Real Estate

Festival Condos Vaughan - where’s the hype?

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  • Nov 16th, 2020 11:49 pm
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teoconca wrote: Don't know how true it's. It said Tower 1 is sold out. Selling Tower 2. People must be buying this like hot cakes.
I get this a lot from some of the buyers who come to me. A lot of things on preconstruction end up selling out, not because it was a hot project, or a good investment, but because of how Agents market the product. At the end of the day its all about marketing.

Think of 199 Church and tell me in what way was that remotely investable? Its sold "well" even as junk. Why? The builder gave access to that project to nearly every agent who normally wouldn't even be able to sell preconstruction, and got an army willing to work to sell and reap the high commissions.

Similar thing with Abeja and such, it wasn't a "hot project", it was just made into one. The key selling point being the low prices in comparison to highway 7, though compare it to the existing building there and its still expensive, and those don't even sell (long average DOM)


Compare that to projects where you need a platinum agent to get a good unit (think Distrikt, UWS, Westport, and I'd argue Festival etc.) with less of a marketing play, and more of a features and potential play.
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deal_with_singh wrote: I get this a lot from some of the buyers who come to me. A lot of things on preconstruction end up selling out, not because it was a hot project, or a good investment, but because of how Agents market the product. At the end of the day its all about marketing.

Think of 199 Church and tell me in what way was that remotely investable? Its sold "well" even as junk. Why? The builder gave access to that project to nearly every agent who normally wouldn't even be able to sell preconstruction, and got an army willing to work to sell and reap the high commissions.

Similar thing with Abeja and such, it wasn't a "hot project", it was just made into one. The key selling point being the low prices in comparison to highway 7, though compare it to the existing building there and its still expensive, and those don't even sell (long average DOM)


Compare that to projects where you need a platinum agent to get a good unit (think Distrikt, UWS, Westport, and I'd argue Festival etc.) with less of a marketing play, and more of a features and potential play.
I never thought about it that way. Thanks for the explanation.
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199 church proved there is no need for Platinum access for anything in the core.
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oasis100 wrote: 199 church proved there is no need for Platinum access for anything in the core.
What do you think is going to happen? Did Centrecourt just set a new bench mark? Start releasing junk at $1500/sqft - as long as you give every agent unlimited access, it will sell!

Time will tell, but kinda ruins the brands image in my opinion, but lets see
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deal_with_singh wrote: What do you think is going to happen? Did Centrecourt just set a new bench mark? Start releasing junk at $1500/sqft - as long as you give every agent unlimited access, it will sell!

Time will tell, but kinda ruins the brands image in my opinion, but lets see
Builders just need to get rid of the agents, spend on advertising instead. That will help their brands, no misleading agents involved.
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ilim wrote: Builders just need to get rid of the agents, spend on advertising instead. That will help their brands, no misleading agents involved.
If you're working with top good agents, you're not going to get "misleading" - the misleading occurs when John Snow - used car salesmen thinks theres more money to be made in Real Estate and gets hired to sell 199 Church.

Its why most builders still continue to work through Platinums.
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deal_with_singh wrote: If you're working with top good agents, you're not going to get "misleading" - the misleading occurs when John Snow - used car salesmen thinks theres more money to be made in Real Estate and gets hired to sell 199 Church.

Its why most builders still continue to work through Platinums.
Right, because most builders are concerned more about agents misleading the buyers than selling their projects.
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ilim wrote: Right, because most builders are concerned more about agents misleading the buyers than selling their projects.
Your brand is at stake....builders with nothing to lose might not be worried, but top brands definitely would.
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deal_with_singh wrote: What do you think is going to happen? Did Centrecourt just set a new bench mark? Start releasing junk at $1500/sqft - as long as you give every agent unlimited access, it will sell!

Time will tell, but kinda ruins the brands image in my opinion, but lets see
I actually think more builders will go in house.

Empire sells in house, so does tridel, pinnacle, centercourt..and many others.
Commissions have got out of hand as prices have continued to go up.
I've heard Menkes is going in house.
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It makes sense, there is value in some agents in certain scenarios especially when it comes to access, but for the most part pre con has been selling itself for a while and agents have been of no value. In many cases I feel it has been the opposite with agents saddling unaware buyers with crappy projects.
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oasis100 wrote: I actually think more builders will go in house.

Empire sells in house, so does tridel, pinnacle, centercourt..and many others.
Commissions have got out of hand as prices have continued to go up.
I've heard Menkes is going in house.
Can you please explain what you mean by going in house?
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CondoMan98 wrote: Can you please explain what you mean by going in house?
Majority of builders. hire third party marketing real estate brokerage firms to sell their condos. for example 28 eastern by Alterra, they hired Baker Real Estate to sell. Baker does all the marketing and administrative work for Alterra. Baker has relations with certain platinum agents who they will give units to first.

The other big names is milborne. ihmg. intercity.pma.. Cornerstone does all menkes.

builders in most cases just give it to one of the marketing companies , mark up the projects by the coop % and let them sell it.

A lot of low rise projects do not even coop because they sell themselves.

Companies like Tridel. they can open up a sales centre and sell to end users themselves. theres no need to coop.
Last edited by oasis100 on Sep 10th, 2020 9:26 am, edited 1 time in total.
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oasis100 wrote: Majority of builders. hire third party marketing real estate brokerage firms to sell their condos. for example 28 eastern by Alterra, they hired Baker Real Estate to sell. Baker does all the marketing and administrative work for Alterra. Baker has relations with certain platinum agents who they will give units to first.

The other big names is milborne. ihmg. intercity.pma.. Cornerstone does all menkes.

builders in most cases just give it to one of the marketing companies , mark up the projects by the coop % and let them sell it.

A lot of low rise projects do not even coop because they sell themselves.
So many projects won’t use the sell-side brokerages anymore (Baker, Milborne, etf.)?

I know Milborne sold 543 Richmond and Westport. When I bought Linx (Tribute’s condo), I am almost certain I remember it being sold in house.
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I don't think it will disappear. they bring value. not all projects sell . builders do not have the marketing resources or the database.
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