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What is a Spec Home?
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" \, Y3 j( D q) q( JIn the realm of home construction, more and more contractorsare building spec homes as compared to custom homes. A spec home is a home that is built according to predetermined specifications, set by the contractor, with the idea that the home will be sold once the house is built.( X- I: |) t. r+ A
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* j' g. U* _6 [- _. {6 fIn years past, a homebuyer would go to a contractor and plan the layout and design of the home before construction would begin. With spec homes, the house is planned, designed, and built before a prospective buyer has been found. Spec home building has the benefit of speedy construction but offers the risk, once the home is built, of not finding a buyer, even though the money has been spent in construction of the home. Even though spec home building is a risky investment, it offers a tremendous return on investment, making it worth the risk to many contractors. |
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