"Advisors provide value by educating clients on the complexities of buying pre-sale homes."Â
We sat down with rennie's VP of Client Services, Jack Bernard, to chat about providing value to clients, fostering relationships with developers, and asking the right questions. Learn about Jack's best practices in project sales below.Â
Jack Bernard on… The fundamentals of representing buyers in pre-sales.
This is a topic that I will often cover when coaching realtors. It’s critical that the realtor initiates a conversation with the sales team to ensure that all parties are in alignment.Â
A realtor should do a preliminary visit to the development before bringing their client. That way, they can take the opportunity to discuss their client’s needs with the sales team so that when the realtor does return for a visit with their client, the sales team can offer a tour specifically curated for the potential buyers.Â
The more information both parties have, the easier it is to bring a deal together. The sales teams assigned to these developments are subject matter experts who understand the project's specifics better than anyone else. The more information they receive about a potential buyer, the better the recommendations they will be able to make.Â
Success in pre-sales is not all that different from a multiple-offer situation in re-sale. In resale, you’re going to write letters, and get to know the listing agent, owners and product. A realtor who takes all of these respectful and considerate steps to develop a relationship will be in a better position than someone who just emails in an offer. The same courtesy applies to pre-sales.
Some of the right questions to ask a sales team include the following:
What are the developer’s pre-sale requirements?Â
How many homes have to be sold before the project moves forward?
Do you have set targets to increase pricing?Â
Knowing this can help your buyer understand that they’re building equity through their locked-in price.
Is there any ability to relax the deposit?
This will likely apply to the timing of the deposits rather than the overall percentage.Â
What other projects has the developer done?Â
Reputation is important. It will help ensure that clients receive the same calibre of home that was marketed to them.Â
What is the construction variant?Â
In every contract, floor plan sizes are estimates because they are not yet built, so every contract has a variance ranging from 3 to 5%. However, what if the variant is 10%? In this case, a property may have been sold as a 500 SF home, but the finished product will be 450 SF. The purchase price won’t be adjusted to reflect the change in size; however, the property's value will be affected.Â
What is your anticipated building start date? How long does it typically take to build a project like this?
The answer to these questions will tell you if the completion date is reasonable or not.Â
Jack Bernard on… Developing relationships with developers in a down market.Â
Even if you have never done a deal on a specific development site, your name will still appear on a presentation centre’s traffic reports, and even in a down market, developers will appreciate the support you show by bringing clients for project tours. It’s never a waste of your time–you’ll always learn something, and it will help you build a strong relationship with the developer.Â
Jack Bernard on… Providing value when representing Buyers in a pre-sale purchase.
The realtor provides value by educating clients on the complexities of buying pre-sale. There’s uncertainty in the situation because the home is under construction, which means there are many moving parts. A realtor can understand their buyer’s needs in relation to purchasing, closing, reselling, assigning, legalities, and finance. In pre-sale, it’s not as much about negotiation as it is about the details that will matter to the clients after the contract is signed. A realtor who looks out for their client’s best interests on a moving timeline is more valuable than anything.
Things can change in pre-sale. Timelines shift, and having a realtor watch them for a client–from making calls on their behalf to helping them understand all the moving parts–makes a difference. For example, a well-informed realtor can advise their client on when to give notice to their landlord if they are currently renting. There could be a disclosure statement that could say that closing takes place in February, causing a client to give their notice too early when a realtor will understand that the timelines are estimates and the contract actually cites closing as sometime between February and April. The better a realtor understands the disclosure statement, the better they can represent their client.Â
Our full-service brokerage will help you build your career through a supportive and collaborative environment, consistent mentorship, and the opportunity to align yourself with our reputation for real estate excellence. Learn more here.
We sat down with rennie's VP of Client Services, Jack Bernard, to chat about providing value to clients, fostering relationships with developers, and asking the right questions. Learn about Jack's best practices in project sales below.Â
Jack Bernard on… The fundamentals of representing buyers in pre-sales.
This is a topic that I will often cover when coaching realtors. It’s critical that the realtor initiates a conversation with the sales team to ensure that all parties are in alignment.Â
A realtor should do a preliminary visit to the development before bringing their client. That way, they can take the opportunity to discuss their client’s needs with the sales team so that when the realtor does return for a visit with their client, the sales team can offer a tour specifically curated for the potential buyers.Â
The more information both parties have, the easier it is to bring a deal together. The sales teams assigned to these developments are subject matter experts who understand the project's specifics better than anyone else. The more information they receive about a potential buyer, the better the recommendations they will be able to make.Â
Success in pre-sales is not all that different from a multiple-offer situation in re-sale. In resale, you’re going to write letters, and get to know the listing agent, owners and product. A realtor who takes all of these respectful and considerate steps to develop a relationship will be in a better position than someone who just emails in an offer. The same courtesy applies to pre-sales.
Some of the right questions to ask a sales team include the following:
What are the developer’s pre-sale requirements?Â
How many homes have to be sold before the project moves forward?
Do you have set targets to increase pricing?Â
Knowing this can help your buyer understand that they’re building equity through their locked-in price.
Is there any ability to relax the deposit?
This will likely apply to the timing of the deposits rather than the overall percentage.Â
What other projects has the developer done?Â
Reputation is important. It will help ensure that clients receive the same calibre of home that was marketed to them.Â
What is the construction variant?Â
In every contract, floor plan sizes are estimates because they are not yet built, so every contract has a variance ranging from 3 to 5%. However, what if the variant is 10%? In this case, a property may have been sold as a 500 SF home, but the finished product will be 450 SF. The purchase price won’t be adjusted to reflect the change in size; however, the property's value will be affected.Â
What is your anticipated building start date? How long does it typically take to build a project like this?
The answer to these questions will tell you if the completion date is reasonable or not.Â
Jack Bernard on… Developing relationships with developers in a down market.Â
Even if you have never done a deal on a specific development site, your name will still appear on a presentation centre’s traffic reports, and even in a down market, developers will appreciate the support you show by bringing clients for project tours. It’s never a waste of your time–you’ll always learn something, and it will help you build a strong relationship with the developer.Â
Jack Bernard on… Providing value when representing Buyers in a pre-sale purchase.
The realtor provides value by educating clients on the complexities of buying pre-sale. There’s uncertainty in the situation because the home is under construction, which means there are many moving parts. A realtor can understand their buyer’s needs in relation to purchasing, closing, reselling, assigning, legalities, and finance. In pre-sale, it’s not as much about negotiation as it is about the details that will matter to the clients after the contract is signed. A realtor who looks out for their client’s best interests on a moving timeline is more valuable than anything.
Things can change in pre-sale. Timelines shift, and having a realtor watch them for a client–from making calls on their behalf to helping them understand all the moving parts–makes a difference. For example, a well-informed realtor can advise their client on when to give notice to their landlord if they are currently renting. There could be a disclosure statement that could say that closing takes place in February, causing a client to give their notice too early when a realtor will understand that the timelines are estimates and the contract actually cites closing as sometime between February and April. The better a realtor understands the disclosure statement, the better they can represent their client.Â
Our full-service brokerage will help you build your career through a supportive and collaborative environment, consistent mentorship, and the opportunity to align yourself with our reputation for real estate excellence. Learn more here.
