To understand how long it takes for a pre-construction building to sell out, you have to understand the varying pre-sale phases that occur before the project goes public.
There are at least four rounds of pre-sales, meaning that when a building finally goes up for sale publicly, there is a slight chance that the whole building may be close to capacity already.
The public sales will be offered at a public price, while the pre-sales are usually discounted prices used to fund the beginnings of the project.
In this post, we’ll break down the pre-sale schedule, so you can know what you’re up against.
Friends and Family presale
Friends and Family of the builder will get access to the first phase of the pre-sale schedule. This initial presale will come with a Friends and Family discount and an absolute pick of the entire building.
Platinum Launch begins
After the developer’s friends and family have been offered their opportunity at a piece of the project, the next phase is known as the Platinum Launch. During this time, the developer will select a group of preferred real estate agents and give them Platinum access to the remainder of the building.
These Platinum agents then reach out to their clientele network and announce that they have preferred access to a new pre-construction project. This exclusive pre-sale will also come with some heavy discounts on remaining premium units plus some buyer incentives that will vary based on the project.
If you can get on board with a Platinum Agent, you will probably get the best package deal on your unit. Depending on how many agents the developer reaches out to and how many customers each agent has respectively, a building can fill up quickly at this stage.
After both the Friends/Family and Platinum phases have concluded, any remaining units will be offered to the next group of interested real estate agents and their clients, known as VIPs. At this phase, the exclusivity has diminished some, the best units are typically gone, and the unit prices have risen slightly.
This VIP phase will still get you a better deal than the approaching public launch, which is the final push to sell out the condo.
Provided all three of the early options available for buyers to purchase into the building before the sales go public, the building you’re interested in could hypothetically reach capacity at this point.
Obviously, if you’re seriously interested in a pre-construction site you’re going to want to try to get ahead of the public launch and find a Platinum or VIP agent that can grant you early access to their real estate portfolio.
Once sales go public, all of the best units could be gone, the prices could be at resale values, and the incentives may have changed or disappeared.
How quickly do buildings sell out?
In an increasingly vertical real estate market like Toronto, buildings can sell out in an instant, especially given the differing pre-sale phases of a new build. On average, buildings sell out 3 to 6 months after sales open, and potentially sooner if the build is cracking into a prime location.
If you want a great unit in a great location, you’ll have to move quickly and try to get on board with an approved agent.
And remember, there’s a 10-day cooling period that lets you think over your condo purchase if you're worried about making an impulsive decision.