I broke ground last week, it’s a spec house in a resort community of second homes, and today I signed a listing agreement with my agent. I’ve a highly detailed set of plans and specs, which include schedules for everything in it down to the last cabinet knob. Everything is bid or costed, so I know where I am going to land, dollarwise. I have a good contingency built into my cost model, and the price is fairly set, with enough wiggle room.
I am new to the spec house biz. In this market, everything built on spec for the past few years was sold well before completion, some of them before the foundations got capped.
Whether it’s cash or a financed deal, if the sale occurs before completion, it will take the form of a contract for construction, I am certain. If you have made deals like this, tell me about them.