Building a development can seem extremely complex with the multitude of factors which can go into it, from planning, construction to sale. Here’s a few tips to consider as a property developer into taking your business to the next level.
- 3D rendering of your development
You’ll often see it – smaller developments which rely on their marketing and advertisements solely relying on line drawings from their plans. It may seem like a cost saving to avoid getting rendering completed – but in reality this can impact the end sale values of the properties due to a smaller potential buyer pool. In the end as a developer you’re selling a product, so being able to show this product in the best possible light is essential to maximising your profit. Thankfully because of the revolution in technology in recent years, it’s possible to have 3D rendering of your property at a low cost.
- Fit in, don’t stand out
This might seem like the opposite of what most businesses do in this age, but in property development building a product which fits the local area is far more important than being ‘unique’. Due to property finance regulations, valuation guidelines and general market trends – you can find that if you don’t build products which have comparable properties in the local area you may find it difficult to finance and sell your development. This doesn’t mean you have to be boring and not show any creativity – you can do this through styling to a degree to reflect your unique offering, but always remember that less is more and your buyers will want a property which gives them the opportunity to style and make it their own.
- Don’t just build homes, build your business
Whilst a lot of developers focus on the product they build, it’s also important to invest in your business. Ensure your brand, website, contacts, systems and processes are up to date and helping grow your business. Don’t allow yourself to fall behind your competitors in this essential space. Just as you will use a feasibility study to determine a potential developments likelihood of success, you should document and assess your business progress to ensure you don’t leave potential value on the table.
- Build a unique service proposition
Having a unique proposition can get your ahead of the competition when it comes to building and selling a development. Do you allow a choice of fixtures to purchasers who sign up earlier? Or perhaps you have an aligned finance option which can help with them buying their home?
By coming up with a unique proposition this can be the difference between your properties selling sooner rather than later – and in development the longer the property takes to sell, the lower the total development profit. Apartment development agency BMA notes that they find properties which take fittings and fitout materials to a higher standard will generally sell quicker and for a higher value – so understanding what your competitor stock are using as a standard and outperforming can provide significant uplift in profit potential.
David from Schmicko, a premium car detailing brand, notes that minor features like increasing the width of the garage space to 1.5 spaces can be a big draw card for car lovers whilst increasing the overall build costs only fractionally. Likewise in many cases many car owners will favour a single larger car space, than two smaller spaces with many car owners now favouring SUVs which otherwise will not fit into ‘standard’ car spaces.
You don’t have to come up with an expensive option either – some developers will offer free vehicles or cashback offers, be careful with these offers as they can actually hinder the ability to finance the properties when the purchaser applies for finance.
Are you looking at developing property and need assistance with finance? Adelaide Broker’s brokers are experts in helping developers with specialised finance packages. Contact Adelaide Broker today for more information.