Custom Homes vs Spec Homes – What is the Difference?

If you have ever heard the terms custom and spec homes you might be wondering what is the difference. It is particularly important to distinguish between the two if you are planning on building. To make the right decision for your budget and lifestyle, it is important to understand the key differences. In this article we will explain the definitions of a custom home and a spec home, the pros and cons of each, and point out the main differences to help you decide on the right type of build for your new home.

What is a Custom Home?

A custom home is a home that is designed for the specific needs of a client at a predetermined location. It is built from a unique set of plans created via a collaboration between a client and home designer or architect. With a custom home, the client controls the layout, size, and all specifications of the final plan, with personal touches that express the client’s unique style. Custom homes are built by Custom Home Builders who work with you on every aspect of the home project from design and layout, choosing materials and finishes, to the building process and final handover.

What is a Spec Home?

A spec home is a new house that a builder constructs under the speculation that it will sell. Spec homes are built using the builders designs and are ready to move into. The home layout, materials and appliances are all prechosen by the builder, and not the buyer. In comparison to a custom home where the client has full control over the home design, spec homes are built with a general market in mind.

Pros and Cons of Custom Homes and Spec Homes

Custom homes and spec homes both have their advantages and disadvantages. Identifying the pros and cons of each can assist with the decision making process when trying to work out which type of home to build.

Custom Home Pros and Cons

Pros

1. Freedom to design your own home: One of the biggest advantages of custom homes is the flexibility to design your own home and customise all features. This means you can build a home that is ideally suited to your lifestyle, personal taste, comfort and budget.
2. It will be totally unique: Your custom home will be one of a kind. As you have designed and chosen every aspect, the home will be totally unique.
3. Choose the location: With a customised home, you choose the location and block of land you want to build it on.
4. Build to your budget: With a custom home, you can still build to your budget by choosing a design and materials that you can afford.
5. Better return on investment: A custom home can be a wise financial investment and, in time, can offer significant returns. Because custom made homes are generally constructed with higher quality materials and have unique features, they tend to stand out in the market, and sell for a higher price.
6. Lower maintenance: As custom homes are likely to use high quality materials, fixtures and fittings, there may be less maintenance in the long run.
7. Sustainable building practices: Building a custom home gives you the opportunity to incorporate sustainable building practices. A custom builder can use clever design techniques, recycled or environmentally friendly materials, and reduce construction waste to ensure a sustainable building project.

Cons

1. Cost more: A custom built home may be more expensive. The cost to build is dependent on the level of customisation, features and quality of materials used.
2. Can take longer to build: A custom home can take longer to build, depending on the size, complexity and type of land you are building on. A custom home may take anywhere from 10 to 18 months to build.
3. Finding the right block and location: Being custom built, it will be up to you to find a block of land for your new home. Sometimes it can be a challenge as you need to take into account size, shape, permits and council regulations. Your custom builder or architect can help you with building codes, soil conditions and regulations to establish if it is the right block for your new home. A real estate agent can also be helpful with choosing a block as they have knowledge of the area.

Spec Home Pros and Cons

Pros

1. More budget friendly: Spec homes tend to be less expensive and more budget friendly. Often spec homes are built with lower quality materials that are bought in bulk which keeps costs down.
2. Are already built or close to completion: Because spec homes are already built or close to completion, you can move in a lot sooner. As they are fully designed and already completed, you don’t have to wait months to move into your new home.

Cons

1. Little or no control over design: As a spec home is a prebuilt house that has already been designed, there is virtually no control over the layout, features or materials.
2. Will not be unique: Spec homes are mass produced with the same or similar designs which means a spec home will not be unique. There may be entire streets with the same home design.
3. Features you don’t need: With a spec home that is already prebuilt, there may be features you don’t need but they cannot be customised.
4. Lower return on investment: Built with lower quality materials and a common design, a spec home is likely to have a lower resale value. While the budget style home may appear to a larger number of buyers, the price tends to remain on the low scale.

Custom Home Vs. Spec Home – Key Differences

Examining the pros and cons of custom homes and spec homes, we can see distinct differences between the two. These key differences are important to take into account when deciding on the type of home you want to build.

• Personalisation: Custom homes can be personalised but spec homes cannot. With a custom home, you can choose everything from the layout and materials to the cosmetic details like door handles and light fittings. Spec homes, on the other hand, have every feature predetermined so the scope of personalisation is minimised.
• Timeline: The timeline from purchasing the custom or spec home to move in date is quite different. A spec home is already completed and is designed for immediate occupation. A custom home is a longer process, from finding a block of land, to the design phase, construction and final handover.
• Cost: Because of the level of personalisation and quality of materials, custom homes usually come with a higher price tag. Spec homes are often advertised at a set cost with inclusions, although it is important to look out for added fees when working out a budget for spec homes.

How To Choose Between a Custom Home or a Spec Home

When choosing between a custom home or a spec home, you will need to take into account your preferences, needs and situation. Both types of homes have their benefits and disadvantages. Consider these reasons to choose a custom or spec home.

Reasons to Choose a Custom Home

• Money is not an issue: If you don’t have budget restraints, then choosing a custom home means you can get everything exactly the way you want. A custom home will be a higher quality and more personalised home with a better resale value.
• You want to choose a block and location: If you have a particular location or block in mind, choose a custom home. This will give you more freedom choosing the area and neighborhood you want to live in.
• You want a personalised home: If you want to be part of the design process, and personalise every aspect of your new home, then choose a custom home. With a custom home, your distinct style, personality and preferences will all be taken into consideration. Your custom home will be a true reflection of you with no compromise.
• You have no time constraints: If you don’t mind waiting a little longer for your home to be ready, choose a custom home. With the customised home, building does take longer so move-in date will be later than a spec home.

Reasons to Choose a Spec Home

• Budget conscious: If you are on a tight budget, a spec home is a good choice. Spec homes often have a set price and are less expensive than custom designed homes due to the high volume of spec home builds.
• You are flexible on location: If you are more flexible about location, then choose a spec home. Often these homes are situated in new estates in developing areas so, if you don’t have a particular established area in mind, a spec home is a good choice.
• You are happy with standard layout and design: If you don’t mind having a standard layout and design, then choose a spec home. This is a more basic option designed to appeal to an overall market by using current trends.

When deciding between a custom home or spec home, it is important to take into account the differences between the two. A custom home will cost more to build but will give you a higher quality, personalised home with a better return on investment. A spec home, on the other hand, is ideal for the budget conscious. Our article guides you through the pros and cons of custom and spec homes, and key considerations to help you decide the best choice for your new build. For further information, contact the experts in custom home building at Forme Homes.