It’s Time to Rethink Townhome Presentation and Sales Centres
New construction townhome sales have seen minimal slowdown over the past year compared to highrises. Young professionals and families are looking to invest in larger spaces without breaking the bank. Our data has shown that the average size of a new home being purchased has jumped by over 35% year over year. We’ve also seen that interest rates have plummeted in major markets, so end buyers can comfortably purchase a new townhome at a similar price point or even cheaper than renting. It is also clear that condo projects are being delayed until market conditions improve. In the meantime, developers are shifting their efforts to new and existing townhome projects since townhomes generally close faster than condo tower projects.
Townhome sales will continue to run into the same problems that all new construction sales teams are dealing with across Canada. One such problem is the sheer amount of sales centre visits it takes to sell a townhome. Townhome projects often have a higher number of end user buyers, as opposed to condo towers that see more investors. End users will likely want to visit the area multiple times to get a feel for the neighbourhood. Not to mention that there are potentially more options and upgrades available to townhome buyers, meaning another meeting with the sales person.
With delays between each visit to the sales centre, there is a high risk of losing the buyer. Providing a more streamlined yet immersive buying experience will reduce that risk and also delight the purchaser in the process.
Although several sales centre visits may seem necessary within the industry, it’s a tougher pill to swallow when you consider every time your buyer leaves is another opportunity to back out of the deal. And most sales teams just let the buyer leave with no promise that they’ll come back, let alone purchase a home. So how do you combat this? The simplest answer is to limit the amount of necessary visits to the sales centre. Give buyers all of the information that they need to make a decision after the first visit. You could even include an option to reserve online so that they aren’t forced to make a return trip just to drop off a bank draft.
With many young families buying new townhomes, it is possible that all decision makers aren’t always present in the sales centre. This undoubtedly leads to multiple visits with your sales team showing the same unit again and again. Another common scenario is that the person making initial payments isn’t the homeowner. It could be a parent or maybe a grandparent, but someone else has the buying power. They may not be interested in making the sales centre visit, but if they have to, that’s yet another meeting before close. Simplify the process by providing them with virtual alternatives to viewing and purchasing the home. The goal should always be to limit the amount of sales centre visits because more visits take more time and time kills deals.
Frankly, presentation centres and demo homes are expensive ways to get buyers in front of you to buy a townhome. If you absolutely do need to run a sales or presentation centre for your upcoming townhome launch, you should aim to limit the amount of visits per buyer and make the most of those visits. Requiring several stops into your sales centre creates an uphill battle for the sales and marketing teams and an unnecessarily drawn out experience for buyers. Give your buyers everything they need in one visit, and equip your sales team with the tools to close immediately.
If your sales strategy only required one face-to-face visit with a buyer, how many more homes would your sales team be able to sell?
Connect with us today to learn more about launching your next townhome project with Avesdo.