What Is An Exclusive Listing?
In a fast-paced market like Toronto, where demand for inventory far outstrips supply, the Toronto real estate market has developed an insatiable appetite for investor condo inventory in downtown and central Toronto. Now, in this environment (which few other cities worldwide can compare), condo projects are sold out in weeks. Not to mention, they can be sold out well before the general public is aware they have even gone for sale. If you’re looking to buy a pre-construction condo, the best time and only time is on day one. In particular, you can be the first to get pre-construction access only through working with a bonafide platinum agent. An agent who not only has direct access to day-one pricing, floor plans and developer incentives but can get you the suite you want!
Becoming a platinum agent is largely dependent on the realtor’s relationship with a specific developer. If an agent has successfully sold many condos previously for a developer, they will get first access priority. In turn, they are allowing those select few brokers to offer first pre-construction access to their clients. Moreover, a platinum agent will advise their clients of upcoming projects well in advance of the advertised or promoted project. Working with a platinum agent at times can be like having access to an underground condo secret society. Think about it this way; there are significant financial opportunities that will never become available to the general public!
To best maximize your return on investment, it is imperative to get pre-construction access on day one. This is where the best selection of pricing and floor plans and incentives become available to a select few with insider access. Generally, about 30 to 40 agents are platinum agents with any given project and developer. It may sound like a lot; however, it’s not, considering there are 57,000 realtors in the GTA. Getting in early depends on having a great working relationship with a platinum agent who is in the know.
Typically platinum agents will sell 30-50% of a typical building. Not only do they get the best pricing and incentives, but they also have access to the most coveted floor plans. When the platinum launch phase is complete, the developer generally will implement a significant price increase. Not only is it to maximize the developer’s profits not just to the developer but also to show appreciation (at least on paper) for those who bought early.
Following the platinum launch, the developer will open up the project to VIP agents, anyone who registers with the developer or their sales team for that specific project. For any given project, there could be anywhere from 300 to 3,000 agents with VIP status. Competition can be very fierce, and prices will invariably be higher. After the VIP agent round, typically, 20 to 30% of the building will get sold. In most instances, the project will get sold out at this point. From here, for all remaining units, another round of price increases will take place, and access opens to the entire realtor population. In most instances, the majority of projects sell long before they reach the general public, and if a project ever does get to the general public, there will have been multiple rounds of price increases, and most of the inventory will have picked through by savvy investors and their brokers who got in early.
Typically most of the best floor plans and exposures get swept up during the platinum launch phase, as well as the best incentives. Some of these incentives include:
Chances are, if you are a pre-construction condo buyer, and you are purchasing after the platinum launch phase, you are buying a less desirable condo and paying a premium price for it.
An experienced Platinum agent will not only have and provide you with access to the best projects but they will be able to advise you as to the best long-term investment opportunities when in advance. There literally are hundreds of projects launching every year in the GTA. For the average investor can be a very overwhelming process to assess where the best opportunities are to sink your hard-earned money. Experienced platinum agents will steer to investing in the best projects, developers, neighbourhoods and floor plans. Not all projects and developers are equal.
Once you have decided on the developer, neighbourhood, and project you want to invest in, your broker has provided you with early access, which floorplan, exposure, size unit, and price point should you purchase. These are fundamental questions that an experienced broker can help you navigate. Less than 10% of the population can visualize space in 3D. Experienced brokers will be able to steer you towards the right plans that maximize natural light, have efficient layouts, and will provide the best opportunity to sell your condo for the highest price to an end-user after completion. This is something that only comes to a broker after years of experience.
After purchase, your agent should always be right there by the side of your side right up until completion. Platinum agents general have been in the business for a long time and have typically done a significant amount of volume with the developer over the years, and given their relationships with the developers, they can strongly advocate on your behalf if a problem or challenge arrives at some point- and sometimes challenges to arise.
The moral of the story is that the best and most lucrative way to buy pre-construction is to get first access working with a qualified professional and reputable platinum agent with your best interest at heart.
At Fox Marin, we have sold development projects on behalf of developers and are pre-construction investors ourselves. Having transacted in hundreds of pre-construction purchases and sales, as well as our leasing and resale experience, puts us in a unique position. In other words, we understand all sides of the table, giving us an edge as your representatives over other agents.
When considering purchasing a new build, it is essential to keep in mind that not all pre-construction opportunities are equal. While part of a successful investment is about getting in on day one, it’s not just about first access. It’s also about buying into the right project, finding the right floor plan, the right developer, the right location, the price per square foot, and the right time. Remember that committing to buying real estate that hasn’t and won’t be constructed for 3 to 5 years is not as straightforward as acquiring a resale (existing) property. This is why it’s paramount to have an agent on your team who can walk you through all the ins and outs. Make to find a couple who helps you avoid any potential pitfalls.
If you’d like to learn more about upcoming opportunities platinum pre-construction opportunities exclusive to Fox Marin clients, feel free to reach out at any time. There is no time like the present.
Should you be interested in taking a deeper dive into the Advantages of Buying Pre-Construction, we invite you to read our latest article posted here.
This article is written by Ralph Fox, Broker of Record and Managing Partner here at Fox Marin Associates. Ralph is a Torontonian native who recognized from an early age that the most successful people in life apply long-term thinking to their investments, relationships, and life goals. It’s this philosophy, along with his lifelong entrepreneurial drive and exceptional business instincts that help to establish Ralph as a top agent in the real estate market in downtown Toronto.