Everybody needs a home. Property developers have the privilege of providing them.
That said, it’s not always easy for these professionals to sell the homes they lovingly build. The property markets are facing turbulence, too, with prices and interest rates fluctuating significantly in recent years. Many are now questioning whether to buy a home at all.
As the challenges of buying and maintaining property become more intensive, it can leave developers uncertain about clinching the sale. If you run your property development firm, here are some things you can do to boost the likelihood of the sale.
Learn About the Local Market
Properties must be developed with precision. In addition to mortgage lenders and banks tightening their rules exponentially, prospective homebuyers are also immensely picky about where they choose to live.
Questions you need to answer include:
- Which areas are garnering the most attention from prospective and recent homebuyers?
- Are properties on the market for long before they find a new owner?
- Is the area being suitably invested in, with new infrastructure and facilities on the way?
- Have other developers experienced success in the area?
You’ll struggle to sell the properties you develop if you’re aiming for the wrong demographics in the wrong areas. You’ll undoubtedly encounter struggles if you’re developing high-end properties in rundown areas or modest first-time buyer homes in affluent areas.
Secure a Structural Defects Warranty
A structural defects warranty isn’t mandatory for you to have as a developer. That said, you can seldom sell the properties you develop without it, as many mortgage lenders and banks insist on it before parting ways with their money.
The builder purchases the warranty but protects the future homeowner from potential developer-caused structural damage. It’s typically valid for the first ten years after a build is finished. Buying a home is one of the biggest investments a person will likely make in their lifetime. Very few people are willing to take needless risks with these arrangements, so you need to mitigate those factors however possible.
Take the necessary steps to find the structural defects warranty for you, lenders, and potential homebuyers. Buildsafe is a specialist broker that will provide you with free and fast quotes on building warranties, and their experts have 40 years of experience in the property sector. Importantly, all proposed warranties are recognised by the Council of Mortgage lenders and accepted by all high-street banks.
Work Better with Estate Agents
Property developers need the help of estate agents to put things in motion. They can draw on a lot of expertise here, but only if the working relationship is productive.
Express an interest in being open and frank about costs around the marketing of the homes. Specify your need for regularly scheduled reports and updates. Who are they drawing in? Do any web ads they publish on your behalf gain a lot of clicks? Transparency can fix any underwhelming results much faster and lead to better sales.
Make sure the estate agents complement or contribute to your knowledge of local property markets. You should be speaking the same language so that you can collaborate more closely. Establish trust through shared expertise. As your profile builds in local property markets, so will the sales figures of your developments.
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