What term describes a structure built before securing a buyer with the hope of selling the finished structure?

• A. Custom building
• B. Dedication
• C. Federally related transaction
• D. Speculative building

Answer: (D)

Building before you have a buyer is speculative building. This approach means the developer starts construction without a signed purchase agreement, counting on market demand to attract a buyer once the structure is finished. It involves taking on market risk, hoping that finished units will sell at a profit. By contrast, custom building is done to meet the specific needs of a known buyer, usually under a contract, and the other terms describe different concepts not about how a structure is financed or started. So the term that fits is speculative building.