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the current area?
3) What is the average cost per square foot?
4) Who is your target market? (before deciding the sizes, decide who is your market)
– Stats Canada – age, income, vacancy rate, marital status, children, cars per household, condo sales in past 6 months, average price, size
Offer similar products for the area. If there are other properties that are selling well in the area, they must be doing something right.
Before you build
Exterior finishing needs to be timeless.
– Determined by the neighborhood
– Pricing done with distributors
– Brick
– Windows
– Roofing
Interior finishing needs to match market. For example, to attract young buyers, finish should be inexpensive, sleek, modern, fashionable and fun.
– Flooring
– Tiles
– Kitchen cabinets
– Bathroom cabinets
– Cabinet hardware
– Doors
– Sinks/ faucets/ tub/ toilet
– Heating system
– Moldings
– Fireplace
– Lighting
Math
Given…
– The interior and exterior finish
– The location
– The commission rate for an agent
– The closing costs
– Your profit margin
– Advertising
You must now determine a selling price
***Prices must be highly competitive
Legal stuff
– Condo by-laws / reserve fund / condo fees
– Get city/school tax quote
– Get insurance quote
– Make copies of documents or give them to agent
– Sign brokerage contract, and determine commission rate
– Determine construction start date and completion date
Preliminary contract/proposal
– Drawn up by developer/notary
– Lists completion date and building standards/materials
– Deposit is non-refundable ($ negotiated by builder)
Marketing before you build
– Have mock-up done of interior and exterior
– Marketing budget for sales
– Trailer
– Monthly expenses related (phone, electrical, Internet, heat)
– Set up (lighting, desk, phone, computer, file cabinet, display table, paint, décor)
– Business Cards, Folders, Pamphlets
– Website
– Floor plan photocopies A-B-C-D apartments, MLS listing, sold sheet
– Get all samples for agent or for trailer and for artist
– Watercolours mounted
– Printed computer generated glossy
– 12’x6’ sign
– Broker information
– Open house (catering?)
– Show room
– Advertising
– Commission 5% (include promotion 4% – must pay upfront for material)
– Hours for trailer |
