A model home is a showcase property builders use to display their work to potential buyers. It represents the design, layout, and features of homes under development. Usually, various styles of model homes are available, and they are typically the last ones to sell in a development.
To purchase a model home, you’ll need to go through a process similar to buying a traditional home, including working with a real estate agent, inspecting the property, exploring financing options, and negotiating the price.
From experience as a Realtor, model homes can be an excellent opportunity for buyers to purchase a gorgeous home at a discount.
Model housing often features additional amenities and upgrades the builder used to sell other homes. Buyers can capitalize on buying model homes with significant features they might otherwise pay extra for.
Over the years, a few of my clients purchased model homes. On each occasion, they were thrilled. A model home sale is usually a win-win for all parties.
Let’s explore the details of what a model home entails and whether it’s the right choice for you.
What is a Model Home?
The definition and meaning of a model home is relatively simple.
A model home in new construction refers to a fully furnished and decorated house that serves as a showcase for prospective buyers. The developer or builder builds it to show their home’s design, layout, and quality. The model house is often strategically located within a new housing development to attract potential buyers and give them a tangible representation of their future home.
The purpose of a model is to allow buyers to envision themselves living in the space and to experience the builder’s craftsmanship and attention to detail firsthand. The builders meticulously design and decorate it with the latest trends in interior design to create an inviting and aspirational atmosphere. The model home typically features upgraded finishes, fixtures, and appliances to show off the various customization options available to buyers.
Visiting a model house is essential in home-buying, allowing buyers to explore the property’s layout, flow, and functionality. It provides an opportunity to see the different floor plans, room sizes, and architectural features. Additionally, buyers can get a sense of the upgrades they may want, the quality of construction, and the overall value of the homes offered.
They are common in new construction, especially when builders construct large subdivisions. They differ from a spec house that a builder intends to sell immediately.
In summary, a model home in new construction is a tangible representation of the builder’s vision and craftsmanship. It provides potential buyers with a real-life experience of their future home and helps them make informed decisions about their purchase.
Different Styles of Model Homes
Model homes come in various styles, catering to different architectural preferences and buyer demographics. From modern and contemporary designs to traditional and colonial aesthetics, there’s a model home for everyone. Builders understand the importance of offering various styles to appeal to many potential buyers.
Purpose of a Model Home
The primary purpose of model homes is to give potential buyers a firsthand experience of the builder’s workmanship and the quality of materials used. It serves as a tangible example of what their dream home could look like. As mentioned, model homes are thoughtfully designed, showcasing different layouts, finishes, and upgrades to inspire buyers and help them visualize their ideal living space.
Seeing the floor plan of a home live is incredibly helpful versus looking at a set of blueprints. Buyers get a tangible feeling of what it will be like living on the property.
Benefits of Visiting a Model Home
- Inspiration: One of the most significant benefits of visiting a model house is the inspiration it provides. Whether you are a first-time homebuyer or looking to upgrade, exploring a builder’s model allows you to gather ideas and envision your personalized space.
- Design Guidance: Professional decorators often stage model homes, showcasing the latest interior design trends and offering valuable insights into color palettes, furniture arrangements, and overall aesthetics. Staging a home makes it more straightforward for buyers to envision their living conditions versus blank space.
- Quality Evaluation: By physically walking through a model, buyers can assess the quality of construction, examine the materials used, and get a sense of the overall craftsmanship. It allows them to make more informed decisions about their potential future investment.
- Functional Layouts: Model homes help buyers understand how to maximize each living space for their needs by demonstrating different room configurations and furniture placements. Visiting a model home can be an exciting and informative experience, providing valuable insights for buyers and allowing them to imagine themselves living in a similar space.
Can You Buy a Model Home?
Many people wonder if it is possible to purchase a model home. The answer is yes; it is indeed possible to buy a model. Let’s explore the availability, timing, and process of purchasing these homes.
Model home sales typically take place toward the completion of the neighborhood.
Availability of Model Homes for Purchase
Home builders typically use model homes to showcase their work and attract potential buyers. The primary purpose of model homes is to promote selling other homes in the development. However, it is common for builders to put them up for sale once most of the new homes have been sold. This provides an opportunity for those interested in purchasing a model housing.
Timing the Purchase of a Model Home
Timing is crucial when considering the purchase of a model. As mentioned earlier, builders typically sell model homes last in a development. Therefore, it is advisable to monitor the progress of the construction of new homes and the sales in the neighborhood.
Once most new homes have been sold, the builder may sell their models at a discounted price.
Can You Buy a Model Home With The Furniture Included?
Some buyers will walk into a builder’s show house and want it precisely as it is with the furniture and decor. With model home sales, the builder may sell it with all the furnishings. You’ll need to ask. Don’t be surprised if they want to move everything to the next house they build.
If the builder agrees to include or sell the furniture, it must be in a separate agreement. Mortgage lenders do not want personal property in real estate contracts.
Process of Buying a Model Home
Buying a model house is similar to purchasing a traditional property, but some key aspects must be considered.
