Buying New Construction: Is it Better to Build or Purchase a Spec Home?

by Brendan Duckworth

Buying New Construction: Is it Better to Build or Purchase a Spec Home?

Are you considering moving to Rhode Island or Massachusetts and debating between building a home or purchasing a spec home? Here is everything you need to know about these options.

Starting your home search may bring along both stress and excitement. There are numerous factors to consider, from home style to size to location. However, buying a home will be one of the most significant investments of your life, and you'll have to carefully weigh each decision.

Many homebuyers are exploring ways to save extra cash throughout the home-buying process. Whether that means foregoing a home in a prime location, purchasing a new-construction home, or starting from scratch by building a home, it's crucial to ensure your next home fits your budget, lifestyle, preferences, and family size.

Both building a home and purchasing a spec home have their advantages and disadvantages. Luckily, there is no right or wrong answer; it'll all depend on what is best for you and your family.

No matter why you are moving, there will be many things to consider. Before you make the decision, let's quickly go over the pros and cons of building your own home and purchasing a spec home.

Keep reading to learn all about if you should build a home or purchase a spec home.

Chapters

What is a Spec Home?
Pros of Purchasing a Spec Home
Cons of Purchasing a Spec Home
Pros of Building a Home
Cons of Building a Home

1. What is a Spec Home?

Before diving into the pros and cons, first, let's understand what a spec home is. Although it has many names, this type of home is mostly called a spec home, short for speculative house. This is a new-construction home that a home builder constructs on the speculation that it will sell easily.

A spec home is typically move-in-ready, and some home builders even construct multiple comparable homes in the same area. These homes are built to include what most home buyers are searching for, including popular amenities and upgraded appliances.

Spec homes are generally priced lower per square foot compared to customized homes. Good home builders usually choose floor plans that will fit the average buyer. A spec home is built to be attractive for the average home buyer, making them perfect for buyers who need a quick move-in process.

2. Pros of Purchasing a Spec Home

Buying a spec home comes with many advantages; depending on your situation and needs, this type of home might be perfect for you.

Quick move-in process

One of the biggest advantages of a spec home is the fast move-in process. Spec homes are usually put on the market about 2-3 months before the building process is finished, making them ideal for buyers who need to move quickly.

Home Inspection

When buying a new home, you should always get a home inspection to ensure you are making an informed decision. The home inspection process on a new construction home will typically be faster and less complex.

Hands-off

Since spec homes are built for the average buyer, the builder has already made the major decisions. This is perfect for buyers who don't have time or don't care for minor details like countertops, paint colors, and landscaping.

3. Cons of Purchasing a Spec Home

Like any decision, purchasing a spec home will come with some disadvantages.

Limited Customizations

One of the most obvious cons of a spec home is the limited ability to customize. Major decisions about layout and design are made by the builder, which may not align with all of your preferences.

Basic Layout and Design

Spec homes may lack unique finishing touches, as they are built to appeal to a broad range of buyers. However, these can be added or changed after purchase.

4. Pros of Building a Home

If you want more freedom to create a unique home, building a home might be the best option.

Freedom

Building a home allows for complete control and customization of your living space.

Avoid Bidding Wars

Building your own home means avoiding bidding wars in the competitive housing market. Buying land is typically easier and less competitive than purchasing an existing home.

Market Appeal

Custom-built homes may have a wider market appeal when it comes time to sell, as they often feature unique finishes and personalized touches.

5. Cons of Building a Home

Building a home will be a rigorous process and can bring on a lot of stress.

Longer Process

Building a home typically takes longer than purchasing a spec home, with an average completion time of approximately 8.1 months for a single-family house.

More Decisions

Building a home requires making numerous decisions, which can be time-consuming and overwhelming.

High Budget

Building your own home may exceed your budget, as unexpected costs can arise during the construction process.

Conclusion

The decision between building a home and purchasing a spec home ultimately depends on your preferences, budget, and timeline. Both options have their advantages and disadvantages, so it's essential to weigh them carefully before making a decision.

Whether you choose to build a home or purchase a spec home in Rhode Island or Massachusetts, make sure to consult with a real estate agent to guide you through the process and ensure you find the perfect home for you and your family.