Whether you’re looking to build a home or planning to invest in real estate, a real estate developer is among the first professionals you will have to rub shoulders with. They have some skin in the game to help you smoothly navigate even the most challenging property development projects with ease and minimal stress.
But considering that real estate is among the wealthiest industries in modern times, it’s easy to encounter every Tom, Dick, and Harry in your search for a property developer. But who exactly is a real estate developer, and how can you spot a good one?
Read on to find out!
Who Is A Real Estate Developer?
Also called property developers, real estate developers are simply professionals that help you develop or add value to already owned land or real property. This may involve erecting buildings from scratch, bettering infrastructure, renovating existing buildings, re-leasing property, or performing other activities aimed at improving the property’s value.
What to Look For In a Good Real Estate Developer
Not every business or individual out there who poses as a real estate developer is necessarily right for your needs. As a matter of fact, some of them end up doing shoddy jobs or making mistakes that could possibly attract lawsuits if not cause hefty losses.
It is also not unheard of to come across real estate developers that eventually turn out to be con artists out to rip off green and motivated real estate clients. This is all the more reason to be extra keen when looking for a property developer. Some attributes to look for may include:
Unless your bank account is superfluous, construction is rarely one of those projects you walk in and out of the bank with money enough to see through to its entirety. It often requires a sheer amount of effort, a big part of which goes into budgeting.
As the guys over at www.northspyre.com would opine, a seasoned real estate developer should have the ability to accommodate your construction budget without necessarily sacrificing your most important preferences. They should possess digital tools that help make cost-cutting a breeze for each of their projects.
A History of Timely Delivery
Whether it’s a residential building or a commercial real estate establishment, new construction and renovation projects may have strict timelines. You, a buyer, or a tenant may need the property ready for occupancy by a certain date, after which inconveniences may present.
This is why it is essential to evaluate a developer’s credibility in terms of their history of delivery on prior commitments. A reliable and reputable property developer will go out of their way to ensure timely delivery on projects, often days or weeks before the agreed completion date. A history of delays in project delivery should be a red flag!
Recognition by Lenders
Builders and renovation contractors often have to seek funds from conventional banks and other lending institutions. And before approval, the bank usually has to carefully scrutinize these entities, as well as the projects they’re seeking funding for.
Especially if your project doesn’t need entirely making payments upfront, it’s advisable to ensure your chosen developer is well-recognized and has backing from a reputable lender.
Guaranteed Quality Work
Nothing is more important than quality when it comes to construction. Whether it’s a home or a commercial building, the quality of work done by a contractor for a major remodel or new construction can have a huge impact on your property’s safety, security, longevity, and resale value.
This makes it important to ask for samples of previous projects from your prospective real estate developer before hiring them. Some of the best property development providers will usually display samples of their previous work on their websites, but it doesn’t hurt to ask for more. You can even ask for the contacts of their previous clients and reach out to them just so you’re sure.
Commendable Experience In The Industry
Finally, you’re better off in the hands of an experienced developer rather than a new entrant into the industry. Besides guaranteeing quality work, an experienced developer is more likely to have extensive knowledge and expertise on building laws, safety, regulations, design, and more.
They might as well be well-connected and even possess the often overlooked yet critical skills like communication, creativity, problem-solving, active listening, negotiation, and relationship building.
Real estate developers are inarguably among the most important stakeholders in the real estate industry. But a developer who doesn’t add value to your project can be of little or no use to you, if not derail your project in various ways. Thankfully, the above pointers have highlighted a few critical things to consider when picking a property developer.