Development Potential and Property Development Costs are nothing more than the balance between value to be added to property by means of development and the costs that this action implies. When development costs are estimated, all potential expenses should be properly identified, as inaccurate cost estimates can easily cause the project to crumble.

Though exact estimates are impossible to predict, experienced professionals can give more accurate predictions than inexperienced individuals. Establishing development potential of a property would be impossible without accurate estimations of all, direct and indirect, costs, as unexpected overruns are as frequent as developers. You should always be prepared for unforeseen expenses and have back-up funds to avoid any pitfalls.

Development potential basically means the changes that can be made to the real estate that will make it appealing to more types of buyers, indirectly, increasing its market value. Professionals will already have had the opportunity to study market trends, know the types of real estate buyers to appeal to and the ways the property can be made more valuable.

Professionals will also be able to advise the developer in reducing costs, both direct and indirect, as development potential is greatly influenced by expenses as well.