There’s and old saying, “If you build it they will come.” We wonder if that is the standard that many real estate developers go by today? Far too many developments are being shelved or closed down because the developer had a dream and it died of loneliness.
Real Estate Development is a costly, uncertain and volatile undertaking in today’s fragile financial market. Even if a developer can get financing there is no sure bet that the development will ever come to fruition.
Much of this is caused by reading the market incorrectly and by not evaluating the extent of the investment that is needed to deliver the project. Many developers sincerely think that if they just build it, ready willing and able buyers will come.
After 9/11 nothing could be truer said. Developers with the help of lending institutions in the US built monuments on to themselves because of the endless supply of money provided by lenders in the system. Most intelligent people knew this would never last but no one could tell the developers that or the poorly informed investors.
On many occasions condo were flipped during construction so frequently that the person that took final possession of the completed property was normally the 5th or 6th person who owned it. This created a new “Wall Street” and investment brokers convinced their clients that this was far better than just buying a piece of paper stock on the market. Now investors could see and touch their investments. That is, until they could no longer carry the mortgage or sell them for a huge profit.
As a result the bottom dropped out so quickly that people’s heads are still spinning fueling a glutted foreclosure market that has poured financial woes on the heads of anyone who had a loan at the bank or over extended themselves during the last period of financial gluttony.
What is unfortunate is many developers today still operate by the pre financial crisis directives. There are developments in New Providence that have not sold a unit for over 10 months! Instead of reevaluating the market, these developers continue to pour money done the drain with the understanding that once the development is finished they will get their price and everything will be fine.
What can Melnechuk Marketing do to help?
As we stated before we do not have magical powers that can suddenly turn stagnant selling real estate into cash or sell out a development before ground breaking. Having these types of ambitions is probably what got the developer in hock at the bank in the first place.
What we do:
- We evaluate your development for today’s market so you can sell your real estate to ready willing and able buyers. There’s another saying many people will know, “the fisherman never says his fish stink.” This can be said of many developers who become delusional about pricing of their real estate.
- We recreate and stimulate your marketing efforts by creating high traffic, highly optimized websites that target your type of client. Along with this comes an extensive electronic marketing campaign that will drive these potential buyers to your sales office.
- We train your sales staff and/or if desired by the developer we will staff the sales office with our own well trained and highly informed sales staff.
- We can create all the collateral from business cards to sales contracts. It doesn’t matter how much or how little you need, we can help. You first step is to Call Us and let Melnechuk Marketing provide a solution for marketing and selling your development.