What is Home Development?
Home development teams work closely with a home buyer to design and build a new neighborhood. First, a team will find suitable land for the new neighborhood. This land may be open fields, wooded areas, or even mountainous areas with dramatic views. It may take several years for a developer to acquire land for a new neighborhood.
The cost of developing a neighborhood is based on the amount of equity and debt that the developer puts forth. For example, if a new home costs $600,000, the developer is investing more than half his funds. The remaining half is covered by the builder, after the buyer purchases the lot. The cost of home development is the major factor in setting a floor price for a new home.
The construction process varies from country to country. In some countries, the process is completely self-promoted, with the individual household acting as initiator, manager, and ultimate consumer. In these countries, self-promotional housing has historically made up a large proportion of new housing. In some other countries, private land development companies purchase the land and develop it into serviced plots for housing.
A home buyer can choose from a variety of floor plans. In some cases, a developer will offer a model home to show what the finished home will look like. The model homes, which are usually fully furnished, help the buyer visualize their new home. Many builders also invest in computer-generated animations, renderings, and interactive floorplans to show prospective homebuyers how the home will look once completed.