A builder may design homes to their standards and meet market demand. The new community would offer a very attractive value proposition that is not currently available in the market with large lots and affordably priced homes. There are several possibilities for a builder to offer multiple floor plans or product segments given the lot sizes and locations of the various lot sizes. For example, a builder may consider two product segments to optimize the potential value inherent in the lots with spectacular views. A wider array of home designs will attract more homebuyers and accelerate absorption.

 

With a recorded map and finished lots there is no entitlement or development risk for a builder. The ownership will consider a structured sale which may include seller carryback note, phase takedowns, or other structure which would enhance a builder’s margins.