Donald Bouchard, CRE

The membership roll of the Counselors of Real Estate is very diverse. The local chapter has members who are attorneys, developers, appraisers, brokers, economists, real estate fiduciaries, and investors among others. One thing that they all have in common, however, is the occasional duty to deliver bad news to clients. It is critical for real estate counselors to deliver sound and unbiased advice. Unfortunately, as we have all learned over the years, not all of our findings are favorable to the interests of the client.

Clients have to be informed of whether their project is legal or feasible or not; whether they have a reasonable tax abatement case; or whether their position regarding a lease option is consistent with prevailing market dynamics. Delivering conclusions that are adverse to the hopes and interest of clients is somewhat of an acquired skill that requires tact, resolve, and an ability to listen carefully to their feedback as well. The client should not be surprised by the final outcome because proper communication during the process is essential to engage the client and listen to their position and concerns.

Years ago, I was fortunate enough to spend a decade working with the late Charles Kenny, CRE, MAI, SIOR. As his designations indicate, Charlie was a man of many talents and he had broad knowledge of management, development, investing, brokerage and valuation. In situations where he had been hired to appraise property, Charlie always mandated what he called a “mid-appraisal” conference in order to inform the client as to the direction that the appraisal was heading. He firmly believed to no client should be “surprised” by conclusions in a report because of poor communication or the lack of opportunity to ask relevant questions. This was not done in an effort to allow the client to alter the conclusions, but simply as an outgrowth of proper business practice and courtesy. Fortunately, the majority of clients understand when conclusions do not necessarily fall in line with their hopes or expectations. They would rather have sound advice and react accordingly.

On the other hand some clients are much more difficult to convince. I am reminded of a wonderful line penned by John Steinbeck is his novel East of Eden: “No one really wants advice, only corroboration.” In this short statement lies a bit of truth and a degree of cynicism to be sure, however, the ability to handle criticism, disappointment and even anger is an acquired skill and simply goes with the territory.

From a pragmatic standpoint, when the advice or conclusions to be rendered to a client are not their favor, the standards of proof always seem a bit higher. Most are quite satisfied to hear that an opinion is consistent with their own thoughts or expectations and are happy to have their views corroborated. Conclusions that are contrary to a client’s interests will be subject to sometimes severe scrutiny as assumptions and recommendations can be challenged at every turn.

Years ago, I was involved in a land acquisition option held by a tenant. The tenant and landlord exchanged independent appraisals that were within five percent of each other value-wise. Unbeknownst to me, the landlord, who was not satisfied with the results, fired his appraiser and I was hired. When I reported my findings in a meeting with him, prior to the completion of my written report, he was aghast at the fact that my value was essentially the same as the other two appraisals. Aggravated and suspicious that we had somehow colluded in agreeing to a number, it was necessary to remind him, that he had never given me any indication of what values the first two appraisers had rendered or even who they were. How then could this be a vast conspiracy?

After some two minutes or so of prolonged and uneasy silence, he finally fixed his gaze on me and said, “Well, as my father used to say, when three guys tell you that you’re really drunk, it might be time to sit down.”

Again, as Steinbeck said, “No one really wants advice, only corroboration.”

Donald Bouchard, CRE, senior vice president at Lincoln Property Company, Boston and is the 2015 chair of the New England Chapter of the Counselors of Real Estate (CRE).