Managed-competition lots refer to lots in which a buyer is able to pick from two or more builders. As the term suggests, offering lots that feature several builders creates a managed competition, which prevents any one builder from becoming exclusive in a certain area. Managed-competition lots also help to promote diversity in architecture within a neighborhood. Some home builders tend to construct homes with such similar features that there is often a lack of uniqueness, and some buyers prefer buying managed-competition lots because the likelihood that the home will not be a replica of the next-door neighbor's house is high. Builders who construct homes on managed-competition lots provide high-quality craftsmanship, and many builders can still customize homes to the buyer's liking. This type of structure simply ensures that buyers will have a variety of builders to choose from when shopping for homes in a certain neighborhood.