Upstate NY Custom Home Building Blog

If your current home no longer meets your family’s needs, you might be ready to move to a new home. One question you might be asking yourself is, “Should I buy a spec home or build a custom home this year?” Let’s take a look at some of the pros and cons you’ll want to consider—and whether the coming year is a good time to make a move such as this.

As custom home builders in upstate New York, we obviously think that custom homes are worthwhile endeavors, but we also understand that they're not for everyone. Here at Gerber Homes, we want everyone to find the perfect new home for their situation, and we're happy to use our experience to help you decide between spec and custom new residential construction by comparing the pros and cons of a custom vs. spec new home. Let's dig into the details together!

What is a Custom Home?

Pros of Building a Custom Home

The advantages of building a custom home are fairly obvious, but we'll review them because there may be some aspects you haven't considered.

• Personalized Design: You get to create a floor plan that works for your lifestyle. Need a home office? A bigger kitchen? A first-floor primary suite? It's all up to you.
• Choice of Location: With a custom home, you choose the perfect lot, so your dream home is situated in the right place, whether that's a new development or a private wooded area.
• Higher Quality Construction: Because you select the builder, materials, and finishes, a custom home often reflects higher-quality craftsmanship and durability.
• Energy Efficiency & Modern Features: You can include smart home technology, energy-efficient appliances, and sustainable building materials. The sky is pretty much the limit.

Cons of Building a Custom Home

It's important to consider the cons of building a custom home, but it's also important to take into account that these are all upfront drawbacks. There is never any doubt that custom homes continue to pay dividends throughout your ownership.

• Longer Build Time: You can't move into a custom home right away, but you can likely find a "good enough" spec home for a quick move. Custom homes take longer to complete because they are built from the ground up. After planning, expect construction to take anywhere from 6 months to over a year.
• Higher Costs: If you compare custom home vs spec home costs, custom homes typically cost more upfront due to land purchases, design fees, and premium materials.
• Decision Overload: Choosing every detail—from countertops to doorknobs—can be exciting but also overwhelming.

Custom Home Construction Process: What to Expect

Building a custom home is an exciting but complex journey. Since you'll be living through this process if you opt for custom residential construction, here’s a general overview of what to expect.

1. Budgeting & Planning: Determine how much you’re willing to spend and explore custom home financing options if needed.
2. Choosing a Lot: Work with a real estate agent or builder to find the right piece of land.
3. Designing Your Home: Collaborate with architects and builders to create your ideal layout and design.
4. Securing Permits & Approvals: Local zoning and permit requirements must be met before construction begins.
5. Construction Begins: From foundation to framing to interior finishes, your builder will manage every step.
6. Final Walkthrough & Move-In: Once construction is complete, you’ll inspect the home, address any final details, and get the keys.

What is a Spec Home?

A spec home, short for speculative home, is a residential property built by a developer or builder to sell upon completion. Unlike custom homes, spec homes are typically built without a specific buyer in mind and are designed with standard features and finishes that are popular among homebuyers. These homes are built on a larger scale, using a set of pre-determined floor plans and designs to appeal to a broad market. Spec homes are often built in new subdivisions or housing developments.

Pros of Buying a Spec Home

There are several reasons a spec home might be a good investment. Here are a few.

• Move-In Ready: One of the biggest advantages of a spec home vs a custom home is that spec homes are already built (or close to completion), allowing for a quick and easy move-in process.
• Lower Cost: If you're asking, “Are spec homes cheaper?” the answer is generally yes. Developers build these homes in bulk, which helps keep costs lower than a fully customized home.
• Less Decision-Making: With a spec home, design choices are already made for you, reducing stress and decision fatigue.
• New Construction Benefits: Unlike buying an older home, a spec home is brand new, meaning fewer repairs and maintenance concerns.

Cons of Purchasing a Spec Home

The downsides of purchasing spec construction lie mainly in your choices and the details.

• Limited Customization: You don’t get to personalize the floor plan or finishes, so the home may not perfectly fit your style or needs. You'll likely have to accept a few things that aren't your favorite to get the big items on your "must-have" list.
• Fewer Location Choices: Spec homes are typically built in planned developments, so you may not have as much flexibility in choosing your lot.
• Resale Value Considerations: A custom home often holds its value better over time compared to a spec home with standard finishes.

Custom Home vs Spec Home: Which Costs More?

When considering custom home vs spec home cost, several factors come into play. While spec homes often have a lower upfront cost, a custom home’s long-term value may be higher because it’s tailored to your needs and built with higher-quality materials. It's also not an apples-to-apples comparison. With a custom home, you must buy your own lot, whereas the price of a spec home already includes the land.

Is Now a Good Time to Build a House in Upstate New York?

It's challenging to predict the future cost of building a new home with certainty. However, it is unlikely that building a new home will become cheaper in the near future. Though recent construction prices have sharply risen, they are unlikely to fall. At the very least, this means that the cost of new construction rises a little bit every day, so waiting to purchase your new home is unlikely to save you money.

Other Factors to Consider When Deciding When to Build

• Interest Rates: Mortgage rates can impact the total cost of buying or building a home.
• Availability of Spec Homes: In competitive markets, finding a spec home that fits your needs may be challenging.
• Custom Build Timelines: If you want a home built just for you, planning ahead is crucial.

Is it Better to Buy a House or Build One?

Both of the options we have discussed are new construction. You may be considering buying an older home vs. new construction. Whether you build a custom home or purchase a spec home, a new home typically requires less maintenance and repairs than an older home, reducing future costs. Every element is in style. Buying an existing home may offer more affordable upfront costs and a quicker move-in process, but it may require more maintenance and renovations over time. Additionally, it may be challenging to find an existing home that meets all of your desired specifications.

New Construction and Custom Homes in the Finger Lakes

Ultimately, the choice of buying a spec home or building a custom home depends on what best suits your needs. If you’d like to explore the idea further, Gerber Homes builds in several great communities in the Greater Rochester area and has dozens of beautiful floor plans that can help you start your planning for a custom home that will meet your family’s needs.

We'd love to talk more about what you've got in mind. Reach out today to tell us about the new home you envision.