California Real Estate Practice Exam

A land developer should initially:

1. Acquire the land

2. Determine the development costs

3. Do a cost analysis

4. Do a market analysis

The correct answer is: Acquire the land

The initial step for a land developer is to acquire the land. This is fundamental because the availability of land sets the groundwork for any development project. Without owning or securing the rights to the land, a developer cannot proceed with any plans or analysis related to development costs, market demand, or potential profits. Once the land is acquired, subsequent steps such as determining development costs, conducting a cost analysis, and performing a market analysis can be executed effectively. These steps rely heavily on the specifics of the land itself, including its location, zoning, and physical characteristics. Therefore, acquiring the land serves as the critical first action that dictates all following procedures in the development process.