If you’re thinking that you can find an existing unsold builder’s spec home, think again.
There are a few in the Boise real estate market, but they’re definitely not abundant in MLS.
Exceptions exist in the production-level market segment (think CBH and Hubble Homes), but when you get into the $250,000 and up price range, they’re scarce.
That’s due to a combination of strong demand and the fact that lenders remain stingy about making spec home construction loans.
Lenders who offer construction financing to builders would rather make a loan for a home that has been pre-sold instead of loaning for a spec home.
Most new home buyers are finding that they must buy a to-be-built home and wait for it to be finished.
As an example, I am currently involved in a build job in Nampa that will take five months to complete.
I tried to find a clean, sharp existing home for that buyer, but we soon concluded that my client’s best alternative was to have a home built.
The upside, for them, is that they get a brand-new home with a warranty and they were able to select everything they wanted.
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