Spec home

A spec home, short for speculative home, is built before a buyer signs. The builder picks the plan, finishes and lot. You buy what exists, so you have little say in the design.

The U.S. Census Bureau's industry code lists speculative builders under for-sale builders, who build single-family housing on their own land for sale. A custom home works the other way. You or your design team set the plan first, often through design-build or design-bid-build. The owner then holds a fixed-price or cost-plus contract. See the design-build process.