Prices of newly listed homes across the US have increased 13.5% since March 2021, with the median price reaching $405,000 marking an 8% increase during the same period, according to Fit Small Business. Though house prices have been steadily rising, the demand for residential and commercial property from both local and international investors continues to surge as well. So, if you’ve been thinking of becoming a property or land developer, this might be the right time.
However, to establish a successful property development project, you must know how building a home with metal vs wood will affect your return on investment. You should also know which materials are ideal for building commercial properties that attract your target customers. Keep reading to learn essential property development and marketing tips to maximize your ROI.
Conduct Market Research
The first step to developing land or property and marketing it effectively is conducting market research. For example, if you intend to build luxury apartments, your target customers will be comprised of high-income earners. Therefore, consider performing a feasibility study for a property development project. Doing so will help you determine if there’s demand for the type of property you wish to build and expected return on investment.
The cost of property development entails more than the buying price of land. You must factor in tree removal and brush clearing services, grading, installation of underground utilities, and the construction of buildings. Also, be ready to pay fees for building permits, insurance, upkeep of existing structures like fence lines and drainage systems, and maintenance of construction equipment.
For instance, let’s say your contractor uses a John Deere skid steer for excavation. You need to consider the cost of maintenance, including replacement of rubber tracks. By replacing old rubber tracks with new John Deere 319D tracks, you can save time and money throughout the project timeline. That’s because high-quality rubber tracks improve traction and maneuverability, thus boosting productivity at the site. With that said, calculate all the expenses and create a realistic budget.
Market Your Property
Once you’ve announced plans for your property development project, inform the media via press release. That way, local newspapers, TV, and radio stations will cover your project at no cost. Leveraging free media coverage also helps you create awareness to the local community about your project and get their support. Also, consider advertising your land development project online on your website and social media platforms. Posters, brochures, and billboards are excellent marketing mediums to promote your project to potential clients.
Developing residential and commercial property is an excellent way of earning extra income. However, to earn high ROI, you must know the ins and out of property development and marketing. With this in mind, conduct thorough market research before investing any amount on land acquisition, estimate overall project costs, and market your development project via local media coverage, online platforms, posters, billboards, and brochures.