When it comes to builders buying land, a lot of things can head south in a hurry. Lack of research, paying too much, and holding on too long are all things to be avoided, according to this blog from Charles Shinn. Builders sitting on parcels that can't be absorbed within a reasonable time frame should flip the land to another builder.
Being under-capitalized in money or in allotted time is another killer mistake. During the entitlement process, the builder typically has to hire a number of planning pros to assist with the municipal submissions. Delays should be expected and budgeted for along with re-submissions. Along those same lines, teamwork between civil engineers, environmental engineers, and architects are vital to success.
Too often, I see builders having to design specific houses for specific lots because the building envelope will not accept the standard plan. This happens very frequently on cul-de-sac lots and lots with utility easements. This is typically a result of lack of adequate review of the land plan, trying to force the number of lots, and/or the architect and land planner not working as a team.
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