Buying a spec home or building a new one?

Prominent Homes

BUYING A SPEC HOME

OR BUILDING A NEW ONE?

by PEPPER RODRIGUEZ

Building a new home can be as easy as 1-2-3, but there is an even easier way of owning one. If a buyer wants to move into their new home in the shortest time possible, they can always purchase a spec home or move-in-ready home.

But what is the difference between building a home of your own from scratch or buying a pre-made one? Turns out there isn’t really much.

Both are new homes that no one has lived in before. The main difference is the time of possession. Homebuilders offer spec homes because not every homebuyer has months to wait for their new home to be built. This also allows builders to keep their team of tradespersons busy.

The builder spec home has been a tried-and-true industry standard. A spec home is industry speak for a home that is built before a homebuyer makes a purchase. It is constructed using builder specifications (hence, “spec”) and most are move-in ready or at least available for a quick possession.

We spoke with Prominent Homes and Calbridge Homes to get their perspective on what buyers can expect in making either decision.

TIMELINES

According to Pal Shergill, President of Prominent Homes, one of the advantages of buying a spec home is that it eliminates the lag time between moving into a new home while the old home is sold. “Spec homes allow buyers to purchase a new home quickly, they can take advantage of selling their home first and once the offer is firmed up, they can buy a quick possession home.”

While building a home from scratch gives buyers the advantage of choosing their own design and finishes that fits their lifestyle.

“You can customize your home to your family’s specific needs and wants. You also get to pick your own colours and materials of every room and detail in your home from windows to cabinet handles and everything in between,” Shergill says.

“A new build on a pre-sale home is currently taking about 8-10 months from time of purchase to possession, so its advantage is it does give people more time to pack and move out which is great as well.”

Edmundo Azuaje, Manager of Marketing and Communications at Calbridge Homes, says besides

the advantage of much-faster possessions, there is no other discernable difference – in price or in style - between a spec home and a pre-sale one.

“We build our spec homes with everything in mind. We like to call our spec homes ‘Designer Homes’, because our Interior Designers at our 78 Design Studio selected curated colour palettes to ensure the homes are fresh, current, and have well thought of details,” he says.

Shergill says it’s much the same with their process. “Building with Prominent, you know that each of our homes are designed unique with the help of Interior Designers that hand pick colours and materials for each of our homes.”

MORE SPEC HOME ADVANTAGES

Shergill says buying a spec home comes with added advantages. “It lets you take advantage of options to port over your mortgage to a new home or to take advantage of changing interest rates – which is very helpful especially in today’s market,” he says.

Getting into a new pre-built home also means that buyers “aren’t waiting on the supply chain to get materials into your home and unexpected delays in possession due to supply chain disruptions,” Shergill adds.

But whether buying new-build or spec, Azuaje says buyers still get the peace-of-mind that only a new home brings.

“The biggest advantage of buying a new or spec home over resale is knowing exactly what you are buying, giving you peace of mind knowing that a brand-new home won’t give you any issues or any troubles for a few years. That peace of mind is priceless!” he says.

“When you buy a new home or spec home you know that you are buying a home with the best industry standards that could lead to better building codes, energy saving practices and overall a longer lasting home. Something Calbridge Homes is incredibly proud of is the fact that we actually build our homes above the industry code.”

Prominent Homes

Prominent Homes

CHALLENGES

The hot Calgary new home market has presented a challenge to inventory, Shergill says. “We are having a hard time keeping inventory of quick possession homes, going back to the spring of 2021. We do not have any standing inventory of quick possession homes, they are all selling before construction is completed.”

They do have quick-possession homes available for sale in all the communities they build in with possession times varying from one month to up to three.

Calbridge Homes is facing the very same challenges, but they still maintain about a third of production for spec homes.

“The past year has definitely been challenging to keep spec home inventory due to high amounts of demand,” Azuaje says. “But we are always planning and do our best to ensure we have quick possession homes available to offer that option to homebuyers that might have a tighter timeline.”

Calbridge Homes

Prominent Homes

Basement ready to be developed by Calbridge Homes Prominent Homes

He says buyers looking to build their own home can look at 10- to 14-months for possessions, depending on the home they choose. “Buyers looking to move sooner can expect to be in a completed spec home within about three weeks,” he adds.

Buyers can find Prominent Homes spec homes in Savanna in northeast Calgary, Wedderburn in Okotoks, Rivercrest in Cochrane, and soon in Greystone in Cochrane and South Shore in Chestermere. Go to prominenthomes.ca for more information.

Calbridge Homes offers their spec homes in all their nine communities in Calgary and area, including in Fireside and The Willows of River Heights in Cochrane, Bayside in Airdrie, and Harmony in Springbank. Find out more at calbridgehomes.com.