Spec Homes - Home Builder Inventory

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What is a Spec Home? An inventory home or a spec home, is a new construction house that a home builder constructs prior to having a contracted buyer.

Home Builders build spec homes with the hope of finding an interested buyer to purchase the new home before the completion of the construction process. When home builders build spec houses, and keep extra new homes in inventory, this allows the home buyers who are relocating, and others who may not have the time to wait for a new home to be built - to also have the opportunity to purchase a ready-to-move new construction house.

As home builder inventory increases, and spec homes approach their completion date, home builder incentives on these spec homes also increase. This allows smart home buyers, and potential real estate investors to take advantage of new home discounts.