SPEC HOME
A spec home or speculative home is designed and constructed by a builder without having an individual buyer in mind. A spec home follows a building plan that the builder owns or has a license to use and is constructed to the builder’s recommended specifications, which the builder has probably built multiple times. Most of the time, a spec home is built on the builder’s land and priced to sell as a land/home package; however, a spec home can also be built on a client’s land.
A spec home could be a perfect solution for a home buyer if they want a newly built home that is move-in ready. A spec home is in sharp contrast to a customized home. A spec home takes less time to build versus a semi-custom or custom-built home. With a spec home, there’s no waiting: simply plan a move-in date with no worries.
A fully completed spec home provides the home buyer the opportunity to physically walk through the prospective new living space, allowing them to get a sense of flow, room sizes, finishes, and amenities before committing to purchasing the home. With this ability, the home buyer might realize that “an open concept” floorplan is exactly what they are looking for or a master bedroom on the second floor is not where they want.
Most spec homes go up for sale only when they’re fully complete except for the finishing touches, which means customization options are limited. The building plan and selections such as windows, interior doors, roofing color, vinyl siding, lighting, and appliances could have already been chosen by the builder. This well thought-out practice can be a plus because it not only saves months of research, planning, and decision making, but it reduces the stress associated with picking all the selections. Most builders stick with the styles and features they believe will sell easily in their target market, so a spec home might look much like other homes built by the same builder. However, spec homes that have not been customized are known to have the best resale value. And, because builders buy in bulk, they can install quality materials, then pass the savings to the buyer. Home buyers can get appliances, lighting fixtures, granite countertops, and flooring for less than if they were to buy them on their own.
Sometimes a spec home can get a bad reputation. Unfortunately, it is due to builders who take shortcuts on material quality and labor to save costs. Currently, this building practice is a common occurrence for some large national builders. Conversely, a spec home can also have a great reputation because it gives the homeowner not only a well thought out home plan but provides the best value. When choosing a spec home, the home buyer should vet the builder by looking at their current under construction spec homes to determine if the materials and construction quality meet their standards. Finding and vetting a good builder’s spec home can not only provide the home buyer with everything they wanted in a new home but also amenities and finishes they may not have considered before seeing them in the finished home.