What’s your main aim as a buy to let developer? Selling units as early as possible is certainly a good goal to aim for. And knowing how to sell off plan property is the key to making this possible.
Investors love buying off plan because it means they secure a great property at the current market value. If the value is low because the unit is nothing more than bricks-and-mortar at that point, then the buyers should expect to make a very healthy return when the property is ready to go on the rental market.
Having said that, convincing an investor to buy in when you’ve got very little to show them isn’t the easiest task in the world. They need regular updates and reassurances that you’ve got everything covered.
In this blog, we discuss how to sell off plan property the easy way by gaining the interest and trust of investors.
Use a Show Flat to Help Sell the Vision
It’s hard to sell an unfinished unit to an investor, private landlord or potential resident when there’s not much in place. But as each stage of the property is complete, it gives you the opportunity to put together a show flat to better sell the vision.
Let’s be honest, no one who really sees an empty property has ever thought of instantly investing in it. Purchasing a unit has to be a visual experience. How can they invest when they don’t really know what they’re buying?
If you want to know how to sell off plan property the easy way, you need something tangible. With a show flat, you have everything you need to prove all the units can be designed and furnished to a high standard.
It’s also your chance to explain what makes your buy to let development different from everything else on the market. Ethically sourced materials, high quality & durable furniture, an interior led by design & function; these are all key points you want investors to know about.
And to Hit Hard With Marketing Material
Another great reason to use a show flat to sell off plan property is that you open up a better marketing direction. A fully dressed unit on the market will command a lot more attention than a barely there flat or apartment.
If you’re looking to sell units on a large scale to serious investors, you’ll need a brochure or microsite full of stunning images and descriptions. This gives them something they can return to, something that will grab their attention and make them invest in your BTL property.
Now imagine handing the same investors a brochure where every picture of the property involves brickwork, power tools and lots of dust.
It’s hard to get excited about a project when there’s no clear image of the end goal, but a staged show flat will certainly drum up more interest.
Choose Your External Partners Carefully
A chain is only as strong as its weakest link. If you and your team have been working round the clock to get a property ready for the market, is it fair if an external partner starts working to their own schedule? Absolutely not!
Being able to sell off plan properties easily and with greater speed relies on the work ethic of your entire team. The faster they get the job done, the sooner the property can go to market.
However, that doesn’t mean the job should be rushed. Speed is one key element, but quality is just as important. Your external partners should be motivated to do their best. Not just for your benefit, but for the residents who will be living there as well. Never lose sight of the fact the properties you develop are going to be homes, and no one wants to live in a subpar property.
Everyone involved in a project needs to play the game properly. And it doesn’t just mean sticking to a schedule and producing high quality work. Your external partners could meet investors or potential residents, so it’s important that they understand the impact of their words and behaviour.
And with any external partner, you have to be sure of their financial standing. The last thing you want is to instruct a company to complete work just days before they go bust.
There’s a lot to be said for hiring partners with a strong reputation and expertise in the BTL and wider PRS sector. They should work with you, not against you.
Keep Investors Up to Date
Trust is built over time, takes just seconds to break, and is unlikely to ever be repaired in the world of property. If there’s one thing that everyone in this industry values above anything else, it’s honesty. If something is taking longer than expected, or you hit an unexpected snag, glossing over the issue is the worst thing you can do.
Keeping investors up to date helps with your reputation. People are a lot more forgiving of mistakes when someone takes responsibility for them and looks for a solution.
Your honesty and proactive attitude will help you stand out when it comes to future developments. In this sector, there are some people who think they can pull the wool over the eyes of investors when a mistake is made. But the second they’re caught out, that trust is broken and future custom is lost.
Knowing how to sell off plan property means thinking long-term. There will always be more developments that need funding, and being upfront with investors will certainly boost your credibility.
Need Help Selling Off Plan Property?
The best way to sell an off plan property is to make your pitch as visual as possible. Not everyone will be able to see past the bricks and mortar, so you need to give them a hand in any way you can.
Instructing a furnishings and interior design company with a long-standing reputation is the best way to do this.
Our own team has a great deal of experience in furnishing and staging off plan properties. To see more of our work, take a look at our portfolio.
And to see what we can do to help you, make sure to get in touch.