When deciding to purchase a condo, one of the first decisions you will be faced with is whether to buy a conventional resale
condo or go with a pre-construction condo.
Buying a condo is a big financial investment. That's why it's important to consider all of the facts about buying a pre-construction condo before you commit.
Pre-construction condominiums are one of the fastest growing investments with the fastest and highest returns. It is also one of the hottest pieces of real estate on the market today. These condos can be purchased for personal use or for turning a profit by flipping or renting out the condo after it is purchased and completed. Another benefit is that it can appreciate in value before the project is completed so the owners could realize monetary gain before actually closing on the property.
Purchasing a condo (in many cases) is also a more affordable and desirable option than a freehold home, especially in Toronto's core. According to the National Bank's chief economist, Stefane Marion, "The single-family home market has become unaffordable and that's the reality for markets such as Vancouver and Toronto." That has pushed many first-time buyers into the condo market, which has actually become more affordable for such buyers because of an abundance of supply, explains the Globe and Mail.
Whatever your goal is, buying your dream home or making a solid investment, we are here to guide you through the process.
Platinum Access? Platinum Agents? VIP Registration? What does it mean and what can it do for you when it comes to buying
pre-construction condominiums? We all know in Real Estate it’s all about "location, location, location". With pre-construction
condo market it is all about "Location, PSF & Access". The better access you have the more money you save and ultimately make.
If you are a buyer of a pre-construction condo, it just makes sense to work with a platinum VIP realtor for that project. In addition to the best pricing, the best unit selection, and they will get you access to the building before anyone else. Beyond that, it also means that you as a buyer, hear about new projects, promotions, sales events first, before they are advertised; never have to wait in any line-ups to buy a condo in a new project; have an opportunity to reserve a specific unit ahead of all other buyers and, you get to work with a true expert in their field, someone who has sold hundreds of condos and will guide you through the whole process making sure you are getting the best deal, excellent service, and great experience.
Platinum sale period is a temporary period where certain (platinum) agents get advanced access to the condos before the general public and remaining agents. Depending upon the builder, the buyers that buy during this period may also receive some special incentives which wouldn't be there once the sale is open to the general public (for ex. pricing, free maintenance for a year, something else, etc.). With condos, typically the units with the best view are first to sell out so the buyer gets the first dibs on them with ample choice, instead of being left with what's there.
The best way to sum up how developer's view all other Realtors is by re-frasing a classic quote from George Orwell's brilliant
"Animal Farm": "All Realtors are equal, but some are more equal than others". Yes, they can and most likely will sell in just
about every condo building but they will not enjoy the benefits and the perks that the Platinum agents do. Logically, most of the
buiders prefere to deal with a small group of agents who sell a lot of units each, than a hundreds of agents who sell 1 unit each.
"Platinum Agent" is an industry term to describe agents that get front of line access to new condominium launches. Platinum are the agents commonly known as "power agents", that work with a bulk of the buyers. They often specialize exclusively in pre-construction condo investments and generally sell the largest chunk of the building. They sell a much higher volume of condo units than 99% of all other Realtors in the GTA. For each project they are working on, a platinum agent will typically get preferential treatment in terms of perks and suite selection because of their consistent sales. In order to qualify as a platinum agent, the agent must have sold and have earned a minimum commission of certain amount during prior years. Only then the builder allows them the access, so definitely not something every realtor can get their hands on. These top agents typically know about a new project months in advance due to their relationship with either the builder or the sales team and prepare their clients appropriately. Often each platinum agent is given a specific "allocation" of units in the building (for example, 1 or 2 floors of the building) for which they have exclusive rights to sell to their clients for a limited period of time (1-2 weeks).
It is very important to know that one single realtor does not have Platinum VIP Access to all the projects. Don’t trust any agent who tells you they have Platinum VIP access to all the condo buildings in Toronto. This is a lie. There is no such thing as a universal "list of Platinum VIP agents" in Toronto. It is different for every condo project, but there is a lot of overlap when you get down to the top 10 or 20 condo developers.
By the time a new condo project's sales centre opens its doors to the public, the building can be as much as 90% sold already. How does this happen? Usually Developers have to sell 70 to 85% of all units before receiving construction financing from the Banks, which means the Developer is offering the Purchaser a discounted price in order to gain the necessary percentage of sales required for construction financing. So instead of the Developer spending thousands on advertising and time, waiting for the public to come into the Sales Centre to purchase a unit, they rely on Platinum Agents to sell 30 to 50% of all units months before the Public Opening. Sometimes even more. Each Developer and condo project is different, but most Developers RELY on the Platinum VIP Market. There are different stages to the Platinum VIP Market.
- Friends and Family sales event (5-10% of units get sold)
The first stage is to the "Friends and Family Sales Event" which means you usually have a strong relationship with the Developer and the Developer sells a few units to family, friends, co-workers and trades.
