Developer/Builder's Risks

Life is not all rosy for developers/builders. Here are some of the risks they are facing as they try to service their customers, meet their contractual obligations, and earn a reasonable profit.

• Too much overhead


• Availability and cost of the land


• Economic conditions


• Sales/marketing expenses


• Minimum sales volume to break even


• Competition - anyone can call himself/herself a building/developer


• Weather condition


• Unreasonable customers'requests


• Customers'personal problems


• Labor conflict/shortage, unpredictible delays mainly on custom product


• Cashflow problems


• Quality issues


• Vandalism/theft


• Mistakes due to too many people involved
  

(Excerpt from Certified New HOme Specialist training class)