Are they discounted compared to other new builds? What are the drawbacks of purchasing one?
Hello Felix,
These are great questions, and common in fact. A spec house refers to a home that is built with a general design in mind to allow the new home owner to customize the home to their liking. You will likely find neutral colored walls, clean lines and timeless hardware. The goal is to provide the new homeowner with all the necessities of a beautiful new construction home, at a cost much lower than that of custom home design. Most builders can keep the cost down by reusing existing Architectural drawings. As far as drawbacks, you may find that you need to add some color, customize hardware and other finishes to your taste, but generally these homes are move in ready and functional.
I hope this helps you understand the general concept and purpose of spec home building. Any questions at all please don’t hesitate to ask!
Cheers,
Jersey Pride Construction LLC
In the simplest of terms, a spec home is a home that a builder constructs with the belief that someone will eventually come along and want to purchase the home.
In other words, the builder constructs the home based on speculation of what a buyer would look for. As such, these homes have already been constructed with a number of options that are already included in the price.
A residence built without a particular buyer in mind or under contract, but designed to appeal to the maximum market possible. Spec houses are typically built in an inexpensive manner, but with decorative finishes commensurate with the tastes of the target market.
A spec build is a speculative build. Investors/builders speculating that the home will sell based on market conditions. In my experience these homes are always built nicer than tract homes or production homes. I would refer to a good spec homes as a semi custom home. A spec builder should have every intention of building the home to sell over the competition at the same price point. All of our spec homes sold, most at intermediates and many for more than the original asking price. A good quality builder builds a good quality home spec or custom. In my experience you usually receive a larger lot although proximity to amenities may be lacking.