Buying a new home requires lots of decision making. Everything from location to wall color choices will become a large part of this process. Before you choose your wall colors, you have to consider one big decision first: Should you buy custom, spec, or tract house?
Let’s start by defining these types of New Home Builds. Custom homes are simply a site-specific home built from a unique set of plans for a specific client. Spec Home is short for a speculative home for sale. Builders will build houses to sell with no particular buyer in mind; the purpose is to build homes that apply to a broad audience to sell quickly. A Tract or Production Home provide model homes from which you can choose; usually this is a result of a partnership between a developer and a builder. A Tract of land is purchased and divide up into smaller lots where versions of the model homes are then built.
Custom Home
A custom home is a one-of-a-kind house built from scratch or built to replace a tear-down. The client is directly involved in the design and planning of the entire house from floor plan to furnishings. The whole process has a particular buyer in mind when designing the layout and size of the rooms. When working with a custom home builder, most will ensure that the buyer is an active participant, creating a sense of ownership and satisfaction during construction. Here is a helpful article that delves into some of the current trends in custom home building. Premium builders, like Alair Homes, ensure the process is transparent and keeps the client in control of the project. Through their proprietary online system, Alair’s project managers share information with clients in real-time. This approach empowers current and prospective home buyers to take charge of their custom home experiences, and it eliminates unwanted surprises and unexpected costs.
The partnership created between builder and client is one of the most persuasive arguments for building a custom home. Getting to know your builder and working with them to create your ideal home is an experience that can be very rewarding. The builder is solely focused on the client’s vision of their home. If you are looking for something unique or specific in your home, this is the best option for you.
Lot choice is another significant benefit of choosing a custom home. You, as the client, are in full control of where you decide to build the house. Location and school district are never out of your control.
Finding the Right Neighborhood for Your Parksville-Qualicum Home
Another benefit of choosing a custom home is the ability to control your cost. You can ensure the inclusion of all the amenities that are a must while excluding and cutting cost on things that are not important to you. Choosing a Custom Home is a great way to maximize your budget without compromising on any of your wants and needs.
The scariest part of building a custom home is the feeling of uncertainty. Looking at an empty lot trying to imagine the floor plan can feel like you are getting into a huge endeavor. Depending on the builder you choose the process can seem confusing and daunting.
The process of building a custom home can also be a long one. Starting with finding a suitable lot to build one: check out this helpful article about this topic: Finding the Perfect Piece of Land for your Parksvill-Qualicum Home. You are building a house from the ground up so it can take anywhere from 6 to 18 months to complete a Custom Home.
Spec Homes
A Speculative Home is built to sell; the builder purchases the lot and designs the layout and floor plan and begins the building process all before a buyer is found. The builder constructs the home based on speculation of what a buyer would want. As such, these homes include several options that are incorporated into the price. These homes are often built to completion and sold ready to move into. At times you can find Spec Homes still under construction, which may allow you some options to customize the home.
The main benefit of a spec home is these homes are closer to completion and often already completed. Putting you closer to a move-in date as compared to starting a custom home. The move-in timeline is about 30 – 60 days when the spec home is close to completion. If time is a factor for you, this may be a good option. Being able to move into a new home quickly and secure your financing is an excellent benefit of going with a Spec Homes.
Another benefit of a spec home is the ability to see the completed, or nearly completed, home in person rather than having to visualize the house from a model or a floor plan. You can walk in and see the house and know what you are getting.
Lastly, when inventory is low, and it is difficult to find a home, Spec Homes offer a great alternative for finding a home ready to move into. Whether you are relocating and wanting to find a permanent home right away or wanting to be moved in before the school year starts spec homes can be a great choice.
The biggest con is most of the design decisions are made by the builder, which means you will have less of an influence on the finished product. With the broad target of a Spec Home, the builder chooses a style and look that is appealing to the most general audience making the house less unique. This means you will own a house that is almost identical to numerous others.
The cost of a spec home is often noted as a positive, but the price of a spec home may provide features and add-ons that you may not want or need. These features will add to the final cost of the home. Furthermore, if you are looking to add anything to the existing Spec Home, the price increases quickly, any change or add-on you make to the design comes with a price tag. Be sure to take this into account when deciding on a Spec Home as opposed to Tract or Custom. Here is a look into some questions you should ask yourself when it comes to the cost of a new home.
