Trying to choose between a move-in-ready spec home and a one-of-a-kind custom build in Plano? You are weighing timing, budget, and how much design control you really want. This guide breaks down spec, inventory, semi-custom, and true custom options in Plano so you can compare timelines, upgrade flexibility, warranties, and financing with confidence. Let’s dive in.
Spec, inventory, semi-custom, or custom
Spec homes: fast and simple
A spec home is built by the builder without a signed buyer, using in-house plans and finishes. You get quick or near-immediate occupancy with limited ability to change floor plan or major systems. Pricing can reflect current market incentives, and financing works like a standard purchase on an existing home.
Inventory homes: staged and ready
Inventory homes are similar to specs but marketed specifically as available now. Expect quick move-in and finishes set by the builder. Most buyers use conventional, FHA, or VA financing if the appraisal supports the price.
Semi-custom: production plans with options
Semi-custom gives you preset floor plans with structural and design options chosen during a design appointment. You balance personalization with cost predictability. Structural systems remain builder-controlled, and upgrades are offered at fixed prices.
True custom: design it from scratch
A true custom build starts with your lot and your design team. You control most materials, systems, and layout. Plan for the longest timeline, the highest decision load, and cost variability. Financing usually runs through a construction-to-permanent structure.
Timelines in Plano: what to expect
Spec and inventory
Plan for immediate move-in to about 1 to 3 months, depending on finishing touches and your closing timeline. Permits and final inspections are typically already complete.
Semi-custom
From contract to certificate of occupancy is often 4 to 9 months with production builders. Timing depends on lot availability, community infrastructure, plan review by the City of Plano, weather, and material lead times.
True custom
Custom projects often take 9 to 18 months or more from design contract to occupancy. Architectural design, engineering, HOA or developer approvals, multiple plan review cycles, and long-lead materials can extend the schedule.
Local permitting note
The City of Plano issues building permits and requires milestone inspections. Plan review times vary and can add weeks to months. Ask each builder for recent permit lead times and whether your community has additional design review steps.
Upgrade flexibility and cost dynamics
What you can change
- Spec and inventory: Some cosmetic finishes may be adjustable only if construction stage allows. Structural changes are usually not possible.
- Semi-custom: You select from a set option list. Early structural choices can include items like garage orientation or fireplaces. Interior finishes are chosen at the builder’s design center.
- Custom: Nearly everything is on the table, from structural systems to bespoke finishes. Each change typically impacts cost and schedule.
Cost tradeoffs to know
- Semi-custom benefits from builder volume pricing, often making upgrades more cost-effective than one-off custom selections.
- Custom builds carry additional soft costs like architecture, engineering, and site work, plus higher risk for overages.
- Late changes drive costs. Finalize structural items before slab and framing, and finish selections before order deadlines.
Negotiation considerations
- Spec and inventory: You may see price negotiations, closing cost credits, or builder incentives tied to preferred lenders.
- Custom: There is less room on base build cost, but you can value-engineer choices and phase features.
Warranties and protections
Typical coverage structure
- First year: Workmanship and materials for items like paint and trim.
- Second year: Mechanical systems such as plumbing, HVAC, and electrical.
- Ten years: Structural defect coverage for major load-bearing elements, often provided by a third-party administrator commonly used in Texas.
Review the actual warranty policy for coverage, exclusions, claim steps, and deadlines. Many builders use standardized third-party structural policies. Confirm who administers the warranty and how to submit claims.
Punch list and post-close
Complete a thorough punch list at your final walkthrough. Many items are covered in the early warranty window. After one year, structural or latent issues may still be eligible under longer terms.
Community and HOA items
Some roads, drainage, or shared amenities may be maintained by the HOA or covered by developer warranties. Clarify who maintains what and the length of any coverage.
Financing in Collin County
Buying spec or inventory
These purchases typically use conventional, FHA, VA, or USDA loans if the property qualifies. Your timeline is driven by loan processing and the appraisal on the completed home.
Building semi-custom or custom
Most buyers use construction or construction-to-permanent (one-time close) loans. Lenders fund draws as the build progresses, then convert to a permanent mortgage when complete.
Key points to compare:
- One-time close vs two-time close: One-time close consolidates the process and can lock rate early. Two-time close means a construction loan first, then a refinance to a mortgage.
- Down payment and reserves: Construction loans often require higher down payments and verified reserves.
- Appraisal approach: Lenders rely on cost estimates, lot value, and a projected appraisal at completion. Unique custom designs can make valuation more complex.
- Carrying costs: Expect interest-only payments on drawn amounts during construction. Budget for temporary housing and property tax escrows when you move in.
