Developers and builders focus on two different tasks

Natural Gas Community

Can you buy your new home directly from the developer to save money?

In most cases, buying from a developer is impossible or undesirable. You will more likely buy from a builder because residential developers and builders are two companies focusing on different tasks. However, it is no longer uncommon for a major residential builder to do the development part as well. The advantage is that both branches can already communicate with each other while the future community is still in its infant stage.

Who is buying a future development?

The builder may either buy the land and sell or subcontract that part or let a subdivision of his company take that role. Major home builders like to be in the driver’s seat because many decisions will be made in the developing phase that impact the future community.

What is a Developer’s Job?

A developer buys raw land and gets it ready to build on. While the builder is interested in constructing and selling individual homes, the developer is only involved in acquiring, planning, financing, and developing a strip of raw land. It seems that the development part is the easier and more straightforward part. However, that is quite an understatement because a lot of work is involved before a builder can start building homes on a piece of land. In many cases, it will take years before the builder can erect the first house.

What is responsible for the holdup? The developer needs to obtain all necessary permissions according to zoning before he can even start the process. He will put in sewer, water, and power lines, and he will create streets and curbs and divide the new community into lots. The developer will also decide where ponds, parks, walking and biking pathways, and green spaces go. To do everything correctly, the developer needs to work closely with the municipality to meet standards for quality, accessibility, and safety. Permits, drawings, and inspections are the developer’s bread and butter. The building department is often unforgiving, and correcting major mistakes can be costly.

The Builder takes the Project to the Finishing Line

The Builder will usually work closely with the developer to understand the Project’s needs. He will also need to communicate with the building department to get the necessary permits for the community buildings (community center, pools, tennis courts, and private homes). At first, the building process starts with the grading of the lot. This process has become more important. Dumping a few truckloads of dirt doesn’t do the trick anymore.  According to the building code, the home has to be at a specific height to protect it against flooding, and flood prevention is a big issue.  Once the grading is finished, the builder pours the slab and driveway, connects the utilities, and builds the houses according to the permitted specifications. The future community’s overall design (and success) is his responsibility.

Many communities have a single home builder, while others have several home builders working under the umbrella of the major Builder who purchased the development. The advantage for a home buyer in such a community is that he has more options. Usually, one home builder is more on the moderate side in terms of price, whereas the others are gradually more upscale and, therefore, more expensive.

The Developer is often not involved in the Sales Process

The bottom line is that you will more likely buy your home from a homebuilder when you buy a home in a larger development. You may deal with a developer/builder when buying a single lot or a lot in a small community.



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