Geographic or market; suitability; and economic feasibility. Some buyers search for vacant land by geographic area, based on the locations of their projects, places where they have a comfort level from past experience, or municipalities in the path of future growth. Others search for land parcels based on the number of potential building lots or types of buyer markets they want to reach. These could include age group (e.g., first-time buyers, empty-nesters), price range (e.g., entry-level, luxury housing), and life or housing style (e.g., gated communities, townhouses).
However builders define their target land parcels, they have to sift through many properties before finding one or two sites worth pursuing. Then they evaluate the suitability of the property for their intended development. Issues that are investigated typically include the availability and accessibility of public utilities, the current zoning, and challenging physical features of the site such as floodplain, slopes, and wetlands.
Builders evaluate the property and analyze the deal in the context of these questions. As they obtain more information, the answers can change or even prompt additional research. What does not change is the builder’s focus on these threshold issues because they relate to the bottom line question: should I … Read More