The Impact Of Single Family Homes On Residential Real Estate Developers

Real estate development sounds like a very easy job when in reality; it is extremely complicated and is only for those brave hearts that are willing to take risks. Real estate developers actually provide a scope to sell those products on the real estate that are not even in the market yet, making it both a difficult and a risky role to play.


What does Real Estate Development really mean?

In the simplest terms, Real Estate Development is the business of facilitating the construction, or sometimes even reconstruction of buildings on the real estate market. So, a Real Estate Developer has numerous tasks to do, starting with actually choosing a suitable piece of land for their project and purchasing it, to deciding what it is that they want to build on it and then sourcing and financing all the resources required to build the building and delegating various jobs to other competent individuals and supervising all the work that is being done. Most of the time, a Real Estate Developer is an entrepreneur, meaning that they will also have to keep a check on the expenses incurred on developing the site and on the market needs, wants and trends, to make sure that the cost of the building doesn’t exceed its worth.

Who is a Residential Real Estate Developer?

A Residential Real Estate Developer is simply a Real Estate Developer who deals in residential buildings. This means that while a regular real estate developer might deal in various sites such as those for recreational use, like malls, or for commercial uses, like work spaces; a Residential Real Estate Developer only deals in those spaces which will eventually be turned into buildings used for residential purposes. This calls for a different understanding of the market spaces available. The land that is eventually going to be turned into a residential space needs to meet many requirements such as, it should be at a reasonable distance from schools, hospitals, grocery stores and other buildings which offer basic and necessary services. It should also be large enough to accommodate other amenities, like a common gathering area or a provision store. These amenities generally differ with the preferences of the consumers. Recently, more and more consumers seem to be gravitating towards gated communities. It is the job of a Residential Real Estate Developer is to study the market trends and consumer preferences and to create a space which they can call home.

Why are Residential Real Estate Developer so Important?

A Residential Real Estate Developer plays an integral part in the process of getting the dream home. Without Residential Real Estate Developers, the whole process of getting a home will become very taxing and irksome. The enormity of the role that Residential Real Estate Developers play is not known to many due to that consumers usually see them performing a couple of functions, such as promoting and persuading them to buy the property. Everything else that a Residential Real Estate Developer does happen behind the scenes and as a result, they are greatly underestimated and are taken to be insignificant in the whole process.

Here are some reasons why Residential Real Estate Developers are indispensable:

  • They know what is best for a consumer because of the extensive market research that they do. As a result, they can help in identifying needs that even you didn’t know that you had.
  • They have the ability to assemble a highly qualified team of workers who are the best for their job. This cannot be done when operating alone.
  • They also assume hundred percent risks. This means that if something happens to go wrong or if some calamity befalls, it is the Residential Real Estate Developer who will bear the losses.
  • Unlike us, a Residential Real Estate Developer’s trained eyes will be able to pick out spaces with maximum potential, whereas we may be lured by outer appearances.

What is the Process of Residential Real Estate Development?

A) Pre-Construction:
Most people assume that the process of Residential Real Estate Development only begins with the construction of a building but, that is not true. The responsibilities of a Residential Real Estate Developer begin much before even a single stone is laid. The most unfortunate part is that the time, effort and money that is put into this stage is highly underestimated. The developer has to do numerous things such as: 1. Market Analysis and Feasibility Studies 2. Land Acquisition or Securing rights to purchase a piece of land 3. Environmental Assessments and Surveys 4. Making site, building and development plans 5. Applying for licenses and permits 6. Deciding on Infrastructure 7. Arranging for development finance

B) Construction
It is in this phase that the actual physical work begins and plans are put into actions. This is a particularly tricky phase for most Residential Real Estate Developers because of the sheer number of people that they are dealing with. Everybody’s preferences, strengths and weaknesses need to be kept in mind before delegating any task. The duties to be borne in this phase are:
1. Vertical Construction 2. Project Marketing 3. Drawing on construction financing 4. Pre-leasing 5. Arrange permanent financing 6. Arranging for a property manager

C) Post-Construction
This is that part of the job that most people know about because it is in this phase of development that the Developer actually meets potential consumers and persuades them to buy the property. This is the most important phase in some ways because it is in here that the developer finally reaps rewards for all his efforts in the previous phases. In this phase, a developer:
1. Finalizes the marketing and leasing plan 2. Finds a buyer 3. Fixes a holding strategy, if they aren’t interested to sell 4. Ramping up property management 5. Achieving stability

What are Single Family Homes?

Popularized by the American Media, a Single Family Home refers to houses which are separated from that of their neighbor’s by a ledge or garden. This is a house where the entire building is used as one unit. These types of houses don’t share any heating, water or any other facility with any other building and have direct access to a street. Typically, Single Family Homes have open spaces on all sides.

Where Did the Idea of Single Family Homes Come From?

Historically multi-family Homes were the norm with children living with their parents until they got married and moving in with the parents of their spouse after they got married. This was an efficient plan as this way grandparent with their endless patience could help care for their grandchildren while the second generation was able to look after the older generation. The idea of a Single Family Home is pretty recent. In the post war time, there was a surge in the standard of living in the New World. There were large amounts of spaces available and their settlement pattern, unlike the British, was never of that of a close-knit village. So more people began living in large areas of farm lands. The increased space and privacy was a welcome change for many and everyone was happy with it. After the Second World War, this type of living became very expensive and people preferred to live in smaller dwellings where heating and water costs could be shared. Even today, most of the middle class in America and the rich and elite in the third world countries prefer this type of a dwelling due to the peace, privacy and calm that it holds.

What are the Advantages of Living in a Single Family Home?

A Single Family Home has numerous advantages, some of which are:

  • Increased Privacy and less invasion of personal space
  • Most of these dwellings are in the lap of nature and have spectacular greenery that is soothing to the eyes.
  • An increase in the amount of freedom, from expressing your individuality to designing it the way you want.

What does it mean for a Residential Real Estate Developer to build Single Family Homes?

With a definite surge in the popularity of Single Family Homes, any prudent Residential Real Estate Dealer would invest some time and money in them. Whilst building these types of dwellings, a developer has to think from a different perspective. He has to somehow manage to construct buildings in such a way that each resident has privacy but doesn’t feel cut off from the rest of the neighborhood. Also, it can be a trifle more expensive to develop Single Family Homes than other residential areas but, at a general level, a Single Family Home is not an exceptionally challenging space for a Residential Real Estate Developer to work with.

Today, building houses is no longer just about building the tallest or the swankiest buildings, but rather about constructing a place which people can call home. With a good plan and immense determination, any Residential Real Estate Developer will be able to milk the opportunity to create Single Family Homes. Moreover, people are willing to pay a lot for these kinds of dwellings. With the right plans, a developer will be able to create magic with Single Family Home due to the kind of space that it offers.

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