SPEC HOMES: IS BUILDING A SPEC HOUSE A GOOD INVESTMENT?
Homebuilding is on the rise and, as a Real Estate Investor or homebuyer, you may be thinking about whether investing in a spec home, that is, a custom home that is built to your specifications, is a good idea. There’s no doubt that buying a that’s already built and pre-owned is cheaper than building one from scratch. However, there are a few compelling reasons why building a custom home might be a good investment after all. In this blog post, we’ll take a closer look at what spec homes are, and consider the question of whether to build one based on current market conditions. We’ll also discuss some of the pros and cons of investing in spec homes, as food for thought, should you be considering this path. So, if you’re thinking about becoming a spec home builder, or just curious about what they are, keep reading! MY SMART COUSIN provides expert guidance on how best to get started in Real Estate Investing today and every day. We all know that becoming a property investor is no easy task. There are so many things to be taken into consideration, and the process can often seem daunting for beginners! Whether it’s purchasing your very first home to live in or investing in a property to begin your dream of owning a portfolio of investments, MY SMART COUSIN has your back as your seasoned Real Estate Coach, guiding and assisting you every step of the way. Whether you’re thinking about what type of property interests you or how to establish your budget, we help aspiring investors, with a particular focus on Black and Brown folks and women, find and invest in properties. WHAT ARE SPEC HOMES, AND WHAT ARE THE BENEFITS OF BUILDING ONE? A spec home, short for speculative home, is a property built without a specific buyer in mind. Builders typically construct spec homes in areas where they think there will be high demand for new homes. When building spec homes, investors must move on two parallel paths, both deploying a strong sales force to sell buyers a concept of their soon-to-be dream home, and working with general contractors to quickly build homes that will be appealing as-is to future buyers. The name of the game with spec homes is to sell the home as quickly as possible after it is completed.