In today’s TMYK, we differentiate custom homebuilding vs spec construction. A custom home is one where the future homeowner typically owns the land and hires the builder to construct their home. The term custom has nothing to do with how much you customize the house or the origin of the blueprints. You can use plans right off the shelf that the builder has stamped out several times before or you can hire your own architect and design your dream home from scratch.
Spec is short for speculation. In spec construction, the builder (or investors who hired the builder) own the land and are speculating that they can build a house and sell it brand new for a profit. Spec homes typically are designed to the builder’s tastes and contain the features they feel will have the broadest market appeal.
Check out the next TMYK for the inside scoop on pre-buy and customizing both speck and custom houses.