Guides for spec home builders

Straight answers about land deals, budgets and bank draws — with the numbers.

• How construction loan draws workA construction draw is a scheduled release of construction-loan money as the build reaches agreed milestones.
• How to know if a spec home will be profitableA spec home is profitable when its expected sale price (the ARV, after-repair or after-build value) minus everything it costs to get there — land, hard costs, soft costs, financing and selling costs — leaves a margin that justifies the risk.
• How much does it cost to build a house per square foot?According to the NAHB Construction Cost Survey (2024), the average construction cost of a new single-family home in the U.S.
• Construction management software vs. spreadsheets for spec buildersIf you build one house a year and do every number yourself, a well-built spreadsheet can be enough.