Today, I was working with our new structural engineer and am learning the differences between spec homes and model homes.
What are Spec Homes?
Speculative or spec homes are houses that are built without a specific buyer in mind. Builders will often purchase plots of lands where they think communities will develop or where people will one day want to live. Once the plot of land has been purchased, the builder will start constructing the home off of their own design plans before they have a buyer.
If a buyer purchases the property before it has been completed, they will often be able to customize some of the features and finishes in the home; however, if no one buys the property before the house is finished, the builder may choose to complete the project and then put it on the market.
What are Model Homes?
Model homes are similar to spec homes, as they are built without a specific buyer in mind; however, unlike spec homes, model homes tend to be built in large batches. A builder will often plan to develop homes across a wide tract of land, such as a subdivision, with model homes that follow a few different floorplans. Building a large number of homes that follow select floorplans tends to be more efficient and less expensive, as it allows the builder to increase productivity and speed while also reducing material costs.
Spec Homes vs Model Homes
When deciding between purchasing a spec home or a model home, you should take into consideration what aspects of the home are more important to you. If you would like to save money on a home, buying a model house will most likely be the best option. If you want to have a say in the finishes of the home, a spec home will be better suited for your wants and needs.
