Or are you curious and want to know more? Whatever your reason is, we have the answer for you!
Finding out what a spec house is can be tricky, especially if you have not heard of one before.
You head online for some guidance but are met with page after page of conflicting answers.
Frustrated and disappointed, you are left unsure where to turn or who to trust. How will you find out what a spec house is now?
Well, that is where we come in! Keep reading to find out what a spec house is and everything you need to know about spec houses!
What Is A Spec House?
Let’s dive right into it. A spec house, or spec home is a new house built on the speculation that it will sell easily and for a profit.
These homes are designed by builders as move-in-ready homes that are as appealing to buyers as possible.
These houses are built on the speculation of what buyers are looking for.
This might be upgrades, extra amenities, or building the spec home in a quality neighborhood.
Home builders pay careful attention to real estate trends and the market to decide where they should put the spec home and what to put in it.
Specs homes tend to cost a little less per square foot than other custom-built or customized homes.
The goal is a good deal for buyers with a well-built home. Now that we have established what a spec home is, let’s dive in to learn more about them!
What Impacts The Cost Of A Spec House?
There are a few factors that impact the cost of a spec house. Check out the list we have composed below to see what can drive the price up or down.
Buyer demand
Square footage
Material quality
Design of the home
Supply of property lots
Upgrades and amenities
Home values in the neighborhood
Advantages Of Buying A Spec House
Let’s take a look at the advantages of buying a spec house! The biggest advantage is that you can move in faster than other houses.
After all, the house has been built and modeled, all you need to do is add your furniture and move in.
Spec houses are ready and waiting, so there are no waiting times.
If you are looking for a quick move into a house that requires no renovations, a spec house is the way to go!
Spec homes tend to be affordable too, being cheaper than a custom home. Builders typically control the costs where they can when building spec homes.
They take into consideration design, location, and the materials used to make the spec home as affordable as possible.
After all, if they price it right, they can guarantee a quick sale!
Another advantage is that there is little time to wait for construction.
Even if there is the option to add some customizations, like the color of your countertops, you usually don’t have to wait long for these!
Your home will be ready, perfect for anyone after a quick move!
Disadvantages Of Buying A Spec House
There are some disadvantages too that you should consider when purchasing a spec home.
The biggest is that you cannot personalize the house. As the spec house is usually built and ready to go, you won’t be able to personalize it to your liking.
The flooring, fixtures, paint colors, and other decisions have already been made for you.
You won’t be able to change them before moving in. If you have a specific flooring or design in mind, you might find this frustrating.
Of course, you can make the changes once you move in, but that will add to your costs.
Another disadvantage is that the floor plan is fixed. The builder will have chosen the floor plan and already built the interior walls.
That means you have no say about the layout of the home or the sizes of the rooms.
You also cannot choose the neighborhood or lot as these have already been decided.
By the time you view the property, the spec home will have been built or near completion.
If you are looking for a spec home, you might not get to live in your preferred neighborhood.
Can I Negotiate On Price?
Yes, there is some room for negotiating the price of a spec home.
However, the builder will have already considered a profit margin and might not want to budge on price.
They tend to price the spec homes for a quick sale, and might already have cut the price down.
You do have more room to negotiate on price if the spec home has been on the market for a while.
Spec homes are designed and priced to swell quickly. But things don’t always go to plan.
In these cases, you might be able to lower the price, especially if the builder wants the property off their hands.
When negotiating on price for a spec home, be prepared for the answer to be no.
You will also want to consider what you are willing to pay and check that it suits your budget.
Final Thoughts
And there you have it! A spec house is a house that is built by builders who speculate what buyers want.
The houses are built with the sellers and a sale in mind, usually offering plenty of amenities and clever layouts.
Spec homes tend to be cheaper than custom homes, but they do come with less choice.
Buyers that want to customize a house to their exact specifications might not enjoy a spec house.
However, if you are looking to move quickly and want a home that has been built and designed for you, a spec home is the way to go!
Hey! My name is Luke. I am the Co-founder of PowellCustomHomes.com, it’s great to have you here at our site. With a combined 20 years of experience, we can help you build the home that you want, specific to your requirements and lifestyle.
No task is too small. We can guide you and offer advice, no matter if you are filling in gaps in the wall, hiding cords, or simply fixing up construction mistakes. We love to help, and strive to do so in any way that we can.
