The project viability is very volatile and the financial risk is huge if you get your Pre-Sales wrong!
By the time you get to the Pre-Sale stage, you’ll be well down the track.
You’ll have spent significant money on consultants, plans, design concepts, due diligence, legal/accounting advice, reports & lodgements etc...
Now, it can all hinge on your ability to achieve Pre-Sales to meet the requirements of the funding partners/banks.
If you can’t achieve the Pre-Sales, the project can die!
Not only have you lost the money actually spent (and the potential profit), you’ve also lost time in the market finding other deals.
With so many other developers competing against you with their own stock, how do you remove as much risk as possible to ensure your project isn’t put at risk?
The Housing Heroes Pre-Sales Maximizer Program!
Our Pre-Sales Maximizer Program uses our trademarked Deposit Layby™ program to give your properties a distinct advantage over your competitors.
We make your property easier to buy!
We let the Buyers use our money to buy your property.
No other agent does this!
Most developers need to discount their selling prices at the Pre-Sales stage to ensure they can secure the funding.
This then lowers the “Comp Sale” value of every remaining piece of stock as the “value” of the stock has been established at the lower figure. It can be difficult to move prices back up.
If the project has 20 lots available and the banks want a 50% Pre-Sale commitment, 10 Pre-Sales are needed to secure the funding and let the project proceed.
If the desired Sale Price of each lot is $500,000, the 10 Pre-Sales may need to be discounted to $480,000 to secure them. This drops the profits by $200,000 on the Pre-Sales (10 x $20,000).
However it also drops the potential selling price of the remaining 10 properties, meaning a desperate Pre-Sales strategy has a $400,000 negative impact on the over-all project “bottom line”.
By using the Deposit Layby™ to keep the Pre-Sales selling price at the $500,000, the extra $400,000 profit is achieved without any detrimental impact on the sales period.
In fact, being able to attract more Buyers with the Deposit Layby™ can achieve quicker sales!
You can only discount so much before you’re losing money.
If there’s an abundance of similar development stock in your area, you might be in real trouble as your only way to compete might be by reducing the price.
This doesn’t have to be the case if you deal with Housing Heroes!
The Deposit Layby™ gives your properties something tangible and real that makes your “deal” look more attractive (than your competitors) and keeps the prices in the profit territory.
If you'd like to discuss how our unique and profitable “Advanced-Legal-Methods-Of-Sale-Made-Easy” approach can help you and your development business...
Complete The Following Form.
Housing Heroes Pty. Ltd. ATF Housing Heroes (ABN 53 799 748 374) trading as Housing Heroes. Australian Credit License 443249