The Ultimate Guide to Inventory Homes: A Homebuyer’s Handbook
In the realm of real estate, inventory homes, also known as “spec homes” or “move-in-ready homes”, offer prospective buyers a clear path to homeownership without the open market competition.
These quick move-in homes are brand-new and built in anticipation of buyer interest, presenting an appealing option for those seeking a streamlined way to buy a new construction home. Often situated in developing neighborhoods, inventory homes are ideal for buyers who are looking for a quick move-in timeline without sacrificing the benefits of a new construction home.
In this comprehensive guide made with homebuyers in mind, we will talk about inventory homes and show the ways you can explore and secure these new construction opportunities.
What Are Inventory Homes?
Before we dive into how to purchase an inventory home and other need-to-know tips regarding this type of real estate, let’s focus on the basics.
Defining Inventory Homes
Inventory homes are new construction homes that are move-in ready (aka “turnkey houses”) or are near completion. Unlike custom new builds, which are designed to a buyer’s specifications, inventory homes use standard floor plans. The amount built are based on the home builder’s projections of market demand in the area’s real estate market.
Unlike custom homes, inventory homes don’t usually have a lengthy construction process. Since it’s not built for a specific person, the prospective homebuyer isn’t waiting for it from day one. Instead, they buy the new house when it’s ready or almost ready, so they won’t have to worry about choosing design elements or dealing with construction delays.
Though inventory homes aren’t custom-built, buyers can still expect a brand-new home with contemporary designs, modern amenities, and the latest building standards. They may also have the chance to select a few features if the home is near completion, such as the material of the countertops and flooring.
Advantages of Spec Homes
One of the main advantages of spec homes (another word for inventory homes) is their convenience. The quick move-in process is particularly beneficial for buyers who are on a tight schedule, such as relocating for a job or needing to move before another school year begins.
Spec homes also reduce the stress of the building process since the design and construction phases are already complete. Moreover, these homes often come with builder’s warranties, offering peace of mind right away for any cautious homebuyer.
Additionally, spec homes can be more cost-effective. The price is usually set, which simplifies budgeting and financing. There is no back and forth with fluctuating material prices, which is helpful for first-time buyers of new home construction.
Buyers might also find that builders include upgrades or incentives like mortgage rate buydowns to encourage a quick sale, which can add value and make the home loan more affordable.
And finally, buyers can walk through the home itself to see exactly what they’re getting before they make a purchase. There’s no need to rely on blueprints or conceptual drawings – but you can inspect the finishes and layout yourself before making a decision.
How to Find Move-In-Ready Homes
To find move-in-ready homes, start by contacting a brokerage that specializes in new construction homes, like Marketplace Homes. While working with an experienced real estate agent, you can research local builders and developments in your area of interest.
Realtors have insider knowledge about upcoming developments and can help you navigate the purchasing process. They may also be aware of special deals or promotions.
At home, you can also do your own research. Most builders have websites that feature available inventory homes, complete with details such as floor plans, community amenities, and pricing. Visiting builder showrooms and model homes can also provide a tangible sense of the home’s look and feel. Blogs from real estate experts (like Marketplace Homes) can also give you insights about top builders. For example, check out these blog posts:
- Top New Construction Builders in Florida
- Top Builders in Georgia
- Who Are the Best Home builders in Atlanta, GA?
- We work with America’s Top Builders
Online listings are also valuable resources for identifying spec homes. Many of these platforms have filters that allow you to search specifically for new construction and move-in-ready options. By using these convenient tools, you can streamline your search and compare different properties independently and with expert guidance.
Your Path to New Construction Homes
Purchasing an inventory home or spec home involves less hassle than doing the entire building process yourself. These homes for sale are built with a future homeowner in mind, and the next one up for sale can very well be your dream home!
Navigating New Builds: Some Considerations
When considering new builds, it’s important to get as much information as possible to make a confident decision. Naturally, you can make the most educated choice when you partner with a real estate agent who specializes in new construction purchases. For starters, here are some top considerations to have regarding spec homes:
- The builder’s reputation and past projects. Look for reviews and testimonials from previous buyers to assess quality and customer satisfaction.
- Visit the newly constructed home. This allows you to get a feel for the neighborhood, view the lot sizes, and see the construction quality first-hand. Pay attention to the materials used and the workmanship, as these factors will impact the longevity and value of your home.
