Should You Buy the Model Home? 10 Pros, Cons, and Questions You Should Ask

When you’re touring a model home in a new property development, you’re seeing some of your builder’s best work: The best finishes, upgraded features, and stylish, coordinated décor.

A model home is the showroom property built by developers to showcase their work, highlighting their craftsmanship and design capabilities. It’s their key marketing tool to pull in homebuyers and show them how they can make your dream home a reality.

It’s not surprising that plenty of people tour the model home and say, “Wow, I wish I could just move into this house!”

If you’re one of those people, good news: Once most of the development’s properties are sold off, the showroom hits the market. But buying it a good idea?

Here’s a look at both the benefits (and potential drawbacks) to help you decide if buying the model home is a good idea.

Pros of Buying the Builder’s Model Home

1. It’s move-in ready

Unlike building from scratch, buying a model home eliminates the wait for construction. Timelines are based on paperwork – your financing, legal documents, surveying.

There are no construction delays in the way, and you can move in soon after closing – once the builder finishes using the home for sales purposes.

This is a big advantage for homebuyers who need to move in quickly.

2. It unlocks potential discounts

Once the builder no longer needs the model, they may be motivated to sell quickly to move onto their next development projects. This could mean price reductions, closing cost assistance, or other enticing deals.

If it’s the last lot in the development, they may even throw in all the staging furniture or sell it to you at a steep discount.

3. It provides premium upgrades at lower prices

Luxury flooring, marble countertops, state-of-the-art appliances, built-in features that just make sense. You’ve seen how beautiful showrooms can be.

Buying the model home often means getting these top-tier finishes for less than it would have cost you to add them individually if you picked out these customizations on your own.

4. It’s professionally styled

If you’re overwhelmed by paint swatches and flooring options, a model home takes all the legwork on for you. You’re getting a home that’s professionally staged and landscaped, so you have a polished final product from day one.

They’re usually designed to appeal to a wide variety of tastes with the latest in home design, too.

5. It’s in an already-established neighborhood

Homebuyers moving into one of the first few lots in a development need to wait months – even years – until the community is in full swing. That’s not the case if you’re buying the final property.

Buying the model home means you’re moving into an established neighborhood with roads, green spaces, schools, and a suite of amenities all ready to go.

You can even tour these amenities in real time instead of waiting to see if they match what was in the brochure or 3D mock-up. There are no surprises upon moving in.

Cons of Buying the Builder’s Model Home

1. It’s got some wear and tear

Model homes see a lot of foot traffic after months of open houses and visits from thousands of prospective buyers. Real estate agents and developers often work on-site from these model homes, too, and have likely set up their office from the kitchen table or living room.

While the model home will be kept clean, it’s not going to be in pristine condition like a brand-new lot would be. You may see small scuffs in the hardwood and light wear and tear across the property.

2. It doesn’t include customizations of your own

With a model home, the builder’s already chosen all the finishes, paint colors, and layouts. If they’re not your style, you’ll need to budget for changes – and ask if they’re even possible.

In most cases, model homes are sold “as is.” If you were hoping to build a home with your own personalizations, buying a model property takes that opportunity from you.

You also don’t have any flexibility on the location and choosing your lot. Model homes are typically situated smack dab in the center of the community – often at the entrance of the development where there may be more noise and traffic.

3. Higher purchase price than the baseline model

While you may be snagging a massive discount on a model home and all of its upgrades, it may be pricier than the baseline model your builder has on offer without any customizations.

The extras may be worth it, but you’ll need to consider if the added cost fits into your budget.

4. Warranties may be expiring

Major appliances often come with warranties of around one to three years. The catch? They often kick in once they’re installed and not when you move in, which means the clock’s already started well before closing.

Check on any warranties on both the model home workmanship and its appliances.

5. Missing or faulty parts

In some cases, parts and fittings might be missing from a showroom home. Developers will often take a spare part, like a shower drain or a door handle, from the model home to repair other properties in the development.

Scan the model home thoroughly for any of these missing parts. Ask your builder about having these replaced before making an offer.

Questions to Ask Before Buying the Model Home

Sometimes it’s crystal clear that showroom is what you want to buy. In other cases, it isn’t as obvious. Ask yourself these questions to help you decide:

• Are you out of time or in a rush? If you need to buy a new home that’s move-in ready, a model home may be a great option.

• Are you happy with the finishes and design choices? If you love the layout, upgrades, and materials the developer picked out, perfect! If not, keep looking.

• Is the wear and tear acceptable? Check that the builder will make repairs and renew warranties so that you feel comfortable making an offer. If they insist on selling it “as is,” you’ll need to decide if this works for you.

• Is it at a fair price? Take stock of all the pros and cons of the model home and decide if it’s at a price point that’s reasonable to you.

And before you proceed on making an offer, don’t forget to:

• Get a home inspection to uncover any hidden issues from wear and tear.

• Negotiate repairs or credits for any cosmetic or mechanical fixes needed.

• Review the warranty with your builder. You may need to request an extension as an extra protection.

• Clarify included upgrades so you know exactly which features are included. You don’t want to move in to find high-end appliances and cabinetry have been swapped out for base models.

• Speak with your builder so you better understand how long the property has been a showroom, how it’s been used, and if they have any maintenance records during that time.

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