What Is a Spec House? Are There Any Pros and Cons?

If you’re looking to buy a move-in-ready home, a spec house is a good option. This house type has great features, a reasonable cost point, and the latest design trends. But is there a catch? Let’s find out what is a spec house exactly and if it’s the right type of home for you.

Here, we’ll explore the features, cost, and pros and cons of buying a spec home. We’ll even talk about the best time to buy a spec house.

So, what is a spec house?

A spec house, also known as a speculative house, is a newly built residence that is constructed by a professional home builder with the expectation that it will be easily sold for a profit. These ready-to-move-in homes are aimed at attracting potential homebuyers by incorporating modern features, real estate trends, and amenities that are highly desirable in the current housing market.

What are the features of a spec house?

Spec houses or ready-to-occupy homes have design elements to attract buyers. No wonder, these houses possess favorable resale value since they are tailored to align with current buyer preferences. Often, they are put up for sale when the completion of the house is merely a month or two away. The good thing about these residences is that they are constructed in a relatively short timeframe – just 4 to 7 months.

The only grouse homebuyers have with a spec house is that its construction process is dictated entirely by the builder – with no involvement of the buyer.

What is the average cost of a spec house?

The average cost of a spec house in the United States typically ranges from around $80 to $200 per square foot of living space. Keep in mind that the spec house cost can vary greatly depending on various factors. These include:

Location
Neighborhood
Square footage
Home design/Home plan
Amenities/Features/Upgrades
Labor cost
Land size
Building material quality
Local market conditions

Generally, the buyer pays less for a spec home as compared to a similar custom-built home. That’s because home builders design this house with the aim to give potential buyers a good deal.

Nevertheless, spec homes tend to carry a higher price tag compared to the regular new construction homes offered by the developer in a given area, mainly due to their more elaborate and modern design. Without a doubt, they are more costly than a model home for a subdivision.

Why should you buy a spec home?

One of the primary reasons why prospective home buyers consider purchasing a spec home is that they are quickly built and sold within days. Real estate transactions can close swiftly.

Such an arrangement is a boon for those transitioning from a condominium or apartment to a single-family home. Generally, they are given a limited timeframe of one or two months to find a new residence.

Buying a spec house is often cheaper and easier. While constructing a completely new home “from scratch” can be gratifying and thrilling, it often involves a lengthy journey filled with numerous decisions. If you don’t particularly enjoy selecting countertop styles, flooring options, and paint colors – a spec home can be the perfect answer.

How can you buy a spec house?

The home-buying process is similar to that of a traditional house. You’ll need to chalk out a plan to finance the purchase, decide on the type of mortgage loan, and close the deal.

If you’re really in a hurry, you could accelerate the process by getting mortgage approval. It will give you an edge when making an offer on a spec house.

Should you negotiate the selling price of a spec house?

Negotiating the selling price of a spec house is certainly an option. Whether or not you should negotiate the price depends on various factors, including market conditions, the property’s desirability, and your specific goals as a buyer. Consider researching the local real estate market to gain insights into recent sales prices of comparable properties.

If the spec house seller is open to negotiations, you may consider asking them to cover your closing costs which include origination fees, home appraisal fees, and other costs.

Keep in mind that since spec houses are sold as-is, you may not be able to negotiate upgrades such as higher-quality cabinets or countertops.

What are the pros and cons of spec houses?

Pros

They are ready homes. There’s no need to install new cabinets or countertops.
They come with the latest design trends and amenities.
Spec homes are built to be more affordable than custom homes.
There’s less construction time so you won’t have to wait too long for the home to be move-in ready.

Cons

There is no scope for any customization. The builder, not the buyer, gets to choose the home features.
The floor plan is standard and generally fixed. And, you won’t get to choose it.
It often comes with basic types of flooring, cabinets, and paint colors.
There’s no choice of selecting the lot or the neighborhood.

Key takeaway

Spec homes are provided by homebuilders to cater to homebuyers who lack the luxury of waiting for their dream homes to be constructed over a span of several months. They offer a convenient solution for those who are either pressed for time or simply uninterested in the construction process. Although purchasing a spec house does come with certain restrictions, such as the inability to negotiate the price much or select a preferred floor plan, it presents an attractive option for both homebuyers and real estate investors due to its affordability and immediate readiness for occupancy.

FAQs

How different is a spec home from a custom-built home?

While a spec home is a ready-to-move-in house, a custom-built home is a unique property that’s constructed and designed according to the specifications of the prospective homeowner.

A spec house is different from a model home which is more of a marketing tool for a builder. It’s made using premium upgrades and high-end finishes.

Can you make design changes or upgrades to a spec home?

Generally, the aesthetics, design, paint colors, siding, and landscaping are set by the builder. The buyer doesn’t get to choose any of these.

When is the right time to buy a spec house?

Any moment you’re looking to purchase a new home is suitable for considering a spec house. Especially if you desire a smart property while maximizing your budget, without the challenges and costs of constructing a custom home. When it comes to the right time, most spec houses are showcased during the peak selling season, which spans from spring to early autumn. It’s best to take help from an experienced real estate agent to help you navigate the process of buying a spec home.

What is a spec house? Is buying it a risky decision? was last modified: December 23rd, 2025 by Ramona Sinha

Written by Ramona Sinha. December 24, 2025

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.