# Is anyone building spec homes?



## DavidG19 (Sep 10, 2005)

Do you see any spec homes being built? If so, where?


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## mmike032 (May 30, 2007)

yep...
50 by 1 builder and about another 50 "retirement community" from another builer....

but the subs are taking it in the arse on these...

1200 sq ft basic trim on the first builders site.
trim crew doing them for $400 a house:w00t:

I declined giving a bid once I heard through the gravepine about the trim crew... I can sit at home and go broke, no need to work at it

I think the painters are getting $1 a ft


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## ApgarNJ (Apr 16, 2006)

400 a house?? wow. hope they are trimming them in like 2-3 hours.

no one is building spec homes around here. land is still expensive, what's left of it out there. and the spec homes from 2-3 years ago are still for sale!!

glad I never got into that part of the industry. Far more houses to put additions on or renovations than there are lots for new houses.


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## piercekiltoff (May 28, 2009)

Watching the Notice of Intents for drilling in my area, it looks like only a couple of developer/builders are doing any spec homes/lots in our area, and not in any volume really.


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## WallMonkey (Jan 3, 2010)

Yupp... things seem to be getting alittle better around here.

Just got done building two lower end specs in the $400K range. One of the pair sold, and the developers just dug last week for another spec.

We will begin framing next week!!! :thumbsup:


Lucky, i guess?
:notworthy


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## Gary1 (Jan 12, 2010)

Only a duplex condo going up. That's because contractors trying to keep his two son's busy. Other then that just alot of remodeling for me right now.

GaryS


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## RidgelineRoof (Jun 30, 2010)

We're working on very few specs. We were building them ourselves. We're still holding on to a lot we bought about 3 years ago right before the market fell apart.

Our business was probably 90-95% spec homes before the housing market crash. Even then Charlotte weathered the storm better than most major cities and for a time was the top housing market in the nation. Unfortunately that has collapsed and our work is more like 95% re-roofs now. We're still working on some new commercial work... but the new housing side has pretty much ended.


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## tara homes (Jul 6, 2010)

My boss built a $6mm spec home in Glencoe, IL on the North Shore of Chicago in 2009. Even new to the company, I told him he was crazy, but he is one of those builders who believes in what he does and wants to use the house to generate new construction leads. I'm new to the forum, so I can't create a hot link but you can find the website I created for the home at www 458lakesideglencoe com

He's turned down an offer for $4.8MM about 6 months back, but I suspect he'd accept something within spitting distance now. I can't sleep at night thinking about that damn house, and I'm only the marketing guy! I don't know how he does it.

We sink or swim together, so I am constantly working to generate more qualified traffic to the home. Finding someone who desires and can afford a one-of-a-kind home can be a challenge.

Adel, the builder, is a generous man, so if you know someone looking in Chicago . . .


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## greg24k (May 19, 2007)

Breaking ground tomorrow, building a 2,800 SF home on spec.


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## AllanE (Apr 25, 2010)

tara homes said:


> My boss built a $6mm spec home in Glencoe, IL on the North Shore of Chicago in 2009. Even new to the company, I told him he was crazy, but he is one of those builders who believes in what he does and wants to use the house to generate new construction leads. I'm new to the forum, so I can't create a hot link but you can find the website I created for the home at www 458lakesideglencoe com
> 
> He's turned down an offer for $4.8MM about 6 months back, but I suspect he'd accept something within spitting distance now. I can't sleep at night thinking about that damn house, and I'm only the marketing guy! I don't know how he does it.


Marketing Guy:

Your boss is my kind of guy! I built a 4 million$ spec last year and luckily sold it, I had to discount it a bit but overall I was just glad to unload it. I can identify with his strategy to use a well built and decked out spec as a way to generate other business. A high-end custom builder needs good product available. I can guarantee you that his is losing sleep, the carrying costs is brutal when you consider interest, taxes, insurance, utilities, maintenance, and the expense to just keep a new house looking new. Have you considered furnishing it? Perhaps a catered event, inviting past clients, realtors, architects, designers, neighbors, and an "A" list of prospects, CEO's, even other builders. 

I saw your first post and was very impressed with your website, I even sent an email to your boss yesterday offering to exchange some ideas. 

By the way, in reviewing the floor plan on your big spec, I was surprised with the size of the master closet, it looked very small for a house of that caliber. 

In answering the question about specs, I was approved for a smaller priced spec (1.8 million$), but decided to wait. I have 3 large custom homes that will carry me for a while, as well as a suprisingly high # of other people who want to build custom.

