Custom, Spec, or Tract Home?

Understanding the difference between custom homes, spec homes and tract homes.

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Custom, Spec, or Tract Home? #1
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Building a home is very exciting.  There are several options available to you.  You can build a custom home, a spec home, or a tract home.  Understanding the difference can help you to build the home that best suits your needs.
 
Custom home
A custom home is the ultimate in homebuilding.  The homebuyer has complete freedom to make all choices for the home, as long as it falls within local regulations.  The homebuyer usually works with a local general contractor or builder to build the custom home.  It can also be a good idea to use an architect to help draw up the floor plans.
 
Spec home
A common way to build a home other than the custom home route is to build a spec home.  Many larger home building companies and general contractors build homes and offer the homebuyer limited choices.  Although the complete freedom of a custom home is not available with a spec home, the homebuyer can usually choose from a set of floor plans and choose options such as lighting, cabinetry, flooring, paint, etc.
 
Tract home
A third choice in homebuilding is to build a tract home.  A tract home is at the other end in the spectrum of choice than custom homes.  Where with custom homes the homebuyer has complete choice, with a tract home there is no choice.  The tract home is pre-built and finished.  The general contractor already made all of the choices when building the home.  There is no wait to move into a tract home other than waiting for closing.
 
If you want to move into a new home, consider which option best suits your situation: a custom home, a spec home, or a tract home.  Cost, time, and your desire for input all factor into which home would be best for you.
 
Published on February 15, 2007

Read full article at realestate.com


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