Looking for a new construction home? Spec House may be just for you. Buying a home can be one of the biggest decisions you make, so we’ve explained everything you need to know about Spec Homes to help you search. So, whether you’re buying your first home in Atlanta, Georgia, or looking for a new build in Salt Lake City, Utah, this article explains it.
Key takeout
Spec Houses are fantastically prepared for anyone looking for a modern new construction home. Spec Home has the latest features, but you usually can’t choose a finish in a custom build. When purchasing a spec house, strategize timing instead of price to get the best deal, or negotiate with perks.
What is a Spec House?
Spec House, a short for speculators, is a new home built by a home builder and built to appeal to a variety of home buyers. These homes are “speculatively” built because they don’t have specific home buyers in mind. That means it usually has the trendy aspects people want, such as open layouts, kitchen islands, walk-in closets.
Should I buy a spec house?
We cannot make that decision for you, but when weighing the pros and cons, consider the desires, needs and budget of your home. Redfin Real Estate breaks it down for you with two lists.
Benefits of Spec Home
Move-in Support: Spec Homes are usually already built or are nearing completion, so you can move quickly. Pre-designed: Perfect for indecisive people, finishes, layouts, and other touches in the home of specs. Modern Design: Spec Home has modern layouts with trendy features such as open floor plans, private bathrooms and walk-in closets. Lower Maintenance and Repairs: As you are the first person to live in your home, you don’t have to deal with or worry about hidden wear, maintenance, repair issues for a while. Relatively affordable: It depends on the local market and each situation, but spec homes are usually cheaper than completely custom homes.
The disadvantages of spec home
No restrictions or customization: Usually you have no say in cabinets, flooring, or other finishes. Limit your personal style. Fixed floor plans: Usually you have no say in floor plans that don’t suit your personal lifestyle or preferences. Unable to select a location: You cannot select a specific lot or neighborhood because the spec house has already been built (or is close to existence). Paying for unused features: With homes built for a variety of home buyers, you may end up paying for features that you don’t necessarily need. Less negotiable: You can negotiate, but when purchasing a spec house, there is usually a limited amount of negotiation.
How do I buy a spec house?
The process of buying a spec home is relatively similar to buying a home.
Use the home’s affordable calculator to see how much you can afford. If you are planning to purchase with a mortgage, decide which type is best and approve it in advance. Find a real estate agent and work with them to find the right home. We will tour homes with a variety of specs to narrow down your decisions. Discuss your offer with your agent, consider contingencies, and make your offer. You can negotiate with the Spec Home, but builders usually already have price floors set. The home is brand new, but getting your home test is still a good idea. I close my house and start moving.
How is the spec home different from models and custom homes?
Spec homes are built with specific buyers in mind and are perfect for anyone looking for a new construction home.
Model Homes are made to display the best upgrades, features and layout options that new developments offer. This is perfect for anyone looking for a well upgraded home. These homes can only be purchased after the builders selling other homes in the community are finished.
Unlike specs and model homes, custom homes are also new builds that are completely customizable. These are perfect for buyers looking for personalized spaces and don’t have to move right away.
Spec House FAQ
If you have any questions about the spec house, it’s possible that someone else is asking. Look at the questions commonly asked about these types of homes.
Is there a time when it’s appropriate to buy a spec house?
There is no right or wrong time to buy a spec house, but consider buying it at the end of the builder’s financial quarter, when the market season is late, or when construction is nearly complete for a better deal.
How much does a spec house cost?
The cost of a spec home varies greatly depending on location and market conditions, but a typical midrange price range is between $400,000 and $700,000.
Can I negotiate at the spec house?
Yes, you can negotiate on a price, but builders usually have priced floor sets. You’ll likely be negotiating other perks, such as closure costs support, home guarantees, or upgrades and features if your home is not finished.
