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Spec and Model Home Financing
Speculation building refers to the design and construction of a house to attract a buyer.
The companies building these types of homes without a guaranteed sale are speculating that they will earn a profit when they sell the newly constructed home.
Approvals are based upon :-
(a) the builder's ability to construct and market spec homes
(b) the builder's financial position and his ability to carry the payment and
(c) the strength and trend of the new home markets in the immediate and surrounding areas.
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