A speculative home is a residence constructed by a builder without a specific buyer in mind. Construction begins based on market trends and anticipated demand, differing from custom-built homes tailored to individual client specifications. These homes represent a pre-emptive investment by the builder, hoping to attract a purchaser during or after completion.
The development of speculative residences offers builders the potential for increased efficiency and profit margins by streamlining the construction process. Buyers benefit from the availability of move-in-ready properties, eliminating the wait associated with custom builds. Historically, speculative building has been a common practice, driven by economic cycles and the availability of financing.