Understanding The Lingo - What Type Of Home Will You Buy?

Real Estate Articles

If you are ready to purchase your new home, you probably have a general idea of what you are looking for in the terms of the number of bedrooms and bathrooms. One of the first decisions that you will have to make is whether you are going to build a custom home, purchase a spec home, or will you be happy with a tract home. Each type has some obvious advantages, as well as some disadvantages. Knowing what these are may make it easier to make your decision.

Who Will Have Control?

One of the biggest differences between a custom home, and the other two choices is the amount of control that you as a homebuyer will have during the process. A custom home is just that, it is built as a one of a kind dwelling specifically for you. You will control all choices that are made from the beginning to the end.

Not only will you be able to bring your blueprints to the table, or work with a team of designers to create what you are looking for, you will also be able to control your location. Custom homes can be constructed on land that you already own, or lots that the builder may sell you.

You will be able to control the level of customization that goes into the home. This means that you will get the things that are important to you, without having to pay for things that you may not particularly want. One of the downsides is the amount of time, effort, and energy that goes into having to make all of the choices along the way.

Great Upgrades For Less Money

If you are one of these people who will know that home you are looking for when you see it, you may want to ask your realtor about purchasing a speculative home, or spec home, available in your area. These homes are homes constructed by the builder on land they already own. They are often used to showcase the quality of the builders work, or what an impending neighborhood is going to look like.

While these homes are usually fully completed when they arrive on the market, you can sometimes find one that is still in the construction stage. Depending on where in the construction process the home is when you decide to purchase it, will often depend on how much input you are able to have in the selection of the interior design.

These homes are built on floorplans decided by the builder. One of the disadvantages of a spec home in a new community is you will probably see your floorplan built again.

The advantage of buying a spec home is that many builders incorporate significant upgrades at discounted prices. These will generally be upgrades that will appeal to a broad market of buyers. This can give you more value for the price you are paying.

Spec homes are often built at significant cost savings to the builder, and they will be likely willing to pass these savings on to you. Builders are often motivated to sell the spec homes in an effort to jumpstart the community, or to simply get them out of their overhead. This can often give you more negotiation room.

The downside to spec homes, especially in new communities, is that you run the risk of the community not producing the amenities that you may be promised. While the community may be initially designed to have an extravagant green space, walking trails, pools, and a clubhouse. One or more of these features may be cut by the builder in the future.

Seeing What You Are Buying

If you would like to avoid the uncertainty of an unfinished community, or move in a community that is already flourishing, you may want to consider purchasing a tract home. These are homes that are usually pre-constructed in a community using an identical, or common floorplans. Depending on the completion status of the community, you may have a choice between picking the floorplan that you would like to purchase, or purchasing one that is already built.

The largest advantage to purchasing a tract home is this is generally the least expensive option on the market. Since builders are building the same thing over and over again, they are able to purchase their materials in large quantities, as well as contract their labor at lower rates. These are savings that can be passed on to you.

A disadvantage of tract housing is that you will usually not find high end materials, or any type of customization used throughout the home. If you desire these features, they are add-ons that you will have to add later at your expense. You will also be surrounded by homes that look like yours. Beyond that, these homes can be an excellent choice for first time homeowners, or even if you are looking for a long term investment.

No matter which option you choose, purchasing a new home is an exciting time in your life. It gives you a chance for a new beginning in a new location. If you have questions, talk to companies that provide realty services.


2 February 2015

Sarah's Renting Tips

Although I've never worked professionally in the real estate business, I sure know my way around it. How, do you ask? Well, I have simply rented a lot of different places and worked with a lot of different landlords and real estate agents. In the past 7 years I've lived in 11 different houses or apartments, none of them my own. In finding those 11, I have looked at literally hundreds of apartments. I used to hate house hunting, but now it's kind of fun. You just need to know what you want and the right questions to ask. Hopefully this blog can help you learn some of the tricks of the trade from another renter like yourself.