There are two routes you can go to when buying a new construction home. The obvious one is to pick a lot, pick a house model, and go through the whole entire process and make all the decisions of building a brand new home. Spec homes is another route for those who have a shorter time frame to work with or if you just want everything picked out for you so you can save time, energy or even headaches.
A spec home can really work well if you have a specific time frame. For example, you may have a mortgage rate that your mortgage specialist can only hold for a certain amount of time, usually within four months if not shorter. Here are some advantages to buying a spec home:
- Families who are expecting and wants to move in sooner
- Moving from out of town
- Your current home is sold and you need a place by a specific time
- There is a promotion on spec homes with free upgrades or price discount
Spec Homes Under Construction
Typically, these pre-designed homes will have all the standards that the builder offers with a few common upgrades that they usually get from their target customers for the area. Depending on the construction process, the builder sometimes may allow a bit of change if there’s something you absolutely want in the spec home, but timing is very important and they won’t allow changes until you have removed conditions so they have your commitment that you’re purchasing the home. When you’re buying a spec home under construction, it’s a good idea to list the changes you want in the purchase agreement or part of a change order. However, you will also need to meet the financial condition date for the builder to get what you want in time. Most builders do not like to delay construction times.
Quick Possession Homes
Some spec homes may be ready to move in which are sometimes called quick possession homes. The benefit of purchasing a completed home is that you can see everything that you are getting instead of buying something that is represented on drawings and documents. Also If you’re tight on budget, you can look for ones that have been finished and sitting for a few months and use it as a reason to negotiate at a better market price. These homes do take more money for the builder to maintain, so they are usually motivated to sell them more compared to homes that are still under construction.
Another Use of a Spec Home
Even if you have decided on building your new home from scratch, it’s always a good idea to book a visit to see a spec home, especially if it is the same layout as the house model you have chosen. This way, you can get a feel of the size of rooms, the interior finishes to expect if you don’t want to upgrade too much, and see some of the details that you may forget to look at such as the size of baseboards, cabinet height among hundreds of details that are put into a new home. Remember to check the specifications that your new home builder offers so you know exactly what you are getting.