Comparing Custom Home Builders and Spec Homes in Vancouver

There are many advantages to buying a newly built home in Vancouver. Not only are you the first person to live there, but these homes typically feature modern amenities, energy efficiency, and warranties not available in older homes. That said, not all new builds are created equal, and the type of home you choose could significantly impact your budget, timeline, and level of involvement in the process.

Three Different Types of New Homes

If a newly built home is on your radar, you have three ways of getting there, each with its pros and cons. Depending on your wish list, budget, and needs for the space, you can opt for a spec (or speculative) home, built by custom builders but for no specific client, a home in a new development, or you can purchase land and engage a custom home builder to bring your unique vision to life.

Custom Home Builders

When you have an exact picture of what you want your new home to look like, or very specific must-haves, a custom home offers the most design and functional flexibility. You, the buyer, are involved in the entire process, from the design and layout to the finishes and materials. Your custom home builder will work with you to ensure the finished product is precisely the home you envisioned. However, all this customization comes at a cost.

While custom home builders are very adept at managing clients’ wants and needs and provide invaluable guidance during the design and planning phases, building a custom home requires significantly more involvement than purchasing a spec home. Professional designers are often involved in the process, helping to streamline the planning and decision-making, but ultimately, the final choices are made by the client.

Spec Homes

Spec homes are not built for a specific customer, rather they are designed to appeal to a wide range of a specific buyer group, for example, families with kids or young professionals. Builders will generally focus on neutral palates and repeat the same or very similar designs across multiple projects. This allows them to control costs and reduce construction time, but it also limits how much you can personalize the space. By the time a spec home is listed for sale, it is move-in ready or very near completion and if you need to make changes it can come at a significant cost.

Spec homes are popular with buyers who want new construction but do not want the time delay or involvement required of custom home building. They are willing to compromise on customization for the convenience of a quicker move-in date. Cost can be another advantage of spec homes. Because builders are often using similar designs and materials across multiple projects, they benefit from bulk purchasing discounts, which can translate into lower purchase prices.

Residential Development Projects

New housing developments offer many of the same advantages as spec homes but on a larger scale. Here, developers purchase a large parcel of land and subdivide it into smaller lots. But rather than building dozens of identical homes, developers will offer several floorplans and give buyers some flexibility in choosing materials and finishes. For example, the builder may offer a few options for cabinetry, flooring, and paint colour, as well as the ability to upgrade any of these features at an extra cost, but the overall layout of the space is fixed (or expensive to alter).

Residential development projects give buyers some ability to customize the space; however, the result can still feel a little cookie-cutter in a neighbourhood of the same or very similar homes.

The choice between custom and pre-designed is a very personal one and will depend on your needs, timeframe, and budget for the project. But no matter which option you choose, always make sure you do your research first and work with a reputable builder.