Also called spec homes, builders will often set aside a certain percentage of new construction in a new subdivision without yet having a buyer. Sometimes a spec home will serve as a stand-alone model home showcasing the builder’s talents and creativity yet is available for immediate purchase. It’s important to look at the benefits of buying a spec home in comparison with both resale and buying a home pre-construction
The Advantages of a Quick Possession Home
1. Move In Faster :There’s nothing like a brand new home that no one has lived in before. A home that a family can put their personal stamp on. As the name suggestions, a quick possession home is ready to move in anywhere from 30 to 60 to 90 days as it’s either completed or nearing completion. Compare that with nine months to a year if you purchase a lot and choose a floor plan, building from the ground up.
2. Save Time: If a quick possession home is nearing completion, the design packages have already been chosen by the builder. Interior colour palettes, types of tile or counter tops, carpet and flooring have already been chosen often based on the most popular choices of other buyers or on a conservative idea of what a buyer might want. An experienced builder has a sense of what buyers might be willing to purchase. This is a great option for buyers who don’t have the time or inclination to pour over paint chips and samples, agonizing over what they might want. However, if a buyer finds a spec home still three months out from completion, there is some flexibility as well for the buyer who indeed does want to pick their interior finishings.
3. Cost savings: For those buyers wanting a new home but have a fixed budget, a spec home has no hidden surprises. For example, when you start on a new build there may be unknown issues and delays along the way. Material costs may change, contractors may have trouble with plumbing issues, bad weather delays and these unfortunate issues can cost the buyer more at the end of the day.
The same holds true when comparing a custom-built home with a spec home. Usually a spec home in a new development is constructed following a blueprint or standardized building plan laid out for the particular community, so contractors are following a familiar plan. There may be delays as your builder follows an unknown roadmap while building a custom home.
With a quick possession home, buyers make an offer and the price is set with no unwelcome surprises.
4. Risk-free: With a quick possession home, a buyer can see exactly what they are buying. Some like the thrill of choosing a floor plan and a lot – it sets their imaginations on fire. Others take a more tangible approach and want to see exactly what they’re getting. They want to touch it and walk through it, having confidence that they’ve made a safe investment.
5. New home warranties: In Alberta, a new construction is covered by a new home warranty – even spec homes. This guarantees that problems that arise after a buyer has taken possession will be attended to by the builder at no cost to the home owner. Warranties are not offered for resale homes.