Pre-Sale Condos

by Khalil Kassam ~ May 12th, 2011. Filed under: Uncategorized.

In Vancouver, Condominium Pre-sales is one of the most common ways for developers to sell their units. This allows developers to gain access to capital pre-construction, which increases eligibility for financing by having a higher level of equity and smaller loan to value ratio. In return, developers contractually give buyers interest on their money or allot a decorating allowance which is a reimbursement to the purchase price.

Using a Lady  and black background to show sophistication and luxury

The largest advantage for developer is that selling units “pre-sale” or commonly known as selling by plan gives them the advantage of selling things by imagination. You are not selling the buyer a physical piece of property, rather you are selling them a contract which binds them to purchasing the unit further down the road by forfeiting a small deposit, and paying installments as the project gets near completion. By using affective marketing, they are able to create luxury and sophistication in commercials, graphics and online devices. In reality, these properties are only an addition to the Vancouver skyline, but they continue to fetch the highest price per foot in the country.

Check out this video of 3 Harbour Green: YouTube Preview Image

Visit their website: http://www.harbourgreenplace.com/home.php

3 Responses to Pre-Sale Condos

  1.   Mr WordPress

    Hi, this is a comment.
    To delete a comment, just log in and view the post's comments. There you will have the option to edit or delete them.

  2.   Tamar

    Real estate marketing is fascinating – so much rides on the seller’s ability to feed the “imagination”, as you’ve pointed out. Does this ever backfire, do you think?

  3.   Khalil Kassam

    It does in many cases. Reputation is a big part of the success for developers. If you are inconsistent, it can cause a bad name in the industry, and as a result, becomes harder to sell in new projects for both the developer and marketing arm.

    There are many legal ramifications- the disclosure statements that developers use when selling in presale can be argued and tested in courts for financial reimbursements. Its a very grey area in Vancouver.

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