Subdivision homes

A townhouse is a residential development in which several identically designed houses are built on a large plot of land. Townhouses usually have two to three different layouts.

"The buyer of a townhouse is someone who wants to live in a newer house in the development. They're not as picky about design," says Fox.

Filippo Incorvaia, founder/broker of FI Real Estate in Miami, says the intended buyers of attached villas are usually first-time buyers or people looking for an affordable option.

Often built in the suburbs, attached houses are more affordable due to the cost-saving measure of building multiple houses using the same design.

"They are the least expensive of all three types," says Fox." Since many of the homes are built at the same time, there are usually several to choose from."

The advantage of this type of new construction is that it is often located in areas with amenities such as parks, schools and shopping centres. Smaller homes are often built in established neighbourhoods with good transport links.

On the flip side, however, because the design is pre-determined, buyers have limited options when it comes to finishes and features, so there is a lack of customisation in the attached homes. They may have a cookie-cutter feel and lack individuality. There is also a lack of privacy for them.

"Large homes are usually built in densely populated areas," says Incovia.

Spec homes

A spec home is a newly built home that has no specific buyer.

"These homes are usually aimed at buyers who want a new home and don't want to build it themselves," says Incorvaia.

This type of home is usually built on property in a new development or community that the developer has already purchased. As these homes are newly built, they meet the latest building codes and have modern features. In addition, they often come with warranties on appliances, HVAC systems and other features that give buyers peace of mind, Incorvaia says.

However, customisation options for spec homes are limited as they are often built before a buyer is found and they can lack character as they are often built quickly without a specific buyer.

There may also be additional ownership costs.

Buyers may be surprised by the additional costs associated with buying a spec home, such as upgraded features or HOA fees," says Incorvaia.

Custom homes

A custom home is a home that is built to the buyer's exact specifications.

"These homes are for buyers who have specific design preferences and are willing to pay for a one-of-a-kind home," Incorvaia says.

However, there is a downside to bespoke homes. They cost more than other types of construction because the level of customisation is higher and there is more attention to detail. In addition, they can take more time to build, as they are built from scratch.

"It can take a long time to complete and is usually the most expensive type of new construction and there is more risk involved," says Fox.

"Because the buyer has more control over the design and construction of the custom home, there are more potential errors or changes that could result in additional costs or delays," Incorvaia said.