The terms custom home, spec home, and tract home are all widely used among home builders. Most potential homeowners enter the process of buying a new home without understanding these terms in full, however. It is important to understand the facts about custom homes, spec homes, and tract homes before purchasing a new property.
Typically the term custom home refers to a new house that was designed with an individual buyer in mind. Generally, the homeowner chooses the lot, floor plan, colors, materials, and fixtures. A custom home buyer is closely involved in the construction process and in communication with their custom home builders. While the buyer is not typically on the property driving nails into the walls, they do get to observe the day to day progress of the builders. Custom home building requires a close relationship between a buyer and builders. Both parties must be fair and honest and communicate openly throughout the building process. This type of relationship between homeowner and builders ensures that the custom home gets built to the buyer’s specifications in a timely fashion.
The biggest benefit of hiring custom home builders is the level of control you have over the building process. From choosing the lot to picking out the hardware, you will have a say in virtually every major decision for your property. The biggest drawback is the uncertainty of the outcome of your new house. When you purchase an existing house, you may not be happy with every aspect of it, but you know exactly what you are getting. There can be a lot of unknowns about building custom homes, which can be overwhelming and stressful for both builders and buyers.
The term spec home means speculative home for sale. Sometimes, custom home builders begin new construction without a specific buyer in mind. However, depending on the current state of a given spec house, a buyer may have some control over selections such as paint colors and kitchen countertops. Typically, a spec home builder makes conservative choices in order for the design to appeal to a wider market. Experienced spec home builders know what property owners in the area like and what they are willing to buy within a given price range.
Most spec homes are a safe investment. Spec home builders do their best to choose promising, marketable neighborhoods for their homes. These builders construct their properties well, striking a balance between amenities and upgrades. As a potential homeowner, you are able to see exactly what you are getting and you will be able to move into the house right away. The biggest downside to this process is that you do not have a lot of choice in the construction process, unlike building a custom home.
A tract home has a similar style and floor plan to other homes in a single neighborhood. For example, each house in a subdivision may be a 4-bedroom colonial style house with the same basic floor plan. When builders construct multiple tract homes, they are able to purchase materials and hire labor at volume pricing. The tract home construction process is typically less expensive than it would be for a custom home.
The price point is often the biggest benefit of a tract house. For a first time homeowner looking for affordable, short-term housing, a tract home can be a great option. For a seasoned homeowner looking for a long-term, high quality investment, this type of house is not always a good fit. As tract home builders are building with price point as a top consideration, they look for ways to save money in their construction and amenities. This choice often comes at the expense of quality. It is not uncommon to find tract homes with low end appliances, hardware, and cabinets. Resale value is also a downside of buying a tract house. As every house on the block has the same layout, there is a lot of competition within a given neighborhood.
If you have any questions about custom homes, spec homes, or tract homes, talk to an experienced team of home builders. Professional builders have the expertise to determine which type of house is the best fit for your needs, preferences, and budget. Contact the expert home builders at Champion 1 Builders in Amarillo, Texas to learn more about building a new custom home. You can call us at (806) 282-6903 or Contact Us by email for more information about the homes we are building in the Amarillo, Texas area.
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