Everything You Need to Know About Spec Homes

If you're in the market for a home and looking in an area with new construction options, you've likely come across the term "spec home." Short for "speculative," a spec is a home a builder chooses options for and builds prior to selling it, in anticipation of it being purchased by someone who needs a quicker move-in and isn't married to the idea of selecting their own homesite and options. 

"Spec," "inventory," "move-in ready" ... what's the difference? 

Specs are often also known as "inventory," "feature," or "move-in ready" homes, along with a variety of other marketing names builders come up with to avoid using the term “spec.” Why? People started thinking of "spec" as a word with a negative connotation, implying a home with generic or cheap finishes meant to appeal to the masses and keep the price low. This resulted in many builders trying to distance themselves from the term “spec,” even though it is still frequently used among Realtors, buyers, and within the building industry. 

Whatever you call them, we're here to tell you that you need not fear spec homes! These can be a great way to find a never-before-lived-in-home with contemporary floor plans and features without having to go through the full 4-6+ month build process, which simply isn't an option for many people who need to move quickly for a job or other life circumstances. 

Greenwood Homes' spec home program: beautiful, high-quality homes without the wait.

At Greenwood Homes, we selectively build spec homes in anticipation of buyers needing homes quickly but not wanting to cut corners on design, quality, and energy efficiency. With inventory at historically low levels, it can feel like there aren’t any options for those in the market for a home. We hope to fill this gap and also serve buyers who don’t want to settle for a used home but either can't or don’t want to go through the process of building. 

When selecting structural and design options for our spec homes, we are intentional. Our Sales Managers know to select floor plans and structural options that are the most in-demand. Angie, our Director of Design Gallery Operations, expertly puts together design packages in a way that appeals to a wide variety of buyers while keeping things interesting - incorporating unique fixtures, backsplashes, or cabinet color combinations. This blended approach results in beautiful homes that can be appreciated by a variety of homebuyers but don't feel generic.

The top benefits of buying a spec home:

1. Time Efficiency:
Spec homes can be already-made or still under construction, offering a shorter move-in timeframe and eliminating or cutting down the lengthy construction process associated with bespoke homes. For homebuyers looking to expedite the moving process or those with time constraints, spec homes offer a turnkey solution!

2. Cost Predictability:
One of the key advantages of spec homes is cost predictability. Unlike customized builds (where you may end up upgrading above your budget) or resale homes (which have a strong likelihood of ending up with a bidding war), spec homes come with a fixed price tag. Buyers can evaluate their budget accurately, avoiding surprises.

3. Avoiding Decision Fatigue:
The process of customizing a home from scratch can be overwhelming for some buyers. Spec homes provide a pre-determined design and layout, sparing homeowners from decision fatigue. While there may still be some room for personalization depending on how far along the home is in the construction process, the major decisions are already made, allowing for a more streamlined and stress-free buying experience.

4. Professional Design and Finishes:
Our spec homes are crafted by experienced architects and interior designers who incorporate current design trends and high-quality finishes. This means that buyers can enjoy a professionally designed home without the need for extensive planning or hiring additional professionals.

Ready to buy? Here’s what to expect:

Purchasing a spec home is a bit of a different process than the one our buyers go through when purchasing a to-be-built home. If the home you fall in love with is already completed and move-in ready, things go very similarly to purchasing a resale home: you sign a purchase agreement, put down an earnest money deposit, work out financing details, then settle on the home, paying the remaining down payment at closing (or the remaining balance of the home price if paying cash). 

Aside from a fully completed spec home, we have two other stages at which you might purchase a spec: 

1. All selections have been made and are final: these are already under construction and would have the same process as above, just drawn out a little longer while the home is finished. 

2. Only structural selections have been finalized, design finishes can be selected by buyer: In this scenario, you would sign a purchase agreement for the home based on the price with structural options, then come to our design center to pick your own interior finishes such as cabinets, counters, and     flooring. When available, this is a great opportunity to get a more personalized home on a slightly     accelerated timeframe compared to building from the ground up! Any design upgrade costs would be added to the original contract and be reflected in the final sales price. 

All in all, purchasing a spec home with a reputable builder could be a great option to consider if you’re looking for a new home but don’t have the time to wait to move in or desire to personalize every aspect of your home. Greenwood Homes has a variety of completed and under-construction spec homes available at any given time across our markets in Hampton Roads, Raleigh-Durham, and Charlottesville. View our Quick Move-In page and use the filters to find some options that might work for you, or Contact Us and let us know what you’re searching for to have our New Home Concierge recommend homes that might meet your needs.