If you’re planning to get a new home or your current one renovated, it’s essential to know more about home builders. Most people know home builders as a group of specialists that help you build, customize and furnish your home. But it is more about home builders you need to know about, one being its types.
Yup! There are types of home builders you need to be aware of, 3 to be exact and it’s the Tract, Spec and Custom. Each has the special characteristics that make them pretty different from one another. It’s essential to know them individually.
So, it’s time you get to know the 3 kinds to help you figure out which home builder is right for you and your home construction needs. Check out the rundown of each one down below:
What are Tract Builders?
Tract builders are also known as “production builders” and they’re generally established building firms that are mostly nationwide. Within a certain neighbourhood or location, tract builders construct several homes according to a set of pre-designed floor plans. These builders frequently concentrate on producing affordable, standardized designs with little room for customization.
They strive for efficiency in building, frequently constructing identical homes in large quantities, which can save costs for both the contractor and the homeowner. Because tract houses use standardised materials and methods, they are usually quicker and less expensive to build.
The pros of Tract Home Builders?
- Ready for occupancy – These home builders are likely to have pre-built homes ready for occupancy up for sale. This is perfect for people who are urgently looking for homes to move into.
- Price-efficiency – You can count on tract builders to be more price-conscious compared to other builders. And since they’re efficient and economical, you’re still getting a run for your money.
- Established – Tract builders are almost always big and established companies. So you can count on them to offer good quality structures. Most tract builders even offer support for around 5 to 10 years of warranty obligations.
The cons of Tract Home Builders?
- Not customizable – Since tract builders will already have floor plans they already follow to create uniform homes, they’re not that customizable compared to other builders.
- Budget-conscious – As it saves you money, this is also somewhat beneficial. However, do frequently cut corners on quality. A tract home’s “bones” might be just as excellent as a custom home, but these cost-cutting methods usually relate to the outside of the building.
- Limited-sized lots – Most tract builders built homes in commercialized areas so you can expect smaller lots. But, some do build in larger lots, just not most.
- Limited lender and title options – Sometimes, tract builders demand to employ their internal lender to receive any reductions in closing costs. It might not always be the greatest option for you to choose their linked lender.
What are Speculative (Spec) Home Builders?
Spec builders develop houses without considering a particular buyer. They construct on the conjecture that, when the property is finished, they will find buyers. Assuming there would be demand when the homes are completed. These builders may utilise their loans or cash to develop homes depending on geography and market trends.
Although minor customisations may be permitted during the construction phase of certain spec homes, their construction is generally guided by the builder’s vision and projected market demand.
If the property is an inventory house that has been on the market for a while, the builders are prone to be flexible when it comes to things like the price. In contrast to custom builders, arrangements for upfront fees like initial money and deposits are frequently more similar to those of preowned or tract houses when it comes to spec builders.
The pros of Spec Home Builders?
- They’re locally owned businesses – If you want to help out your local economy and shop local then spec builders are for you. These are usually owned by locals and are commonly known to be small businesses compared to other home builders.
- Options, options–OPTIONS! – Spec builders are available for a wide range of budgets and frequently construct a more diverse selection of houses than tract builders.
- One-of-a-kind homes – Unlike tract builders, spec builders seldom build homes the same way or style.
The cons of Spec Home Builders?
- Small business – Although shopping locally is pretty beneficial in many ways, this can also have a downside. And one does not have the guarantee they’ll be around in years to come.
- Less customization options – If you’re already buying a built home, or a home “in progress” then customization options will already be at a low. But if you’ve caught them during the “to-be-built” stage then more customization options are available.
What are Custom Home Builders?
Custom builders design distinctive houses according to the particular tastes and needs of each client. These builders collaborate closely with designers, architects, and clients to build custom houses from the ground up or based on highly customised pre-existing blueprints.
High levels of customization are possible with custom-built houses, giving homeowners the freedom to select the style, materials, finishes, and other features that best fit their needs. An example of custom home builders is luxury home builders.
The pros of Custom Home Builders?
- Freedom of customization – If you want a home that’s truly YOU, custom home builders might be a great fit. This builder allows you to customize your home where you like it and how you like it, for as long as you’re willing to pay for it.
- White glove treatment – You and your builder will get to know one another extremely well since creating a custom house is so intricate and customisable, that this will take a while to finish. Giving you more time to create a good bond with your contractors.
- Build wherever you want – You are not constrained to a certain selection of lots. A custom builder will build on your property if it has buildable space.
The cons of Custom Home Builders?
- Pricier – Compared to other home builders, custom builders can be quite expensive. Since customized homes are more intricate and time-consuming to make.
- Not time-efficient – If a home you truly want is worth the wait then you can consider custom home builders. Again, since custom homes are hard to build, it may take longer compared to other builders.
- High nonrefundable upfront costs – Builders want extra money in advance because they take a chance when creating upscale bespoke houses that they might not be able to sell soon or for the correct price if you walk away.
