Pre-Construction Condo Sales Events
Tuesday Nov 23rd, 2021
By the time a new build / pre-construction condo project’s sales center opens its doors to the public, the building can be as much as 90% sold . How does this happen? Condo developers in Toronto generally follow a simple staggered marketing formula for selling their buildings and it goes like this:
1) Friends and Family sales event (5-10% of units sold)
2) Platinum agents sales event (30-40% sold)
3) VIP agents sales event (20-30% sold)
4) All agents sales event (10-20% sold)
5) Pre-registrants sales event (5-10% sold)
6) Grand Opening to the Public sales event (last 10-20% sold)
With each step along this continuum, selection of units goes down and prices tend to go up. It might be as much as 6 months between the first friends and family event to the grand opening to the public.
Platinum agents are the first group of people to get access to the building outside of the developer’s own friends and family. The Platinum agents generally sell the largest chunk of the building.
There are usually only about 20-30 platinum agents in any given project. These are generally agents who have sold the most units for the developer in the past at their previous projects. They are rewarded with first access and best prices for their clients. Often each platinum agent is given a specific “allocation” of units in the building (typically a couple of floors) for which they have exclusive rights to sell to their clients for a limited period of time.
Because the Platinum agents sell the largest percentage of the building, they are very important to the condo developer. Condo developers want to keep their platinum agents happy and, for this reason, they give their Platinum agents the best prices and incentives, along with the earliest access the project.
More importantly, Platinum agents never have to wait in any lines to buy a condo in a new project. They can often reserve a specific unit ahead of all other buyers simply by completing a worksheet.