Lets just get it out there, condo assignment sales are a tough sale, even in the hottest market. So we’ve compiled a short preview of what we do to increase the chances of a successful sale.
For a number of reasons, condo preconstruction assignment sales are a very difficult sale. Many agents have very little experience dealing with an assignment sale, on both the buying and selling end. Some agents try put their clients off assignment sales in lieu of selling them a resale home. Some don’t market the home to its full potential, because they think their efforts are futile. Either way, it’s VERY important to work with someone that understands assignment sales; for example, without builder’s consent, advertising your assignment for sale could mean you forfeit your deposits and lose your home.
Below is a quick description of what a preconstruction assignment is:
- An assignment is when the buyer of a preconstruction condo or home decides to sell their contract before the home is complete. The property does not legally exist yet, so the seller is selling their contract with the builder.
- The new buyer is accepting the original terms set out in the contract.
- You cannot assign a contract without the builder’s consent, which can be arbitrarily withheld. Sometimes the builder will charge a fee up to 1% of the price, or even more. But it’s usually still cheaper to assign the contract, compared to waiting till closing and then selling.
- Assignment offers deal with not just purchase price and closing date, but also taxes, deposits, development fees and levies, and liabilities found in the builder’s original contract.
- Once the fine details of the assignment are agreed upon, the assignment is conditional on the builder accepting the new buyer. The buyer has to provide proof of financing and steps into the role of the previous buyer.
- We also strongly believe every contract should be conditional on lawyer’s approval.
Historically, Condo assignments have a low list-to-sales ratio, even in this market. However, with the right marketing, and careful attention to detail, assignments sell.
I evaluated assignments that sold and found out that:
Homes that are in interim occupancy have the highest chance of selling, because prospective buyers can tour the home. Equally important is providing: Floor Plans, Square Footage, Examples of Colors and Finishes, Maintenance Estimates, Artist Renderings, Model Suite Photographs, Site Map, Builder’s Reputation, and Neighbourhood Images and Stats. Homes located in buildings that are sold out, or in high-demand locations, are often at a big advantage too. Because the perspective buyer might not be able to view the home, it’s important to sell the location, lifestyle, builder, and space to the buyer.
To sell preconstruction assignments, we personally rely on the MLS board, internet distribution and paid Facebook advertising. We also advertise on Sothebysrealty.ca, Sothebysrealty.com, Prelist.org, The Lourantos Group, Cottage Marketer, HomeFinder, Homicity.com, Listnet.ca, Mortgage Group, Ovlix, Point2Homes, Propy, Seekaboo, Snap Up Real Estate, The Real Estate Book, Tradehomes, World Properties and the following premier online publications:
No assignment is too big or too small for our team. If you’re not sure if you can assign your home, or if you’re contemplating the idea of assigning your home, we’d be happy to chat. Just contact us here.