What Happens When a Developer Knocks on Your Door

The Knock on the Door

It starts with a letter in the mail, a card in the letterbox, or a knock on the door. A developer — or more often, their agent — wants to buy your property. They compliment your block, mention its potential, and suggest a price.

This is happening with increasing frequency across Brisbane, Logan, Moreton Bay, and the Gold Coast as developers compete for diminishing supplies of large residential blocks.

The question is: how do you respond?

Rule 1: Never Accept the First Offer

The first offer from a developer is almost always below market value. It is a test. They want to see if you will accept a quick, easy deal before exploring your options.

Developers approaching you directly are trying to avoid a competitive sale process — because competition drives prices up. If they are at your door, your block has value. Do not let them control the narrative.

Rule 2: Understand Why They Want Your Block

Ask the developer (or their representative):

• What do they plan to build?
• How many dwellings?
• What is the expected end value of the project?

If they are evasive, that is a red flag. A legitimate developer will share their intentions because they need your cooperation.

Why this matters: If a developer plans to build $3 million worth of townhouses on your block, and they are offering you $600,000, the gap tells you there is significant room to negotiate upward.

Rule 3: Get an Independent Appraisal

Before engaging with any developer, get a professional market appraisal from an agent who understands development site sales. Not a standard residential appraisal — a development-focused assessment that considers:

• What can be built on your block (zoning and overlays)
• What the completed project would be worth
• What the land is worth to a developer
• What comparable sites have sold for recently

At ACRES, we provide these assessments at no cost. Request yours here.

Rule 4: Create Competition

The single most effective way to increase the price is to introduce competition. Even if you like the developer who approached you, engaging 2-3 additional buyers will push the price up significantly.

How to create competition:

1. Engage a development-focused agent (like ACRES)
2. We market your block to our database of qualified developers
3. Set a closing date for offers (EOI process)
4. Let developers compete against each other
5. You choose the best offer on price, terms, and conditions

In our experience, a competitive process adds 10-25% to the price compared to accepting an unsolicited direct offer.

Rule 5: Understand the Contract Terms

Developer contracts are more complex than standard residential contracts. Watch for:

Conditional Offers

Developers often make offers conditional on:

• Development Approval (DA) from council
• Finance approval
• Due diligence (soil testing, surveys)

Conditions give the developer an exit if things do not go their way. Negotiate:

• Time limits on conditions (e.g., 6 months for DA, not 18 months)
• Non-refundable deposits or option fees during the conditional period
• Sunset clauses that allow you to walk away if conditions are not met by a deadline
• Your right to continue living in the property during the conditional period

Option Agreements

Some developers offer a Put and Call Option instead of a standard contract. This gives them the right to purchase at an agreed price within a set timeframe while they seek approvals.

Key protections:

• The option fee should be substantial (2-5% of the purchase price)
• The option period should be reasonable (6-12 months, not 3 years)
• The fee should be non-refundable if the developer does not proceed

Delayed Settlement

Developers may request settlement 12-24 months after the contract date. Ensure the contract includes:

• An adequate deposit held in trust
• Interest on late settlement
• Indexation if the market moves significantly

Rule 6: Get Legal Advice Early

Engage a solicitor experienced in development site contracts before you sign anything. The developer has sophisticated legal representation — you should too.

A good property solicitor costs $2,000-$5,000 for a development site transaction but can save you tens of thousands by identifying unfavourable terms.

What If Multiple Developers Approach You?

This is actually an ideal situation. It confirms demand for your block. Respond to each developer courteously but do not commit. Engage an agent to run a formal sale process that captures all interested parties.

If you are in a suburb where developers are actively buying — suburbs like Coorparoo, Mount Gravatt, Stafford, Nundah, or Springwood — the demand for your block is real. Channel it into a process that maximises your result.

The Bottom Line

A developer at your door means your block has value. Your job is not to say yes or no immediately — it is to understand the true value and create a process that delivers it.

Contact ACRES for a confidential discussion about any developer approach you have received.

Daniel McCormack

Managing Director, ACRES — Australian Commercial & Residential Group

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