Property Developers – How to Choose the Right One
Buying an off-plan property is one of the biggest financial transaction many people will ever make in their lives. As a result, it only makes sense that you should want to buy from not only the best but also the most reliable real estate developers. Unfortunately, however, there are many inexperienced and profit-minded players in the real estate industry with whom you are likely to face various issues including lengthy delays and legal complications.
So how do you go about choosing the right developer to buy your next property from? Let’s have a look at some of the things that you need to consider and look into.
Who are They and What is Their Background?
This is one of the first things you need to look into when choosing a real estate developer. Performing a background check on the real estate developer gives you a great understanding and insight into who you could potentially be dealing with. A background check should uncover the developers market reputation, their track record, completed projects and delivery rate and quality. It goes without saying that checking developer’s background is essential and an absolute must if you want to make sure you don’t get singed.
Now that you understand the importance of doing a little research let’s look at some ways you can go about doing this very research:
- Visit their website online to check company portfolio, associates and history
- Talk to previous clients and ask about their experience. If you don’t know any past clients go online and look for reviews and testimonials.
- Take time to visit their ongoing construction site. Doing so will tell you a lot about their work quality, materials, and layout.
How Financially Secure They Are?
This is a very important factor and should form part of your early research. A real estate developer going through financial troubles is never a good thing and the consequences for the buyer can be disastrous:
Inability to deliver the project on time.
Likely to resort to the cheap material to compensate for the lack of funds.
Likely to increase costs or charge you with hidden costs.
To avoid being faced with any of these scenarios buyers should ask for the developers business reports and do whatever it takes to get an understanding of their financial position.
Price and Payment Terms
Cheaper isn’t always better is a saying that definitely rings true when talking about real estate developers. It’s human nature to always want to get the lowest price but you should be wary when the prices and terms are low to the point of sounding too good to be true. Any developer offering such prices can make up for the fact by using inferior materials in building construction and cutting corners wherever possible.
Developer Reputation and Track Record
Past performance and behaviour are usually a great indicator of future performance and behaviour. For this reason, buyers need to have closer look at property developers previous projects and how they were handled. Was the quality of the finished product as promised? Did the project complete as in the time? Were the previous buyers satisfied with what they received? Answers to these crucial questions will go along way in giving buyers the insight into whether dealing with a particular developer is a good idea or not.
These are just a few of the various factors buyers need to consider before choosing a developer. Whilst all this may sound tedious and a little boring it’s without a doubt worth doing in order to ensure you choose correctly.
You May Also Enjoy
Clarity on energy efficiency rules for commercial property needed
English Housing Survey 2024 to 2025
Propertymark responds to latest HMRC property transactions report
Mortgage activity dips in December
£19.9bn of PRS refurbishment required
