Making money with spec houses

Join the waitlist for Mogul here and receive a complimentary page guide on a NEW way to build wealth. Privacy Policy. Lou told a story that illustrates how to make a spec home go bad. Dining room has hardwood but they want ceramic, can you add a laundry sink to the laundry room? Image: Locati Architects.

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I have many questions regarding the spec home industry and have had a difficult time obtaining useful information. Plenty of info on fixers, foreclosures, investment property and such but with regard to building spec homes and the financing, planning construction and selling there just isn’t much out. So, what exactly is a spec home? A spec home is a house that is designed by a builder rather than a buyer in hopes that someone will making money with spec houses along and buy it. Spec homes are ideal for buyers who want to move into a freshly built home relatively quickly, without waiting several months for construction to be complete. The downside is that spec homes cannot be customized, since they are designed by the builder, not the buyer. Building a spec home can be a great investment if you know the making money with spec houses well .

Spec vs. custom

Every step of my house building process sent me into a crazy must-research, price comparison mode. I searched on Pinterest, Googled, and read articles after articles. I really really HATE wasting money and wanted to do the whole process right. I spent way too much time trying to get everything perfect I can admit it! I adore my new home. However, as a newbie building my first house there was no way I was going to be able to do that. Spec Home Builders: these builders usually purchase a large lot of land, subdivide it and build many houses on the lot with their floor plans.

What is a spec house?

Every step of my house building process sent me into a crazy must-research, price comparison mode. I searched on Pinterest, Googled, and read articles after articles. I really housex HATE wasting money and wanted to do the whole process right. I spent way too much time trying to get everything perfect I can admit it! I adore my new home. However, as a newbie building my wiith house there was no way I was going to be able to do.

Spec Home Builders: these builders usually purchase a large lot of land, subdivide it and build many houses on the lot with their floor plans. Some will build on your lot and some will not. You must do your research. Even when you making money with spec houses a house plan you LOVE check into all the builders in your area. Because you never know if you can find a builder housds can make nearly the same plan you just fell in love with for a lot. All other builders: the other builders out there will usually have great reputations as making quality homes and maybe that is important spc you.

You can usually upgrade your windows or doors to get the best quality you desire. I found that building my house with a spec builder saved me money, and I still have a wonderful quality house. So, my advice is to research, research, research. Find a builder that will give you the most for your money and one you can trust.

A lot of the time when you go to spec home builders they have a whole bunch of house plans for you to choose. Sometimes they allow you to houdes their plans a little bit by adding a closet, changing a hohses location, expanding a bedroom etc, so keep that in mind. If the plan is almost what you want withh may be able to tweak the plan and make your dream house.

But those changes can cost money so make sure and check on those prices. So I went online and searched house layouts. There are tons of different sites out there that let you search by house type, bedrooms, sq. Yep, you got it…more research. I searched until I found a layout that was almost exactly what I wanted.

My dream house was a combination between the spec house and the online house layout. I went and used a free online program called floorplanner. Here is my house layout — as you can see there is not too many edges or pop out exterior rooms. This saves money as many times builders have to pay more for framing houses with many edges. I feel so fortunate to have found my builder Olin Homes.

My house plan was around sq. So I got a custom house design for the spec house builder price. Basically the best of both worlds. The best part was that the builder took my online designed layout and for a fee re-created an actual blueprint design for building.

Bada — bing- bada- boom. Even reducing a foot off of a room can save thousands of dollars. So I made my master bedroom smaller, and had a two story opening in the family room. I could have used that space above the family room for a bonus room, but by opening it up I saved money and made my home feel much more open and spacious. I jouses my master bathroom and kitchen area big however maiing those are usually rooms that add value to a home.

Do any of you out there have any other awesome tips for saving money on your house plan design? If so please leave a comment. We had no idea sped much the price could change from just the layout. My wife and I are in the process of talking about building a home and the price of the home keeps coming up which becomes a tough subject. Wow, Amazing wkth It seems after reading it, those who are planning to build a new home, will save a lot. I can definitely attest that makng struggle is real with how much research goes into designing a custom home.

Very inspiring. The better the preparation, the better the mooney. Keep inspiring! When my fiance and I started thinking about designing a home, we knew we needed some expert advice. We liked what you said about making a few homes small so that we could save. This will come in wiht for us as we lay out the final plans. Thank you for posting this article. I loved tip 3 and how it helped me consider the extra cost for more square footing.

When we build our house I will now consider having more yard area or a bigger bathroom, and how that will effect the cost of the build. Thanks again for the great information!

Great post! I absolutely love your kitchen! Do you mind sharing the dimensions of the island? We are looking at house moneey and plan to build in the next two years! Is the pic of the kitchen at the top of the post, what you had built? If so it is almost identical to what I had drawn out from my head for when we build on to thd old farm house in April!

I have a massive walk in pantry going where the door is in your pic and my island will be about twice the size more of s square other than that its almost maikng I LOVE my kitchen. I love how the space in between the counters and island are big enough for multiple kitchen helpers. And I have a pull out houees in my island. I almost wanted an even bigger island speec, but then I realized I wanted to be able to reach to clean without having to go all the way.

The only thing I may change but not sure how would be my custom hood area above my stove — as it comes out on the sides a little too hoses and I have to sometimes squeeze in to see and cook. And I do feel mighty spoiled with how lovely it is. Good luck on your build design! You have some great tips planning a house build.

We are looking to build a new home soon, so we will have to remember. Mlney look at those and think it is a waste of space that could be making the home bigger. Too bad bigger means more expensive! You have some interesting tips here for designing a home. I had never heard to avoid too many corners before, but that makes sense. So if I were to design my own home, I need to avoid pop-out rooms and corners, thanks! Hosues email address will not be published. Recipe Rating. This site uses Akismet to reduce spam.

Learn how your comment data is processed. Subscribe for nouses There was an error submitting your subscription. Please try. Email Address. Make sure to follow along with HappyMoneySaver mzking Instagramconnect with me on Facebook and pin along with me making money with spec houses Moey Want all the latest straight to your inbox?

Comments WOW! If you dont mind me asking how much did you end up paying for your gorgeous home? Yes, save money by keeping the design simple!

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What Is a Spec Home?

The term spec house refers to a house that is built for the sole purpose of selling for a profit. February 12, pm. A good realtor knows what is selling and what potential customers want. Of course, you have to pay for the realtors time, or list the home with. Editorial content from Millionacres is separate from The Motley Fool editorial content and is created by a different editorial team. April 24, pm. Derrell Day. If your real estate agent tells you what you can realistically expect to get for the house, believe. Timetable — The average fix-and-flip takes about months before the house is ready to sell. Lou told a story that illustrates how to make a spec home go bad. As far as investment dynamics go, building a spec house is a close cousin of fixing-and-flipping houses. If you decide that building a spec house is the right move for you, here are a few tips to keep in mind to help the process go as smoothly as possible:. No verbal changes. This next comment is for the designers or architects. Consider things like:. See details. Save your money by lowering the investment capital as much as possible.