Developers usually take the greatest risk in the creation or renovation of real estate—and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structures, and rent out, manage, and ultimately sell it.
The developer is the actual company the purchased the land and began development. A commercial developer would buy the land that they want commercial property to be built on while a residential developer is going to buy land where homes and planned communities are intended to be built.
Developers have responsibilities including surveying the land, clearing vegetation, zoning and planning for lots and home positions. They’ll stake out driveway beds, create streets, sidewalks and streetlights. They’ll also create boundaries, install water lines and sewers.
Developers must install landscaping, electrical lines and sometimes they’ll create amenities like parks, clubhouses and pathways. After development, lots are sold to buyers in phases and a homebuilder comes in to build the home the homebuyer purchased.
Builders and developers have different roles in home building that works with one another to make a home happen.