Developing Residential Real Estate In Fort Collins
The more we build the more we learn. If you have been in the real estate development industry for a long period of time you understand mistakes happen. What we have learned to do is limit our mistakes and capitalize.
When it comes to the home building industry you may have heard of the different type of builders. You have your tract homes, spec homes, and last but not least your custom homebuilders. At RineStone Construction we pride ourselves on being the experts on all three of these types of layouts. Nevertheless, we want our clients and readers to have a clear understanding on what separates these types of homes. You probably have an idea by simply the labels but we want to dig a bit deeper.
Tract & Production Homes
As developers of tract homes, we will go in and purchase a large piece of land that is ideal for living. The point of this is to build for mass production. There is not a lot of customization with these homes and our objective is to create a beautiful design and repeat that throughout our lots.
Generally, we will build a couple model homes for future homebuyers to tour before they jump all in and use their mortgage to purchase one of our homes. Obviously, we need to make a profit on our lots so when you purchase a tract home you will see where the money is saved. Usually, we hold back on cabinets and appliances but invest into a solid structure. This gives the buyer a great product for their money.
If you are a first-time homebuyer this could be a great option for you because again you get a lovely home at a medium market price range.
We build out spec home by expecting what a homeowner may desire in living space. Developing these homes for people with many options that are incorporated into the amount of the home. Now, most of the spec home are not all the way complete so when a person is ready to but we will complete construction within 60 days with suggestions from the future buyer. Furthermore, we know people tend to get spec homes and custom homes confused so understand that spec homes is not fully customized but simply gives the homeowners more options than your typical tract home.
Constructing custom home gives a buyer freedom to participate in the building process. They don’t physically work in the home but they are involved with operations and see every phase of the build out. It’s not common you see first-time home buyers purchase a fully custom home because the loan process is completely different and you will need to come in with a large amount of liquid capital. Building a custom can be both very fun and stressful at the same time for the buyer.
You actually get to see what a real estate developer goes through on a daily basis like managing budget and scheduling. For this reason, you will want to find a trustworthy and experienced building and contractor. We have worked with many people in this process and have had many successful projects.
Now that you have a clear and concise understand of what separates these types of layouts you should have more confidence in searching for next home. All of these homes have different benefits and if you’re first starting or on the flip side have an impressive portfolio one may fit your needs better than the other. Please feel free to reach out to us with questions because we are the experts when it comes to building out a mass of different tracks.