Overcoming These Familiar Real Estate Development Challenges

Real estate development is a promising career to be in for many. In this field that ranges from property renovation to the utilization of empty lands to be converted into new projects, the business potential is almost always existing. While it is often an optimistic field to be in, it doesn’t come without its complex steps and inherent challenges. Real estate developers have had to jump over numerous hurdles in their careers, adhering to industry ethics and regulations while attempting to make a profit.

While each challenge has been met with a desire to become better, it doesn’t erase the stress and annoyances brought on while trying to overcome them. Listed below are some familiar obstacles that are faced in real estate development, along with some approaches to overcoming them.

Challenge #1: Standing Out in the Market

Real estate development has much competition that, at times, is a huge barrier to doing business. Standing out in the market has much to do with marketing itself, as a solid promotional plan will assist greatly in bringing attention to the property from the correct target audience. Real estate developers need to also have a knack for selling real estate or at least form solid partnerships with experienced realtors who can bring their vision to the market in an effective way. This will help immensely in making a profit.

Challenge #2: Backlash From the Neighborhood

Individuals tend to get possessive over their community, even if they have no market share in any of the land or have no community involvement. The fact of the matter is that individuals chose their neighborhood for a reason. Therefore, talk of future development will likely set off skepticism in their minds, bringing out their critical comments rather than garnering excitement. Real estate developers have grown accustomed to receiving some sort of backlash from the community, some of whom may take it as far as to protest or go to officials to put an end to the project.

Because of this potential threat to a project, there should be some preventative measures in place for mitigating negative chatter. This prevention begins with empathizing with the community, understanding their concerns about traffic, noisy construction and other related matters. In the event that the community’s concerns make it to officials, your previous groundwork of problem-shooting will come in handy. Being able to address these concerns properly can help keep your project on track, and once you have developed a way to address a community’s concerns properly, you’ll have a map of sorts to follow when faced with backlash again.

Challenge #3: Gaining Permits

Even before word of the project gets out to the community, real estate developers have a lot of preliminary hoops to jump through, with permits and project approvals being of large concern. Upon attempting to go through with a development project, these professionals must first gain approval from the correct local authorities and gain permits for all the different aspects of the project. This sometimes lengthy process can be a pain to real estate developers, but it is a necessary step to meet in the legal eye.

In the event that the process takes longer than anticipated, real estate developers should begin this process early on, communicating with the community’s permit center and laying out their desired timeline for the project. By working directly with this office, real estate developers can put some urgency into the project and develop helpful, professional relationships that might be of assistance to future endeavors.

Overcoming common real estate development challenges often looks like troubleshooting early on in the process and having strategic measures in place to support a simpler procedure.