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20190201 Project Sale v Sub-sale, Part 2

20190201 (Fri)

What is the difference between developer sale (project sale) and sub-sale? From the perspective of agency. Part 2.

Today is about perspective of agency with regards to sub-sale instead of project sale. As sub-sale is about getting instruction from various second hand sellers, it is very individualized. You need to secure many sellers to have variety of properties in your listings. So, that is a lot of work.

However, you have different prices, types and locations of properties. Due to this, your listing will have many choices for your prospective purchasers. This is almost non-existent with project sale. Developers usually produce a few types of properties within a single location. So, it could be a location advantage (if it is hot location) or disadvantage (if it is bad location).

As for pricing, your secondary listings will be more competitive than prices of project sale. It is simply because older properties cost less but cost of renovation can be deterrent to acquiring it.

To summarize, objectively an agency should develop its niche in sub-sale. For developer does NOT need an agency to sell its products. Developers can sell it themselves as they are owners of their products. Think of yourself as owners of many properties. Would you want to give to an agency to do selling for you? You rather save all the commission by doing it yourself! So when would developers give to agency to sell? When sales is so slow that employing own sales team is a losing business to them!

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