Your Parents Have Been Approached by a Developer, What You Should Know
With the recent wave of rezonings under the Low and Mid-Rise Housing Policy, Transport Oriented Development (TOD) programs and other planning reforms across Sydney, Newcastle and the Illawarra, many older Australians are now living on land that holds far more value for development than ever before.
As a result, developers are approaching property owners, often elderly, long term residents—with unsolicited offers. If your parents are in this position, it’s worth paying close attention. These approaches are rarely as simple as they first appear.
Developers Move Fast and Know What They're Doing
By the time a developer contacts your parents, they’ve usually done extensive planning and financial analysis. They’ve identified that the site has substantial potential value to them, under current or future planning controls, and their goal is to secure it as early and cheaply as possible.
Their business model relies on this. Securing a site for a low acquisition price is one of the most effective ways for developers to increase profits and reduce risk. To do that, they act quickly and with confidence, supported by architects, planners, lawyers and feasibility experts.
Most landowners, including elderly parents, are not on equal footing in these discussions.
The Information Gap Is Real, and Risky
Developers approach negotiations with a significant information advantage. Unless your parents have commercial or legal expertise, they are likely to be negotiating with far less context, insight and protection.
We are regularly asked about these situations by adult children of elderly parents, and we frequently provide advice to help them understand the issues, assess the proposals, and support their parents through the process.
As a result, there are real risks:
Undervaluation – Offers often don’t reflect the full value of the land to the developer.
Unfavourable terms – Structures like delayed settlements, options or rezoning conditions can carry hidden risks.
Lack of protection – Heads of agreement or early documents may commit your parents before they understand the consequences.
Pressure to act quickly – Developers are skilled at creating urgency, discouraging owners from seeking advice or exploring alternatives.
Isolation – Your parents may not realise that neighbours are being approached too and that collective negotiation can lead to a stronger outcome.
Tax consequences – GST and capital gains tax implications are regularly not considered until it's too late.
Emotional decision making – Elderly owners may feel overwhelmed or vulnerable to friendly persuasion.
Early Advice Can Make a Big Difference
There’s no harm in receiving an offer but the right advice should come before anything is signed or promised. The key questions to clarify are:
What is the land worth to the developer based on its full development potential?
What are the financial and legal risks of the proposed structure?
Are there better alternatives, either through negotiation or market testing?
How can your parents’ interests be properly protected?
These are not abstract concerns. They have real financial and personal consequences, particularly for elderly owners who are being asked to take on risk without realising it.
Your Support Matters
Adult children often become the key advisers in situations like this. Helping your parents ask the right questions, take professional advice and avoid rushed decisions can protect both their financial position and their peace of mind.