Spec Vs. Custom Home Construction From a Customer Perspective

Real Estate Blog

Custom and spec home construction processes represent two different acquisition models for buyers. Each has its strengths, and prospective buyers should understand both before picking one.

What Are the Two Approaches?

A custom house is just what the name suggests. You own a property, and you pay a new custom home building firm to create the house according to a unique set of plans.

Spec home building is more common among investors and developers. They pay a construction firm to build a more standardized house to sell it. Even some building companies will buy land and develop it for speculative sale. In other words, there isn't a locked-in customer for the house. This approach is most common in regions where housing market growth can't keep up with demand because of population and economic growth.

What Are the Benefits of Each?

The main benefit of new custom home construction is that you get a house that meets your specifications. Customization is good for people who have unique aesthetic requirements for houses. If you have an unusually large household, you might want a custom house to ensure that everyone will have a bedroom of their own. People also customize to add features like home theater rooms, offices, and other less common spaces.

New custom home building also is good if you have specific needs due to aging or disabilities. For example, wheelchair users may need customized living spaces that have wider hallways and doorways. Older homeowners might want more safety features in their bathrooms, too.

The big benefit of spec home construction for buyers is that they get to see the finished product before committing to the purchase. Someone who is moving into the area and needs a house now can get the benefits of a new place without waiting for construction. Investors, builders, and developers profit from putting housing supply on the market while prices are rising.

Which Is Right for You?

A lot boils down to how customized you need your home to be. Some folks have very specific requirements. Spec home building leads to more standardized houses because developers and real estate investors focus on what they're confident will sell. Buying a spec house can be a win for a customer who wants a brand-new place without the hassle. Particularly in high-growth markets, they may even be able to shop among several options to find the one house that most closely matches their requirements.

Look for a trusted local company for new custom home building services, such as Vivienda Homes LLC.

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