The Ultimate Guide on How to Sell Property off the Plan
Have you wondered about how to sell property off the plan?
People get into the townhouse development and real estate business for many reasons. The main one is that you can make a steady profit with some knowledge, processes, and plans. Both property developers and real estate sales agents can become quite wealthy.
However, this wealth is not gained overnight. Behind every successful real estate businessperson is years of hard work, dedication, a few stumbles, and blood, sweat and tears.
Selling a townhouse off the plan is significantly harder than selling existing property. We’ll explain why in more detail below.
In this helpful article, we’ll share the ultimate guide on how to sell property off the plan. By the end, you’ll know what you need to know to embark on your own sales journey.
What is Off the Plan?
This is a term you’ll hear a lot in the property development and real estate business. Selling properties off the plan means that you sell homes planned for development or that are under construction.
The buyer pays a deposit to the developer or estate agent; then, once the homes are constructed, the buyer takes possession of them.
Typically, the buyer will view the plans, designs and renders for the property but won’t see what the home looks like when built unless the developer has a display property, which isn’t always the case.
Construction can take a year, or sometimes more.
Why Do People Buy off the Plan?
There are a few reasons people buy off the plan compared to purchasing existing real estate. We’ll briefly explain some of the more common ones.
As a Rental Property for Depreciation Benefits
Some people looking to invest in property will purchase off the plan homes, which they then rent out to tenants.
Investors can claim depreciation on rental properties to offset their income. This is a tax deduction. An off the plan property can be claimed year after year, improving positive cash flow.
More Choice
Buying off the plan means you can choose some of the design elements, such as fixtures and fittings. This is beneficial for people who aren’t keen to renovate an older property.
Brand New – Fewer Expenses and Worries
A brand-new home comes with fewer maintenance expenses and headaches than an existing home. For instance, all appliances such as the dishwasher, heating and cooling systems and the like are all brand new and should have years of use in them before requiring replacement.
When people buy existing homes, they sometimes need a complete renovation to make them habitable, which is a significant expense on the often-large mortgage.
Longer to Save
For purchasing an off the plan property, you can put down your deposit then wait until construction is complete before drawing down a home loan or paying for the property.
This means saving for a year or more while you rent or live with your parents to save money. This is a massive benefit, especially for younger people starting out in the property market.
First Home Buyer Incentives
Financial incentives are available to first home buyers who buy new or off the plan homes. These are in the thousands of dollars and are not available when buying existing real estate, so this is a drawcard for first home buyers.
How to Sell off the Plan Properties – 5 Steps
Now that we’ve explained the various reasons people may choose to purchase off the plan let’s get into how to sell the property.
1. Get Top Notch Renders
The first step is to commission some top-notch quality 3D renders to provide the render assets for the properties.
This is non-negotiable; you will be pushing a boulder uphill without the renders.
They are not cheap, and there’s no doubt about it – excellent renders. But they sell the homes, first and foremost. As you will see, the render is the foundation of a successful off the plan sales campaign.
We often see beginners skimp on the renders and fall flat during the marketing stage. If no one buys the properties, no one makes bank.
2. A Sales/Marketing Brochure
Without a physical property or display home to entice buyers, you’re relying on other marketing collateral, such as a brochure.
Engage a reputable graphic designer and give them your render set.
With this, and the sales copywriting, which you can do or hire a freelancer for, the designer will develop a brochure.
This is the hook to catch buyers with. They will read it, study it and picture themselves living life inside the home.
Make sure that you use a professional printer to print these, and don’t cheap out on the paper stock. Pick a quality stock and finish, so the brochure looks sleek and professional.
3. Mood Boards or Trays
Here’s another tip on how to sell property off the plan. And while we are at here are some tips for buying townhouses.
An old sales tactic is to place the product in the customer’s hand. Once they feel its weight, the psychological process begins in their head, and they already think (subconsciously) that they own the product.
A sale is easier to make after that. The same applies to test-driving a car or using a demo piece of software.
Now, since off the plan property doesn’t exist in the here and now yet, you need to get around this barrier. And that’s where a mood board or tray comes in.
On it, you’ll place samples of flooring, fixtures, and fittings such as the metal for tapware, stone for benchtops and tiles for wet areas.
A tray is probably the better option as a buyer can pick it up, feel the material, and get the psychological attachment we mentioned before.
This is your opportunity to showcase the quality of your product and make a solid impression on buyers.
4. Advertise Your Variable Inclusions
Variable inclusions include things like appliances (ovens, dishwashers, heating, and cooling systems) as well as fixtures and fittings such as tapware and benchtop material.
Giving buyers options here is a must. This gives them a sense of control and ownership of the property. Have a document, like a booklet that lists all the optional and variable inclusions.
By letting buyers look at and consider what they might want in their home, you are inching closer to the sale.
5. Social Media and Internet Advertising
Forget about advertising on TV and radio – these are dying markets for ads. You want to reach your potential buyers where they are – on their devices.
People spend a lot of time on the internet, browsing or scrolling social media. Especially younger people who are looking for their first homes.
Invest in digital marketing, such as Google ads and social media ads. Facebook, Instagram and even TikTok are great platforms with lots of reach, and you can specify your budget to control your advertising spend.
A Crafty Sales Conclusion
In this article, we’ve shared the ultimate guide on how to sell property off the plan.
We first shared the various reasons why people buy off the plan property and then went through a sales/marketing strategy that is proven and effective.
Follow these steps and sell off the plan homes like hotcakes. If you want to keep learning, check out this list of the top books on property investing in Australia.
Finally, click here to check out our townhouses for sale in and around Melbourne.
