What is a Spec Home?
March 20th, 2024 | by Madison Stone
Pete & Co. – What is a Spec Home?
When it comes to workplace vernacular, it’s easy to forget that certain phrases and terms can sound like gibberish to those outside of or new to a field, and construction is no different.
For example, we don’t expect our customers to understand everything when we go on framing, plumbing, or electrical walkthroughs—we wear many hats as a homebuilder, and jargon translator is one of them.
That being said, spec home is one term we find ourselves using often. While not necessarily a complicated term, it’s an outward facing one that many people outside of real estate might not have heard before.
So, we’re going to take a moment to define what spec homes are and give a bit of explanation as to their purpose, their advantages, and their limitations.
Q: What is a spec home?
A: Spec home is short for speculative home. Simply put, a speculative home is one that is built based on the assumption that it will sell—there is no specific customer in mind. The builder is in charge of picking the location, floor plan, finishes, etc.
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Q: Why do homebuilders build spec homes?
A: While selling the home is the end goal, spec homes oftentimes double as an easy way to showcase what the builder is capable of. If a customer appreciates a builder’s craftmanship but doesn’t like something about the home itself, they might want to purchase a custom home instead.
For example, the custom home pictured above (top) will be almost an exact duplicate of our recent spec home (bottom). In this case, the homeowners loved our spec but not the location. The solution? Build it elsewhere!
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Q: What are the pros of buying a spec home?
A: Compared to a lived-in or custom home, purchasing a brand-new spec is as secure and stress free as buying a home can be. If the builder is reputable, they’ll make sure the home is move-in-ready and in the best shape possible. There should be very little hassle with inspections and touch-ups, and there won’t be finicky sellers to deal with. As for any concerns that might come up in the future, at Stonewall Homes we even provide the same warranty for our specs as we do our customs.
Also, as specs are built without any particular buyer in mind, they typically include finishes and features that will appeal to as many people as possible without breaking the bank. Builders want people to want their house, so they’ll be careful to design an attractive, accessible one without driving the cost too high.
Ultimately, a good builder’s goal for a spec is to build and sell a beautiful new home that will please as many people as possible, not a half-hearted, flimsy product. (And, as an added bonus, this also means that spec homes have great resale value.)
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Q: Are there any drawbacks to spec homes?
A: When compared to lived-in homes, there aren’t really any disadvantages to specs other than personal taste in location or style, which is the case when buying any already-built home.
The only real drawback to purchasing a spec home is that it’s not a custom. Any homebuyer would prefer to have every aspect tailored specifically to their needs and wants, but, unless they’re willing to get their hands dirty with a renovation, that is only possible through custom building.
Stonewall Homes has several spec houses currently for sale. Click here to check them out!