If you’ve been on the hunt for a newly constructed house lately, you must have come across two words, spec home and custom home. While both these two homes are new constructions, they hold some key differences.
So, before making a heavy investment in a house, it is necessary to understand how both types of homes vary. This is crucial to make an informed decision regarding a house suitable to your budget, family size, and preferences.
In this article, we’ll be diving into the key differences between custom homes vs. spec homes. Additionally, we will also cover the pros and cons of both for a better overview of the two.
What Are Custom Homes?
While constructing a custom home, you will have to consult an affordable home builder. This includes an architectural design drawn by yourself or a professional architect.
You, the homebuyer, will typically have an idea in mind regarding the house you’re looking for. Or the kind of house you’re looking to construct and the materials you seek to utilize. Hence while constructing a custom home, you’ve more influence over the key choices.
You can select what kind of material you desire to use, both internally and externally. So rather than choosing from a carefully curated list of options from the builder, you have the autonomy of selecting your own materials and setting your own budget.
So, with a custom home, you have the freedom to get the exact house that you’ve dreamed of. From choosing all elements as per your taste to making structural decisions. Including decisions like adding more rooms or enlarging certain areas of your home.
To get a better view of what a custom home is, we shall also have a look at the pros and cons
Pros
- More options to customize
- More autonomy
- You can select all fixtures and materials
- You can choose the sizes and locations of the lots
Cons
- Can be more costly
- Since you’re building from scratch with customizations, your return on investments may decrease significantly
While this was a detailed yet brief overview of custom homes, the other kind of home you may have come across is Spec Homes.
What Are Spec Homes?
Spec homes are already built houses before a buyer is brought into the picture. Construction companies or affordable home builders typically build these homes.
They start with purchasing a plot and building houses in areas expected to sell well. At the same time, making use of inexpensive materials for a good return on investment.
Affordable home builders tackle spec homes intending to provide amenities that local purchasers desire or anticipate while also increasing earnings.
Since there isn’t a typical buyer, the contractor offers customizations to the prospects. At the same time, the builder will try to keep every detail and element very basic and neutral to cater to a vast group of prospects.
Spec houses are generally ready to move in. So, you can come in and buy an already finished home or even purchase homes that are in the process of finishing.
However, even if you go with a semi-finished home, possession will be provided as the house is completely constructed.
Pros
- A spec home is less costly and more affordable.
- They are ready to move in typically.
- Or, it may take a few months for you to move in if you purchase a semi-finished house
- Spec homes are typically easy to resell
Cons
- May contain a few unnecessary, nonrequired features
- Materials and fixtures are usually basic and neutral in color
- Autonomy – you don’t have any autonomy over the construction of the house.
- Costly – you may have to spend a couple of bucks on upgrading to the house of your dreams.
- You may not like the location.
Custom Home Vs. Spec Home
Now that you know what both custom homes and spec homes are. We will compare and contrast Custom homes vs. Spec homes in this part. So, let’s start with the costs of both.
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Which One Is More Costly?
If you compare the same sizes of spec homes and custom homes, you’ll know that in the long run, spec homes are typically more pricey than custom homes.
While contractors stick to a list of inexpensive materials, however, if you’re looking forward to adjustments and upgrades or even plan to remodel your home, it may come off as more costly in the long run.
In contrast, custom homes are typically costly from the start, especially if you hire a general contractor to manage the construction.
Contractors and even affordable home builders may charge more, for custom homes, because of the increased workload. Furthermore, if you have a complex and intricate house plan, it may cost you even more.
While you can save on your budget by shopping wisely, materials such as cabinets, fixtures, floors, and countertops, you can save money on some materials and go overboard on others. Remember that even a different paint color may cost more, so weigh options smartly.
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Which One Will Take Longer To Finish?
Typically custom homes will take longer than a spec home to finish. When you purchase a spec home, it’s normally completed or in the final completion phase. Hence, you’ll only have to wait for a couple of months at most.
In contrast, custom homes take longer to complete; at minimum, the time duration may range from a few months to a year. The completion tenure also depends upon how smooth things go.
If you don’t own land already, you will have to look for one. Followed by permits and other legal requirements, which can further delay the completion of your home. Additionally, complications don’t end here.
Even after starting the construction, complications may arise. Furthermore, if you have got a complex construction plan or require unique and special material, that can further delay the completion.
However, if you already have permits and a fairly basic layout, your custom home shouldn’t take longer than a spec home.
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Resell Considerations
Generally, people building their dream homes have no plans of reselling. However, you never know; you may have to sell it either for an upgrade or for financial stress. So, it would be best if you considered your home’s resale value.
However, if you’re eventually planning to sell your house, then a spec home should appeal to you more because such homes have a greater resale value.
Above all, the larger resale value also depends on the home’s location and finishing, regardless of whether it is a custom or spec home.
While it may be easy to assess that custom homes may sell for more, this may not be the case always. At times, homeowners build up homes so personalized that the prospect buyer group gets pretty small, making it tougher to sell.
Regardless of circumstances, if you live in a posh area and a luxury house, you can easily wind up a great return upon sales.
It’s great to be different but do it tastefully, with the resale in mind, when designing your custom home.
Conclusion: Which One Is Suitable For You?
There can never be a correct answer in the custom home vs. spec home debate. The only best fit for you is the one that caters to your family, their needs, and preferences.
If you’re young or on a budget, you should definitely opt for a spec home because it’s great to weigh out options before deciding upon your forever home. This will assist you in establishing your taste and preferences.
And once you’re ready for that forever home, you can opt for a custom home if you like. A custom home is only a good option if you have a vision of what you want and have the budget to fulfill it.
Regardless of the kind of home you choose, you’re getting a new home at the end of the day, which is an absolute achievement.
