Did you know focusing on pre-construction property sales can be very profitable for real estate agents.
Ever felt like you’re selling thin air?
Welcome to the world of pre-construction property marketing! (If you thought selling ice to Eskimos was tough, try selling condos that don’t exist yet 🏗️)
As Canada’s skylines continue to evolve faster than a Maple Leafs lineup change, savvy realtors are tapping into a goldmine of opportunity (I say this as a Leafs fan).
But how do you market something that’s still just a twinkle in a developer’s eye?
Buckle up, future property moguls – we’re about to dive into the art and science of pre-construction marketing. It’s time to turn those blueprints into greenbacks!1?
Many agents have made a big name for themselves in this field.
(yes that AI image looks cool. But in reality, it’s humid, dusty and noisy. But the point is – you can be happy with real estate marketing and selling Pre-cons in Canada).
Key Takeaways
- Pre-construction property sales can be a highly profitable niche for real estate agents1
- Effective marketing strategies are essential when there is no physical structure to showcase
- Building a strong online presence, leveraging social media and email, and creating compelling marketing materials are crucial
- Establishing yourself as a pre-construction expert can help you stand out in the market
- Networking with developers and implementing targeted advertising campaigns are key to success
Understanding the Pre-Construction Property Market
In Canada, the pre-construction property market offers both chances and challenges for realtors.
Developers in British Columbia, Alberta and Ontario often sell homes before they are built, like apartments and townhouses2.
These sales usually have a two-year build time at a set price2.
This growing market can be very profitable for agents who specialize in it.
Benefits of Specializing in Pre-Construction Sales
Many buyers like pre-construction homes for their ‘move-in-ready’ status, custom designs, warranties, and fewer rental rules3.
It’s key to focus on needs over wants to avoid overpaying3. Too many wants can limit choices and increase costs, so it’s important to prioritize needs for better matches3.
Challenges of Marketing Pre-Construction Properties
Marketing homes before they’re built is tough because there’s no physical property to show. Agents must use renderings and virtual tours, which can be hard to build trust with buyers2.
Pre-construction homes also compete with developers’ sales teams, who have more resources and aggressive marketing2. Buyers can cancel a pre-sale contract within seven days, making it harder for realtors2.
To do well in the pre-construction market, realtors need strong marketing plans, digital tools, and to be experts in this area. Knowing the pros and cons helps agents succeed and take advantage of the growing demand for these homes.
| Needs | Wants | Deal-Breakers |
|---|---|---|
| – Number of bedrooms/bathrooms – Location – Budget |
– Amenities – Architectural style – Outdoor space |
– Allergy-related restrictions – Unacceptable neighborhood features – Lack of essential transportation access |
“Delays in property developments can happen for various reasons, including inadequate sales, financing delays, and labor shortages.”2
Did we talk about our Portal for Realtors looking to specialize in Pre-Con in Canada? If not, this would be a good time. Head over here and check out all the hottest pre-con projects Hashtag Homes provides details for.
There is a premium plan and there is also a free version.
You can stick to the free version as long as you would like, but if you are serious about growing in Pre-Con – then getting access to dates, specs, renderings, and builder details for your clients in one single portal for less than 3 Starbucks a month may be worth it.
Going back to our discussion…
Buyers should think about selling their current home before buying a new one if there are delays in development. Real estate prices might drop, making the agreed price different from the unit’s market value later2. Selling a pre-sale property might not be allowed or could need the developer’s okay and a big fee23.
Developing an Effective Pre-Construction Marketing Strategy
Creating a strong pre-construction marketing strategy is key for real estate agents in today’s market. It’s all about having a solid online presence and using social media and email marketing well.
Building a Strong Online Presence
In today’s world, 88% of buyers start their search online, showing how vital a strong online presence is for pre-construction properties4.
Here is our website (as of August 2024) – raw honest mobile rendering:
Real estate agents need a website that stands out.
I encourage you to stop using cookie-cutter templates from cheap CRMs.
You drive a nice car to signal success and excellence. But you skimp out on a website where 90% of your first impressions are coming from?
Invest in a brand and site that should be easy to find online (think SEO), filled with the right keywords and interesting content. This makes the agent look like an expert in pre-construction.
