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What Is a Spec Home Builder?

August 17, 2017

A spec home is a newly constructed home with no particular buyer in mind. It differs from a traditional new construction or custom home in that the buyer does not select the finishes, such as countertops, paint colors, or light fixtures, because the home is nearly complete before it is sold. Finishes are selected in line with what is in style among the target market, and spec home builders make the gamble because they expect the home will earn a profit. Often builders use trend and market research to guide their choices down to the details.


Buying a spec home means you get the luxury of new construction. You won’t need to make any major repairs, replace appliances, or take on large-cost projects around your house within the first several years.

A spec home is move-in ready, which means two things: you don’t have to make any updates or changes before moving in, and the sale frequently moves more quickly than that of an owner-occupied home. Often you can move in within 30 days, rather than the six or more months it takes to build a custom home.

In addition, you get to see and inspect the finished or nearly finished home before you buy — unlike a custom home, which can be hard to envision before it’s built.


Because of the nature of a spec home build, the buyer is unlikely to be involved in the step-by-step process. You won’t get to make many decisions about the construction or finishing details of your home. The builder and its designers will likely have made those decisions before you come into the picture. This can also mean the price of the house may reflect details you don’t want or need in the home.

In short, a spec home is a newly constructed, move-in ready house but is someone else’s idea of what a buyer will want in a home. As always, do your due diligence when researching builders, and visit homes around Austin to see what you like and dislike before making a decision.

Look for an experienced builder with a good reputation in your community. If you’re interested in purchasing a spec home in Austin, Paradisa Homes is dedicated to innovation in design and quality in build. Look for our homes in neighborhoods throughout Austin.