If you are thinking of buying a home, it’s important to know there are many different types of homes available to you. You have a lot of decisions to make when you start looking. One of the most important decisions is the type of home you want. One type of home you can choose is a spec home. To help you decide whether or not you want to add a spec home to your list of possibilities, read on to learn what a spec home is and if you want.

Spec home


What Is A Spec Home?


In a nutshell, a spec Home is a home built by a builder before a buyer has been found for the property. The spec house might be a great alternative for those who have a flexible schedule and have a definite need for a home. They are often move-in ready and offer their future owners the convenience of buying a new property.

It’s worth noting that spec homes are similar to model homes, although spec homes usually have features that are considered upgrades that would not be included in a model home. In some cases, the buyer will even be given the option to select some of the features or finishes for the home. However, when that happens, the timeline for move-in is typically extended.


Benefits of buying a spec house


There are many benefits to buying a spec house to consider before deciding if these homes are right for you.


1. Spec homes are affordable


New construction can be costly. According to Home Guide, building a new home costs an average of $100 to $155 per square foot. With numbers like those, building a property from the ground up is an expense some prospective homeowners simply don’t want to take on. Yet because spec homes are constructed without having a buyer attached, builders are often willing to offer a deal to get them off their books. Buying a spec home can be a way to settle into a pricey development at a discount.


2. Spec homes are available immediately


On average, the 2020 Census Bureau reports it takes 6.8 months to build a home from scratch. While that length of time may be fine for some, others don’t have that long to wait. Because a spec home is already constructed before the builder thinks about selling any lots, you will likely have the ability to move in as soon as you can get financing in place.


3. Spec homes are less risky


With a new build, there’s always a certain amount of risk involved. Something could go wrong with the construction and push back your timeline, or there could be delivery delays for your materials. However, when you buy a spec home, you don’t have to worry about going through the construction phase. You are buying a prebuilt home.


4. Spec homes offer certain amenities


The biggest difference between a spec home and a model home is that a spec home will often offer some amenities not available in a model. In this case, you can make sure you are striking a good balance between choosing available upgrades and making sure to pay attention to your overall budget.


5. Spec homes provide certainty


With a spec home, you know what you’re getting. When you walk through the home during your showing or final walkthrough, you will have the certainty of knowing you’re buying exactly what you see. In a typical new construction scenario, however, there can be concern that the home won’t match the vision or architectural plan.


Custom home vs. spec home vs. tract home


Knowing how spec homes compare to other types of homes on the market can help you understand which one best meets your needs.


Custom home


As the name suggests, the owner is able to choose every detail with a custom home. The homeowner typically hires an architect to design the home first and a builder to build it. Of the three options, a custom house is far and away the most expensive. But it also gives you the freedom to create your dream home from the ground up.


Spec home


Spec homes offer a middle ground between building a custom home and buying a tract home. Typically, these homes are meant to be sold as-is or with very few changes, so there’s less customization available than with a custom home. But as a result, these homes are offered at a more affordable price point than custom homes. If you find a spec home still in the process of being finished, you may be able to customize some aspects.


Tract home


Finally, tract homes are usually the most affordable option of the three. Built on a tract or lot purchased by a developer, these homes are typically cookie-cutter properties. The builder constructs a few models and the buyer picks from those options. There is normally very little customization available with these homes.


What is the process of buying a spec house?


The process of buying a spec home is similar to buying an existing home. That's why at Gtext home we give the best option for your spec home.


Is a spec house worth it?


If you’re considering buying a spec house, it’s crucial to make sure you like what you see during your showing. After all, there’s a good chance the finishes you see in the home will be what you are buying. In addition, it’s important to consider the timeline for your move and your budget.


If you have the money and time, it may be worth buying a traditional new-build instead. With that option, you have more customization available to you. On the other hand, if you are working with a set budget and affordability is high on your list, a spec or tract home are good options to consider.


Conclusion


Buying a spec home might not be the right choice for everyone. However, for those buyers looking to score a deal with the security of owning a new build, a spec home can be a good compromise.