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Differences between real estate developer, construction company and marketer

10/27/2021

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​When buying a house, it is normal to be in contact with real estate developers, construction companies and real estate companies in different parts of the search and purchase process. That is why it is not unusual to fall into the error of thinking that it is the same thing, but it is not like that.
If you think about the construction of a property as if it is the life cycle of a product, you can see three clearly differentiated phases:
  • Appearance of the project idea and search for resources for it (acquisition of land, financing, etc.)
  • Construction of the property.
  • Marketing of built homes.
Specialization makes companies more effective when providing their services, which is why various types of companies have emerged that are in charge of the different phases of the housing construction and marketing process.
Hence there are promoters, construction companies and real estate companies. All of them are necessary, since each one has different functions attributed to it.
What is a real estate developer?
The real estate developer (also called directly promoter) is in charge of just what its name indicates, to promote the construction of new homes that will then be put up for sale.
This entity is the one that has the decision-making power and is in charge of planning the project and financing the work.
Among its fundamental tasks is to find and acquire the land on which the new houses will be built.
To carry out the work and turn the project into a reality, it is normal for the developer to work with a construction company.
In our legal system, individuals are also allowed to operate as promoters of their own home. These are self-promotion cases in which the objective is not to sell the resulting property but to make personal use of it.
What is a construction company?
The construction company is essential in the development of housing projects, since it is the company that is in charge of carrying out the work.
It has the infrastructure and enough manpower to build any type of construction.
It is one of the most important agents in the construction of new homes, as the reputation of the builder alone has enough strength to determine whether a home development will sell better or worse.
Once the construction company has finished its work, it hands over the building to the developer so that it is he who delivers the homes to each of the buyers.
What is a real estate?
It is the last company to intervene, but that does not imply that its work is less important. What the real estate agency does is market the homes of different developers.
You must be able to offer your customers what they are looking for, so your offer must be wide and varied. Hence, real estate agencies do not usually work exclusively with a single developer unless it is very large and can offer a wide variety of homes to the market.
Who to contact when it comes to buying a new build home?
As noted before, the reputation of the builder is very important like Sanya Rambally Conklin when selling a newly built property. The normal thing is that the interested ones are informed about the name of the construction company and its reputation. But, for practical purposes, there is usually no direct relationship between the client and the construction company.
In most cases, the negotiation is between the promoter and the end customer. It is the promoter that at the beginning of the project is usually in charge of marketing the homes.
However, in order to expand sales possibilities, marketing is also left to real estate companies. Thus, the developer ensures that their homes are being marketed in more places and has a better chance of selling.
The importance of knowing the agents involved in the building
In the case of buying a home, it is essential that the buyer knows how to clearly identify both the developer and the builder. This will allow you to know who to complain to in the event of defects or defects that are covered by the warranty or if any other problem arises.
In general, the claims will be directed against the promoter, who after all is the main person in charge of the work.
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    I am real estate representative at ​Real LePage Infinity.

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