5 Environmental Issues Developers Should Consider Before Selling

Land developers make massive profits on property deals, but not all of them turn out to be lucrative. In fact, some deals entail losses, and others even get canceled due to different reasons. Potential environmental issues are among the leading causes of failure of real estate deals as buyers may want to pay less, renegotiate the terms, or give up on the deal altogether. As a land developer, you can prevent the situation by eliminating red flags that make the property less desirable for the buyer. A little effort to resolve the environmental issues can prevent delays, cut the risk of re-negotiation, and ensure more favorable offers. Here are the ones you should address before selling.

Remove waste from the location

The easiest way to make your building more environmentally attractive to potential buyers is by removing waste from the surroundings. The last thing a buyer will want to see is construction junk strewn around. Also, ensure there is no unused equipment, tools, and leftover material on the property when you have prospects coming to see it. The cleaner the place, the better the chances of selling at a good price.

Review environmental records

Real estate developers are obligated to provide environmental compliance records such as air reports,  stormwater, and wastewater discharge to the authorities. Investors and buyers also expect to see them as a part of due diligence. Ensure updated records and submit them on time to prevent problems down the line. It saves your deals from falling prey to Notice of Violation and your business from penalties and fines.

Check environmental permits

Environmental permits are an essential element of land development projects. You cannot start building without Environmental Permitting in the first place. Failing to update them down the line can bring problems while selling the properties. As building and development regulations evolve, permit requirements may also change. Review the existing permits and ensure they match the current guidelines to have a smooth sail with the deal.

Eliminate underground storage tanks

A property with an underground storage tank may encounter issues while selling, even if you renovate it. The best way to address this environmental concern is by removing the tank if it is old and no longer in use. Buyers do not want to get the potential liability of storage tanks as a part of the deal, so they expect developers to remove them in advance. Moreover, they will bargain on the price to reduce the cost of the removal and potential environmental damages caused by the tank.

Remove stains

Land development is a messy job, and properties have stains and spill on completion. They will be around even after a new build or a renovation project. Oily stains on asphalt, cement, or other areas are common. Buyers consider them red flags and quote a lower price for your place. They may even seek an extensive environmental investigation due to a minor spill. It can lead to delays in closing or even end the chances of selling.

A clean and aesthetic property has a fair chance to sell. But land developers should go the extra mile with environmental due diligence because buyers are more concerned about these issues than ever.