Leveraging Social Media and Email Marketing
Social media and email marketing are also key for real estate agents in the pre-construction market. 75% of real estate developers get more leads through social media, proving its power4. Plus, email marketing can convert at a rate of 2.5%, which is great for keeping leads interested in pre-construction properties4.
Check out our Instagram for ideas on social media for Pre-Con Realtors here.
Our social media handles get engagement, and inquiries from other realtors, builders and clients.
We are building our following to keep our brand top of mind for our target audiences.
Understand and invest in your niche – and build content that will resonate
To make the most of social media and email, real estate agents should plan their content well.
Hosting virtual events like webinars and live Q&A sessions can boost conversion rates by up to 30%4.
Using these digital tools helps agents connect with potential buyers, increase sales, and grow their reputation in the pre-construction market.
Creating Compelling Marketing Materials
To market pre-construction properties well, realtors need to make marketing materials that stand out. High-quality renderings and virtual tours are key. They let potential buyers see what the finished property will look like and what it offers5. These tools help agents grab attention and build trust with potential clients.
Leveraging Renderings and Virtual Tours
Renderings and virtual tours are vital in marketing pre-construction homes. They let buyers see the future of the property5. A 2023 study showed that 85% of homes staged with virtual tours sold for more than unstaged homes, proving their effect on sales5.
Creating these materials means working with talented designers and developers. They should know the property well and show off its best features6. The team should also understand real estate markets and make designs that work on all devices.
| Marketing Material | Key Benefits |
|---|---|
| High-Quality Renderings |
|
| Interactive Virtual Tours |
|
Using these strong marketing tools, realtors can catch the eye of potential buyers and help them decide5. This can boost sales, make the realtor more known, and show they’re an expert in pre-construction.
Establishing Yourself as a Pre-Construction Expert
To stand out in the pre-construction real estate market, realtors need to be experts.
They should keep learning, network with developers, and know the pre-construction process well. This helps them gain trust and attract more clients, giving them an edge.
One way to become an expert is to keep up with trends and best practices. Realtors can do this by going to events, workshops, and conferences.
They should also join online communities and forums. By staying current with pre-construction real estate knowledge, realtors become trusted advisors to their clients.
Building strong relationships with local developers is another way to gain expertise. Realtors can work with developers to learn about their projects, marketing, and who they’re selling to. This insider knowledge helps realtors serve their clients better and stand out in the market.
Realtors should also show off their knowledge through marketing. They can write blog posts, make videos, and share tips on social media.
By offering valuable content, realtors can become leaders in the pre-construction real estate field.
By using these strategies, realtors can become pre-construction experts. This makes them the top choice for buyers and sellers in this fast-paced market7. Their expertise leads to more leads, higher conversion rates, and successful pre-construction deals.
“Becoming a pre-construction expert is not just about knowing the industry. It’s about being a trusted advisor who guides clients through the pre-construction process.”8
Networking and Building Relationships with Developers
As a realtor, it’s key to build strong ties with local developers for success in the pre-construction market. By networking, going to industry events, and working together on marketing, you can get early access to new projects. This makes you a go-to advisor for developers and buyers9.
Long-term partnerships with builders are crucial. They lead to ongoing work and a steady flow of pre-construction listings9. Agents focusing on new homes can boost their trustworthiness by getting certifications like CNHS or RCC9.
Working together on marketing, like co-branded ads and virtual staging, can make you more visible. It shows your skills to potential clients9. Also, following builders’ co-op rules and being open in talks helps keep good relationships and opens up more chances9.
These partnerships give you special access to pre-construction listings and help you stand out in the market10. Working with developers also opens doors to VIP chances for top pre-construction projects. This can lead to getting units at good prices10.
But, it’s important to check the financial health of the development company and know how pre-construction projects are funded before investing10. Also, talking to a financial advisor or real estate expert is a good idea when deciding to invest in pre-construction10.
“Successful pre-construction marketing requires a delicate balance of industry expertise, strategic partnerships, and a deep understanding of the market.”
Marketing Pre-Construction Properties
Marketing pre-construction properties needs a mix of strategies. This includes targeted ads, open houses, and showcases. Using both digital and traditional methods helps you reach more people and show your expertise.
Targeted Advertising Campaigns
Using digital tools like SEO and Google Ads is key for your ads11. In Toronto, realtors see pre-construction marketing as a big chance to make money. These digital strategies help you stand out in a busy market11. Also, 3D renderings, animations, and virtual tours are key for showing off your project11. They let you connect with buyers all over the world.
