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I want to buy a house!

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3 July, 2019

Builders, developers and real estate agencies, what is the difference?

4 mins reading time

3 July, 2019

Often, not understanding the different jobs that these professionals do leads to mistakes among potential clients.

That empty lot that you used to look at when you were on your way to work slowly begins to take shape. Large billboards announce the construction of new houses where there was once only wasteland. Finally, after months of digging you see that typical little booth with a sign that reads ‘Sales and information here’. Yes, you are witnessing a building process in which a developer, a builder and a real estate agency are all involved, a variety of companies all operating within the same industry but with different roles.

What is the role of each of these companies when it comes to planning, building and marketing new homes? Often, the different terms get confused and it can be difficult to clearly understand which of these real estate service companies you need to turn to in order to find the answers to your questions about real estate projects that you’re interested in. It is not strange, for example, to confuse the work of construction companies with that of real estate developers and, similarly, to mix up the work of both with that of real estate agencies that are responsible for marketing the property.

Have you found the real estate development you were looking for? Are you determined to build the house of your dreams? Discover the differences between builders, developers and real estate agencies so that you can be sure to understand who you need to go to depending on what you need.

What is a real estate construction company?

Building houses is a process that involves many professionals. Each of them has its own purpose, and construction companies are, in practice, in charge of the work that needs to be done at the construction site. So, a real estate construction company is responsible for the construction of the building or buildings that will become part of the new construction offering that it is involved in.

Architects, technical designers, masons, tradesmen, etc. Professionals from all different areas of construction make up these construction companies, and all need to cooperate perfectly for the final result to meet expectations.

So, a real estate construction company is responsible for the construction of the building or buildings that will become part of the new construction offering that it is involved in.

What is a real estate developer?

Although it’s true that construction companies are a key part of any real estate development project, the role of the real estate developer is no less important. In fact, these companies are responsible for launching new construction projects that can later be marketed.

Acting as an agent for the project, the real estate developer is responsible for the acquisition of land. After that, its primary job is to promote, plan and finance the project, and then finally sell the properties that it has been involved in.

Do you remember seeing that lot that for months just had a poster on it announcing the construction of a new real estate development? If you spend a moment to read it carefully the next time you walk by, you’ll notice that you won’t just see the houses that will be built, but you’ll be able to easily identify who will be promoting and building them.

And a real estate agency… what is that?

When you think of the typical real estate agent, don’t you picture an educated and outgoing person who, with just a few sentences, will be able to make all the benefits of owning that home the reality that you’ve been dreaming of? Does that sound right to you? It’s true, a real estate agency (and, by extension, its employees) is responsible for marketing real estate projects that are being offered by developers and construction companies.

Their role, therefore, focuses on the sale of any real estate development. In other words, they act as intermediaries between the developer and potential clients, communicating all the information about the project to these potential future buyers, such as its characteristics, qualities, prices, etc. However, the real estate services provided by an agency are not always related to marketing new projects, but, at times, can be for properties that are for rent or even second-hand homes.

As you can see, the real estate services provided by construction companies, developers and real estate agencies are closely related, but each of these businesses has its own place in the process. However, it is not surprising that some real estate developers have their own construction companies and even have sales teams in charge of marketing their real estate projects.

The real estate services provided by the agency are not always related to marketing new projects, but at times, can be for properties that are for rent or even second-hand homes.

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