Are You A Property Developer? 2 Key Things To Remember When Selling Off The Plan
The real estate market in Australia is experiencing a price drop.
While conventional properties are still likely to fetch buyers and renters, off the plan properties, have proven to be a hard sell for most real estate developers.
However, the prospect of future profitability and capital growth makes it lucrative as an investment opportunity. And even with the recent drop, the median price of homes at $830,000, making investment in off the plan properties an affordable housing option.
2 Key Things To Remember When Selling Off The Plan
Selling off the plan presents a tough challenge for real estate developers, but not an impossible one. While there are several plus points to investing in an off the plan property, real estate developers need to have a strategy in place to gain clients' trust.
Here are 2 key things to consider for real estate developers when selling off the plan:
1) Client’s Need To Be Educated On Prospective Advantages
A fluctuating market, coupled with future uncertainty, are the biggest reasons why people remain skeptical about the plan properties.
Imagine a prospective client that has every attribute of your buyer persona, only to be turned away by a false market perception.
Real estate developers need to combat market rumors and take a polite, yet authoritative approach to educate clients on the prospective benefits of an off the plan property.
To help you get started, here’s a list of reasons why investing in such properties is a good idea:
- Easier Payment Schedule
Conventional property purchases come with tight payment schedules, with little time afforded to buyers to wind up total finance. With an off the plan property, buyers can afford to have extended payment schedules, at least up to 12 months.
This could prove to be a key differentiator for first-time buyers than repeat buyers. They can use this additional time to save more and reduce the focus on additional borrowings.
Everybody dreams of a new home, but not many people have the chance to build one. With conventional properties allowing little to no design and structural customization, and customized building costing a fortune, an off the plan development represents an ideal compromise.
Homeowners can customize finishes and fixtures to mold their future homes according to their wishes, just like they dreamt of.
- Capital Gain
Not only do off the plan properties come with additional tax benefits, but due to the inherent nature of land assets, their value also rises with time.
This is why investors remain interested in such projects due to the possibility of considerable capital gains. Real estate developers need to use such points to demonstrate why off the plan properties remain a lucrative buy – both as a future home and an investment commodity.
2) You Need To Reach Out To Your Target Audience
With more and more buyers searching for a home online, real estate developers need an online marketing strategy to boost their business and grow their customer base.
Here’s what you need to include:
- Search Engine Marketing
With 2020 expected to be the peak year for millennial home buying, real estate developers need to market their properties where their prospective buyers are looking for – search engines.
You may decide to go towards creating content and boosting your SEO rank, or simply paying for ads and running a pay-per-click campaign – or an optimal mix of both.
Nonetheless, a sound SEO strategy can ensure you expose to a growing number of buyers who are searching for their homes online.
- Social Media Marketing
Social media platforms, such as Facebook and Instagram, represent a thriving marketing place for real estate developers who are selling off the plan.
With virtual tours and 360° pictures gaining popularity, a strong social media presence will not only allow you to post advertisements about your off the planned project but also appeal to your target audience with attractive pictures and videos that further advocate your cause.
While off the plan properties do take their time to develop, there are several benefits homebuyers can obtain from putting their money in such projects. Not only do real estate developers need to actively educate their clients on such benefits, but also utilize modern communication channels to reach out to a broader audience.