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What is considered a spec house?

What is considered a spec house?

Spec homes are constructed by home builders who understand the balance between amenity and reliability. Spec homes, or move-in-ready homes as they’re also called, provide all the stability of a standard new home while empowering customers to know exactly what home they’re buying.

Why is it called a spec home?

The spec house is a speculative venture for the builder, meaning it was built with the intention of selling it for a profit, as-is or with minimal changes. Spec houses are plentiful when the economy is healthy because builders can sell them quickly and use the profits to build more.

Are spec homes more expensive?

The cost of a spec home is also typically lower than if you had a similarly-sized custom home built. Much of this has to do with the perceived greater purchasing power of spec home builders, who can opt to pass on their savings to buyers.

How does buying a spec house work?

Spec homes are completed or nearly completed before they’re sold. The builder has already chosen the floor plan, appliances, and features, so a buyer has limited choices are limited in regards to things like paint colors and flooring.

What is the difference between a spec home and a custom home?

Custom homes are simply a site-specific home built from a unique set of plans for a specific client. Spec Home Builders are built by builders who buy a lot or land, build a house, and then sell the home. A Tract or Production builder generally has model homes that will be the home designs built on these lots.

What spec means?

1 : specification —usually used in plural also : a single quantity (such as a dimension or a measure of performance) describing a product especially as part of a specification. 2 : speculation built the house on spec. spec. verb. specced or spec’d\ ˈspekt \; speccing.

How long does a spec home take to build?

Timetable — The average fix-and-flip takes about 3-4 months before the house is ready to sell. With a spec house, the average timeframe is about a year. In fact, the length of time it takes to build a spec house is one of the biggest risk factors to consider.

What are houses that look the same called?

Tract housing, also known colloquially in the United States and Canada as cookie-cutter housing, is a type of housing development in which multiple similar homes are built on a tract (area) of land that is subdivided into individual small lots.

Is it worth it to build a custom home?

The extra time and money spent on designing, building, and settling into your custom home, will be worth it if you plan to make it your home for years to come. Custom homes, while more work and costly, can be the last home you ever have to plan and build.

Are custom homes more expensive than spec homes?

Buying an existing home is often the least expensive route to go upfront. The home is slightly customized for the buyer. But there are significant limits to the buyer’s freedoms in choice. Spec home cost per square foot is generally less than a comparable customized production home or custom built home up front.

What does it mean to buy a spec home?

A spec home or spec house is a new, move-in-ready home built by home builders across the country. These are houses that are built before a home buyer makes a purchase.

How much is a spec home in Los Angeles?

In the ritzy Bel-Air district of Los Angeles comes a tale of two megamansions: A massive spec home coming to market for $180 million sits right next door to another massive spec home already asking $188 million Discover more: Complete guide to building a house.

What are the different types of spec homes?

For those who are in the market for a spec home, there are several different terms that are used to describe this type of home. Some of these terms include move-in ready homes, immediate delivery homes, inventory homes, and featured homes. When discussing your desires with a real estate agent,…

Why are spec homes cheaper than new builds?

The home’s layout and flooring and its appliances and features are chosen by the home builder, not the buyer. This makes for a much simpler and cheaper planning and building process, but, if you go for this option, it also means you will own a house that is almost identical to numerous others. What is a new build?