- Understand the builder’s warranty and what it covers. Most new builds come with a warranty that protects against certain defects, adding an extra layer of security to your investment. Working with a real estate agent experienced in new constructions can also guide you through the specifics and help you make informed decisions.
How does the process of buying inventory homes compare to buying existing homes?
The process of purchasing an inventory home is similar to buying any other property, but there are some differences. For example, because inventory homes are already built or nearing completion, buyers may need to act quickly to secure their purchase. This can create a sense of urgency, but it isn’t really any different from rushing to put in an offer for an existing home when it comes on the market.
Other than that, you simply talk to your realtor, who makes an offer on your behalf, and walks you through the rest of the homebuying process. This includes the due diligence/ home inspection stage, which should be uneventful compared to the home inspection of an older home.
If you’re paying cash, you just wait for closing, and if you need a builder loan, then your realtor and loan officer will keep you in the loop about your loan’s approval. When you’re clear to close, your agent will be by your side to make sure you purchase the house with all legal protections in place.
It’s also worth noting that inventory homes sometimes come with a few customization options, depending on the builder’s policies and the house’s stage of completion. While buyers won’t have the same level of control over the design as they would with a custom-built home, they may still be able to choose finishes, fixtures, and other details.
Tips for Buying New Construction Homes that are Move-in Ready
When buying new construction homes, there are several tips to keep in mind. ‘
- Consider the timing of your purchase. Early in the sales process, there might be some options for customization, but later stages may include price reductions on remaining inventory homes for faster sales with no custom options.
- Get everything in writing. When you have a realtor, this will happen automatically. If a builder promises certain features or incentives, make sure these are clearly written in the contract. This documentation will be crucial to ensure you get the house you expect.
- Don’t skip the home inspection! Just because the home is new, it can sometimes have issues after move-in. A professional inspector can spot potential problems, giving you the opportunity to fix them before closing.
- Factor in additional costs not in the home’s base price. Sneaky costs like the cost of a moving truck, landscaping, window treatments, new furniture, professional cleaning, and more can add up. Understanding all expenses upfront will help you budget effectively and avoid surprises.
More Tips for Homebuyers of Inventory Homes
As a homebuyer, you must be proactive to ensure a successful purchase.
1. Define your must-haves and deal-breakers for a new home.
This list will help you decide on the right property when it becomes available.
2. Get pre-qualified for a mortgage.
This letter from your bank shows the builder that you’re serious and capable of your future financial obligations. Though most buyers of new construction choose to work with a builder’s preferred lender to get the best builder incentives, having a prequalification letter from your bank makes the buying process a lot smoother. It also gives you a clear idea of your budget.
3. When you see a home you like, don’t hesitate!
Tell your realtor that you’d like to make an offer on a spec home that fits your criteria. In a market with inventory homes, timing can be everything. Waiting too long could mean missing out on the perfect property.
4. Let your real estate agent negotiate on your behalf.
Every deal is open to adjustments! Whether it’s the price, upgrades on home design, paying down interest rates, or closing costs, understand that there is often room to negotiate terms with the builder. Have your realtor ask for what you want in the transaction, and you may get some extra perks!
5. Maintain open lines with your real estate agent and lender.
These pros are here for you. Do not hesitate to ask questions and express any concerns you may have. Staying informed and involved ensures that there are no misunderstandings or missed opportunities.
6. Stay organized.
Though your agent should have all paperwork filed securely, homebuyers should also be responsible for their records. From pre-qual letters to the loan estimate, having all your paperwork in order will greatly reduce stress.
7. Be patient and prioritize your mental health.
While inventory homes can speed up the move-in process, there may still be stressful moments. Keep your eyes on the prize and trust the process. Your real estate agent should be working hard to get you to closing and is experienced to face the potential challenges ahead.
Your Guide to Inventory Homes
If you want a new construction home but lack the time or desire for the customization process, inventory homes are convenient, move-in ready options. With spec homes, buyers can purchase a brand-new home without the wait typically associated with new construction.
Inventory homes are an appealing option for a wide range of buyers, including investors and first-time homebuyers. Whether you’re in the market for your first home or looking for a move-up home upgrade, inventory homes are definitely worth considering.
If you have questions about how to purchase an inventory home, contact our real estate experts today. We’ve been specialists in the new construction space for over 20 years, and we’re ready to help you find your next dream home!
