Do i sell off the plan, or go to auction? That is the question
Did you know The BuildHer8 project AKA Rathmines is almost at lock up stage. What an accomplishment, right?!!! Even with all the COVID lockdowns and availability of stock, Beirin Projects have kept on schedule and surpassed our expectations.
By now you know that we use the legendary Sam Rigopoulos from Jellis Craig, the leading agent on the North side. He knows the market well, has worked closely with many of our BuildHers, and has a real knack for what we like to call “real estate match making”.
Despite not even being close to a sale date, Sam has been spreading the word and has taken a handful of Rathmines potential purchasers through the homes already. What does this mean?
Potentially selling off the plan!!! Something we had not even considered.
OPTIONS, OPTIONS, OPTIONS!!!
Now, don’t get us wrong, we have worked so long and hard to get to this point so it would be super cool to see both properties finished, styled and auctioned in October. However, as DevelopHers we all know it is better to explore all the options to see which path is more feasible.
It’s a tough call, but one we think is worth investigating.
After digging deep with Sam and his super talented team, including our own BuildHer Paula Beavis, we learnt a few things about whether selling off the plan could be the best strategy for Rathmines.
Featured: @krisianpithie,@r_freeman_property, @paula_beavis_, @samrigopoulos, @roseyrose.v
PROS AND CONS OF SELLING OFF THE PLANS
Firstly, we know selling off the plan can be a successful strategy as we see so many developers use this framework – @littlefishproperties, @chamberlainproperty and @futureflip to name a few – and these guys do it really well.
What do we mean by selling off the plan?
What do we mean by “selling off the plan”? Well this means that we prepare a specification and the plans, and sell the home before we are finished.
We’ve listed our Top 5 Tips to successfully selling off the plan below.
1. Demonstrate Value
Potential buyers will be buying something sight unseen, so they need confidence in your ability to deliver what you are offering. This is where your brand will come into play.
There is an expectation if you are buying the home from a particular developer that you will be getting a product of a certain standard. If you have demonstrated that you build lovely beautiful high quality products, then it will be easier for the buyer to understand your offering.
Great homes are scarcely available and if the home you are producing is unique and of a great standard, then some purchasers would love to be able to purchase off the plan early and guarantee their end product without the stressful auction campaign.
2. Renders will help you sell off the plan
Although costly, investing in high quality renders and brochures of your home will certainly pay off. Potential buyers want to see the vision and direction you are headed and without these, you may find yourself with an empty property with no buyers in sight!
You can see with our Rathmines project we prepared renders for each of the projects so purchasers can see the difference and understand the spaces.
Not everyone can read plans and understand how finishes come together. This is why spending the time and energy preparing these and getting the details right will help you sell your home off the plan.
3. Get your Mood boards and Documentation in order
Building someone’s dream home is a privilege. The documents you will prepare to sell your home off the plan should tell the story of how much better life will be when you live in this home.
You will need to take the purchaser on a journey through the spaces, a journey to help them understand all of the wonderful spaces you have designed.
Presenting potential buyers with a tangible materials mood board that they can touch and feel helps people to understand how the finishes will come together, what the tones of the homes are and how stunning each space will be. When you present physical items, the home starts to feel real.
Well documented schedules are also important as they allow the client to go over all the selections and even potentially make some changes at this stage, if they would like. It allows for some flexibility and movement in the fixtures and fittings and colour schedule.
4. Communication is key to selling off the plan!
You know you’ll build an amazing home, but how will you communicate this to your potential purchasers?
Marketing your development will not only showcase all your hard work, but align yourself with the right buyers. But… the marketing doesn’t have to be paid! It can be all the ways that people interact with you. Your website, Instagram, site signage and even just having a clean site!
Potential buyers are likely to do “drive by’s”, and presenting the front of the home with some great hoarding will be sure to communicate some key aspects of the build! Like below, we highlight the great design team, the 7 star energy rating, the street appeal!
It’s ok to be bold and bright. Just think about how each piece of communication will align your vision and brand, and how these might be perceived by potential purchasers.
5. Sell off the plan by choosing the right team
Probably one of our biggest tips and one that really plays into the value of your home is your team!
Choosing and working with the right team including the right lawyers, accountants, advocates, builders, architects, designers and agents has a massive impact on the finished product.
Your tribe should consist of industry experts who know your target market and niche well and are able to instruct you on the right path for your vision. As great DevelopHers, we need to know when to listen.
@samrigopoulos, @bencalleryarchitects, @peachy_green_, @beirinprojects, @alisonlewisinteriors, @co_kitchens
As a buyer, should I purchase off the plan?
Actually, what we do know is this process is not only good for the seller but for the buyer also.
Director of Chamberlain Properties, Jess Chamberlain, states:
“Buyers can lock in their home early, which means they fix in a price in an otherwise rising market.”
If the developer is in demand and can attract higher prices at auction, then as a buyer it would be more beneficial to secure that dream home off market.
If the home is a unique offering then it can be amazingly beneficial to lock it in early. There can only be one owner in the end and good homes, well they tend to fly! This can also give you time to pay a deposit and sell your home, having the security of knowing where you are going and a longer lead time, before you sell yours.
Planning is our friend when making big, life changing moves!
Another advantage to purchasing off the plan can also be that buyers can have input into their home, helping to select some colours and materials, and customise the spaces so they are perfect for them.
How we move forward
Selling and buying off the plan can be super beneficial for both parties, but be sure to do your due diligence.
In regard to our current project, this is an exciting opportunity for Team #buildher8 and we trust our “Dream Team” of advisors to produce outstanding results for all parties. This is regardless of if we choose to sell off plan or see the homes sold at auction. We can see the advantages of both, so we will trust the advice of the experts.
We have followed the brief above and have renders, documentation and beautiful new homes to attract the perfect new home owner of both South and North Houses. Now we have a big decision on whether we should or should not sell one off the plan beforehand!
Either way, we remain excited about the process and what we are building and we look forward to showing you soon!
ABOUT THE AUTHOR: RACHEL @CO_KITCHENS
Quirky. Fun. And does not take life too seriously. Rachel has a background in psychology, however in 2010 turned to Interior Design. Since, she has worked with the likes of Seneca Textiles, NH Webb Architects and Freedom Kitchens to name a few. She joined our team BuildHer Collective over 2 years ago and owns her own company, Co.Kitchens established in 2016.
Follow Rachel on Insta here.
