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Explained! Challenges in Sales in Toronto and Solutions to Resolve Them
In this blog, real estate experts at TIMELYINVESTMENT take a comprehensive look at assignment sales in Toronto, challenges in the process, and feasible solutions to resolve them.
Toronto’s real estate market has been on the rise for the last few years. This has led to a sharp increase in the number of pre construction condo projects in the region. As a result, assignment sales have become common practice here.
Although experienced real estate marketers and investors are aware of assignment sales, the public is unaware of the challenges that come with an assignment sale.
But, what exactly is an assignment sale?
Definition: Assignment Sale
It can be described as an assignment between a pre construction condo’s original owner – who is also called the assignor, and a new buyer – also known as the assignee. Here, the assignor buys the unit from a project’s developer with the objective of selling it before it is closed.
An assignor may work with a real estate agent to market the unit and find a potential assignee.
There may be several reasons behind assignment sales in Toronto. For example:
- The assignor is an investor who wants to make some profit.
- The assignor finds that the condo under construction doesn’t match their current lifestyle.
- The assignor discovers a better option.
Challenges in Assignment Sales
At first, assignment sales seem a profitable deal. However, there are multiple pain points in the process for assignors and assignees.
Assignors
First of all, completing the deal and managing the entire assignment sale process is time-consuming and hectic. From marketing restrictions to finding potential buyers, there are multiple challenges that an assignor may face in assignment sales in Toronto.
Apart from that, a developer behind a condo project may have different requirements and regulations for buyers, which may make it a complex process to sell a pre construction unit to another buyer.
Assignees
An assignment sale doesn’t have challenges only for assignors, and assignees may face several difficulties while working on a unit sale. One of the most common challenges is financing for the project. For example, to close an assignment sale deal, a large amount of money may be required from an assignee’s side.
Also, an assignee needs to be aware of the selling conditions of a developer behind the pre construction condo project.
In addition to assignors and assigners, a developer has its own challenges in an assignment sale. They include paperwork and devaluable of a unit under construction.
Solution
There may be several challenges with assignment sales, and these are increasing with rising pre construction projects in Toronto. However, these challenges in assignment sales in Toronto come with a viable solution. And, it is standardization.
It is the process of standardizing assignment sales in the region. A centralized registry will provide transparency and make it easy to track all the available assignment sales in Toronto. In addition, assignment financing options can be another way of closing a deal for an assignee.
Want to know more about assignment sales in Toronto? Discover more at TIMELY INVESTMENT.
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