What is a model home?
A model home is a home in a newly developed neighborhood and is usually the first home built. The purpose of this new construction home is for prospective homebuyers to tour and get an idea of what other new homes in the neighborhood look like. The model homes often have all the best upgrades and have been professionally decorated by an interior designer. Typically, after all the homes in the neighborhood are sold, the model home goes on the market.
Factors to consider Before Purchasing a Model Home
Although there can be some perks to buying a model home, make sure you are asking the right questions before making a decision.
- Construction- First factor to consider is that even though model homes may be pretty and have all the upgrades, they are often built quicker than other homes in the neighborhood. Builders want to get their model home built as quickly as possible so they have a place to take potential buyers. What does that mean for you as a model homebuyer? Do not purchase a model home without a home inspection. In general, you should be getting a home inspection on any new construction home. Just because a home is new doesn't mean it is perfect. It is better to know about a home's issues before you purchase it.
- Upgrades- Make sure any upgrades in the home that you intend on keeping are listed in the sales contract. Before you decide on keeping particular upgrades (i.e. appliances) do some comparison shopping. Sometimes you end up saving money in the long run if you purchase upgrades on your own rather than from the builder. In addition, the garage area is often converted into an office when the home is being used as a model home. Confirm that the cost of the installing a garage door will be covered by the builder.
- Location- Model homes are usually located in the front of the neighborhood. Sometimes, this is not always an attractive feature for resale. Is the street by the entrance of the neighborhood heavily traveled? If so, you may want to give more thought to your purchase.
- Age- How old is the model home? New homes usually come with a warranty but if you are moving into a model home that is a few years old, you will be missing out on a few years of the warranty. The same applies to appliances as well. You may want to discuss with the builder a warranty that will apply to purchasing the model home.
Do you have any other questions regarding purchasing a model home? The Hollinden Team would love to assist you. Give us a call today at (502) 429-3866.