Tract Home
Most of us have seen Tract Homes or Production Homes. They are a type of housing development in which a tract of land is purchased and multiple similar homes are built on subdivided smaller lots. The National Association of Home Builders has an article expanding on this definition.
Tract Housing development makes use of a few designs and volume builders to deliver the homes at a lower market cost. Tract Homes are typically found in larger cities; specifically in suburban areas.
The most significant benefit to a Tract Home is the price of the home. Due to the land, design, and build being purchased and produced in bulk Tract Home Developers can price the houses at a lower cost. Another benefit is the presence of a show home; you can walk in and get a feel for what your home will look like rather than merely looking at a floor plan.
The main drawback of a Tract Home is the “cookie-cutter” feel and look of the neighborhoods. Although you can choose between a few floor plans and some upgraded features anything you add will come at a higher cost.
What to think about when making a decision?
Three major factors go into choosing one of these options, all with pros and cons. The three categories are involvement, time frame, and true cost. The Chicago Tribune also has a great article on this.
Involvement:
The level of involvement is dependent on you and how hands-on you would like to be on your home build.
A Spec Home would allow you to be the least involved. Many times the home is already completed, or most of the way finished.
Tract Homes have some level of involvement; typically, you can choose between some floor plans, materials, and color options. You can be more involved if you would like, but there is little you change after the initial choices.
Custom Homes do require the most involvement in comparison to the other two, but this is something you have some control over. Choosing the right builder to work with is crucial when considering how involved in the project you would like to be. A builder like Alair Homes, provides each client with access to a proprietary project management software designed to make the building process completely transparent and keep you in control of the building process of your home. This software allows you to make crucial decisions as the home is built through a concise and straightforward platform. The end result is it prevents the home buyer from becoming overwhelmed with the process.
If you are the type that wants to be heavily involved throughout the building process, a Custom Home is your best bet. With the right builder, you can throw on a hardhat and collaborate with your builder to watch your new home come together.
Each of these options varies in how involved you can be. In the end, you have control over how involved you want to be in building your new home.
Time Frame:
Time is one of the most significant factors that you should consider when comparing these options. The reality is, both a Tract Home and a Custom Home can have longer build times because they are not built until you choose to start the process. If you are needing to move in quickly or don’t want to find temporary housing while your home is being built a Spec Home may be something to consider.
Tract homes have an average build time of 3-6 months while, Custom Homes range between 6 months – 10 months. In both of these cases, you can discuss your timelines with the builder. A reputable builder will consider your needs and provide you with a realistic time frame, so you know what to expect. A transparent builder will keep you in the loop through the entire process, letting you know what to expect.
True Cost:
The true value that you are getting out of the home is where cost can become more complicated. As we mentioned above, a Tract Home is likely the lowest cost option when purchasing a new home. This is only valid if you are happy with the base options that the developer is offering. The more you add-on or customize the house, the higher the price goes.
Spec Homes typically fall in the middle price range compared to Tract Homes and Custom Homes. This, again, is only true when you do not change the design and options that the builder has chosen. Many times Spec Homes include aspects and design features that are not important to you, while at the same time missing other features that want and need. This Leaves you with a price that is missing aspects you want and includes things you don’t need.
Custom homes have the highest ticket price when it comes to the three options, but if we look deeper, this may only be on the surface. Many hidden costs go into a Spec or Tract Home due to the lack of control you have over the final product. With a Custom Home, you can cut cost where you are willing to while ensuring you are getting everything you want in your ideal home.
Conclusion
The bottom line is to understand what you want from your new home. Are you on a time crunch? Is price a factor? Maybe you want more control over the end product? Whether you are looking at a spec, a tract, or a custom build the important part is to know and understand the bottom line price and the potential for up charges. Fixating on cost per square foot during the feasibility/planning without consideration of the true bottom line price is a recipe for potentially sizable budget overages and/or up charges, untimely delays and a disappointing outcome. Take the time to plan out everything before construction starts to minimize the stress of the construction process and to clearly identify what the project will be so that everyone involved can move towards that together in a unified manner. Buying a new home is an exciting process, and getting to know the builder will give you the best insight into which one of these options is the best option for you.