34 property owners in South East Queensland requested assessments this month
iKey Facts
- •Asking the right 12 questions filters out 60-70% of speculative or under-funded developers
- •Most vendors ask 0-3 questions; sophisticated vendors ask all 12
- •Funding evidence and prior project completion records are the two most predictive of settlement success
- •A reluctant or evasive developer at the question stage is a 3x higher risk of contract failure
- •See companion: Why Some Sellers Lose Millions Negotiating With Developers
The 12 Questions
Before signing a contract — or even shortlisting offers — every Brisbane landowner should ask these 12 questions of any developer making an approach.
Funding & Capability
1. How are you funding this purchase — equity, debt, or hybrid? Equity-funded developers settle faster and more reliably. Debt-funded developers depend on bank approval — adds risk.
2. Can you provide funding evidence? A term sheet from a bank, an equity capital letter, a recent project sale settlement statement. Vague answers are a red flag.
3. What's your last completed Brisbane project? Names, dates, settled amounts. Look for projects in the last 24 months. Long gaps suggest funding or capability constraints.
4. Who is your construction partner? Many developers work with one or two builders. Names like Hutchinson, Hutchinson Builders, Tomkins, BadgeConstruction. No builder = no construction = settlement risk on contingent contracts.
Conditions & Timeline
5. What's your due diligence timeline, and what specifically do you need to investigate? Specific answers (planning report, geotech, contamination Phase 1) signal a real plan. Vague "full DD" answers signal placeholder thinking.
6. What's your settlement timeline, and is it date-driven or trigger-driven? Date-driven: "Settlement 90 days after unconditional." Trigger-driven: "Settlement on DA approval." Vendors prefer date-driven for certainty.
7. What deposit are you offering, and is it released or held? 10% released after DD is the gold standard. 5% held in trust until settlement is weaker.
8. What's your default position if conditions aren't met? Strong developers offer cost-recovery clauses or partial deposit forfeiture. Weak ones want full refund.
Strategy & Project
"Why These Questions Matter In Brisbane, 15-20% of development site contracts fail at DD or finance stage."
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9. What's your intended product mix and approximate yield on this site? A developer who can't articulate the project hasn't done feasibility. High risk.
10. Have you done a pre-lodgement meeting with council? Pre-lodge signals serious intent. Many developers haven't — and DD then includes pre-lodge time.
11. If your DD reveals issues, will you renegotiate or walk? "We'd prefer to renegotiate" is honest and constructive. "We'd walk" is a red flag.
12. What's your back-up if our deal doesn't complete? Strong developers have multiple sites in pipeline. Vendors don't need to be the only deal.
Why These Questions Matter
In Brisbane, 15-20% of development site contracts fail at DD or finance stage. The 12 questions filter out about 60-70% of high-risk buyers before contract signing.
A developer who:
- Has provided funding evidence
- Has named a builder
- Has a track record in 24 months
- Has named DD specifics
- Offers strong conditions
- Has a pre-lodge meeting
...is a 90%+ settlement-probability buyer.
A developer who answers vaguely on 4+ questions is a 50-70% settlement-probability buyer. Not necessarily fraudulent — often just under-resourced or speculative.
How to Ask Without Being Adversarial
The 12 questions can be framed as professional interest:
- "We're evaluating a few offers — can you walk us through your funding structure?"
- "We want to make sure settlement is certain — what's your track record?"
- "Our advisor has asked us to confirm a few things — bear with us."
Strong developers respect the questions. Weak developers resent them — which is itself useful signal.
When You Don't Get Answers
If a developer refuses or evades, the response options are:
- Decline to engage further — they're not serious
- Reduce contract terms — shorter DD, larger deposit, harder conditions
- Insist on funding evidence as a contract precondition
- Refer to advisor for direct negotiation
Frequently Asked Questions
Can I ask for the developer's feasibility model?
You can ask. Most won't share. But ask the three numbers (construction $/sqm, GRV/unit, target margin) and benchmark.
Do I still need to ask if the developer is a household name?
Yes. Household names also fail DD or have project-specific funding constraints.
Is it rude to ask these questions?
No. Professional developers expect them. Standard at any institutional transaction.
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Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/what-questions-should-landowners-ask-developers | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