Working with a Real Estate Agent
It is recommended to work with a real estate agent for new construction who can assist you in negotiating and purchasing. You should find an agent who has experience dealing with model home purchases and can represent your interests throughout the transaction.
I’ve worked with numerous builders who constructed model homes throughout my career. I’ve also custom-built two houses from the ground up. Having an agent who knows their way around new construction can be immensely helpful.
Going directly to the builder or their representative is never a good idea. It would be best always to have a buyer’s agent representing your best interests. A model home sale is no different than any other purchase.
The builder typically covers a buyer’s agent’s fees.
Inspecting Model Homes
Before making an offer, inspecting the home thoroughly is essential. Pay attention to any wear and tear and the overall construction quality. Ensure you understand the home’s condition and note any required repairs or maintenance.
A new construction home inspection is recommended when possible.
Financing Options for Model Homes
Consider your financing options when purchasing a model house. While some builders may offer their mortgage options, exploring other loan options and comparing interest rates and favorable terms is advisable. This will help you secure the best financing for your home purchase.
Negotiating the Price
Negotiation is integral to home purchases, and buying a model is no exception. Builders may motivate themselves to sell their models at a lower price, making room for negotiation.
Work with your real estate agent to negotiate a fair price based on comparable properties and any unique features or upgrades included in the home.
By understanding the availability, timing, and process of buying a model home, you can make an informed decision that suits your needs and preferences. Remember to thoroughly research and consider all aspects before proceeding with the purchase.
Should You Buy a Model Home?
When considering purchasing a model housing, weighing the pros and cons is crucial. Here are some factors to consider:
Pros of Buying a Model Home
- Lower Price and Better Amenities: Model houses are often sold at a discounted price compared to new construction homes. Additionally, they typically come with attractive upgrades and furnishings.
- Negotiation Opportunities: Builders are often motivated to sell their model houses, allowing buyers to negotiate a better deal.
- Furnishings and Upgrades: Model housing is often fully furnished and equipped with high-quality finishes, allowing buyers to enjoy a move-in-ready property. The cost of building a house is usually higher in non-model home sales.
Cons of Buying a Model Home
- Wear and Tear: Model homes are frequently toured by potential buyers, leading to possible wear and tear on the property.
- Lower Quality of Construction: Since models are primarily used as showhomes, the construction quality may not be as high as that of a custom-built property.
- Less Warranty Coverage: Model homes may have limited or reduced warranty coverage due to their previous use as showhomes.
Decision Factors to Consider
- Location and Privacy: Assess the model home’s place within the community and consider if it meets your privacy preferences.
- Builder’s Reputation: Research the builder’s reputation and previous customer experiences to ensure their work meets your expectations. Ask the right questions of the builder.
- The House’s Future Value: Evaluate the potential resale value of the model house and how it aligns with your long-term financial goals.
Ultimately, purchasing model properties requires careful consideration of these factors. While they offer advantages such as lower prices and attractive amenities, weighing them against potential downsides like wear and tear and lower construction quality is crucial.
By analyzing these aspects, you can make a well-informed decision that suits your needs and preferences.
Tips for Buying a Model Home
When buying model homes, there are several essential tips to remember. These tips will help you make an informed decision and ensure a smooth purchasing process. Let’s explore them below:
Researching Other Homes in the Area
Before deciding to buy, it’s essential to research other homes in the area. This will give you a better understanding of the market and help you compare prices, features, and amenities. Explore similar properties to ensure you get the best investment value.
Conducting Due Diligence
Purchasing a home requires careful due diligence. Ensure you thoroughly inspect the property and review all documentation, including warranties, maintenance records, and any potential issues that may have arisen during its time as a display home.
Hiring a professional home inspector can provide valuable insights and help you make an informed decision.
Comparing Mortgage and Loan Options
When considering financing options for purchasing, comparing mortgage and loan options is crucial. While some builders may offer financing, exploring other lenders is wise. This will help you secure the best interest rates and favorable terms to suit your financial situation.
Dealing with the Builder
When negotiating with the builder, it’s essential to maintain open communication and clarify all terms and conditions. Establish a rapport and build trust to ensure a smooth transaction. Discuss any desired modifications, potential incentives, or extended warranties that may be available. This will help you make the best deal possible.
How to Find Model Homes For Sale Near You
To find homes near your location, you can do an online search—Head to Google and search model homes for sale near me. You should see some helpful results. You can also ask a real estate agent for a list of properties.
To Buy or Not to Buy: Making the Final Decision
Finally, consider all factors when considering whether to buy a model. Consider the location, the builder’s reputation, future value prospects, and the overall fit for your lifestyle and needs. Balancing the pros and cons and considering your long-term goals will help you make an informed decision that you can be confident in.
By following these tips, you’ll confidently navigate the process of a model home sale and make a decision that aligns with your preferences and financial goals.
About the Author: The above Real Estate information on model home sales was provided by Bill Gassett, a Nationally recognized leader in his field. Bill has expertise in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 37+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
