Tract Homes, Spec Homes, and Custom Homes in Colorado

Getting Started with a Tract Home

Enter the neighborhood of nearly identical houses in rows as far as the eyes can see. All are painted in similar colors; the yards are so similar as to be identical, and the lack of personality is evident. These are tract homes, so named because the builder bought a tract of land, subdivided it, and built homes.

Because the builder is constructing so many homes, they order building supplies in the hundreds or thousands, and this allows them to sell the house a bit cheaper. Inside the homes are all the same doorknobs and faucets, the same
light fixtures, and the same color carpet, and there are few to no upgrades or alterations for the buyer to choose from.

These properties make great starter homes, and many people buy them as their first home. That alone makes tract homes a good purchase because they generally have good resale value — there are always new families looking for
their first home, especially in Colorado.

A Spec Home with More Personality

You’ve probably guessed what a spec home is: a home built before it has a buyer. It’s a home built on speculation. The builder is speculating, or gambling you might say, that someone will buy this house.

A builder buys a small amount of land and subdivides it. The builder bears the cost of bringing in water, electrical, and gas lines and constructs the spec home, which is a step above a tract home. The builder might use a different floor plan for each home and add a few custom touches such as an upgrade on countertops, carpet, or crown molding.

Once the home is finished, it is listed for sale. Until it sells, the builder is responsible for making the loan payments, and since they only build a few homes at a time (maybe 10-12), it’s more manageable financially than a large tract of identical homes.

Custom Homes are the Ultimate Luxury

A custom home, built specifically to your needs, wants, and style, is the winner! Built entirely to the customer’s wishes, this is their dream home. If the owner/customer wants two bedrooms and three bathrooms, that’s what they get. Two dishwashers in the kitchen? No problem.

The customer usually already has the land purchased. They contact a builder and start the process, hiring an architect to draw up the plans according to their wishes and a designer to guide them. There is no stock plan here like there would be in building a tract home. The customer picks out the cabinets, the finishes, and every detail that goes into making that house their home, such as colors, wood choices, built-ins, and specialties like an indoor hot tub!

In a custom home, the sky really is the limit. Whatever the customer can pay for, they can have.

If you’re interested in learning more about the custom home building process, contact us at Colarelli Custom Homes.