People sometimes relate property developers with builders, but the fact is that they are two different professions. We break down the differences between the two and some of the similarities to get a better understanding.
A property developer is different to a builder, but builders can be property developers also. Some of the differences include that builders will actually put materials togather and physically build or renovate a project. Where as a property developer will manage the whole project without getting involved in the actual build part.
What Is A Property Developer?
A property developer is someone or a company who makes money from building, developing or renovating properties.
It can be that they build and develop a property from scratch or that they use an existing property to renovate and then sell.
What Is A Builder?
A builder is someone who constructs, develops or repairs houses by putting parts and materials together.
Different to a property developer, the builder is the person who physically builds the property.
What Does A Property Developer Do?
A property developer does several key things in developing or renovating properties.
For a property development that is being built from scratch, the property developer is the one that buys the land, creates the plans for the build and has to think about everything needed from the house structure to the street outside.
There is a variety of things that they need to consider to get the job done right. The property developer is the person who does all the hard work and planning for the property.
For an existing property that is being renovated, the property developer is the one who purchases the property, develops it and renovates it and then goes onto to either sell it or rent it out.
With renovations, the property developer will still need to thoroughly plan this out as they may plan to knock down walls, add rooms etc.
Their goal with renovations is to add value to the property and make it sell for more than it was bought for, to make a profit from it.
Characteristics Of A Property Developer
- The Big Picture-
Property developers always focus on the bigger picture, seeing the vision of the project and the outcome of it.
It means they have great patience as they see their visions slowly become a reality.
To be property development, being able to see the vision and the finished outcome is important, along with having good patience for the process.
The ability to be able to make decisions quickly is a key characteristic of a property developer.
Any delays in the project can have a massive impact on the budget and project as a whole.
So when it comes to deciding on something, it’s best to be able to make the decision straight away, to save any time-wasting. If you’re indecisive person, then this job wouldn’t be the one for you.
Some great opportunities can arise at any time, so it’s important for a property developer to keep an eye out and not let one slip away.
A successful property developer can spot a good opportunity quickly and know whether it’s worth looking into further. In property development, it’s important to make the most of any opportunities.
- Deal Making-
It’s always good to be good at negotiating to get the best deals, so when it comes to a property developer, it’s key to be a good deal maker.
They need to be able to think outside the box when it comes to solutions and getting the best deal.
Problems arise all the time, so for property developers, they must be able to quickly deal with any problems to avoid any delays in the project.
It’s also important for them to be able to deal with problems and come up with solutions easily.
- Quality vs Time-
It’s important to get the right balance between quality and time with property development.
High quality can take up a lot of time, which will then delay the project. However, it still needs to be a good quality.
This is where property developers need to understand the balance and get it right with their projects.
- People Skills-
Finally, it’s great to have good communication and interpersonal skills. This will help property developers out a lot, as they deal with several different people daily. So, they need to be able to communicate well with anyone.
What Does A Builder Do?
On the other hand, to a property developer, we have the builder. The builder’s job is to construct, maintain, repair, renovate and remodel properties.
They work on several different things from houses to schools, and the main purpose of their job is to construct a building.
Characteristics Of A Builder
- Co-ordination Skills-
A builder needs to have good co-ordination skills, due to the fact they use several different materials and tools each day, to contrast something.
They must be able to co-ordinate something together, to be able to do the job.
- Team Player-
Most builders work in a team, so it’s important that they can work in a team and be a good team player.
- Work Under Pressure-
A lot of the time, there is a deadline for when work needs to be completed by, and it’s important to stick to this, as it can delay the whole process and project.
This means they must be able to work under pressure to be able to get the job done.
- Good Decision Maker-
Sometimes, a builder needs to be able to make their own decisions with their work, so it’s important that they can make good decisions and quickly.
The decision making can delay the process and if it isn’t a good one, potentially change the whole project.
- Attention to Detail-
Attention to detail is a key characteristic to have as they need to be precise and make sure everything is perfect as they are constructing and building a property.
A lot of the time, they will have to multitask to get several things done at once, so they must have the ability to do this, without messing anything up.
How Do The Two Work Together?
Property developers are the ones who purchase the house or land and develop it.
The builder is then the one who constructs it or renovates it. The two work together quite often as the property developer has the plan and the builder then does a lot of the physical work to achieve this.
The two work together all the time, as, without a builder, property development wouldn’t be able to happen and vice versa.
Property Finance Partners has years of experience financing property developers and investors in the UK.