The terms Custom Home Builder, Spec Home Builder and Tract Home Builder may sometimes be used interchangeably. However, this is not always the case, since each of them has different functions, therefore it builds different types of residential structures.
Custom home builder
They create unique homes. Architectural style, size and convenience will meet the needs and desires of customers. Typically, the homeowner or home builder selects variables that will make him different from others. There is usually a lot of planning and time involved, and many changes until a “perfect” design is achieved.
It may be small, medium or large. Perhaps there are standard features or upscale luxury features. They are not always complex magnificent great palace estates. Although it often happens, it is not always.
For example, a retired couple may want to create their own home, built just 1500 square feet, and 2 bedrooms with 2 bathrooms. The floor plan can be U shaped with a kitchen at one end, a living room in the center and 2 bedrooms at the other end. Garage will not be attached. The wood trim package will be a Brazilian larch mark, and the wood floors will be the same. Thus, a large estate or a small estate may be unique.
Spec Home Builders
They are built for sale. The builder assumes that he will earn money on this deal, buying a lot and building on it. It can be sold during construction, but the idea is that the builder buys a plot of land and builds his own or semi-standard house on the plot and sells it. Private homes are not always large and spacious. They can also be medium in size with medium characteristics.
The builder decides the floor plan, not the home buyer, since it has not yet been sold. In a sense, this is a custom house, since it is not the standard mileage of a mill house in a road section. However, it can be very simple or it can be a high decorated property. In any case, it could be called Spec Home.
Tract Home Builders
Usually called "divisions." Tractor houses are built by developers who own a large part (plot) of land, which is divided into many small plots on which houses are built. The land is often stored until the economy is conducive to new divisions. The developer has model homes selected by customers. For example, they may offer 4-floor plans of various sizes and shapes, and 25 pieces of each model will place 100 lots of this division.
As soon as the models are built, the builder will start selling them. They usually have an open house and a few sample houses for potential buyers, who will pass through which are tastefully decorated to give buyers an idea of how well their new home might look all furnished. Usually the unit is built in phrases, and as soon as the first stage is nearing completion, and all sold than the next stage, will begin in accordance with the requirement. They are usually sold by real estate agents and real estate brokers. Model homes are usually staffed by a licensed real estate agent.
