It’s no secret that buying a home in today’s real estate market is a daunting task for many home hunters. Home prices continue to rise in many markets, and while there are some signs of a slowdown in sales, listings are still moving at lightning speed: according to the National Association of Realtors, the average time on the market is just 14 days.
To expand your options on the homeownership journey, you may want to consider purchasing a dedicated home. This is a new building built “on speculation” – not for any particular client, but in the hope of attracting him. Not only are custom homes typically less expensive than other new builds, they also tend to be turnkey.
Is the speculation house worth your guess? Here’s everything you need to know.
What is a special house?
Special house is an abbreviation for the word “speculative house”. This is a new residence built by a professional builder.
“Typically, specialty homes are built on plots of land that the developer intends to turn into development at some point in the future,” says Kerry Sherin, a consumer advocate at Ownerly, a home appraisal company. “These homes offer their future owners the convenience of buying a new property without having to wait months or even years for completion.”
To appeal to a wide range of homebuyers, builders are including features that they “guess” are things people want in a home, such as open floor plans, kitchen islands, showers, granite countertops, or anything else that is currently in trend. in residential real estate.
So “spec” can also mean “spec” – a house is based on a set of specifications that are often quite high quality and up-to-date. It is completely ready to move in when a potential buyer sees it.
Special house versus standard house
Do not confuse model houses with model houses, those sample houses in the area that show the type and style of living in the new area (sort of like floor models on display at a car dealership).
Like model houses, model houses are built on large plots of land by a builder or developer. And both function like exhibits, demonstrating what the developer is capable of. But model homes are essentially demonstration homes that a developer decides to sell after the subdivision is largely full. On the contrary, special houses are built to sell and attract buyers.
As a result, special houses become more luxurious. “Special homes usually have features that are considered upgrades and would not be included in a typical home,” Sherin notes. And they are more customizable. “In some cases, the buyer will even be given the option to select some of the home’s features or finishes if they purchase the home mid-construction.” In contrast, typical homes are sold “as is”.
Model homes tend to be less unique because they are built from only a few different floor plans; the builder does not make an individual approach to each house individually. Also, even though they are new, they may show some signs of wear and tear after a few months of people passing through them.
As a result of all this, typical houses tend to be cheaper than standard houses.
How much do special houses cost?
The cost of a private house depends on many different factors. Some of the factors that affect the price include:
- Square meters
- Labor cost
- Land size
- Construction Materials
In general, specialty homes are more affordable than some other types of homes. For example, a custom home should be cheaper than a comparable custom built home where you design every aspect of the home, from roof materials to lighting fixtures. However, custom homes are often more expensive than the standard new homes offered by the developer in the area because they are more showy and more finished. They will certainly be more expensive than a typical subdivision home.
Pros and cons of special houses
Before you buy a special house, it is important to weigh the pros and cons. Here are some things to consider if you are thinking about investing in a dedicated home.
- More affordable: If you’re on a budget, a dedicated home can be a good way to get some luxury for less. Developers are often willing to offer buyers a deal to make sure their homes sell as soon as possible.
- No waiting: Love the idea of a brand new build, but can’t wait six months to a year of construction? The special house is ready immediately (or close to it). You also don’t have to deal with contractors.
- Turnkey condition: You don’t have to worry about renovations, renovations or upgrades before you can move in, which isn’t always the case with pre-built homes. Every feature is fresh and new.
- You cannot select a seat: With a special house, you have no control over the location. If you love the house but don’t like the hood, you may have to leave.
- You have fewer options: For many people, the whole point of new construction is the opportunity to build the home of their dreams. But in a house with a specification, the builder usually has a vision and determines everything from the floor to the paint. While you may have some options (choose lighting fixtures, cabinet handles, or other finishing touches), you won’t be able to customize basic elements like the roof. You can of course redo it later, but that means more money.
- You can pay for unnecessary features: Because you can’t usually set up a dedicated home, you may end up paying for things you don’t need or want, like a three-car garage when you only have two cars. As good as a spec house is for the price, it’s not a good deal if the price reflects features you’ll never use.
How to buy a special house
The process of buying a special home is very similar to the process of buying any other home. These homes are usually listed on the MLS and your real estate agent can give you a tour. You may also have the opportunity to meet with a builder who will explain more about the amenities and features, as well as talk about construction and building materials.
If you want to make an offer on a specific home, you probably have a negotiating space, just like you would with an existing home. However, usually the developer sets a minimum price: in the end, they have to recoup their investment. Remember that these houses are newly built so they are in pristine condition and have modern features and fixtures.
In terms of financing, most lenders will give you a conventional mortgage for a specialty home. Before closing, it is recommended to inspect the house, even if the house is newly built. Getting a second opinion from a third-party home inspector or contractor ensures that nothing has been overlooked, no corners have been cut, and everything is as it should be before moving forward.