us as sales representatives who we select to represent based on the outcomes de-

livered in the form of completed facilities, not on the sound of the name. All incidental obstacles are easier to solve when there is trust. And confidence is earned via open communication and the exchange of information on a daily basis.

How many qualified professionals do we have in our real estate market that can handle the selling of such massive facilities?

— There aren’t many of us who perform this kind of job in depth. Starting with advising services and project modification recommendations, the process progresses to defining structure representation, pricing, determining the target group of clients, selecting equipment, setting up an on-site showroom if practicable, and finally buying and selling. There are obviously excellent sellers in our market, but finding someone who can look at all of these categories properly is difficult. However, years of experience are required. Despite the fact that the job’s major role is sales, i.e. dealing with clients, I learnt a lot about architecture and legal aspects of the business. In addition to selling, my responsibilities include researching projects, floor plans, and apartments, as well as communicating sales contracts. As a result, I identify any deficiencies or surpluses in the space, which may later be the source of difficult sales. In these cases, I recommend small improvements based on frequent customer feedback that do not disturb the process yet enable greater functionality in the future.

If you get exclusive representation for a facility that doesn’t even have a foundation yet, when does it go on sale?

— The majority of my work entails selling facilities that do not yet exist. It’s challenging, but on the other hand, I understand what’s important to everyone involved in the process. First-time buyers, in my opinion, should be compensated because they are assuming the most risk by investing in a facility that does not yet exist. As soon as the building permission is granted, the sale will commence. Then I inform the market that we are selling, and we begin getting calls, forming a waiting list until the first reservations, and preparing a sales contract, in which we also actively participate because we have experience with the most common customer lawyer remarks. The moment we receive the official draft of the reservation, the official draft of the sales

contract, and everything else that is legally and formally important, then we have meetings with customers, product presentations, and first verifications.

Thanks to the suggestions of sales representatives, greater functionality of housing units is provided

What do you provide to the customer as a sales representative?

— We walk the buyer through the entire process, from getting to know the facility, micro-location predispositions, technical characteristics of the facility, selecting the appropriate housing unit based on living needs and budget, agreeing on financing and purchase negotiations, purchase contracts, equipment selection, bank relationship, to handover and tax refund later. Because it is critical to be available to customers at all times, we frequently state that our working hours are 24/7. Customers become as attached to us as we are to them throughout the purchasing process and frequently follow us on additional projects subsequently. As a result, West Properties has earned a reputation for being a trustworthy company.