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Why a Spec Home Could Be Right for You

When you are in the market for a new home, it is important to understand the terms of home builders and real estate agents. If you are interested in new construction, there are several different ways to go. One of these options is to look at spec homes, but there are at least two other broad choices.

A builder or contractor who buys a piece of land and then constructs a home on it before a buyer is identified is building a home on “speculation,” hence the name. In a sense the builder is gambling that he or she can sell the home and make a profit on it. The builder is usually the one who decides the square footage, the layout and all of the other details of spec homes. By the time the buyer comes along the home is mostly or completely finished. If the home is appealing to you and has a good price tag you might then make an offer on it.

Another category is that of the tract home. In this case, instead of just building one home, a tract home builder buys many lots and then constructs homes on them, usually of the same floor plan. In most cases, an appealing price point is one of the main draws of this type of construction. These homes tend to have less premium building materials and might be smaller in size.

Custom homes, on the other hand, allow you to have the most amount of input. You are an active partner with the home builder. You will likely get to decide the floor plan, size, type of windows and flooring, lighting, and everything else down to the kitchen counters and the cabinet hardware.

While looking at spec homes you might find the perfect house for you. However, it is still a good idea to understand all of your options.