Having navigated both sides of the real estate world — residential sales and luxury development projects — I’ve seen firsthand the unique challenges and opportunities each presents. Realtors often approach development projects the same way they would a residential property, but that’s a mistake! Selling a vision (especially one that hasn’t been built yet!) requires a distinct mindset, strategy and skill set.
Challenges in selling a development project
When selling a development project, the biggest challenge is selling the idea of something rather than the tangible reality; there’s no finished product to walk through, touch or feel. Instead, you’re working with renderings, videos, floor plans and carefully curated materials to communicate the vision. This requires a level of storytelling that goes beyond simply describing square footage and finishes. You’re selling a lifestyle.
Take Salato Residences in Pompano Beach, Florida, for example. When speaking with clients, I thoughtfully describe how they’ll feel unwinding by the infinity pool at sunset or entertaining friends in a state-of-the-art private dining room overlooking the ocean. Fostering this emotional connection to the lifestyle is what sets successful development sales apart from the rest.
Educate yourself to educate your clients
One of the most critical elements in selling a development project is education — not just for your clients, but for you, too! Realtors must deeply understand the project, the surrounding community and, ideally, the nuances of construction, as well. Buyers need guidance on how the process works, from payment schedules to fees that differ from traditional resale transactions. If you can’t speak confidently about these aspects, your clients will sense it.
Early on in my career, I was fortunate to work hands-on with developers and builders, allowing me to gain a foundational understanding of construction processes. I’ve sat in zoning meetings, joined construction management calls and toured countless developments to stay current. If you’re new to development sales, take the time to immerse yourself in the project’s ecosystem.
Relationships are the ultimate closer
In both residential and development sales, relationships are everything. But in development sales in particular, these relationships extend beyond clients to include developers, sales teams and even city officials. Building trust and maintaining good standing with all stakeholders is essential. At Salato, our team’s mantra is “Relationships are the ultimate closer,” and it’s true. Transparency, accountability and timely communication build trust, which leads to successful closings.
For instance, knowing when pricing changes are imminent or when inventory is limited allows you to act decisively on behalf of your clients. These insights often come from strong relationships within the development team. Collaborating with the sales directors or internal teams can also make your job easier, especially if you can’t personally attend a gallery showing or need access to unbranded materials for your marketing.
Advantages of development sales
While development sales come with challenges, they also offer unique advantages. Unlike residential sales — where you’re juggling multiple listings — development sales allow you to fully focus on one property. This structure may appeal to you if you prefer routine. Additionally, developers often provide agents with robust marketing materials, including renderings, videos and brochures. This is akin to having a pre-built marketing machine handed to you — a resource many agents overlook!
Another benefit is the commission structure. Development projects often offer higher commissions — 3% to 6% — compared to resale properties. These higher stakes mean you need to bring your A-game, but the rewards can be significant.
While residential sales require versatility and quick adaptability across multiple properties, development sales demand a long-term commitment. Projects can take years to complete, requiring patience and persistence. As a single agent, balancing both resale and development can be overwhelming. That’s why I’ve structured a team at Salato to support both efforts seamlessly. For solo agents, consider partnering with colleagues or leveraging your brokerage’s resources to manage the workload.
In both cases, the key is to think like an advisor, not a salesperson. Listen to your clients’ needs, match them with the right property or project, and guide them through the decision-making process with honesty and integrity.
Ultimately, to sell a development project successfully, you must:
1. Leverage visual tools: Use every resource at your disposal, from renderings and videos to drone photography showcasing views and finishes. Visual storytelling is critical.
2. Focus on relationships: Build strong connections with the development team and your clients. A trusted relationship can make the difference between closing a sale or losing it.
3. Be hyperlocal: Know the neighborhood inside and out — the schools, green markets, local events and amenities. This knowledge positions you as an expert and advisor.
4. Embrace a niche: Don’t try to be everything to everyone. Focus on a specific geographic area or type of property to build expertise and credibility.
5. Educate constantly: Stay current with market trends, construction techniques and local developments. The more informed you are, the more confidently you can advise clients.
6. Sell a lifestyle: You’re not simply selling a property; you’re painting a vision for the aspirational lifestyle it represents.
Of course, selling development projects isn’t for everyone. It requires focus, patience and a deep understanding of the market and the product. But for those willing to invest the time and effort, the rewards — both personal and professional — can be tremendous.
Tinka Ellington of Douglas Elliman Real Estate is sales director for Salato Residences in Pompano Beach, Florida.