In addition to building new homes that are customized for home buyers, many home builders will also construct “Inventory Homes.” An inventory home or a “Spec Home,” is a house that a home builder will construct without having a contracted buyer for it yet.
“Home Builders build Spec Homes with the hope of finding an interested buyer to purchase the new home before the completion of the construction process.”
When home builders build spec houses, or keep new homes in inventory, this allows home buyers who are relocating, and others who may not have the time to wait for a new home to be built, to have an opportunity to purchase a brand new house as well.
As the amount of a particular home builder’s inventory increases, or spec homes approach their completion date, the home buyer incentives on those spec homes also increase. This allows smart home buyers, and potential real estate investors to take advantage of even better new home savings.