Property development is an exciting world. You have your eye on a property or a plot and you see the potential. You think, “there’s money to be made here!” and you’re probably right.
Indeed, there can be a lot of money in property development but it’s not uncommon for investors to miss out on their property development targets.
That’s why we want to help you…
Why do some property developers lose money?
You buy a property or a plot and you have a vision. Then, you go for it. Have you considered everything? If not, this is where things can go wrong.
Sometimes you are too close to the project. You have your own tastes, opinions and preconceived ideas of what makes a good property.
However, are you sure you’ve got it right? Even small mistakes can be costly when it comes to your profit margins.
How can property developers avoid costly mistakes?
Having a property investment vision is great. Realising it is something different.
Therefore, doing your homework is absolutely vital to property investment success.
Here’s what we recommend:
Understand market demand
Ask yourself: “do I actually know what buyers want right now?” and if you can’t answer it, you’d be wise to get some help.
Did you know you can pop by our office in Newcastle-under-Lyme or Market Drayton to ask for advice? Or, we can see you on a site you’re considering.
Get an outsider’s perspective
Once your property development plans are ready to go it’s important to get a second opinion.
Why? Well, you need someone with detachment from the build process.
Rather than always looking at it from a design and build point of view, we focus on what the market demands so your property will sell well.
Assess projected sales figures
At this stage, it’s time to talk numbers by drawing up projected sales figures for your finished dwellings.
We can tell you how different layouts and designs may affect the final projected value.
Moreover, using data to drive your decisions can ensure you’re developing your property with your head, as well as your heart.
Define your profit margins
Do you understand your build costs, processes and difficulties and how they can affect your profit margins?
Don’t worry if not. We do and we can help you see the ‘bigger picture’, saving you money in the long-term.
Ensure an accurate valuation
Being well informed about the value of your developed property will ease the sales process – and minimise your overall costs.
Getting an inflated valuation may great in the first instance, but are you sure it’s accurate? If it’s not it could cost you down the line.
Related: Is your house worth more than you think?
Think marketing strategy
Put some time aside to think of how you will market the property.
Think launch dates, open days, key selling points and marketing materials.
However, if marketing isn’t your thing – don’t stress. We can help get your property out there, in front of the right potential buyers.
Related: Selling fast – it’s all about communication
Handle the sales process responsibly
You’ve accepted an offer! Great! Now let’s make sure the sale goes through!
From communicating with buyers to liaising with solicitors, you’ll want to work with someone who can handle this process efficiently.
Are you a property developer in Staffordshire?
Don’t hesitate to get in touch with us to discuss your property development properties. However big or small, we can help you ‘sale’ through it and maximise your profit.
