If you are considering building a home, you will likely find there to be many different types of homebuilders in Austin and the surrounding area. In many instances, a variety of terms may be builder, and tract homebuilder. This can make it difficult to understand which type of builder is the best choice for your new home. Below are some tips to help guide you through understanding the differences that exist between various types of homebuilders so that you can make an educated decision.
Custom Homebuilders
A custom homebuilder typically works in terms of small volume. Additionally, custom home builders can be relied upon to build homes that are truly one-of-a-kind. Depending upon the type of custom homebuilder that you choose, various services may be offered. For instance, the homebuilder may provide only general contracting services or the company may also provide design and build services. In choosing a design/build custom homebuilder, it is important to ensure that the firm actually has an architect on staff with whom you can work to design a unique home to meet your needs rather than a builder that only provides cookie-cutter designs.
Custom homebuilders will also usually offer a variety of luxury features. Such features might include taller ceiling heights, large room sizes, more impressive doors, and any other changes that the homebuyer would like to include, such as custom rooms. With a custom home, there are no limitations, ensuring that the homebuyer is able to enjoy a home that is designed to truly meet their needs and lifestyle. While many people often think of a custom home as being an expensive mansion, the truth of the matter is that a custom home can be quite affordable and is suitable for homes of all sizes.
Spec Home Builders
A spec home is built by a homebuilder who purchases land or a lot and then builds a home with the intention of selling it, meaning that the home is truly built on speculation. In the case of a spec home, the property may sell while still in the course of construction or it may not sell until after construction is completed. This means that the buyer may or may not have input regarding the design of the home. A spec home is typically a small or medium-size home.
Tract Homebuilders
Tract homebuilders are builders or developers who usually own a large tract of land that is then divided into multiple small lots that are used for stock plan homes. In many instances, a tract builder may have model homes on which future home designs will be based. There is typically not an opportunity to make any changes to a tract home, which is one of the biggest drawbacks to purchasing a tract home. Compared to custom homebuilders, tract builders are usually large-volume builders. When there is a large amount of demand for properties, a tract builder will often work to build properties as quickly as possible in order to keep up with the demand.
Prospective buyers should also understand that in a tract home neighborhood, neighboring homes typically do not differ much, if at all, in terms of design. In most instances, the neighborhood will build out quite quickly. The biggest consideration in the construction of a tract home is price point. As a result, it is possible for quality to be compromised with this type of home. Elements such as appliances and cabinets may make it quite obvious where corners have been cut in order to save money. Other areas that may be affected by budget and price point include paint grades, framing components, carpet grade, and shingles. Unless a buyer is familiar with construction materials and methods, such components may not be readily visible. Over time; however, such compromises can affect the integrity of the home and could result in the need for serious repairs and maintenance issues in the near future. Additionally, buyers should understand that the resale value of a tract home is often a significant disadvantage. This is because there is often tremendous competition when a tract home is sold. Due to the fact that a tract home is often so similar to other homes for sale in the neighborhood, price point is often the only element that makes one home more appealing than a home that is nearly identical.
In deciding which type of home is right for your needs, it is important to consider a variety of factors, including long-term resale value as well as the quality that you will receive for your investment. When all factors are considered, a custom home is typically the best choice with the most value.