FAQ: What is a Spec Home?

A new home sold while under construction is called a Spec Home.

A Spec Home is a fabulous option for those who want the benefits of a brand-new home without the wait! Why? Because you skip the entire pre-construction phase of researching, planning, and awaiting permits for the build.

Depending on the stage of construction, our experienced building and design team will already have made the majority of design decisions for you. This means you won’t have the same flexibility to make plan changes that you have with one of our house and land packages. The plus side to this is that you needn’t rely on plans and colour swatches to imagine what the home will look like. You can walk through the property as it is taking shape!

From a financial perspective, buying a Spec Home is much simpler than a typical new home contract. A Spec Home is sold with settlement upon completion so that you can avoid potentially complex lending arrangements and progress payments.

Whether you choose a Spec Home or a Lansell House and Land Package depends on your needs and preferences.

If you’re the type of person who enjoys being involved at every step in the process, a new build might be the way to go. A Spec Home is an excellent option for buyers who want a more streamlined build, investors who don’t want to have their money tied up during a new build process, and first-home buyers who wish to build a new home without paying progress payments and rent. Either way, it pays to consult with an experienced builder like Lansell Homes – who has a proven track record, is customer-focused, is financially secure, and is experienced in Spec Home construction.

Spec Home Bathroom Detail — You can actually walk through the property as it is taking shape!

At Lansell Homes, we build premium-quality new homes at a fixed price, with everything included, so you can move in with nothing more to do!⁠

What is a Spec Home?

A spec home, short for "speculative home," is a property that a builder constructs without having a specific buyer in mind. These typically sell well before the home is completed, as potential buyers usually can walk through the home and visualise how it will be at completion.

How is a spec home different from a custom home?

The main difference between a spec home and a custom home is that a spec home is built before a buyer is found, while a custom home is constructed based on a pre-identified buyer's specific requirements and preferences. Spec homes are built based on the builder's vision and are often designed to appeal to a broader range of potential buyers using neutral colour schemes and popular layouts.

Who builds spec homes?

Professional homebuilders or developers with experience in the construction industry typically build spec homes. These builders invest their own capital in the hope of making a profit by selling the completed homes.

Why do builders construct spec homes?

Builders construct spec homes for several reasons. It allows them to showcase their craftsmanship and design capabilities to potential buyers. Additionally, building spec homes can help them generate revenue and mitigate financial risks by having properties ready for sale. Spec homes also serve as inventory for builders, making homes available for immediate purchase by homebuyers who do not want to wait for a custom-built home.

Can buyers make modifications to a spec home?

Generally, spec homes are built with the builder's specific design and features. However, buyers may have limited opportunities to make certain modifications or select finishes depending on the construction phase and the builder's policies. Before purchasing a spec home, potential buyers should inquire about any flexibility or customisation options. For example, if the cabinet maker has not yet ordered supplies and has started on your cabinetry, it is usually possible to make changes, as well, for things such as tapware, light fixtures, and flooring.

Can spec homes be purchased before completion?

Yes, it is possible to purchase a spec home before it is fully completed. Buyers interested in purchasing a spec home early in the construction process may be able to select finishes and make certain customisations. As well as reduce stamp duty. However, the level of customisation availability varies depending on the builder's policies and the construction stage.