As a property developer, there’s a lot to manage and keep track of. A lot is riding on their success and whether or not they will make a profit. From looking for the right property to knowing when a property development is heading south, there are a few things every property developer should know:
The Right Property
When finding the right property, there are important factors to look for. Be certain to focus on the property’s location, evaluate the risk, financial responsibility, and how long the investment will last. Most property developers will have the option to choose between buying raw land or a property that already has development approval (DA). A DA property will be a bit more expensive than purchasing raw land, but they are great for first-time property developers. When purchasing a raw land property, it can be less expensive but will tend to have more risk.
Marketing is Everything
The best kind of marketing as a property developer is by creating a property that people want to buy. This takes a lot of research and monitoring market trends to give buyers exactly what they are looking for. Talk to local real estate agents to find the properties that are selling and what is currently in-demand. Research whether people are looking for two-story houses, an attached garage, finished basement, large backyard, or even the number of bathrooms. This can all help to create the perfect marketable home.
Finding the Right Builder
Finding the right property is only half of the battle. What really helps a property developer create a profitable property is by finding the right builder to help create it. When looking for a quality builder, don’t decide on one right away. It’s important to talk with multiple builders, visit some display homes in the neighborhood, and ask the right questions. Ask potential builders what projects they’re working on, their lead time, and if they specialize in certain properties. The right builder will have been in business for at least ten years and be consistent in their work.
Have Unique Features
There are lots of new properties being developed, which is why it’s important to stand out. The best way to have an advantage over the other properties is by having unique features. Instead of opting for the same old exterior of a home, consider rendering the house. Developers should also consider upgrading the driveway, polished lawns and backyards, as well as adding a few decorative touches. Not only are these cost-effective features, but they will also increase the value of the property.