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What type of Builder is right for you.

Let's analyze the home building industry for consumers.

There's three main types of builders: the custom home builder, the tract/production home builder, and the spec home builder.

Let's compare these three and determine which one is the best for you.

Tract Home Builder

Tract (Production/Model Home) Builders are named tract because they buy a tract of land. A big piece of land they subdivide, and then they build hundreds of homes.

Generally speaking, most of the homes are the same. They don't focus on as much quality; they build for quantity (production). That's why also they're called production builders.

The attention to detail is low. As a consumer, the chances of making changes either to plans or to options are almost non-existent. You buy what they're giving you. There's no other way.

Also, the quality of materials they use to build a tract home makes it much cheaper because they are of lower quality. In other words, if you are looking for a home that will be your dream home, the tract builder is at the bottom of your list.

Custom Home Builder

Another type of home builder is the custom home builder. Those are small builders who work with homeowners with their land, and they build the house for them.

In some cases, you, as the potential new homeowner, need to design your home and need to have your construction documents. You may need to hire an architect and designer if all they do is build.

It's up to you to determine what goes in your home. They have the task of giving you a quote, and then they build it for you.

Generally speaking, it may be time-consuming if you are not an expert in homebuilding. You're going to have to determine who will be your architect, your designer, and other contractors. You will have to decide what type of home are you going to build? And everything then goes inside the house will need to be told explicitly to the Builder so that they can do their work.

Their work is only building a home.

Custom homes take more time and are usually more expensive. You will also have to create a very specific budget. And most of the time, home buyers go over budget.

Spec Home Builder

It's called the spec home builder because the Builder uses their own money to buy the lot, and they're using their own money to build a home.

They're hoping for the return at the end. Who is the spec home builder the best fit for you? Those who want a semi-custom home without dealing with the work, time, or cost involved with a custom home.

When a Spec Home Builder builds a home, they choose the right neighborhood, the right lot, and the budget's best materials.

Typically, 9 out of 10, their homes are custom made. Their only intention is to be able to sell it at the end of construction. That's why they're paying a lot of attention to detail.

Their timeframe is between six and nine months for construction.

As a consumer, you're going to have the opportunity to have a say in the construction time. Why? Because if you go early in the construction, what is called pre-construction, you can make choices.

Choices sometimes on flooring, paint, countertops, kitchen cabinets, colors, and styles. Your preferences will be applied to your new home at the Builder's expense. The Builder pays for it upfront, and you get to make the decisions.

This important if you're interested in buying a new home. If you go early in the construction, it's like you're building your own home, but the Builder is paying for it.

At the end, when the house is completed & you have closed, then you become a new homeowner.

Out of all the three types of home builders, we discussed the less costly in time and money— plus high-quality construction & finishes is the Spec Home Builder.