What Is A Spec House?

A picture of a builder standing in front of a completed home with a clipboard in his hands

If you have been in and around real estate, you may have heard the term spec house. If you haven’t, a spec house or speculative house is when a home builder constructs a home they believe will sell for a profit. There is no specific buyer tied to the house. Builders try to make these homes and move in ready as possible, so they are appealing including putting in such items and landscaping.

Other items which a builder may add are upgraded finishes such as granite counter tops and premium appliances. Typically, these homes are built in a quality neighborhood or in an area where older homes are being demolished and newer, typically bigger homes replace them.

You typically will pay less for a spec home as compared to a custom home and remember, you can negotiate the price of the home or have the builder pay some closing costs or provide some seller concessions to assist with your home financing. Remember, that spec homes are sold as is and if you want to make modifications or changes, they will be at your expense after the closing.

Make sure you have your mortgage preapproval in place and speak to a trusted mortgage professional such as the ones at Hall Financial.