Luxury Custom Homes vs. Spec Homes: Which Is A Better Investment In Colorado?

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According to Redfin, 29% of U.S. single-family homes for sale in the third quarter were new construction—the largest share ever. This was up from 25% in 2021 and 18% in 2020.

Luxurious custom built and spec homes are prevalent. Both have their selling points, so weighing which one best suits your needs and preferences is important. But what’s the difference?

Our article explores the world of luxury custom homes vs. spec homes. Read on to find out which is a better investment in Colorado.

Custom Homes vs. Spec Homes

Spec homes are made to appeal to a wide range of potential buyers, as they usually have a standard set of features and finishes. In Colorado, they cost between $100 and $200 per square foot, making them more affordable than luxury residences.

Custom homes, on the other hand, are built for a single individual and according to their liking. If you look at the custom home prices in Colorado, you’ll realize that it varies depending on the level of customization and the materials used. The average price to build a home in Colorado ranges from $150 to $400 per square foot, with luxury custom homes costing more.

Understanding the custom home vs. spec home costs will allow you to select the most lucrative investment. The cost per square foot is only one factor to consider when comparing the price of custom versus spec homes. Let’s evaluate their advantages and disadvantages.

Advantages of Luxury Custom Homes

Luxury custom-built homes offer more individuality, luxury, exclusivity, and adaptability than conventional homes.

Allows Personalization

Personalization is one of the primary benefits of a luxury custom-built residence. Such residences may include home theaters, gourmet kitchens, and yoga spaces. A designer and builder work together to help you design and construct the home of your dreams.

Better Quality

Luxury custom built homes are typically built with high-end materials and craftsmanship, which means they are durable and built to last. This can provide peace of mind knowing you won’t have to worry about frequent repairs or maintenance.

Provide Exclusivity

Because each luxury custom built home is unique and one-of-a-kind, it may have a higher resale value than spec homes. This is because luxury homes are more in demand among buyers looking for a one-of-a-kind property.

Offer Flexibility

Luxury custom homes offer the flexibility to adapt to changing needs or lifestyles over time. For example, if you have children, add a playroom or a study area as they age. You can make these changes with a luxury custom built home without moving to a new home.

Advantages of Spec Homes

Spec homes offer several advantages that make them an attractive option for many homebuyers in Colorado. Consider the following significant benefits.

Offers Cost Effectiveness

Spec homes include standard features and finishes to appeal to a broad range of buyers, which helps reduce costs. Spec homes in Colorado are priced between $100 and $200 per square foot, making them more accessible to many buyers.

Enables Move-in Ready Houses

New houses that are constructed with the expectation that they will be sold rapidly for a profit are referred to as speculative houses. Because of this, builders ensure that the move-in ready homes look as enticing as possible to prospective buyers of homes.

You Can Easily Resell the Property

In the future, spec homes may sell quicker than custom-built homes. As a result of their design to appeal to a variety of buyers, spec homes may have a broader allure in the real estate market.

Things To Consider When Choosing Between Custom & Spec Homes

Custom homes and speculative homes are two types of property to consider when purchasing your dream home. There are several factors to consider when deciding between a custom home and a stock house.

Personal Preferences

Consider your lifestyle when determining between luxury custom homes and prefabricated homes. Luxury bespoke homes are ideal if you appreciate customization, exclusivity, and unique design. However, speculative residences may be your best option if you value price and convenience over exclusivity and customization.

Budget

The distinction between luxury custom homes and stock homes also depends on your budget. Custom residences cost more because they require more time, money, and skill to construct.

Timelines

A spec home may be the best option if you have a strict deadline. Unlike high-end custom homes, which can take months to design and construct, speculative homes can be purchased and occupied more quickly.

Quality of Construction

Luxury custom homes vs. spec homes also depend on construction quality. Custom homes are created using better materials and procedures, making them more durable. However, it’s crucial to engage with a reputable builder and carefully assess the quality of construction for any home you’re contemplating, whether it’s a luxury custom or spec home.

Resale Value

When deciding between luxury custom homes and spec homes, consider the resale value. Custom homes with higher-quality materials and distinctive design characteristics may improve their worth over time. The local real estate market and the home’s features and condition will affect its resale value.

Wrap-Up: So, Which Is the Better Investment in Colorado?

Choosing a luxury custom home or a spec home depends on your budget, lifestyle, and preferences. Custom homes are unique and customizable, but their construction takes longer and costs more. Spec residences are less expensive and more convenient, but their design and construction may not be customized.

Whatever route you choose, be sure to work with a reputable constructor to determine the best Colorado investment for you.

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Posted July 3, 2023 in Home category