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Land Under Development | 3 Months Ended
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Mar. 31, 2014
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Land Under Development |
4. | Land Under Development
On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. As of March 31, 2014, NVR directly owned five separate raw parcels of land with a carrying value of $46,083 that it intends to develop into approximately 650 finished lots for use in its homebuilding operations. Of the total finished lots, 125 lots are under contract to be sold to an unrelated party under lot purchase agreements. None of the raw parcels had any indicators of impairment as of March 31, 2014. Based on current market conditions, NVR may on a limited basis continue to directly acquire additional raw parcels to develop into finished lots. See the Overview section of Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included herein, for additional discussion.

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