The Toronto real estate market is a fast-paced high stress and high pressure market as demand for inventory is dramatically higher than the supply. Fuelled by investor demand, new condo developments that launch for sales sell out in a matter of days – literally! 

Gone are the days where builders spend an exorbitant amount of money on fancy model suites and sales centres opened for months or years inviting the general public with attractive incentive offerings through full page advertisements in the Globe and Mail. Today, the sales model and sales cycle look quite different – more organized, formalized and rapid. If you’re lucky enough to get a unit allocation because you’ve already completed a worksheet with your Platinum Agent and submitted a bank draft upfront, you may have only minutes to think or analyze the opportunity and sign on.

Such is the state of the Toronto new pre-construction condo market. Your only opportunity to secure a condo unit at a new condo launch is by working with a front-of-the-line Platinum Agent.

Who is a Platinum Agent?

A Platinum Agent is a part of an exclusive group of agents that has strong relationships with builders. Builders work closely with this elite group of agents and invite them to be the first to sell at the Opening Day of all new condo launches – the Platinum Sales Events.

Besides the possibility of securing a unit at a new condo launch, you may be wondering what, if any, are other advantages of moving at this rapid speed? One of the greatest advantages of purchasing on the first day of a new development launch, is securing the lowest price (Opening Day pricing) and getting the best incentives offered by the builder.

How does an agent become a Platinum Agent you may wonder?

Well, that’s a good question!

Every Toronto builder has its own group of Platinum Agents. They have strong working relationships with this group because they have done business together in the past and this is the builder’s way of rewarding the agent’s partnership and loyalty. The builders offer the agents first access to opening day lowest prices and best incentives which these Platinum Agents then offer to their clients.

For the buyer it is advantageous to work with one of these builders approved Platinum Agents in order to gain access to the Opening Day lowest prices and best incentives. In addition, membership also has other privileges, you will NOT have to stand in line for hours or overnight for an opportunity to purchase. Platinum Agents sell vis-a-vis worksheets that are done electronically. Their clients are then invited to signing appointments to meet with builders’ representatives and sign the documents. It’s kind of like a line bypass at the hottest club – Toronto pre-construction sales offices have bouncers standing guard at the front doors these days! No word of a lie.

After the Platinum Sales stage is over, if there are any units left for sale, other agents are invited to sell to their clients. However, prices are now higher (than Opening Day) and chances are that units with the lower prices, nicer views and most eficient floor plans are already sold out – there are slim pickings at this stage.

Why is the Platinum Sales stage critical?

By now you’re probably suspecting that the Platinum Sales stage is a critical first step in your pre-construction condo investment journey. And that is correct! 

Purchasing at the lowest price guarantees you the highest appreciation over time. In some cases, we have experienced price increases of the condo units our clients are signing up for right within the 10 days cooling-off period. Imagine that! Your investment appreciates in value before the builder even cashes your first deposit cheque – you’ve made money for simply signing the contract at the right time! How often does that happen IRL?!

But don’t just take our word for it, see the data on price appreciation when you purchase at the Platinum Stage:

The above graph is a sample illustration of the several stages in the typical sales cycle of a new pre-construction condo project launch. These stages can include but are not limited to: the builder’s in-house friends and family, Platinum Sales, VVIP, VIP event to the general public launch which occurs after several months of selling. Some builders don’t even sell to the general public and utilize the agent/ realtor community as their main distribution channel – more the reason to partner with a front-of-the-line Platinum Agent.

Prices keep increasing as units are sold over the course of the sales cycle. As prices keep increasing, incentives may change or be eliminated altogether, and remaining inventory of units to choose from keeps progressively shrinking as well.

So the longer you wait, the higher the price and the limited the available inventory is – if any.

What are some of the Platinum Sales Incentives that we have mentioned above?

Incentives can vary across condo projects, the builders and the sales cycle of the project as well. Some of the most popular (but not always the case) incentives that we have seen at Platinum Sales launches are:

• Discounts off the Purchase Price – these are typically different amounts for different unit types. Purchasing at discount means your investment makes money right off the bat – as the 10-days cooling off period expires, your investment increases in value to the regular price! You made money! 

• Capped Development Levies and Charges – these are typically different amounts for different unit types.

• Extended Deposit Structure

• Discounted Parking or Locker units

• Right to Lease during Occupancy

• Assignment Clause

• Decor studio credit on closing

• Rental Guarantees

• Property Management services

• Complimentary Lawyer Review of your condo docs. *This is offered by Toronto Condo Investments for all our Platinum Sales clients

What can you expect from your Toronto Condo Investments Platinum Agents?

High touch client service from the moment you complete an online registration form. Our team connects with you on the phone to understand your investment goals. We make recommendations on which new condo development launching soon for Platinum Sales makes most sense for your customized goals.

Remember, not all pre-construction condos are made equal and not all are good investments either. We prepare you well in advance the best way we can so we can move fast and work at high speed to secure your choice of units immediately as the builder releases unit allocations to us.

We meet with you before signing if you prefer, and stay with you through the signing process at the sales centre and work closely with you through the 10-days cooling off period. We also facilitate your complimentary lawyer review of condo docs and work with the builders lawyers to accommodate and requested amendments if applicable. And at the end of 10-days after your investment is firm and completed we meet with you to celebrate your investment – our most favourite of your investment journey!

In future blog posts, we will walk through the Platinum Sales purchase process, decode the builders incentives and suggest ways how you can best prepare yourself for the Platinum Sales launch.

And always remember, with all new condo launches, you always want to Go Platinum! 

As always, if you have any questions, feel free to connect with us. We love to hear from you and love chatting real estate, obviously! 😉