Open House Events and Property Showcases
Open houses and showcases are great for making a buzz, meeting potential buyers, and showing off what your development offers11. Using tech like 3D renderings and 360 tours is important for getting noticed in real estate11.
These tools create experiences that grab buyers’ attention and help you become known as a pre-construction expert.
Pre-construction marketing is key for real estate success11. By using different marketing tactics, you can promote your properties well and be seen as a trusted expert11.
Lead Generation and Nurturing Strategies
Getting and growing leads is key to doing well in the pre-construction property market. As a realtor, using smart strategies to grab leads and keep in touch with them is crucial. This can greatly improve your chances of turning prospects into clients12.
Capturing and Following Up with Leads
To get pre-construction leads, think about sharing useful content like detailed property info, virtual tours, or market insights online. Use social media to connect with potential buyers, where13 targeted ads can reach the right people and bring them to your site13.
After getting a lead, it’s important to keep in touch and build strong relationships12. Text messages are great for this, with almost everyone opening them and responding quickly12. Also, having a professional website with info and reviews can help build trust and get more leads13.
Using a CRM to automate lead sorting and personalized emails is a smart way to look after your leads13. Even though direct mail is slower and costs more than email, it’s still a good way to keep in touch in real estate12.
At Hashtag Homes, we use Asan Real Estate CRM among others to market:
You can learn about about them here–> Asan Real Estate CRM. They build much better websites, provide leads and provide a lower costs CRM. Worth a look if you are not already provided by one in any one of these other famous overpriced ones.
(Full disclosure – the co-founder for Asan Real Estate CRM is a collegue of mines and he runs our marketing as well).
With a strong plan for getting and looking after leads, you can keep a steady flow of pre-construction leads. This can help you turn more leads into successful sales13.
| Lead Generation Channel | Open Rate | Response Time | Consumer Preference |
|---|---|---|---|
| 20% | N/A | 52% prefer email | |
| Text Message | 98% | 3 minutes | 48% prefer text |
“Capturing and nurturing pre-construction leads is essential for success in this competitive market. By leveraging a variety of strategies, you can build a steady pipeline of potential clients and increase your chances of closing deals.”
Using both digital and traditional marketing methods13 is a good idea. This includes social media ads, a professional website, and even billboards or local papers. These can help you get and care for pre-construction leads well1312.
Legal and Ethical Considerations
When marketing pre-construction properties, realtors must think about legal considerations for pre-construction and ethical practices in pre-construction. They need to follow industry rules, give buyers clear and honest info, and make sure their ads match the real project details14.
In Virginia, realtors have to follow VREB rules for ads, which include clear disclosures14. Ads online or off must show the agent’s name, their company, city, and state, and where they’re licensed14. Social media posts also need to have the right info, easily found with one click, as NAR says14.
Being professional and honest helps agents gain their clients’ trust and stay out of legal trouble15. Real estate deals are complex and closely watched, so acting ethically is key to follow the law and rules15.
- Fair Housing laws stop discrimination based on things like race, religion, and sex14.
- Showing a team doesn’t mean you don’t have to list the brokerage in ads, as the Code of Ethics says14.
- Using someone else’s photos in ads needs permission or credit, as the Code says14.
- Websites must show where the Realtor is licensed, not just where they work, as the Code requires14.
The Code of Ethics says real estate pros must be honest and truthful in all talks and ads about properties14. Not telling the truth about a property can lead to legal and ethical problems, breaking NAR rules and state laws15.
| Ethical Considerations | Legal Considerations |
|---|---|
| Keeping fiduciary duties like loyalty and honesty15. | Following industry rules and making sure ads match the real project details14. |
| Avoiding vague or wrong claims in ads, using solid sources15. | Adding required disclosures in ads, as VREB and NAR say14. |
| Being fair and treating all clients the same, following Fair Housing laws15. | Getting permission and giving credit for photos not your own14. |
Following these legal considerations for pre-construction and ethical practices in pre-construction helps realtors build trust with clients. It also keeps them out of legal trouble and keeps the real estate industry’s high standards.
“The Code of Ethics emphasizes honesty and truthful representation in real estate communications, including the marketing and advertising of properties.”
