spec house

Definition

A house built by a developer on speculation without a specific buyer lined up. Building it and hoping they will come—the real estate field of dreams.

Example Usage

The builder constructed three spec houses in the new subdivision, gambling that the market would remain strong.

Origin

Short for 'speculative,' from development practices where builders invest before securing buyers

Fun Fact

Spec houses often feature neutral colors and finishes because builders are designing for the average buyer they hope to eventually find.

Source: Real estate development terminology

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construction loan

Short-term financing for building or renovating property, typically disbursed in stages as construction progresses rather than all at once. It's banking's trust exercise, betting you can actually finish the project before the money runs out.

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Property rights of landowners whose property borders rivers or streams, governing water use and access. The reason your creek-front property doesn't mean you own the water or can dam it up.

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deed of trust

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cloud on title

Any claim, lien, or encumbrance that impairs the property's title and creates doubt about legal ownership. Like a stain on your property's permanent record that needs bleaching before you can sell.

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rezoning

When city planners wave their magic zoning wands and declare that your neighbor's residential lot can suddenly become a mini-mall, or vice versa. It's the bureaucratic process of changing what you're legally allowed to do with a piece of land, often involving endless public meetings where everyone argues about traffic and property values. Democracy in action, one variance hearing at a time.

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earnest money deposit

See earnest money, but longer and more official-sounding. Because real estate professionals get paid by the syllable.

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