Spec home builders are very popular in the real estate market today. They usually buy lots and build homes even without buyers yet, and design and build seemingly the same architectural plans of neighbouring homes at the same time. The homes constructed by spec home builders already have determined designs and floor planning, and they drive in buyers because it takes less time and effort for them to move into a new home. Hence, spec home builders are there to provide home buyers with a ready-made home, without buyers contemplating where to get materials, floor planning, and even to hire a construction company which can be a little too distracting most of the time.
What Does a Spec Builder Do?
Spec home builders create homes that balance amenity and reliability. They construct houses on titled lots for future buyers, so they won’t have to worry about pre-construction factors which can be very time-consuming. Like subdivisions or villages, spec home builders create ready-made houses for various kinds of clients; either for a single person, couples, or families so they can move in anytime without a hassle. Aside from fully furnished homes, spec builders also make soon-to-be-completed homes so clients can have the freedom to paint, refurbish, or upscale their future houses of their choice.
Nonetheless, they make houses in bulk and are usually made from the same materials and designed the same as other neighbouring spec homes.
Pros of Spec Homes for Buyers
Buying a spec home from builders entails a lot of advantages. From the affordability, durability and immediate availability, you can always purchase spec homes without worrying about the longevity of the construction.
The first and the most important reason why buyers tend to buy spec homes is the time they can save for building the house. Purchasing a spec home is very convenient as you can get a custom-designed home and get them constructed by someone on your behalf. Usually, they are planned by architects who know the right flooring, paint colours, and amenities to satisfy your home’s essentials.
Consequently, spec home builders sell constructed homes at a very affordable price. Since the materials needed to build are ordered in bulk, they often get them at a very discounted selling value. The builder can save more in wholesale, and the savings can be passed through the buyers as well.
Pros of Spec Home for Builders
Builders can gain a lot out of constructing spec homes. Because the need for immediate availability is always on the real estate market today, the influx of clients is always there so there is less probability of not being able to sell it immediately. They also have a warranty which can be eye-candy for buyers vs buying previously occupied homes.
Aside from the demands of spec homes, builders can also sell the spec homes at a very affordable price. This is because the materials used are ordered in bulk, thus more discount for wholesale purchase than buying retail. Nonetheless, there is also less competition which entails higher probability of selling spec homes for greater and more probable returns on investment.
Difference of Spec Homes from Custom Homes
Custom homes are made by builders designed to the preference of the homeowners. They have a personalized touch, giving homeowners the power to customize their homes according to what they want. However, custom homes can come costly, as the materials can sometimes be unique and purchased in retail. Nonetheless, they can also be time-consuming, and they can run up to 6 to 8 months before the buyers can finally move in.
In contrast, spec homes are already fully designed by spec home builders. Even though they are affordable, spec home builders are bound to design homes that suit the needs and the comfortability of what clients are looking for. Yet, one downside of spec homes is the clients’ inability to customize some areas of the home, and they are likely stuck with the original design the spec houses are already built. Still, when talking about affordability, spec homes’ prices can easily go down when they are not sold immediately; a major disadvantage for spec home builders but a massive pro for the buyers.
