There are pros and cons to both buying a spec home or building a custom home.
- A custom home is a fully customizable process where you work with a builder to create a custom layout and floor plan, as well as pick each and every feature throughout the process.
- A spec home is a new build that a builder constructs without a specific buyer under contract. “Spec” in spec home means “speculative.”
In this article, we’ll dive into the ups and downs of each option so that you can make the right choice for your next home.
Benefits of Spec Homes
There are some benefits of buying a spec home as your choice of home.
1. Spec Home Convenience Factor
One benefit to spec homes is the convenience that they provide. Spec homes have a much faster timeline as they are usually ready to occupy homeowners by 60-90 days after contracting. These homes are new properties that offer predictable costs, new build design, and are move-in ready. Overall, they hit the mark of a standard home.
2. Finances Are More Straightforward For Spec Homes
Spec homes also provide predictable financing, as they are financed by traditional mortgages, just like resale houses. Lastly, spec homes are less expensive per square foot than custom builds, and builders save money by using standardized materials and traditional sizing.
Disadvantages of Spec Homes
There are also some disadvantages to buying a spec home instead of a custom built home.
1. Spec Homes Are More Generic
Spec homes are built without a specific buyer in mind, so they tend to keep the build pretty generic, and lack any kind of customization. Spec homes have a fixed floorplan, so you cannot modify any structural layouts. What you see is what you get.
2. Spec Home Locations Are Pre-Determined
Also, choosing a spec home provides no location choice as they are built in a predetermined property. This eliminates the flexibility to choose your home’s specific land or neighborhood.
3. Spec Homes Use Builder-Grade Materials
Additionally, developers may try to cut costs in spec homes by using builder-grade, lower-quality materials that aren’t as efficient as a higher-quality version. This makes spec homes generally lack durability, retain higher long-term maintenance and repair costs, and have lower resale values. So, while some buyers don’t want to invest in better-quality materials on the front end, they may end up paying more for the repairs and costs to maintain the spec home due to its lower-quality materials. This is a big consideration when looking at investing in a home.
Benefits of Custom Homes
Now, let’s look at what custom built homes have to offer. Custom homes have many favorable features.
1. Custom Homes Give the Freedom to Choose Your Own Features
When building a custom home, you have the freedom to choose which premium features you want to invest in, and which ones you don’t, allowing you to implement your home’s priorities.
2. You Can Choose the High-Quality Materials You Want in a Custom Home
By choosing certain higher quality materials and premium features, you can actually end up saving money on maintenance costs, utility bills from modern energy-efficiency standards, and the avoidance of expensive, immediate renovations since the home is already tailored to your preferences.
3. Custom Homes Often Have Higher Resale Value
Additionally, your custom built home will likely have higher resale value since it includes higher-quality materials and craftsmanship. Overall, custom homes have an array of benefits without sacrificing on quality and long-term costs.
Disadvantages of a Custom Home
While custom built homes have many benefits that make them the ideal choice, there are some important things to consider on the other side of things. These things might not necessarily be dealbreakers but are important to consider in the house-build planning process.
1. Timeline of Custom Home Building
Custom homes take longer to build than spec homes. The timeline of a custom home varies but usually takes around 2 to 4 months to finish planning and getting permits and 4 to 8 months to finish construction. This isn’t a dealbreaker for everyone but can be if you need something quicker.
2. Custom Homes Have Specialized Financing
Custom homes also require a specialized construction loan. The most common option is a construction-to-permanent loan, which bundles the construction phase and your eventual mortgage into a single closing.
Contact Mountain View Building For Your Custom-Built Home
Overall, there are many benefits to custom homes to custom built homes. We are committed to providing quality custom built homes and renovations to our clients that are built for you and built to last. We offer a variety of customization options that can be tailored to your budget and preferences.
Contact us today to learn more or to get a quote for a custom home build from Mountain View!
