How to Spot a Reputable Developer
Category Developments
7 ways to spot a reputable property developer
Whether you're considering buying your first home, buying in a secure estate for the first time, or adding to your existing property portfolio as a seasoned investor, purchasing property off-plan in a new development is a big decision.
"There will be a great deal to consider when shopping for development property," says Andre van der Merwe, property development specialist at Chas Everitt International property group. "And the most significant considerations will be to find a reputable developer, source a trustworthy and capable contractor and assemble the right team to build your dream home to spec and on time. Nothing can happen until the first of these is accomplished, and it remains one of the most high-risk decisions when investing in development property."
What does a property developer do?
To manage expectations and know what to look for, it helps to understand what property developers do, and their scope of responsibilities.
Property developers co-ordinate all elements involved in developing real estate, from beginning to end. They're typically known for larger scale projects, such as residential estates, apartment buildings, high-rise commercial and business district buildings, and shopping centres. Their activities vary and include:
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Scouting for tracts of open land for development opportunities
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Researching the feasibility and marketability of the land (environmental impact assessment, cost analysis, proximity to amenities, regional desirability, type of development suited to the location, etc.)
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Handling documentation relating to town planning, rezoning, building, architectural plans, and infrastructure/civil engineering
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Obtaining the relevant permits to proceed with the development (municipal approval on roads, infrastructure and utilities, environmental impact clearance, engineering and geology reports, etc.)
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Securing project funding to ensure that the development can be completed
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Orchestrating the actual process of development by various qualified contractors and service providers.
How to identify a reputable developer
Van der Merwe encourages potential buyers to do their due diligence before signing any agreements to purchase in a development: "Given the weight of responsibility on the developer's shoulders, it is vital to find one that is reputable and trustworthy. Buying off-plan in a development is not only a significant financial investment; it's a massive investment of your time."
He cites the following steps for spotting a reputable developer:
1. Do a brand check
Browse the development company's website and social media channels to get a sense of its performance, business history, company values, building and development style and its past and present projects.
2. Dig a little deeper
Go a step further and search online media for news stories relating to developer projects, taking special note of controversial reports pertaining to unethical behaviour or unsustainable practices, as well as reports that celebrate brand awards and recognition.
3. Request a portfolio
Give the developer the opportunity to showcase its achievements - request a portfolio of successful projects completed in order to prove track record and competence.
4. Investigate past projects
Make a point of visiting past projects to assess the quality of workmanship, materials used, the layout and how well the development has withstood years of wear and tear. If possible, schedule a conversation with an existing owner to gain first-hand, unbiased insight from an actual resident.
5. Obtain information about finance
As a potential investor in a new residential development, you're entitled to request information from the developer pertaining to the project financing. This could save you from investing your hard-earned money into a development that's poorly-funded and doomed to fail.
6. Conduct face-to-face interviews
Schedule an in-person meeting with each developer that's on your consideration list. Not only will you be able to secure answers about building practices, laws, finance and insurance "from the horse's mouth", as they say, but a visit to their sales centres will offer a glimpse into what you might expect from post-sales service.
7. Speak to a property agent
One of the best ways to get the inside scoop on a property developer is to have an honest chat with a reputable estate agent who specialises in secure estate and development property sales. Don't be afraid to ask straightforward questions about the matters concerning you most.
It can feel overwhelming to buy property in a development but there's no need to make all the decisions on your own. By simply ensuring that you've got the right information on hand, you're already well on your way to making an investment you won't regret. If you'd like a guide to walk alongside you on this journey, contact Andre van der Merwe or an experienced Chas Everitt agent today.
Author: Chas Everitt