As a developer you of course need presales. Your lender needs proof of your developments market acceptance, the public needs proof that your development is a desirable place to live and you of course need to sleep at night! Everyone rests much easier when your presale goals have been met.
Here are some things to point out when crafting your sales message:
1. Educate your buyers. Not everyone knows how a pre sale purchase works and of course each developer has their own requirements.
Make sure that the buyer knows this is a legal contract that binds them to purchasing when the unit is completed. Make sure that they understand that you will be providing a Disclosure Statement for the project that outlines the legality of the development and well as the operating budget and the proposed rules and regulations (if it is a strata) that will govern the day to day living in the development. Make sure that the deposit structure is explained and how that deposit is placed in Trust and what that means.
2. A presale provides price security.
New developments can take years to complete. Point out that this is to their advantage as it provides time for them to sell their existing residence, while saving more money for their overall down payment. In todays market it also gives the buyer the possibility of securing a property at today’s prices and if the market increases then they reap the benefit of that.
3. A presale provides more choices.
Every buyer wants to make their new home theirs. Whether it is the floor plan they need, the finishing levels they want, the views they have been dreaming about, the amenities they are seeking or just the building location itself. Each building is unique in its own way and each buyer is too. Emphasize their choices and promote your buildings features.
4. A presale provides less hassle.
New buildings simply have far fewer problems than older buildings. All new developments are of course covered under the 2-5-10 New Home Warranty program and will not require major repairs for years. This gives a buyer piece of mind for day to day living and financial security knowing that they are covered under warranty. Don’t discount this “hassle free message”. It is important to many downsizers.
5. A presale provides investment potential.
Not everyone is buying to actually live in your new development. We have mentioned before that the immigration in Canada is at the lowest level in years. There may be an immigration wave coming soon. Where will they live? There is already a severe shortage of rental accommodations in Victoria and it may get worse. This is fertile ground for investors. As a developer this is something that you cannot ignore. Fine tune your messaging so it is not all about you living in your development today but securing an investment for the future.