If you follow my blog on Instagram you can get a sense of what it’s like on the market nowadays. Many condo projects get released at the same time. Agents start marketing the releases weeks before the condos are launched in order to build up a portfolio of qualified clientele. Millions are spent on social media advertising. Once the worksheets are released hundreds of agents rush to submit their worksheets in order to be the first in line.
During the worksheet stage, agents are given layouts, price ranges, details about the payment plans, maintenance fees, parking and locker details, any special incentives and other information about the property. At this stage, the builder wants to build interest in the project and heavily markets it. Most builders are using major real estate advertising companies to do sales on their behalf. Those companies have great relations with agents all across the GTA. They market it to agents and slowly release the information about the project. Agents then create numerous websites and market even further. After all, you get an “explosion” of marketing where almost every single agent doing preconstruction is marketing the same project to all of his potential clients. Then comes the launch, VIP sales events, where hundreds of people line up in order to be the first ones to get the unit or layout they wanted. They buy everything that is available, with only a few units being left out. Pretty much the same happens during Black Friday sales or new iPhone launches, the main difference being a “slightly higher” price tag.
After this stage, the project already loses its attractiveness since the best layouts have already been sold and there is no more hype around the project.
Just like with everything in our lives there is an introduction, growth, maturity and decline. It might take a builder only a day to sell 60 units, but several months to sell the remaining 20. You would be surprised to know how many great projects still have units unsold, even with a better price offer. Cause price isn’t everything in Toronto, the hype is.
Author: Samir Khalilov