When major property transactions fall through, people often think of inflated prices, strict regulatory requirements or lengthy due diligence processes. However, a recent analysis by Drooms, in collaboration with Statista, reveals a surprisingly human problem. The biggest obstacle is not financing or the market, but communication.
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Unlock content Accept the required service and unlock contentAccording to the study, 76% of respondents see coordination with other stakeholders as the biggest challenge. Even more seriously, 89% lose over 30 hours per deal due to misunderstandings, incomplete information or unclear responsibilities. In 20% of cases, the loss even amounts to more than 150 hours per transaction – equivalent to almost a full month’s work per person. Time that should actually be spent closing deals is wasted in the maze of internal coordination.
Why communication so often breaks down in property deals
The problem stems from the multitude of parallel channels. One piece of information arrives by email, the next via WhatsApp, a phone call brings new details, and discussions are also taking place in Teams or Slack chats. When, days later, someone asks where an important file is, the big search begins. Information gets lost in silos, departments work on different versions, and nobody knows exactly who is responsible for which task.
Complexity increases rapidly, particularly in large transactions involving international partners or multiple advisers. Decisions are delayed, tasks are duplicated, and trust in the project organisation is lost. In addition, there is a risk that is often underestimated: data protection. Sensitive documents are often quickly forwarded via messaging apps, even though these channels are neither GDPR-compliant nor audit-proof. As well as legal consequences, this can also cause lasting damage to an organisation’s reputation.
The costs of poor communication
Faulty or inefficient communication is not an abstract problem. It costs real money. Every day spent searching for documents, clarifying responsibilities or carrying out duplicate consultations is lost working time. These costs are reflected not only in higher internal expenditure, but also in a weaker market position. Buyers, investors and banks expect professionalism and speed. If a process drags on unnecessarily, the credibility of the entire project suffers.
Or, to quote the Roman author Syrus, ‘A good reputation is more valuable than money.’
Strategic solutions, structure and platforms
The key insight is that communication must be centralised and clearly structured. Virtual data rooms such as Drooms, Ansarada or similar platforms offer the possibility of consolidating documents, tasks and communication in one place. Instead of endless email threads with “Final version v3.docx”, all parties involved work in real time on the same version.
However, simply using a tool is not enough. Consistent use is crucial. This means no parallel communication via private messaging apps or email chains. The data room is the sole official interface. Task lists, comments, status updates and approvals are managed exclusively there.
Equally important is a clear division of roles. Who is responsible for which document, who grants approvals, and who liaises with external partners? Such questions must be answered unequivocally. This is the only way to avoid delays and misunderstandings.
Practical best practices for better communication
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Assessing the current situation
First, check which tools are currently in use, where bottlenecks occur and which communication channels most frequently lead to problems. A short meeting with all key stakeholders is sufficient to identify the weak points. -
Deciding on a central platform
After weighing up the pros and cons, select a system and commit to it. Avoid postponing the decision indefinitely, as without a standardised basis, everything will remain piecemeal. -
Define communication rules
Specify what should be handled exclusively via the platform and which channels may be used for exceptions. A brief guide with examples creates transparency and prevents grey areas. -
Define roles and responsibilities
Clearly document who is responsible for which documents and which communication channels. This prevents duplication of effort and speeds up decision-making processes. -
Simplify external onboarding
It is not just internal teams who need to understand the system; investors, lawyers and auditors must do so too. Instead of endless individual explanations, a short screen video explaining all the key functions is helpful. -
Be consistent
The most important point: remain disciplined. WhatsApp messages containing sensitive information must be consistently redirected to the platform. This is the only way to establish a clear, consistent communication culture. -
Seek regular feedback
Schedule short feedback sessions every two weeks to begin with, and monthly thereafter. These help to improve processes and increase acceptance within the team.
Conclusion
Property transactions rarely fail due to a lack of capital or a shortage of investors. Far more often, it is misunderstandings, unclear responsibilities and chaotic communication structures that delay deals or even cause them to fail. Those who have the courage to consistently rely on centralised platforms and clear rules not only save time but also enhance their professionalism and credibility with all partners.
The motto is: clear communication, clear roles, clear results. Those who master this will ultimately secure not only faster but also better deals.
