The 4 types of new-construction homes

Custom home construction allows you to design a house that fits your unique style.

Building a home is exciting and offers distinct advantages over purchasing an existing house, such as:

• Improved potential for energy efficiency
• More modern features
• Lower maintenance
• Home warranty coverage
• Smart home upgrades

Here's what to consider when deciding what type of new construction is right for you.

Types of new-construction homes

1. Fully Custom

   A fully custom home is unique unto itself. Every detail in a fully custom home is tailored and built to the buyer's specifications.

   Fully custom might work for you if:

   • You know what you want. Custom homes are a good fit if you have a clear vision for your next home. Custom homes depend on buyer input in nearly every detail, from the floor plan to the exteriors to outlet placement and windows.
   • You have unique requirements. You can design custom homes to fit the way you live. For example, adding desired elements like an in-law suite, a bathing station for your dog, or an elevator ensures the home will function for your family.
   • You already own land. Home plans and lot selection often go hand in hand. Custom homes are designed to fit your desired lot, allowing you to take advantage of the views and unique landscape features.
   
   

   And maybe not if:

   • You have a firm budget and timeline. If you are interested in a custom home, you should plan for changes to the original budget or timeline estimates. Due to land development, design choices, and fluctuating material costs, custom homes can incur additional delays and charges.
   • Making lots of decisions wears you out. Custom homes are intricate and unique. They require the buyer's ample attention throughout the process, which could lead to decision fatigue or feeling overwhelmed.

2. Semi-Custom Homes

   Semi-custom builders offer a predetermined selection of designs and floor plans. They deliberately operate with limited offerings compared to fully custom home builders allowing them to typically work faster and with lower build costs than fully custom homes.

   A semi-custom home might be right for you if:

   • You don't want to start from scratch. Semi-custom home builds are designed from pre-planned specifications, giving your project a head start. For all the fixtures, trim, countertops, etc., the home builder can provide you with curated options, such as choosing between two styles of doorknobs in various finishes.
   • You want your home to have unique touches. Because they're not mass-produced, semi-custom homes offer more design choices. This enhanced personalization means they may cost more than production/tract homes.
   
   

   And maybe not if:

   • You get overwhelmed by making decisions. While not as demanding as fully custom home builds, semi-custom construction requires frequent decision-making on your part.
   • You didn't find a plan you liked. Minor adaptations to builder plans are possible, but semi-custom home builders typically work from a library of familiar designs. If you require extreme alterations to their plan, it might be time to look at offerings from other builders or consider a fully custom home.

3. Production/Tract Homes

   Typically located in suburban areas, production homes are constructed within pre-planned communities. Some builders call them "tract" homes because they're built on a tract (or area) of land.

   A production home might be a good fit for you if:

   • You prefer to see a model home. Production builders often have model homes in new communities that you can walk through to get a better feel for the layout of a home and many of the design choices. Predetermined packages streamline decisions and help you feel confident about your selections.
   • You have a firm budget. Production home builders can usually determine an accurate timeline and cost estimates due to their streamlined building method and preset options.
   • You want neighborhood amenities. Planned production communities often include access to perks like clubhouses, pools, and tennis courts.
   
   

   And maybe not if:

   • Your family has unique requirements. If you, or a member of your household, will need accessible low-threshold entrances or other specialized accommodations inside the home, talk with your builder about what options they provide.
   • You prefer to avoid HOAs. Many pre-planned communities include HOAs intended to maintain a certain residential quality in the neighborhood. In addition to maintenance fees, HOAs may impose restrictions that could prevent you from adding outdoor features or restrict future additions.

4. Spec Homes

   Short for "speculative," spec homes are where builders choose floor plans, finishes, and landscaping. They're move-in ready and include features and finishes that the builder thinks will appeal to potential buyers.

   A spec home might fit you if:

   • You have a tight timeline. Spec homes offer all the advantages and amenities a modern home build provides with immediate availability.
   • The new construction process makes you nervous. A spec home takes the worry out of new home construction. There is a known price, the builder has made selections and design decisions with resale in mind, and it comes with a new home warranty.
   
   

   And maybe not if:

   • You want a say in the design. If your heart is set on a white kitchen or light wood floors, you may have to plan to do some future renovating. Most of those choices are decided by the builder in a spec home based on broad market appeal.

There's plenty to consider when deciding on a type of new-construction home. Remember: you're in the driver's seat. So take your time, do your research, and don't be afraid to ask questions.