Real Estate Development

A real estate developer develops land, thereby increasing its value. The developer may be an individual, but is often a partnership or a corporation. Developers are concerned with providing property that people will buy.

Useless buildings have no value, which means they can't be sold or rented. However, property can only sell if it's in the right location, has utilities (defined as the availability from adjacent public roadways and with a sufficient capacity of water, sanitary sewer, storm sewer, electrical power, natural gas, telephone and cable), construction costs can be managed, and the project can be completed on time.

The standard solution to development problems is to retain a registered professional engineer who specializes in pre-development engineering issues, and involve this person before purchasing the land. The standard solution to the salability problems is to retain an architect to design an attractive development. Many developers retain at least some ownership of profitable properties.

A number of these developments have commercial applications; yet many others are sold as "lots-only" to buyers and builders.