Since custom homes are the most complex new construction option out there, we’ll spend most of this article explaining the process. You have total control over the floor plan, layout and finishes, but the process requires a lot of decision-making, attention to detail and disciplined budgeting - custom homes can be expensive. With a fully custom home, you typically find the land on your own then hire a builder to build your dream home. Similar to spec homes, you may be able to select some finishes in advance, depending on the timeline.įully custom homes. Most homes in the community will look similar, and shared amenities are common. Tract homes can be condominiums, townhomes or single-family homes. Then, a home builder constructs all of the homes in that planned community. With a tract home, a developer purchases a parcel of land and divides it into individual lots.

Sometimes these homes are listed for sale as “pre-construction.” Depending on how early in the process you are able to go under contract, you may be able to select some of the home’s final touches, like flooring, kitchen appliances and paint color. Instead, they plan on selling the house to a buyer once it’s finished. With a spec home (short for speculative home), a home builder designs and constructs a single-family home without having one individual buyer in mind.

But, in the realm of new construction, there are three different approaches buyers can take: Typically, when someone says they’re planning to build their own home, they are referring to a fully custom build where they have a say in almost everything (short of items restricted by local laws and zoning regulations). Buyers who decided to build new homes were more likely to say that selecting the floor plan, having everything in the home be brand-new and customizing their home features were among their top reasons.* Before deciding if new construction is for you, you’ll want to learn about the different types of new-home construction and familiarize yourself with the process, from the initial land search all the way to selecting finishing touches. If you can’t find your dream home on the market or if you want to create a home that’s uniquely yours, you might consider building a house.

Understand the process of building a house.

Constructing a building process