• Tartan Fields

  
  4 Bed / 3.5 Bath
  $775,000
  Built by Bob Webb
   

• Brentwood

  
  3 Bed / 2.0 Bath
  $164,000
  Built by Josh DiYanni
   

• Park Place Village at North Orange

  
  3 Bed / 2.5 Bath
  $434,800
  Built by Bob Webb
   

What are Spec Homes?

Information on Central Ohio and Columbus spec homes, including spec home construction, builders and developers. 

Any house or condominium that has already begun construction but doesn't have a buyer for it is a speculative or spec home (also referred to as an inventory home). They can range from holes in the ground to completely finished units ready for immediate move in.

Why are spec homes a good deal?

1. Builders, like all retailers, need to move inventory. Excess inventory can eat up a developers profit and be a significant drain on cash. In these circumstances they are willing to offer discounts to move the units.

2. The builder may be willing to offer significant discounts on any upgrades already selected. Upgrades for new builds have a high profit margin so the builder isn't losing money by discounting the upgrades and the buyer benefits by getting a good deal. It typically would cost much more to build a duplicate house, which makes the spec a good deal.

3. Model homes become spec homes when the builder is nearing completion of a subdivision. Often models have higher end finishes and significant upgrades to showcase the builder's designs. Buying a model as a spec can mean a significant discount on the upgrades.

What makes a spec a spec?

There are several reasons why builders and developers have spec homes.

1. They have started construction for a particular buyer but for a variety of reasons the buyer is now no longer able to purchase the home. If the buyer has selected upgrades for the home the builders are often willing to discount them to move the house.

2. Some builders will build a certain amount of spec homes to have an inventory for immediate sale. Not all buyers can wait to build a new home and some will be looking for an immediate move in. This is where the term originates from, when builders are building on speculation.

3. For condominium developments you can't always just build homes as you sell them. Urban developments are often mid rise, which means building all the units at once. In the suburbs there may as few as 3 units to a building or as many as a dozen or more. It's much more economical to build many units at once, which means the builder will have an inventory of homes to sell.

Advantages

1. They tend to be a good deal compared to building from scratch. There can be significant discounts offered to move the home now.

2. You can buy one now and move right in. New builds can take 8 months to over a year to build and this way you avoid the wait.

3. Depending on how finished the spec home is, you may be able to customize some aspects of it. You may get some of the benefits of a spec home and still be able to make enough selections to personalize the home.

Disadvantages

1. The finish selections and floor plan choices are mostly already made. You will not be able to make the same selections as when building a home.

2. The lot choice is already made. You may like the home but you can't pick which lot it goes on.

3. With building you will have a much larger choice of styles, floor plans, lots, subdivisions and finishes to make. The inventory of spec homes can be small compared to the number of buildable lots that are available.