- Platinum VIP agents get access (30-40% get sold)
The second stage is "Platinum Broker Stage". At this stage most of the time there is no sales centre. "Platinum Broker Stage" is what is commonly called as "selling paper". When you buy with a Platinum Agent, you’re not just getting a Brochure, Price List and Floor Plans, but you’re also getting valuable information that is required when investing or buying a new condo. At the "Platinum Broker Stage" you have first access to inventory, best pick at unit levels, best views, floor plans, lowest prices guaranteed, incentives and promotions from the Developer and Platinum Agents. Common Incentives and examples during the "Platinum Broker Phase" may include such things as Platinum Access & Pricing; Incentives & Promotions (varies from project to project, may include no or reduced cost for locker and/or parking spot, vindows covering, TV cable subscription, etc); Extended Deposit Structure; FREE or reduced Assignment Clause; Caps on Development Charges & Levies.
- VIP agents get access (20-30% get sold)
Then the next stage is the "VIP Agents Sales Event" which is usually anywhere from 100 to 200 agents that sell pre-construction but are not dedicated to it and most of their business is resale. At this time usually prices have gone up by more than $10,000, incentives may no longer be available by the Developer and all the good units are already sold by the Platinum Agents.
- All agents get access (10-15% get sold)
The next stage is "All Agents" which only work the resale market and will sell the odd pre-construction condo here and there. Which again prices have gone up and you are buying what's left.
- Pre-registrants get access (5-15% get sold)
This stage comes right before or together with the Grand Public Openning. Usually by this time there is not much left and the units selection is very far from the one at Platinum stage. Also, keep in mind, that the sales guy at that gorgeous model suite works for the Builder, not for you. His job is to get the highest price and the best conditions for the Builder. He doesn't care if you don't get the best price, or if you sign a contract that restricts your ability to resell or rent the unit–he works for the Builder, not for you.
- Grand Opening to the public (last 5-15% get sold)
Then finally comes the last stage, which is the "Grand Public Opening". Usually at this stage the condo project is already sold by more than 70%, and we are being modest with the number here. More and more projects will have just a few units left by this point and often those units have been sold in previous stages but due to some purchaser finansing reasons came back. And, of cause, prices have gone up again.
Olexandr Nesterenko @ VIPCONDOCAPITAL.COM is one of the few privileged Brokers to have built a relationship with the TOP Developers and will have guaranteed front line access to the most condo projects. Our priority is to provide you with True Platinum Access & VIP Experience. Registering with us confirms that we will be adding your contact details to our VIPCONDOCAPITAL database, keeping you informed as the information becomes available. Once the developer provides us details such as project launch date, floor plans, prices, deposit structure, sales brochure and a unit allocation worksheet, you will be provided with all this information. To get the first access and to become a Platinum VIP Buyer. Get to the front of the line, fill in the registration form today.
Is there fee for buying at the Platinum Stage with the Platinum Brokers?
No fee at all, the Developer pays all Agents including the Sales Centre Agents. Our services are always free for Buyers and in addition to our expert advice we are also offering our Exclusive Platinum VIP Broker Incentives.
How do I register for a Platinum Broker Sales Event for a project I'm interested and future projects?
Simply contact us or fill out the registration form to be added to our mailing list. You will be able to unsubscribe at anytime free of charge and obligations by clicking on the "unsubscribe" link or responding to an email and typing "unsubscribe".
What happens after I register and how do I get notified of the Platinum Broker Sales Event?
You will receive an email confirmation from us confirming that we will be adding your contact details to our VIPCONDOCAPITAL database, keeping you informed as the information becomes available. Once the Developer provides us details such as VIP sales launch date, floor plans, prices, deposit structure, sales brochure, incentives, promotions and a unit allocation worksheet all this information will be sent out to you.
I'm interested in purchasing a unit. What's next?
Reserve immediately, as units allocation are on a first come, first serve basis with worksheets being submitted on a deadline set by the Developer. Studios, 1 bedroom, and 1 bedroom + den selections get reserved fairly quickly. Once you get the information package we suggest to look over the floor plans, select your units, usually we recommend to pick 3 unit models you are interested the most. Fill out the Unit Reservation Form with your number one choice, along with 2 other choices, upload a copy of your government issued ID as it is requires for submission to the Developer in order to reserve a selection of your choice. No cheque or money is necessary at this point as you're only reserving a unit. Once your unit selection is confirmed and reserved, you will be contacted by us to schedule an appointment to come into the Sales Centre Office to sign the Agreement of Purchase and Sale with the Developer. At this time you will be required to bring along with you an original Photo ID (Driver's License, passport), SIN Card (required by the Developer for deposit interest) and a cheque book (minimum 6 cheques that will be post dated when signing). Cheques are payable to the developer's lawyer, "in trust".
What happens after I sign the Purchase of Agreement and Sale with the Developer?
Once the contract has been signed with the Developer, you have time that is called the "10 Days Cooling Off Period" during which you will be getting your Mortgage Pre-approval letter, having your Lawyer review the contract and such. If you change your mind during these 10 days for whatever reason you have the right to cancel the contract with no questions asked, pay no penalties and your deposit cheques (post dated) are returned back to you. After the 10 days, the contract is firm and you just bought yourself a new condo.