Here are tips to choose the good real estate developer
Buying a home is the biggest financial transaction for many people as they build large savings for it. So, for that big decision, you would like to choose reliable real estate developer. Sadly, there are many inexperienced and profit minded players in real estate industry with whom you face several issues—from project delays to the legal complications.
Thus, you must choose the real estate developer after making good research based on the points given below.
What is Their Background?
It is the first and foremost thing you need to do when choosing real estate developer. Performing a background check on the real estate developer helps you know their track record, projects and delivery rate. A good property developer has at least one successful project completed. Checking developer’s background is essential as the market is teeming with new and inexperienced real estate developers.
Here are some ways to do that:
- Visit their website online to check company portfolio, associates and history
- Talk to the previous clients
- Visiting their ongoing construction site will tell you about their work quality, materials, and layout. You can ask the owner of that project about the services and reliability.
How Financially Secure They Are?
A real estate developer going through financial troubles is not good for you because:
- He can’t deliver project on time as there are several delays
- He can resort to the cheap material to compensate for the lack of funds
- He can raise costs or charge you with hidden costs
So, you don’t want the bankrupt developing company for your project. Therefore, you must ask for their business reports or consult from stockbrokers or bankers to know their financial position. Alternatively, you can look at their sale of units and project success rate in order to get a rough estimation of the company’s financial health. If it is a joint venture firm, you must research the other entity also.
How Much Time They Take to Complete the Project?
As you now know, working with a financially secured real estate developer is the right move. However, there are many companies who don’t deliver their projects on the time.
In this scenario, you can go for the listed companies as they are required to perform well for their stakeholders, therefore delivering the project on time. In many nations, there are regulatory bodies who list them after checking their financial conditions and track record. Asking the old/previous clients of the company comes in handy in this case.
Do They Have Strong Network?
Since construction work is all about the team work of different professionals, a real estate developer must have relationships with engineers, architects, brokers, bankers, attorneys, and equity sources. Having a strong network of professionals is one of the factors ensuring project success.
Do They Have Legal Documents?
Make sure the real estate developer has all documents regarding land title, authority approvals, construction commencement, building plan approval and other information. It’s better if you ask a lawyer to help you understand the tricky terms and conditions mentioned in the agreement or other documents. Don’t hire a real estate developer if he is missing any essential documents.
What about Prices?
Off course, you would be happy to find a developer with low price quotes. But you should be alerted when the prices are dramatically low, meaning that the developer may cut corners to make a profit. He can use inferior materials in building construction. Similarly, high priced quotes are not necessarily the guarantee of good work as they may include hidden charges. It’s a wise and nice idea to discuss prices and hidden charges on the spot with the developer.
These are the tips to find the best real estate developer for your project. Needless to say, it will require some time and effort to research and study your options, but in the end you will get the right property developer.
Image credit: Håkan Dahlström Photography