When you are looking at houses to purchase, you might want to consider builder spec homes. A builder will often build a spec home, (or a speculative home), to use as a model home for a neighborhood, or they will build a popular floor plan that they hope will sell quickly.
Sometimes, the spec home will be a home they constructed on a purchase contract that fell through and it is now tying up their working capital. Because of this, they will need to sell it at a lowered price to quickly recoup their investment with a smaller profit, but enough to keep their cash flow moving to pay construction loans.
Unlike most new properties that can take months or years to build, you could move into a spec home almost instantly. The positive thing about builder spec houses is that they will usually have better features than you can find in comparably priced homes and all of the “kinks” will be worked out of them and fixed. For a home buyer that is looking for a new house, they are definitely worth considering.
More often than not, you can get some pretty good incentives thrown into the deal too. You can gain instant equity in a builder spec home, especially if it is in a desirable subdivision or gated community. There are some buyers that want a new house, but don’t have the time to wait for it to be built and a builder’s spec home is a great option.
All in all, you can get the best of both worlds with a spec home. You’re the first to live in it, but you don’t have to wait forever to have it built. It is a way to gain instant equity under the right circumstances, as well.