There are three types of home builders. It is necessary to understand the similarities and differences between them. They are custom builders, track builders, and spec builders. Understanding them will help you to know the type of builder you need for your project. Below are the differences between them, understanding each of them would surely help you greatly:
Custom Home Builders
These are small-volume builders. Their services include general contracting services, offer design and so on. They are experts in building luxury features both in your home and offices such as larger doors, taller ceiling height, and room sizes. Custom house builders can make big changes like custom rooms, constructing garage, custom rooms and building a house that truly fit your specifications or lifestyle. A custom home can be small, medium or very large depending on the specification, your taste, and land. People think all custom homes are big or elaborate mansions. However, both your small house and a large estate can be regarded as custom homes. Overall, it is the duty of the home builder or architect to ensure your house is customized to your taste, and to make it different from other houses in your area. Thus, they offer all the necessary features, size, desires for amenities, style and creative touches. A custom house is built with a unique set of plan for a particular client.
Tract home builders
This is also known as production home builders. They are builders or developers who own a large hectares or tract of land. Oftentimes, these lands are divided into smaller units for low-cost houses or model homes to be built on. A tract builder already has a model design that he will like to implement on these lots. They are large-volume builders, and they are experts in building all kinds of home designs such as condominiums, town houses, single-family houses and lots more. If the demands of their properties are high, they will also be coming up with quality buildings to keep up with the demand. Usually, houses like these are built with price-points- this to a great extent affect the quality. The following are obvious areas where they may save some money; paint grades, framing components, carpet grade, appliances, hardware cabinets etc. These homes are comparatively inexpensive. That is why; they are not suitable for short-term investment.
Spec Home Builders
These are builders that buy a plot of land, build on it and then resell the house. The aim of the builder is to maximise profits. The builders speculate that they will make a lot of money by building a custom or semi-custom house. If they find out that they won’t make much money from it, they will never engage in the business. However, they usually make lots of money, because lands appreciate almost on a daily basis. The house could be sold during construction. In this case, the home-buyer will be able to choose suitable finishes. This type of homes is considerably moderate in size, not always big. Sometimes, the home is small or medium-sized with styles and custom features. A spec home could be a decorated, luxury or large mansion. Also, if a builder is constructing a new house with the sole purpose of reselling it, then it is regarded as a spec home.