← Glossary
Buying and selling
Spec home
A home a builder constructs before having a buyer, betting it will sell. Buyers usually get fewer custom choices but can move in sooner.
Also called: speculative home, spec build, inventory home
Related terms
New construction
A home that is newly built or still being built, usually sold by the builder. Builder contracts differ from resale contracts, and the sales rep works for the builder.
Certificate of occupancy
A local government document saying a building meets code and can be lived in. New construction needs one, and some towns require one when a home sells.
Permit
Local government approval for construction, additions, or major system work. Unpermitted work can cause problems with appraisals, insurance, and resale.