When it comes time for you to buy a home, the terms you hear can be confusing. One such term is “spec home”. You might hear this term mentioned by your real estate agent, who uses the term so commonly that they forget not everyone understands what it means.
In simple terms, a spec home is one that is newly constructed based on speculation of what a home buyer might want. It has popular features and options built into the price of the home with the hope that someone will come along to purchase it.
Unlike buying a previously owned home, which also means buying any problems associated with it, there are a plethora of benefits that come with buying a spec home. A few of the benefits of buying a new spec home include things like:
- Spec homes are either complete or near completion, which means after you purchase it you can turn the key and walk in as opposed to waiting for a builder to construct your new home.
- Because features are included in the price of a spec home, you have less financial surprises.
- You get to see exactly what you are buying before you sign the paperwork to purchase your home.
- Because model spec homes are staged with minimal furniture and décor, you get an idea of what your own belongings might look like in a spec home.
If you are looking for specific options, then a spec home that does not include them is probably not for you. Spec homes typically do not allow buyers to choose their own options. Because the options are already pre-selected, there is no chance to downgrade to less expensive features as well.
Spec home markets differ from one market to another depending on the strength of the current real estate market. Buying a spec home in Waxahachie, Texas will differ than buying a spec home in Baltimore, Maryland, for example. When talking about spec homes, real estate agents might use any number of homes such as:
- Featured homes
- Homes for immediate delivery
- Inventory homes
- Homes that are move-in ready
Unless you have a background in real estate, contact a professional to ask about current spec homes in your area. The best way is to get in touch with a real estate agent who specializes in the sale of new homes, especially spec homes.
Real estate agents know the most current information about new home communities in the area where you would like to buy a home. Another benefit of having the services of a knowledgeable agent is that you get the benefits of what they know about things like incentives offered from the builders.