Move-in Ready Home – Spec Home

A move-in ready home is a new home that is either entirely or partially complete. Move-in ready homes are typically spec homes built by home builders with included options and upgrades that the home builder thinks will be popular with home buyers. Many move-in ready homes are the product of homebuyer contract cancellations either because a home buyer decides against moving or they decide to purchase another property. In some cases, a home buyer cannot qualify for the home loan and the home becomes a move-in ready home and is placed back on the market. A homebuyer can typically move into a move-in ready home within 30 days, but in most cases the homebuyer does not have the ability to pick many home options or upgrades.

Recently, buying move-in ready homes and advertising move-in ready homes has gained popularity because they are usually tied to large incentives and they cost builders thousands of dollars per month. The recent correction (late 2005 -) in the real estate market has lead to many home cancellations either from purchase decision changes or home loan approvals. Move-in ready homes can be found in nearly every booming market throughout the United States: California, Texas, Arizona, Florida, Nevada, Georgia, New York etc.

Some home builders choose to build spec homes and deliberately increase their quick move-in home inventory, but in most cases, home builders choose to keep inventory levels low and look down on high amounts of quick move-in homes because of the carrying cost on these homes.

Positive factors to consider when purchasing a move-in ready home

The buyer of a move-in ready home can often close on the home, and move-in, within 30 days. The home is often discounted or tied to large purchase incentives.

Negatives factors to consider when purchasing a move-in ready home

Because quick move-in homes are nearly complete home buyers do not get to pick out many of the options and upgrades for their new home. If the quick move-in home is a spec home, the home buyer may be able to choose options such as appliances and flooring. If the quick move-in home is available because of a cancellation, the previous home buyer will most likely have customized the options and upgrades to their family’s wants and needs. In addition, a home buyer purchasing move-in ready home does not enjoy the full anticipation of waiting for their new home to be built. Also, quickly moving into a home and everything that the process entails i.e. packing and unpacking, preparing loan documents, changing schools etc. can be extremely stressful on a home buyer.

Negative effects of carrying move-in ready homes for home builders

Carrying costs on move-in ready homes can exceed several thousands of dollars per month. Many home builders pay interest on the loan to their corporate offices or a bank; they also have to pay monthly costs for electricity, water and maintenance.

Strategies home builders implement to sell move-in ready homes

Home Builders are extremely creative and dedicated in their efforts to decrease their levels of move-in ready homes. Home builders offer large monetary incentives including discounts on homes, discounts on options and upgrades and discounts on financing. Home builders have also included offers for free large ticket items such as swimming pools, luxury cars and luxury vacations. In rare cases, home builders have held large public auctions.

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