I keep hearing the term spec house thrown about, even heard it in the Soprano's. What exactly does that mean?
2006-12-12 04:39:28 · 5 answers · asked by thype45 3 in Business & Finance ➔ Renting & Real Estate
A home that is built for people to see in the hopes there is a high volume of buyers, than more are built, thats why we have all those areas out there where all the houses look alike. U do get to pick floors, carpet, kitchen cabinets etc. but house is pretty much built like all the others, in best term spec house is a model.
2006-12-12 04:49:03 · answer #1 · answered by bodacious baby 7 · 0⤊ 0⤋
Spec property refers to property that is developed primarily for resale. The value is based on an "as will be" basis and usually, the developer gets a construction loan to do the renovations.
This kind of porperty is referred to as "Spec" because the value is determined by speculating how the market will be performing when the construction is compeleted. Both the lender and developer speculate an upward trend in real estate values and everyone keeps their fingers crossed that the mkt performs as predicted...it's this kind of development that has driven real estate prices up for the past 3-4 years.....
2006-12-12 05:05:07 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
A spec house is simply one that is built in the hopes of attracting a buyer, as opposed to one that has a buyer contracted to purchase the home before starting the construction.
2006-12-12 04:51:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
"Spec" refers to speculation. The builder usually starts building "spec" houses in hope that someone will buy them in a development. This way they are able to build more houses and thus turn more profit in a year.
2006-12-12 06:13:36 · answer #4 · answered by robhelm 1 · 0⤊ 0⤋
A house that a builder builds and puts as a model home
2006-12-12 04:45:26 · answer #5 · answered by getyoumovedrealty 1 · 0⤊ 0⤋