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The
real estate industry in North America is an $800 Billion dollar
a year industry with hundreds of millions of dollars in
commissions paid to sales people ONLY when they make the sale!
Many of the absolute BEST SALESPEOPLE on the continent earn
their living selling real estate. When you visit a new condo
sales site you are many times facing the best sellers in the
business (people who can influence your decision making process
through their use of proven sales techniques and tactics).
Nowhere is sales pressure more evident than on the sales floor
at new condo development sales sites. It is incredible to me how
the carnival atmosphere that we launched in the early 1980s
still lingers on today.
Every week I visit new condo sites to see what they are doing,
whats selling and whats not selling. I disclosed in the
introduction to this book that I am a recovering condo sales
specialist. I say recovering because up until a few short years
back I was one of these highly trained sales professionals
exercising my skills on sales floors like Minto Plaza which I
managed to sell amidst the crashing market of the 1980s, 300
Bloor St. East (whos developer unfortunately went bankrupt
and never built the building which is today Bellagio on Bloor),
1001 Bay St. and others.
In those days we top guns got our highs from
closing sales with buyers who actually were trying to NOT
buy! The power of persuasion when coupled with proven sales
tactics and strategies is dynamic. I welcomed customers' pleas
to just go home and think about it and talk it over.
The odds were that once you got into my presentation centre, you
were buying. Even if you didnt want to, you were buying. I
was literally a highly polished high pressure salesman. You
would ask me if you could just go home and Id say no,
reaffirming to the wife that he probably does this every
time he is faced with a decision. Give me a little
confirmation there and Ive got you. This is why I say I am
recovering because I still start to salivate when I
think of the contest (much like a game of chess) to
get you to sign and write out a deposit cheque.
The reality of this all is that I am not alone in this field.
Pretty well every site that you go to in Toronto (or anywhere
for that matter - Americans are even more polished) has one or
two veterans, some elderly matron types, some suited power
broker types, some quiet and timid but lying behind that venire
is a trained sales professional accustomed to walking
prospective purchasers through the process without ever
disclosing anything more than answers to what their customer
(you) specifically asks.
Most developers hold back a certain portion of suites and many
more times these suites are sold to insiders (family,
friends and acquaintances of the Developer) at insider prices
(usually ten to fifteen percent below the going market rate).
Have you ever wondered how they sell out on the first weekend?
These insiders buy suites at these low prices to insure
the developers' bank that sales are good and to generally keep
things moving in a positive direction. These
suites and/or any
hold-back suites will be filtered into the
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market a couple months prior to
occupancy at substantially marketed up prices (present day rate on
investment made 2 years prior with minimum down payment). These
are called Assignments and require addition legal protection
for purchasers.
The remaining inventory of suites are then sold to buyers who
reregistered earlier and have been awaiting their opportunity to
come into the sales site for a presentation. I was somewhat
embarrassed just a week ago while visiting a sales site to hear
the carnival announcer come on the PA system announcing Unit
1702 SOLD, Unit xxx SOLD, etc. SOLD. This is condo selling
101 for the year of 1985 (old world) and yet, it still is alive
and doing well today! And the consumers are still buying it!
I visited another site on behalf of a client in the summer of 2002
and was told that a building they were building would occupy in
October of 2002 while the building was not even completed and
it was August! A good rule of thumb when visiting condo sales
sites is BELIEVE NOTHING THAT YOU HEAR AND ONLY HALF OF WHAT
YOU SEE.
Have you noticed when you visit these sites, they wont even
talk with you unless you complete the registration card? This is
to restrict you from having your agent get involved so if you want
FREE professional advise when buying new, be sure to have your
buyers agent attend the site with you and never register if you
intend to have your agent work with you. Most reputable developers
co-operate with Realtors to insure their customers have
adequate professional representation and most
of these do not limit your ability to have council based on a
shell game of having you Register at their site before even
speaking with you. Once you have registered they immediately no
longer honour co-op agreements so always be sure to have your
Buyers Agency established before you go to the site.
This does not mean that you can only visit sales sites with your
Buyers Agent. I have all of my clients take my card into the
site if they want to visit without me. I inform them to disclose
that they are represented by me and I give them a handful of my
business cards. What this does is disconnect their system and
takes all the heat off of you. The sales representatives will be
thoroughly professional with you yet apply no sales pressure. Feel
free to ask for their assistance. They will give you floorplans,
site plans, etc., and not play any of the conventional games that
are played.
Obviously there is a very strong undertone throughout this
publication to suggest that you only buy a condo in Toronto using
a professional Buyers Agent, one who does not introduce
potential of conflict by carrying listings and who is thoroughly
familiar on a day to day basis with whats happening in the
market. The logical representative for you in this market is me
and I will look forward to hearing from you in the event that you
decide to buy a condo in Toronto (not intended to solicit property
already advertised for sale or lease). I can always be reached c/o
simplycondos@gmail.com.
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