We’re Breaking Down the Pros & Cons of Each Option
You know you want to move into a brand-new home, but you’re not sure which route to take. Would you be better off designing your own custom home from scratch? Or would a fully built “spec” home provide the move-in ready option you need?
As an experienced builder of both custom homes and spec homes, KRM has helped many buyers through the process of choosing the home that best meets their needs. We believe that both types of home are great options for homeowners. However, each option has different advantages when it comes to factors like cost, design flexibility, and convenience.
If you’re trying to decide which is the best for you, here’s a quick guide to the pros and cons of each option.
Custom Homes & Spec Homes: What’s the Difference?
If you’re wondering what we mean when we say “custom” vs. “spec” home, here’s a quick definition of each:
- Custom homes are homes created specifically for a person or a family. The homeowner is closely involved during the entire design and build process, which ensures that the home meets their personal goals. They may already own the lot, or they may purchase the home and the lot from their custom home development company.
- Spec homes, sometimes known as “model” homes or “move-in ready” homes, are constructed in a specific location without a specific buyer in mind. They are “speculative” in the sense that the builder anticipates a future buyer will want to purchase them. Sometimes custom home builders will create these homes as a model to showcase their design capabilities.
Advantages of Both Spec Homes & Custom Homes
Both spec homes and custom homes are brand-new builds. This means they share several benefits. Moving into a new home means you will enjoy:
- Low maintenance & renovation costs. Since the home and its components are brand-new, it requires little maintenance. Also, unlike moving into an older home, having a new house means you don’t need to make immediate renovations to bring it up to date.
- Builder workmanship warranties. Home builders like KRM have warranties on their workmanship. This is in addition to the existing warranties on the different parts of your home (like the shingles, siding, appliances, etc.). Warranties on new builds give you peace of mind that if any of the products or their installations were faulty, you won’t be obligated to pay for the fixes yourself.
- Long-term value. Buying a new home means you benefit from up-to-date building techniques, energy-efficient features, and modern designs that hold their market value longer than older homes.
While spec homes and custom homes share many advantages, there are key differences that set custom homes apart. Let’s take a closer look at the unique pros and cons of each, starting with custom homes.
The Pros & Cons of a Custom Home
Pro: Customized Designs
The most important differentiating factor in choosing a custom home is that you start with a blank slate. Want a large, cozy fireplace near a picture window? You can do it. Want a statement-making island in the middle of your luxury kitchen? You can do that too. Custom homes are completely designed around you, with the only limitation being your imagination.
Pro: You Choose the Location
While KRM Custom Homes and other builders have many prime lot locations available for you to build on, you’re not limited to company-owned lots when you build custom. Want to purchase land in the country to build a rural home? Already own your own land? The ultimate choice is yours.
Pro: High-Quality Materials
Both custom homes and spec homes can use high-quality materials, especially when they’re constructed by KRM. However, when you’re building a custom home, you have the final say in whether you want to upgrade specific materials versus use our standard materials in your home. This ensures that it’s built to last.
Con: More Involvement Required
Customized design means that a homeowner takes a very active role in development. At KRM, we make this as simple as possible, helping you enjoy the process rather than stress about it. But, if you’d prefer to skip the process of creating a custom home and buy a finished product instead, then a spec home might be for you.
Con: Longer Timelines
A custom home build can sometimes take a year or longer. While KRM has faster timelines than many builders due to our unique expertise and efficient processes, the 6-12 months to build a custom home with us will still take longer up front than choosing a pre-built home.
The Pros & Cons of Spec Homes
Pro: Faster Move-in Times
Spec homes may not give you extensive input into the design, but this gives them the advantage of faster move-in times. Since you don’t have to wait six months to a year for the home to be constructed, you’re able to move in much more quickly.
Pro: Simpler Financing
Custom home financing doesn’t need to be complicated, especially if you work with KRM and let us carry the financing. However, buying a spec home is the most simple for pricing and financing since it’s already built. That means all you’ll need to do is take out a mortgage, similar to buying a pre-existing home. No lot loan or construction loan needed.
Pro: Lower Costs
Custom homes can be more affordable and achievable than you may think, especially if you’re building with a budget in mind. KRM prides itself on the ability to build custom homes for customers at any price point. However, spec homes are often a lower price point due to the decreased overhead in building them.
Con: No Design Input
This is the largest con of a move-in ready spec home. While custom homes offer complete personalization, a spec home is already built, meaning you have no input in the home’s structure or design. That said, you have complete say in the decoration and design of the home after it’s built. How you decorate the rooms, what color you repaint the walls, and much more is completely up to you!
Con: Limited Lot Choices
While custom homes give you the opportunity to customize both your home and your location, a spec home means you must choose the home and the lot it’s sitting on together. That said KRM Custom Homes builds on many prime lots throughout the Des Moines metro, giving you access to new builds in some of the most sought-after spots in the area.
Custom vs. Spec Home: Which Is Right for You?
As we’ve said before, both spec homes and custom houses can be great choices for your new home. However, if you’re wanting to choose between the two, here’s a quick summary to help you narrow it down.
Choose a Spec Home if You:
- Need to move within the next few months.
- Want a fixed price and the simplest financing possible.
- Are comfortable with a professionally built but pre-designed home.
Choose a Custom Home if You:
- Have a specific vision or needs for your home.
- Are willing to dedicate time to the design process.
- Are seeking a home on a specific piece of land.
Let’s Talk More About Your Dream Home!
Want to continue the conversation? Our home building experts are here to help you further explore your housing options. Contact us today to see what available spec homes we have available or learn more about starting the custom home building process.
