Surprised to walk or drive past a sales centre bustling with activity, and despite registering early to view the new project, getting nowhere, with Toronto’s hot condo market on fire, you may not be the only one,Thinking that if you don’t get on the list to get into the sales centre early, the best units are gone, prices start going up and you’re stuck with the leftovers, well you might be right.
The increased demand has created a sales hierarchy that often puts a domestic Condominium buyer interested simply in a place to live at the bottom of the that list.
With Toronto hot real estate market, much of the frenzy is being fuelled by international investors, Canadian citizens, buying units as long-term investments or as homes for their kids or relatives who might be migrating from overseas in the future, who are being given preferential treatment with early access to the best and cheapest units, but only to certain Buyers.
Typically, the first block of units is offered to friends and family of the project principals, followed by VVIPs or high-achieving REALTOR®, with steady and reliable rosters of buyers. Then come VIPs, REALTOR® with proven track records, followed by regular brokers and, finally, the public.
It may look like discrimination, but these people have actually earned the right to be first in line. Any business will go to their best customers first.
Even REALTOR's®, who find themselves, and their clients, with no hope of being among the first buyers in all these new project springing up on Toronto’s skyline understand why this is happening.
Targeting REALTOR®, with strong ties to big buyers from Toronto multicultural community or target marketing, by offering high commission, incentive and discounts to REALTOR®, which means developers can sell 70 per cent of the units in a project faster, which keeps costs down.
That’s what most financial institution demand before they will advance any loans to start construction.
The practice has paid off in the past, it took an average of 13 months for condo Developer to sell 70 per cent of their units, were in the last few years, they’re hitting the threshold in just four months, largely because of Targeting REALTOR® who deliver multiple investors, Realtors who can deliver 10 or more buyers willing to buy from floor plans, rather than wait for built units.
But some REALTOR® complain that a handful of project builders, are being so aggressive at racking up early sales, it’s becoming impossible for the average buyer, to get in before prices are less affordable.
It also gets tougher to find the most desirable units, such as the cheapest one-bedroom or two-bedroom corner units on the higher level, with the best view. Often they are at higher prices, parking spots are $10,000 to 20,000 more expensive.
Like everyone else who may walk through the doors, they have no clue that almost half of the units have already been sold.
By now you knows why you gained nothing by registering early and that the smallest and most affordable places will likely be gone.
You Want To Be First in Line?
Register with me today .....
Read more from REAL ESTATE SNATCH Post blog:
No comments: