When it comes to small-scale property development, such as converting a commercial building into residential flats, there are several factors to consider in order to make your project more sellable and profitable. It’s important to think ahead and take into account the needs and preferences of potential buyers. An article in PropertyReporter discusses five top tips to maximize your profits and increase buyer appeal.

1. Decide who your buyers are:
   Before embarking on any property development project, it’s crucial to determine who your target audience is. Are they downsizers, families, or young professionals? By talking to local residential estate agents, you can gain insights into the demands and preferences of potential buyers. Making informed decisions about the type and size of units you develop will increase your chances of selling them quickly.
2. Don’t dismiss design:
   Good design plays a significant role in making your units more sellable. Hiring an interior designer from the outset can greatly improve the layout and decor, enhancing buyer appeal and adding value. When converting an existing building, consider retaining some of its heritage features, as this can add interest and value to your units. Additionally, creating vaulted ceilings or utilizing the existing roof void can significantly enhance the perception of space and add character.
3. Consider the details:
   It’s important to remember that you are designing flats for your customers, not for yourself. Focus on the 5% that sets your units apart from others in the market. Invest in quality features such as wooden doors with brushed steel fittings, metal switches and sockets, and premium kitchen appliances from well-known brands like Bosch and Neff. Additionally, consider deeper splashbacks in the kitchen and premium accents in the bathroom, such as tiled splashbacks that go down to the floor, LED mirrors, chrome shaver sockets, and decent shower fittings. These details can make a real difference in buyer perception and increase the value of your units.
4. Help your agent by making smart marketing choices:
   Consider marketing strategies that will make your agent’s job easier and increase the visibility and attractiveness of your units. Off-plan sales can work well for new-build schemes, but may not be suitable for conversion projects where the existing building is unappealing. Show homes can be a great marketing option, allowing potential buyers to visualize living in the space. However, careful planning is needed, especially in conversion projects where the flats have different shapes and sizes. Dressing your units is another popular tactic, but be mindful of not cluttering smaller flats. Seek advice from your estate agent before making these marketing decisions.
5. Think about your agent:
   The fee structure of your agent can have a significant impact on your profits. It’s important to incentivize them to sell quickly without constantly dropping the price, as this can eat into your profits. Consider including a ratchet in the agent’s fee mechanism that rewards them for quick sales at a premium price. It’s also important not to negotiate excessively on fees, as this may affect the priority given to selling your units. Paying a premium for a good agent can lead to better performance and higher profits.

Conclusion

Maximizing the profitability and sellability of small-scale property development requires careful consideration of the target buyers, design choices, attention to detail, smart marketing, and choosing the right agent. By investing in these areas, property developers can increase the appeal, value, and ultimately the success of their projects.