Community-level cost tracking, warranty reserve provisioning, and incentive accounting for production homebuilders and land developers. Nexus connects land development, construction, and sales in one financial platform.
Allocating land, infrastructure, and indirect costs to individual lots and homes requires sophisticated cost accounting that must be updated as the community progresses. Errors in cost allocation affect gross margin reporting and pricing decisions.
Homebuilders offer complex incentive packages — mortgage rate buydowns, closing cost contributions, design center credits, and price reductions. Accounting for these correctly under ASC 606 requires contract-level analysis.
New home warranty obligations can extend for 10 years. Estimating and maintaining adequate warranty reserves requires actuarial analysis and ongoing monitoring of warranty claims experience.
GAAP (ASC 606, ASC 970)
IRS (homebuilder tax accounting elections)
Lot-level gross
margin calculated automatically at closing
Warranty reserves
updated with each claims cycle
Sales incentives
accounted for correctly under ASC 606
See how Plurafi handles your industry's complexity