Why (Some) Charlotte Builders Are Back In Speculative Business

Below is an excerpt from The Charlotte Business Journal’s article “Why (some) Charlotte builders are back in speculative business” (Jun 20, 2016):

“Spec homes are important to neighborhoods regaining value after the market slump. Because custom homes are never entered into MLS for sale, those new homes aren’t used as comps when nearby homeowners look to list their home or have it appraised. Spec homes of similar size are considered, and their newer sales prices tend to drive up values…

…Grandfather Homes has embraced spec building as part of its growth strategy. This year, Grandfather will build nearly 50 homes, and 60% are spec homes. But instead of focusing only on the most expensive homes, Grandfather Homes is straddling multiple price points with $600,000 duplexes in Elizabeth and single-family homes in Plaza Midwood and Chantilly priced in the $700,000s. At the other end of the spectrum, Grandfather Homes has a $2.5 million spec mansion for sale in the heart of Eastover.

“We feel like buyers now, especially relocation buyers, want a finished home,” says Matt Ewers, president of Grandfather Homes. “At times we won’t list a property until it’s completed.”