Measuring Success and Optimizing Your Strategy
It’s key to track your pre-construction marketing efforts and keep improving your strategy for long-term success16. As a realtor, setting up key performance indicators (KPIs) is vital. These include lead generation, conversion rates, and sales volume17. By looking at these metrics and making changes based on data, you can improve your strategy and get the most out of your investment in the pre-construction market.
One key KPI is the conversion rate, which shows how many website visitors turn into leads or customers18. Also, keeping an eye on your cost-per-lead (CPL) and cost-per-acquisition (CPA) helps you see how your marketing is doing financially18.
| Metric | Description | Benchmark |
|---|---|---|
| Conversion Rate | Percentage of website visitors who convert into leads or customers | 2-5% |
| Cost-per-Lead (CPL) | Total cost to generate one new lead | $10-$50 |
| Cost-per-Acquisition (CPA) | Total cost to acquire one new customer | $50-$200 |
Also, watching website traffic, bounce rate, new vs. returning visitors, and visits by traffic source gives you insights into your marketing’s success18. By looking at these metrics, you can find areas to improve and make your pre-construction marketing better.
Remember, improving your marketing is an ongoing task. Always check your KPIs, tweak your strategy, and adapt to stay competitive in the pre-construction property market17.
“The key to success in pre-construction marketing is to continuously evaluate your performance and make data-driven decisions to refine your approach. By doing so, you’ll be able to maximize your return on investment and stay ahead of the competition.”
Conclusion
Marketing pre-construction properties in Canada needs a smart and detailed plan. Knowing the perks, like lower prices19 and customizing homes19, and the downsides, like delayed builds19 and market ups and downs19, helps real estate agents succeed. They can stand out in the pre-construction market.
Creating a strong marketing plan, making engaging content, and showing off their expertise is crucial. This helps agents draw in and win over buyers for new projects20. By always checking their progress and tweaking their methods, agents can thrive in the pre-construction market, especially in sought-after cities1920.
Pre-construction homes bring special chances but also come with extra costs21, uncertain delivery times21, and cooling-off rules that can affect investments21. Real estate pros can guide their clients through this process. They work with trusted developers20 to help clients make smart choices that meet their investment goals.
FAQ
What are the benefits of specializing in pre-construction sales?
Specializing in pre-construction sales can be very profitable for real estate agents. This part of the real estate market is getting bigger. Agents who can sell these properties before they are built can get more leads and a steady flow of work.
What are the challenges of marketing pre-construction properties?
Agents face the challenge of marketing without a building to show. They must use smart marketing to draw in buyers. They also have to build trust, compete with sales teams from developers, and show the property’s potential through pictures and online tours.
How can I build a strong online presence for pre-construction marketing?
Creating a website and SEO-optimized content can make you a go-to expert in pre-construction sales. Using social media and email marketing can also help get leads and keep in touch with potential buyers.
Why is it important to create compelling marketing materials for pre-construction properties?
Good pictures and virtual tours are key for showing off pre-construction properties. They let buyers see what the finished product will look like. By using these tools, agents can spark interest and gain trust with potential clients.
How can I establish myself as a pre-construction expert?
To stand out in pre-construction sales, realtors should keep learning, network with developers, and know a lot about the process and market trends. This knowledge helps attract more clients and gives you an edge over others.
Why is it important to build relationships with local developers?
Building strong ties with local developers is key to doing well in pre-construction sales. By networking and working together on marketing, agents can find new projects and be seen as trusted advisors to developers and buyers.
What are some effective marketing tactics for pre-construction properties?
Using targeted ads in both digital and traditional ways can help agents reach their audience. Hosting open houses and property events can also create excitement, build connections with buyers, and highlight what the property offers.
How can I effectively generate and nurture leads for pre-construction properties?
Realtors should use strategies like offering valuable content and engaging with potential buyers online. It’s also key to follow up well and keep leads interested, making sure they’re ready to buy when the right property comes along.
What are the legal and ethical considerations when marketing pre-construction properties?
Realtors must follow the rules, give buyers accurate info, and make sure marketing matches the property’s real features and timeline. Being professional and honest is vital to gain trust and avoid legal issues.
How can I measure the success of my pre-construction marketing efforts?
Realtors should track important numbers like how many leads they get, how many turn into buyers, and how much they sell. By looking at these numbers and adjusting based on them, agents can improve their marketing and get a better return on investment.
