Important Considerations if You’re Planning to Jump into the Luxury Speculative Market.
We often partner with our clients to build speculative homes, in fact, just this month we have started a new spec project on Longboat Key. Throughout our forty years in business, we have been highly successful honing a formula that equates winning projects. Even during the great recession we designed and built two homes that each set sales records during one of the most tumultuous markets in history. Building spec homes can be a lucrative investment strategy, however, just like any investment you need to set yourself up for success. Here are some basic pointers on what have made our ventures in the luxury speculative $2-8 million market successful.
PROPERTY: It is imperative to team up with a top realtor who understands the neighborhood you are looking at extremely well. Comps are real and if you design beyond what a neighborhood will support price wise you will inevitably be disappointed.
DESIGN: Savvy buyers tend to gravitate towards timeless high-end design and quality construction. Hire a talented architect and a builder with a reputation for quality. The right combination here can pay dividends by name recognition alone. As a builder who has spent four decades building for luxury clientele, we bring an understanding of the subtle details and features that this type of buyer is after that others cannot.
CUTTING CORNERS: A penny saved is not a penny earned in luxury spec building. This tactic only works in lower end speculative homes. We build our spec homes exactly like we build for our custom home clients. Buyers in this market segment are discerning and understand quality at a very high level. They will pick up on subpar materials and construction quickly.
I welcome anyone interested in talking spec or new home construction to give me a call! 941.924.6900
Authored by Ricky Perrone, President, Perrone Construction