How to implement effective off-plan sales strategies
Early phase off-plan property sales strategy
Developing an effective off-plan sales strategy is key to achieving expected return on investment for property developers. It will help reduce the need for equity, help with funding and provide cash flow for the development, increasing buyer confidence and creating a virtuous sales circle going forward.
When developing a off plan sales strategy, you’ll need to gain the trust of end buyers and also be able to trust the partners you select in the process of off-market, off-plan sales.
Build key relationships first
You’ll have some key stakeholders, all of whom dovetail and work with you to take your project off the drawing board through to completion. Your lenders and buyers should be involved early, but you probably won’t want to publicise off-plan sales too soon. Off-market new build apartment sales can enhance your project balance sheet and help structure your pricing strategy going forward. Ensure you select off plan sales partners with a track record that matches your scheme.
Build trust with buyers and investors
Investors are keen to do business with developers who can be trusted. If you can demonstrate a track record of timely completions and working to pre-agreed specifications, that trust will grow more quickly and more freely.
Update your stakeholders regularly
People don’t like to be kept in the dark, so offer regular updates on how you are progressing towards milestones. Even if there’s a little bad news or a slight delay, it’s better letting your investors and funding partners know about them. not every little detail, but often in the absence of any news, investors can assume the worst. The important thing is how variations are handled, and to give plenty of warning if something goes awry. This allows your partners to manage relationships better in their world − in off-plan forward sales this is crucial.
Ensure buyers and investors understand the risks
Working with an experienced partner in off-market, off-plan sales gives you someone who will work with investors and you. Those who are aware that new build apartment sales are not without risk will be able to help you overcome issues as they arise. Usually, their clients are probably be long-term investors, which helps offer stability for your ongoing off-plan sales. Avoid speculative buyers who may be looking to flip their purchase at the most inconvenient time, putting pressure on prices and perceptions. Always choose your off-plan sales partner wisely.
Staging your off-plan sales strategy
Those first off-plan new build apartment sales will probably command a greater discount than later units. This is the nature of risk versus reward, and the earliest purchases are the riskiest from an investor’s point of view. You’ll need to consider how much equity needs to be raised and how many units need to be sold to reduce your financing needs. having a strong set of figures is critical and releasing properties at a regulated rate as part of your off-plan sales strategy will help you to finance your project and stabilise / secure prices.
Off-plan sales strategy reduces your risk and maximises income
By buying off-plan and new build apartments, Castlereach offer valuable and useful ways to reduce your risk. They’ll help your pricing going forward and give lenders greater confidence in your development. Your capacity to fund at competitive rates will probably increase as well as increase your overall profit and reduce the time and effort it’ll take hit your unit sales targets.
Off plan sales partnerships
Our investors understand the nature of risk and trust us to carry out the due diligence necessary to reduce their risk to a minimum per development. The feedback we give provides invaluable evidence of actual demand. This helps execute your sales strategy, and facilitate the build process as your development progresses.
To discuss your off-plan sales strategy and how many units you would like us to buy from you to help your development achieve your unit sales targets, call us on +44 207 923 5680 and chat to the team.
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