What is a Spec Home?
Some say that it is best to avoid speculating, but home builders have no choice but to speculate when developing a new home to show to home buyers interested in purchasing a custom home. A spec home, in the most simplest terms, is a home that was built based on the builder’s speculations of the features and amenities that the average buyer would want.
While this is a simple definition of these type of homes, we cannot speculate that you have a full understanding of this common term that is used by experienced real estate agents. If you are in the process of viewing new construction sites and you want to become familiar with the terms your agent will use with you, learn the ins and outs of spec homes and other terms that agents often use interchangeably to describe this type of construction.
What is the Difference Between a Spec Home and a Custom Build?
A custom build and a spec home may have some facts in common, but spec homes are not defined as custom builds because the buyer of the property does not have control over every minute detail of the property as it is being designed or constructed. One reason why many individuals will mistakenly interchange the two terms is because both home is produced in a factory with a company that uses computer aided drafting and engineering to pre-fabricate the materials that will make up modules and later be transported to the construction site where everything is assembled. This is a much different process than site-built methods, but that does not mean that a custom modular build is the same as homes that are build based on a builder’s assumptions and speculations.
The Advantages of Buying a Spec
Just because you want a brand-new home that no one has ever lived in does not mean that you want to spend the amount of money that a custom build would require. A spec model is often used by home builders within a community that is under development to show prospective buyers what finished products look like once construction is completed. If the features that you are looking for can all be found in the spec option you have been shown, you can enjoy a much lower purchase price because they have already been built.
Another advantage of buying a spec is that you can see exactly what you are paying for before you sign a mortgage contract or a purchase agreement. Spec models are either completely finished or very close to completion, and this is ideal for individuals who find waiting very stressful.
Other Terms to Know
There are many new construction options, but the spec option is not the only term a builder or real estate agent will use to describe this newly constructed option. Depending on where you are buying, an agent may also refer to these homes as move-in ready homes, featured properties, and immediate delivery homes.
You should be knowledgeable about the area when you choose a featured property within the community. As long as the area is thriving, the builder is stable, and market is strong, buying a spec could be advantageous. See if the builder offers incentives, compare pricing, and choose a property built with quality materials.