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What is a Spec Home? What is the Benefit?

What is a Spec Home What is the Benefit

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Navigating through the world of property and mortgage lending, one might often come across the term ‘spec house’. But what exactly is a spec house? Let’s delve into this topic and explore how spec houses can be a lucrative option for potential home buyers.

What Is A Spec House?

A spec house, also known as a speculative home, is a term used in the property market to describe a house that is built by home builders with the intent to sell it to a buy a house without a realtor. Essentially, builders or developers purchase a parcel of land, build a house with their own specifications (hence the name ‘spec’), and hope to sell it, usually at a profit.

Unlike a custom house, where the property is specifically built according to the future homeowner’s personal taste and requirements, spec houses are built with a broader audience in mind. These ready homes are designed to appeal to the majority of potential buyers, combining both practicality and aesthetic appeal.

The Cost Of Spec Houses

Understanding the cost of spec houses is crucial if you’re considering this route for home purchase.

What Determines The Price Of A Spec Home?

Several factors determine the price of a spec home. The most significant of these is the location. Like all real estate agency, the spec house’s cost is heavily influenced by its geographical position, proximity to amenities, quality of local schools, and the overall desirability of the neighborhood.

Another factor is the size of the house. The larger the home, the more materials and labor are needed to build it, driving up the cost. Furthermore, the quality of materials used and the level of craftsmanship also play a role in determining the cost. High-end finishes, brand-name appliances, and a well-designed landscape can all contribute to a higher price tag.

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Can You Negotiate The Price Of A Spec House?

Can You Negotiate The Price Of A Spec House

While how to get equity out of your home for usually have a fixed price, that doesn’t mean the price is set in stone. A savvy buyer can sometimes negotiate a lower price, particularly if the house has been on the market for a while and the builder is eager to sell.

It’s also worth noting that in some cases, the price may be reduced if the buyer is willing to forgo certain features or finishes, giving some flexibility for budget-conscious buyers.


In conclusion, a spec house can be an excellent investment for buyers looking for a new, ready-to-move-in home without the wait and complications of a custom-built house and how long after closing can you move in. It’s vital, however, to understand the cost and what influences it before making a purchase decision.

Now, if you’re thinking of buying a spec house and need help with your mortgage, Just Funded Mortgage is here to assist.

Robbi Cahya Yudha

As an experienced professional in the mortgage loan and property market, Help individuals and families achieve their homeownership dreams.  My mission is to simplify your real estate journey and secure the best possible outcomes in this ever-changing market.