What is a Spec Home?Posted by Kevin Hughes on Wednesday, February 29th, 2012 at 1:58pm.
If you are interested in purchasing a brand new home, but you do not want to wait several months to have the home built from scratch, you might want to consider purchasing a spec home. As the name suggests, a spec home is a home that is built on speculation. In other words, the construction company builds a home with the features it believes will appeal to the most buyers. Whether regarding Montgomery County real estate or a home in Idaho, by building this home on “spec,” the construction company hopes to offer a package that potential buyers will find attractive.
While a spec home is not the right choice for those who want to choose every single detail of their new home, it is a good option for those who want to enjoy the benefits of owning a new home without waiting several months before moving in. Still, this is not to say that the spec home buyer doesn’t enjoy any options. Rather, the spec home buyer typically does enjoy choosing from a limited number of colors, floor plan options and cabinetry styles. By limiting the number of options available, the builder keeps the cost down. This, in turn, makes purchasing a new home more affordable for those who are on a tight budget.
Aside from the potential money savings associated with purchasing a spec home, purchasing one of these homes gives the buyer the opportunity to walk through the home before making a purchase. When buying a brand new home that must be built from the ground up, on the other hand, the buyer does not have the same opportunity. Therefore, for those who want to have the opportunity to actually walk through the home before making a purchase, a spec home may be the way to go. The same is true for those who do not have their heart set on including specific options in the home.
For those who are in the market for a spec home, there are several different terms that are used to describe this type of home. Some of these terms include move-in ready homes, immediate delivery homes, inventory homes, and featured homes. When discussing your desires with a real estate agent, you may find these terms used interchangeably. Rest assured that they all refer to the same type of home. So, if you want to shorten your wait from more than 6 months to just 30 to 60 days, a spec home may be the right choice for you.
About The Author - Kevin Koitz is a member of the Koitz Group and works with clients interested in Bethesda real estate and other Maryland area homes.
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