What is a speculative (spec) home?
A spec home is a home built by a developer speculatively with the hope of finding a buyer later. The home is designed and built to appeal to many potential buyers in the area market rather than one particular buyer. Other names for a spec home are move-in-ready home, inventory home, featured home or immediate-delivery home.
A spec home is different than a custom home because the developer chooses the layout, flooring, appliances and features whereas in a custom build the buyer makes all of these decisions. Just like any type of housing construction, there are pros and cons to buying a spec home.
Pros of purchasing a spec home include:
· Avoid the design and building process. Picking out every detail of a home can be very overwhelming and stressful. Not to mention it can be a lengthy process. Finding a spec home that fits your style is the perfect solution for this as the builder makes the decisions.
· It’s a “quick” find. If you find a spec home that is near completion or already completed you skip the entire building process and get to move right into a newly built home!
· Spec homes can offer excellent value for your money. Due to the fact that builders often use familiar blueprints and materials, they can often get the materials at a discount ultimately driving the final price of the home lower.
· Easier financing. Buying a spec home could avoid complex lending and progress payments as they are typically just purchased after completion.
· Knowing a move-in date. Typically, the builder will have a definite move-in date for you.
Cons of purchasing a spec home include:
· Depending on what phase of construction you find the home, many of the design decisions will have already been made which means you have less say in the final product.
· Your home may look similar to others built by the home builder.
· There may be features in the home design that you do not want or need.
Whether you choose a spec home will depend on your personal needs and preferences. For buyers who want to avoid the lengthy construction process or are looking for a quick move-in a spec home is a great choice for them.
When looking to build or buy a new home, consider making Kraemer Homes your choice of builder!