The 3 Major Differences in Homebuilders

Posted inBuying, Realtors

Want to know how to choose a homebuilder and not sure where to begin?

This post is all about the key differences between tract, spec, and custom homebuilders.

homebuilders

You’re a homebuyer (or maybe a realtor working with a client) who wants to buy a new construction house.

Choosing the right homebuilder is an important step in the home buying process.

You want to be sure you are fully prepared to answer all the questions about the differences in homebuilders.

After you read this post you are going to be extra informed when it comes to choosing the new construction house that is right for you.

This post is all about the key differences between tract, spec, and custom homebuilders.

The 3 Main Differences in Homebuilders

When it comes to building a new home, there are three main types of homebuilders to choose from: tract, spec, and custom.

Each type of builder has its own unique set of advantages and disadvantages, so it is important to understand the differences between them before making a decision.

1. Tract Homebuilders

Tract homebuilders build large communities of homes that are all very similar in design.

These homes are typically built on smaller lots and are often located in suburban areas.

Tract homes are usually more affordable than spec or custom homes, and they can be a good option for families who are looking for a move-in ready home.

However, tract homes also have some drawbacks.

Because they are built in large communities, they can often feel cookie-cutter and lack personality.

Additionally, tract homes may not be as energy efficient as spec or custom homes, and they may not have the same level of quality construction.

Examples of Tract Homebuilders in Pennsylvania and New Jersey

Toll Brothers: Offers a large range of tract homes in various PA and NJ communities.

Ryan Homes: A well-established builder with a strong presence, offering a variety of tract home options.

NVR, Inc. (parent company of Ryan Homes): A large homebuilding company with multiple brands, including Fischer Homes.

K. Hovnanian Homes: A major homebuilder with a strong presence in New Jersey, offering a wide range of tract homes.

Shea Homes: Known for its innovative designs, Shea Homes offers tract homes in select New Jersey communities.

Note: This list is not an endorsement or exhaustive and there are many other tract homebuilders operating in Pennsylvania and New Jersey. I recommend you research and compare multiple builders to find the best fit for your needs and preferences.

2. Spec Homebuilders

Spec homebuilders build homes without having a buyer lined up in advance.

These homes are typically built in smaller developments or on individual lots, and they are often more expensive than tract homes.

However, spec homes can offer more customization options than tract homes, and they may be located in higher priced neighborhoods.

One of the biggest advantages of spec homes is that they are already built, so buyers can move in quickly.

However, spec homes may not be the perfect fit for every buyer, as they may not have the exact features or finishes that a buyer wants.

Additionally, spec homes are typically more expensive than tract homes.

Challenge in Identifying Spec Homebuilders

Unfortunately, providing a larger list of spec homebuilders in Pennsylvania and New Jersey with links to their websites is difficult.

Here’s why:

  • Spec homes are often built independently: Unlike tract homebuilders who construct multiple homes in a planned community, spec homes are typically built individually or in small groups by various builders.
  • Local builders dominate the market: Spec homebuilding is often dominated by local builders who might not have extensive online presence or standardized marketing.
  • Rapid turnover: Spec homes are designed to sell quickly, meaning builders might not maintain a consistent online portfolio.

Alternative Approaches to Finding Spec Homebuilders

Instead of focusing on specific builders, consider these options:

  1. Local Real Estate Agents: Reach out to real estate agents in the home buyer’s desired area. They often have knowledge of local builders and can provide information on available spec homes.
  2. Online Real Estate Platforms: Websites like Zillow, Realtor.com, and Redfin allow you to search for new construction homes, which often include spec homes.
  3. Direct Neighborhood Search: Drive through neighborhoods in areas you prefer and look for homes under construction. Contact the builder directly for information.

Remember: The best way to find a spec home is through local research and networking.

3. Custom Homebuilders

Custom homebuilders work with buyers to design and build a home that meets their specific needs and wants.

Custom homes are typically the most expensive type of home to build, but they offer the highest level of customization and quality.

Custom homes can be built on any type of lot, and they can be designed to fit any lifestyle.

One of the biggest advantages of custom homes is that they can be truly unique.

Buyers can work with a builder to create a home that perfectly reflects their personal style and needs.

Additionally, custom homes are often more energy efficient than tract or spec homes, and they may have a higher resale value.

However, custom homes also have some drawbacks.

They can be more expensive and time-consuming to build than tract or spec homes, and there is a risk that the final product may not meet the buyer’s expectations.

Additionally, custom homes may be more difficult to finance, as lenders may require a higher down payment.

Custom Homebuilders in Pennsylvania and New Jersey

Foxlane Homes: Offers luxurious details including high-quality home finishes and spacious open floor plans in the Philadelphia Suburbs.

Hallmark Homes: Offering customized homes in locations throughout the Philadelphia region, with a focus on Montgomery County.

Keystone Custom Homes: Specializing in custom homes with a focus on quality and client satisfaction.

LTS Homes: Offering custom home building services in the Poconos region of Pennsylvania.

Dewson Construction Company: Known for luxury custom homes in southeastern Pennsylvania.

Ledgestone Construction, LLC: Offering custom home building and renovation services throughout central New Jersey.

Note: This list is not an endorsement or exhaustive, and there are many other custom homebuilders in both states. It’s essential to conduct thorough research and interview multiple builders before making a decision.

Go Here to Learn about the appraisal process of a new construction home.

Choosing the Right Homebuilder

The best way to choose the right homebuilder is to carefully consider your needs and wants.

If you are on a budget, a tract home may be the best option.

If you want a move-in ready home with some customization options, a spec home may be a good choice.

And if you want a truly unique home that is perfectly tailored to your needs, a custom homebuilder is the way to go.

It is also important to do your research and compare different builders before making a decision.

Talk to friends and family who have recently built homes, and read online reviews.

You should also meet with several different builders to get a feel for their personalities and styles.

Ultimately, the best way to choose the right homebuilder is to find someone who you trust and who can help you create the home of your dreams.

Additional Tips for Choosing a Homebuilder

  • Get referrals from friends, family, and other trusted sources.
  • Read online reviews and testimonials.
  • Meet with several different builders to get a feel for their personalities and styles.
  • Ask about the builder’s experience and qualifications.
  • Get a detailed estimate of the cost of the home.
  • Make sure you understand the contract before signing it.
  • Be prepared to make changes to your plans as the project progresses.
  • Communicate openly and honestly with your builder throughout the process.
  • By following these tips, you can increase your chances of finding a homebuilder who will help you create a beautiful and functional home.

I hope this helps! Let me know if you have any other questions šŸ™‚

This post is all about the key differences between tract, spec, and custom homebuilders.
Last updated on August 22, 2024