Builders and developers face harsh choices about their real estate holdings, especially because the scarcity and hesitancy of home buyers makes the value of basic assets almost impossible to pinpoint. Every day, we read about large builders, such as Lennar Corp., liquidating land at discounts as high as 60 percent of the price they paid a mere two or three years ago. The subprime mortgage crisis and widening liquidity crunch have also put pressure on banks to shore up their own capital bases. How do these changes in the market affect home builders and developers?
