JUST-IN-TIME LIFE
Builders have inventory of ‘spec homes’ for buyers who have an urgent need to move
When empty-nesters Rhonda and Corey Newman decided to rightsize from their 3,600-square-foot home in Sherwood Park, they expected a minimum five- or sixmonth lag time for their home to sell.
Instead, it only took three weeks from their end of September listing — with new owner move-in just three weeks later — and the Newmans were on the spot to immediately find a new home.
A two-storey, 2,000-square-foot quick possession home by Pacesetter Homes in Summerwood was the answer.
“We thought we might have to rent, but our realtor looked over the whole area (they wanted to stay in Sherwood Park) and the builder inventory was very small based on the criteria (like a must-have garage) we set out,” says Rhonda, a non-profit fundraising consultant.
The Pacesetter home was literally just completed — “I think they moved the construction garbage bin out the day before” — and on her visit, Newman was intrigued.
She brought her husband back the next day, and within five days of first viewing, the couple had a new home.
“We were able to breathe out — we had a place to move into.”
Quick possession homes will remain a strong option in 2020 for homebuyers, from first-timers to move-ups to and downsizers, says Erin Davis, sales and marketing director at Pacesetter. The company, a builder division of Qualico Communities, has about 200 “spec” homes (from townhomes to executive homes) available in the 34 Edmonton area subdivisions it is currently building in.
Quick possession homes — or spec homes — are homes constructed by builders and put on the market near or at completion.
Davis says of its spec homes, 150 are within three months of being completed, which means the possibility of limited personalized choice for purchasers, whether that is a selection of cabinetry, paint or blinds/drapery. She says the major benefit of quick possession homes is access to the benefits of new construction — with its attendant warranties, energy efficiencies and technological advances — without the wait of a new build’s construction period, while being able to see clearly what you are getting.
It also means, in terms of financing, the ability to lock in favourable interest rates.
Dalayce-lynn Keen, sales manager Jayman Built, says the company has five of what it calls “life-ready homes” with another 11 currently under construction to be available by spring, in seven different Edmonton area communities.
The homes are in all four quadrants and Jayman generally sees buyers of spec homes coming from Alberta’s strong in-migration population.
“They can quickly close a rate at the bank and the homes are in areas where everything is generally completed.”
And while buyers can’t choose home options, Jayman has customized the palettes for each home based on the buyer demographics in each community.
Keen says Jayman has a relatively small inventory of spec homes because of the company’s short build time for a new home (five to six months) so many buyers are willing to wait.
Courtney Provencal, marketing manager of multi-family builder Carrington Communities, says her company has about 60 quick possession homes in 10 communities currently available, from $144,900 to $800,000-plus.
“They appeal to everyone from first-time homebuyers to downsizer to the luxury buyer.”
The completed condos have huge advantages including not having to endure construction noise and dust; being able to view the actual product; locking in secure mortgage rates; and often financial incentives for buyers of the last few units in a project.
For the Newmans, their first experience with spec homes was a positive one with both their realtor and Pacesetter responding quickly to their needs, and the couple was able to negotiate a good price for the home. While they had talked for years about moving into a smaller home — and buying a winter home in Arizona — it was only on a road trip back from the Okanagan last August where the decision was made after “I had my husband’s ear for six hours,” says Rhonda with a laugh.
Her advice for quick possession buyers is be prepared to compromise.
“Be clear on your musthaves, your nice-to-haves, and what you are willing to compromise on. Eighty-five per cent of what we got is great and the rest are things we can change down the road. We not only were able to right-size our house and stuff, but also financially.”