Before you jump into the middle of your custom home-building process, it's helpful to understand some of the terminology used in the industry. Here are a few useful definitions:
A truly custom-built home is one that is designed from scratch to be built on a specific lot and purchased by a specific buyer. Price doesn't determine whether a home is “custom”. That adjective applies when the home has an original and unique design.
A semi-custom home starts with an existing home design, which then is modified to fit the site where the home will be built and the individual home buyer's needs.
- Production home or tract home
A production or tract home is built according to a standardized plan, usually as one of a group of homes that are similar in size and style. Subdivisions typically are developed entirely by one builder. You usually don't have many opportunities to change or customize a production or tract home within a subdivision.
A spec home is one that is built “on speculation” by the builder before a buyer has been identified. The builder hopes to sell it during the construction phase or shortly after it is completed. When buyers decide to purchase a home during construction, they probably will be able to request some degree of customizing. A spec home could be a custom home, a semi-custom home or a production home.