Allan


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## tara homes (Jul 6, 2010)

You're right about the 2nd fl master bedroom closet being small. As you can see from the floor plan, there were two bedrooms facing east on the second floor. Adel blew out the wall between the two bedrooms, turned a $30k bath into a second closet and created a master suite AFTER the house was completed. Crazy man! But, that's what the realtor said prospects wanted.

It's also interesting that you mentioned catered events as a marketing tool. We hosted a fundraiser for the Joffrey Ballet of Chicago at the home - not my idea - but even if we didn't get any new clients I was able to create a video that is driving traffic to our website. You can find the video on YouTube here:

www youtube com/watch?v=BxHIVAivE20 (Dots missing because I don't have URL posting privileges)

I'm trying to convince him to host a dinner for the top-20 high-end realtors in the area to generate some excitement about the house. We need to network more.

David


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## AllanE (Apr 25, 2010)

David

What about furnishing the house, I've seen that as a good marketing strategy too.


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## HHBG (Mar 14, 2010)

AllanE said:


> Marketing Guy:
> 
> Your boss is my kind of guy! I built a 4 million$ spec last year and luckily sold it, I had to discount it a bit but overall I was just glad to unload it. I can identify with his strategy to use a well built and decked out spec as a way to generate other business. A high-end custom builder needs good product available. I can guarantee you that his is losing sleep, the carrying costs is brutal when you consider interest, taxes, insurance, utilities, maintenance, and the expense to just keep a new house looking new. Have you considered furnishing it? Perhaps a catered event, inviting past clients, realtors, architects, designers, neighbors, and an "A" list of prospects, CEO's, even other builders.
> 
> ...


What part of the country are you in? 

I'm in PA, have one custom sold with foundation in, but am sitting on another spec from 07ish that I cannot move, even with many price reductions.

Although I've seen some big $$ specs sell here in the 1H 2010, I hear most of the builders took below cost to unload them. 

Otherwise, no real new inventory sitting in this region (unlike parts of FL, NV, AZ, etc...)


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## AllanE (Apr 25, 2010)

HHBG said:


> What part of the country are you in?


I am in Houston.


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## SHBONC (May 14, 2011)

Getting ready to build one now. With cash
:clap:


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## ohiohomedoctor (Dec 26, 2010)

SHBONC said:


> Getting ready to build one now. With cash
> :clap:


I could use both. Let me know when your ready? :whistling:


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## Jaws (Dec 20, 2010)

greg24k said:


> Breaking ground tomorrow, building a 2,800 SF home on spec.


 Did you sell yours Greg?

I'm thinking of building a small _spec, high end finishes. Just need the balls. Lol. Not looking to make a killing, I also want to generate leads. I would put this one in the Parade of Homes. My crew would do all the trim and finish work, keep a portfolio of our other projects.

I don't want to build customs really, too competitive. I'm hoping it will generate remodeling and renovation leads. If we build a custom right now, they need to be prepared to pay our price. I have friends and colleagues who are building at 8 or 9%. No thanks.


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## katoman (Apr 26, 2009)

Talk about dejavu, I just priced out to buy a property, build and sell.

The cost of development fees, building permit, home warranty program fees, make it unrealistic. 

Knowing the costs and the retail price of what the market is right now means it's a no go right now.


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## pegasush (Jan 7, 2008)

I'm lucky here. I'm aiming to keep 2 specs available at all times, as well as building customs. Previous spec sold 3 months before completion, next one was 2 months after completion. 

Busy as heck - specs, customs, and renos.


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## GregS (Oct 1, 2006)

pegasush said:


> Busy as heck - specs, customs, and renos.


GTA? Need some help?


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## pegasush (Jan 7, 2008)

Bit of a commute. I'm a Gapper. 3000 km.

But yeah its going to be nuts this summer. Called my draftsman for timelines for plans today - 2months, just for preliminaries. Requests are flooding in to him.


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## fshrmn (Nov 16, 2010)

ApgarNJ said:


> 400 a house?? wow. hope they are trimming them in like 2-3 hours.
> 
> no one is building spec homes around here. land is still expensive, what's left of it out there. and the spec homes from 2-3 years ago are still for sale!!
> 
> glad I never got into that part of the industry. Far more houses to put additions on or renovations than there are lots for new houses.


I'm stll diging out from the spec "Boom"! I do have a shore house now though.


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