What is a spec house and what's the difference from a build-to-order?
Short answer
A 'spec' (speculative) house is one a builder builds without a confirmed buyer, hoping to sell on completion. A build-to-order house is contracted by a known buyer from the start. Spec houses are completed faster and you see what you're getting, but you usually have less say on specs and the builder controls the timeline. Build-to-order gives more input but takes longer and ties up your money in deposits.
Source: Real Estate Agents Act 2008. Updated May 2026.
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Check a builderKey facts
- Spec house — builder owns, sells on completion
- Build-to-order — buyer contracted before construction
- Spec houses common in subdivision developments
- Spec houses sold under standard property law — like a regular existing house
- Build-to-order sold under building contracts — different protections
What you give up with a spec
Specifications — the builder has chosen the kitchen, tiles, colours. Hard to change mid-build. Often easy enough to swap small items at the end if you ask early.
Build quality — you're buying what you see. A pre-purchase inspection is essential.
Warranty — usually the builder's standard 10-year guarantee applies (if RMB / NZCB / Stamford / Builtin). The builder still owns the build until you buy.
What you give up with build-to-order
Time — 8-14 months typical from contract to keys.
Cashflow — progress payments tie up money for months.
Certainty — variations, council delays, supply issues. The number you signed up for can drift if you're not disciplined.
Upside — you get exactly what you wanted, the way you wanted it.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
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Related questions
Sources: Real Estate Agents Act 2008; Building Act 2004. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.