There are indeed many pros to buying a model home. It is the builder’s showpiece – beautiful and packed with attractive features and extras. On the other hand, though, there are a number of cons to buying model home, such as the fact that it will be slightly used and isn’t truly a new home. So how do you decide? Let’s examine both the pros and cons of buying a model home in Los Angeles.
Pros of Buying a Model Home
The definite pros of buying a model home in Los Angeles include:
The great thing about a model home is that it is move-in ready. You don’t have to make any repairs or renovations, you often don’t have to paint walls to suit you, and you certainly don’t have to wait on construction to be completed. And an added plus is that you can often purchase the furnishings and appliances in the model home at a discount, and so won’t have to move yours in.
LOTS OF FEATURES AND EXTRAS
Because the model home is the builder’s enticing showpiece, it will be packed with features that other new homes in a development may lack. Builders want to make model homes look spectacularly seductive to get buyers to buy the other homes. So in most cases, you will get a lot more when buying a model home.
BIGGER FLOOR PLAN
In addition to more and better features, a model home will likely have a bigger floor plan (and for the same reasons). Because the model home is intended to showcase what the builder offers, it will likely be the biggest and best house.
MORE BARGAINING LEVERAGE
Typically, you have a little more bargaining leverage when buying a model home in Los Angeles include. Here, according to one prominent financial site, are some of the things you can leverage when negotiating price on a model home:
- The builder has already gotten a lot of use out of it
- Many people have been through it and wear is apparent
- Warranty periods have decreased
- The builder needs to move on to another project
- Costs of the model home have been written off as marketing expenses
Cons of Buying a Model Home
While model homes can definitely be attractive and sometimes a good value, there are still several cons you should be aware of:
WARRANTY PERIOD IS SHRINKING
As a top real estate site puts it, “The warranty clock has already started. New homes come with a standard 10-year warranty from the builder. But since a model home has been around for a few months or even years, that time is subtracted from your warranty coverage.” In addition, the typical one-year warranty on the appliances may have already expired.
LOSS OF NEW HOME INSURANCE DISCOUNT
Most of the time you can get a discount on your home owner’s insurance for a new home, but a model home isn’t actually a new home. So in buying a model home, you may face the prospect of losing some or all of that new home discount.
NOT ACTUALLY NEW
Along those same lines, a model home is just not a new home – despite the attractiveness and the fact that it has never been lived in. Typically, model homes have been traipsed through, touched, and used by scores or even hundreds of people and are often used by builders as on-site offices.
POSSIBLE LOWER QUALITY
Another con of buying a model home in Los Angeles is that it may be of poorer quality than the other homes in the development. With a model home, the builder’s emphasis is on looks rather than inherent quality. In addition, the model home’s construction may have been rushed so that the builder would have something to show prospective buyers right away.
Making the Right Decision
Buying a model home in Los Angeles – is it a good idea or not? It all depends on the particular model home and your particular circumstances. And, besides, there are both pros and cons to buying any home, new or otherwise. You will have to ask yourself some tough questions and be utterly objective in trying to answer them. For example, does the floor plan really meet your needs, will you actually save money by not having to upgrade or furnish it, and do the features actually provide value, not being merely cosmetic?
So buying a model home can be a good deal or a huge mistake. Really, it takes the expertise of an experienced real estate agent to help you sort through all the pros and cons. But one of the standard rules in these cases is that model homes should sell at substantially lower prices, chiefly because they aren’t brand new. But that’s certainly not your only consideration. We’re here with the knowledge and expertise to help, though.