- Builder lender incentives: Preferred lenders may offer closing cost credits or rate incentives. Compare total cost of funds and terms before deciding.
- VA and FHA options: Both offer construction programs in some cases. Confirm eligibility, documentation, and builder approval requirements with an approved lender.
Appraisal and market risk
In fast-moving markets, appraisals can lag recent pricing. Confirm appraisal contingency protections in your contract and discuss options with your lender and agent.
Lot, HOA, and Plano-specific factors
- Lot selection: In master-planned areas, lot orientation, corner placement, and views can affect price and future resale. Ask about lot premiums and any limitations on plan placement.
- HOA and architectural review: True custom homes often require plan approval by an HOA or developer. Build this review time into your schedule.
- Permits and inspections: Expect City of Plano plan review and required inspections throughout construction. Ask builders for their recent experience with review times.
- Property taxes: The Collin County Appraisal District sets assessed values. New construction can shift taxes from lot-only to improved property. Review exemptions and timing for applications.
- Schools: Plano ISD boundaries can influence buyer preferences and resale. Verify zoning and school assignments directly with the district when relevant to your decision.
A simple decision framework
Quick picks by priority
- Need to move in within weeks to a few months and want cost predictability: Choose an inventory or spec home.
- Want personalization without long timelines or large soft costs: Go semi-custom with a reputable production builder.
- Require a unique design or specialized systems and are comfortable with a longer, more variable process: Pursue a true custom build.
Checklist to compare options
- Budget
- Ask for base price, included features, and an option price list.
- Request sample build budgets or typical upgrade ranges.
- For custom, add design fees, engineering, site work, landscaping, and a 10 to 20 percent contingency.
- Timeline
- Get the builder’s recent completion averages and City of Plano permit turnaround experiences.
- Confirm milestones that trigger financing draws.
- Design priorities
- List must-have features first. See which path covers them early in the process.
- Consider lot placement and privacy. Some inventory homes sit on premium lots.
- Builder track record
- Review local references, permit and inspection histories, and warranty performance.
- Confirm third-party warranties and dispute resolution terms.
- Financing readiness
- Speak with lenders experienced in Collin County new construction.
- Ask whether your lender requires builder approval and for examples of recent appraisals in the community.
- Resale lens
- Consider neighborhood, lot type, and market preferences. Very niche custom features may not fully translate to future resale value.
Buyer profiles: which path fits you
- Moving for a job with a 2-month window and moderate design needs: Inventory or spec home in a Plano community for speed and simplicity.
- Want specific kitchen and layout tweaks without a ground-up design: Semi-custom with a production builder and a structured design center process.
- Empty-nester planning a tailored home with site-specific orientation and higher-end systems: True custom with an architect, construction-to-permanent financing, and a larger contingency.
Your next steps in Plano
- Interview two to three builders, including at least one custom option if you are considering it. Ask for recent timing and warranty examples.
- Talk to two to three local lenders who do construction loans in Collin County. Compare one-time close versus two-time close, down payment, reserves, and rate locks.
- Request sample contracts, option lists, change-order policies, and warranty documents before you sign.
- Confirm current plan review times and inspection scheduling with the builder and factor HOA or developer design review into your plan.
You do not have to navigate this alone. If you are weighing new construction paths against comparable resale options in Plano, our boutique team brings a design-aware lens, transaction expertise, and local market insight to help you choose with confidence. Ready to map your best path? Connect with Niche Realty Group to get started.
FAQs
What is the difference between a spec and an inventory home in Plano?
- A spec is built without a buyer and may be near completion, while inventory is a completed home marketed for quick sale. Both offer fast move-in with limited changes.
How long does a semi-custom build typically take in Plano?
- Many production builders complete semi-custom homes in about 4 to 9 months from contract to occupancy, subject to permitting, weather, and material lead times.
What kind of design control do I get with a true custom build?
- You direct the plan, materials, and systems with near-total control, but expect a longer timeline, more decisions, and higher cost variability.
What warranties come with new construction in Plano?
- Many builders follow a 1-year workmanship, 2-year systems, and 10-year structural model. Verify the exact policy, exclusions, and claim procedures.
How are spec and inventory homes financed compared to custom builds?
- Spec and inventory homes use standard purchase loans. Semi-custom and custom often use construction or construction-to-permanent loans with draw schedules.
Will HOA or architectural reviews affect my custom build timeline?
- Yes. Many Plano communities require design approvals that add time. Build HOA review and City of Plano permit schedules into your plan.
What should I budget beyond the base price for a custom home?
- Include architecture and engineering, site work, landscaping, and a 10 to 20 percent contingency for changes or unforeseen conditions.
