A residence constructed by a builder on speculation, without a specific buyer already in place, is known as a speculative home. These properties are built with the intention of being sold once completed, or sometimes during the construction phase. Design choices are made by the builder, reflecting current market trends and perceived buyer preferences. As an example, a developer might construct several single-family houses in a new subdivision, anticipating that interested parties will purchase them upon completion.
The practice offers advantages such as providing readily available housing options for buyers who require immediate occupancy. Furthermore, it enables builders to maintain consistent workflows and potentially benefit from economies of scale. Historically, this building approach has been a common way to increase housing inventory, especially in rapidly growing areas. It allows for a quicker turnover of properties compared to custom-built homes.
