Getting started in the world of property development can be a daunting task. There are courses to take and lessons to learn, but much of what you’ll learn from property development comes from a mix of common sense, intuition, and experience. The property market is a volatile one that can change at any moment, so it’s important that you notice the signs of failure and when to pull out before it’s too late.
In order to give you a hand, here are five mistakes that almost every amateur property developers makes, and should try their best to avoid.
- Quantity over quality
This is a rather simple and straightforward tip. Don’t bite off more than you can chew, don’t assume that you’re going to be able to handle more than a single property sale at a time with your lack of experience.
Not only does it take a lot of coordination and time management skills to deal with multiple clients fighting over different houses, it also eats into your mental state and can easily stress you out. As a new property developer, you need to focus on making a quality sale in order to spread your name and perfect your sales skills.
- Replace terrible builders
If you’re renovating a property or building on new land, then don’t allow terrible builders to ruin your chances of making a sale. Builders are no strangers to charging you more money for a simple build or trying to dazzle you with their lingo.
Make sure you’re looking at online resources such as this brick guide to learn all about construction. A bit of time investment into the subject of construction can go a long way and help you identify builders who are legitimate and those who are trying to con you.
- Over Exaggerating
There are many things you can over exaggerate when it comes to the property market. Perhaps you write a brief article about your new development projects and overestimate the end results. Perhaps you install appliances and complicated decor arrangements in a house that look out of place.
Maybe you’re focusing too much on luxury when it’s an apartment that should be designed for low-income families. Whatever you do, set limits to your development projects and always design for the area your property is in, don’t go overboard trying to stand out.
- Stay professional
Don’t get too cute with your clients. When you’re showing them a property or speaking with them over the phone, don’t interject with personal comments. If your client makes a comment about something they dislike about the property, don’t say anything that could relate to your opinion.
Don’t tell them you agree, don’t tell them you disagree and don’t give them reasons for it. Stay professional, keep your distance from your client and answer their questions, not their opinions.
- Developing in the wrong area
If you’re going to invest a lot of money into the real estate market, then make sure your area of focus is a profitable one with a lot of traffic.
If you build in an area that is niche or doesn’t get many buyers and sellers, then you’re wasting your time and you’re better off investing your money into a new development project and renovating existing houses in popular areas.