Are you in the business of selling homes that don’t yet exist?
Presale communities and homes are on the rise as a promising business venture for developers and customers alike. Developers get to design a community from the ground up with guaranteed capital, while prospective homeowners buy into the dream of having a custom home in a newly designed neighborhood. Presale communities are a win-win concept, but they are still a hard sell for realtors and developers. Here is a brief guide on how to sell a community before it exists.
Do The Research
What kind of community will you build?
You don’t know the answer to this question until you do extensive research about your target market. Before approaching prospective buyers, learn about your sales goals and who your customers should be.
- Who lives in the region where you’re interested in developing the community?
- How many prospective buyers share a demographic or lifestyle that you can capitalize on?
- What does the economy look like in your area of interest?
Arm yourself with this information by researching general demographics, taking surveys, and interacting with local communities on social media. Once you’ve gathered your data, you can sell the dream tailored to a specific demographic. At this point, you have a price range in mind as well as selling points that appeal to your target market.
Sell the Promise
How can you sell something that is not yet tangible?
Even seasoned professionals are intimidated by the idea of selling homes that don’t yet exist on roads that haven’t been paved yet.
You have to sell the idea of a community. Focus your sales points on the potential of the community. Since you are building your community around the needs of your target market, you should base your strongest points around the factors that are most appealing to that demographic.
Remember to give yourself flexibility while selling the idea. Strive to under-promise and over-deliver instead of vice versa.
For instance, set a time for the project to be finalized, but give your buyers a later date. This leaves you with a flexible timeline for unplanned circumstances.
Use a building simulator to show your prospective homeowners what their new community will look like. Generate your simulated designs with intricate details. From individual floor plans to street signs, create user-friendly images that help your customers envision themselves in their new homes.
Meanwhile, keep track of prospective locations for your new development. Though you may already have one location in mind, staying married to it limits your potential. Keep track of properties put on the market by major cities and neighboring towns. Cities are likely to sell properties ideal for development from the ground up at a bargain.
Reach Your Target Market Online
Now that you have a target market, focus your efforts on spreading the word about your designer community.
The Internet is a powerful marketing tool at your disposal. Create a web presence for your new community to boost sales virtually without buying into an expensive physical advertising campaign.
Your first order of business should be an effective website. Creating a website that attracts the right customer is no easy feat. As demonstrated in this informative real estate forum, everything from proper grammar, to visual aesthetics, to search engine optimization can make or break your efforts.
Hire a company like Neon Ambition to help you expand your web presence and market effectively to your target audience. Help with marketing tactics can expand your resources and allow you to focus on how to bring your pre-sold community to fruition.