What is the difference between spec and presale homes? | Product & Design Glossary

Spec homes start before a buyer contract while presales start after contract and buyer selections.

Why It Matters

The spec-presale mix drives cycle-time risk, inventory exposure, and speed-to-revenue.

How It Works

Operators set target mix by traffic quality, mortgage velocity, and trade capacity, then rebalance as market signals change.

Pro Tip

Treat spec starts like a portfolio with explicit risk limits by plan and price band.

Go Deeper

What is the difference between spec and presale homes? is part of Product & Design in the Real Torch homebuilding glossary.

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