Model homes have proven to be a great selling tool. The builder saves money by using the same blueprints over and over. They buyer gets the opportunity to see what the home will look like completed before it is built.
Most model homes are really nice. They often contain the upgrades that showcase the builder's work. But model homes are not just for being toured, many people are lining up to buy the actual model.
Model homes are perfect for buyers who want the entire package with little fuss and shopping. For example, a family without a lot of furniture that lives in a small apartment might really want an already furnished and complete home. The model home saves the family the trouble of shopping for furnishings and decor.
Many buyers want the benefits of a new home, but they do not have the months to build and make choices. They simply want to purchase a new home and move right in. The buyer knows exactly what he is buying with a model -- he sees the lot, the neighborhood and the home.
It has become increasingly difficult to find model homes to purchase. Models have become less of a selling tool for builders, due to increases in construction costs. Combined with an increased demand for models, you will find that they go very fast. If you want to purchase a model, you often have to jump quickly.
Real estate investors have taken advantage of model homes. They do this through a lease-back agreement which allows both the investor and builder to make a little money.
They purchase the model home before it is built and cover the cost of the building. The investor then leases the home back to the builder to use as a model. When the builder has sold all the homes in the development, the investor sells the unit for a profit. Not only does the investor get the sale price, but months and months of lease payments as well.
Model homes are great investment properties because it is evident that they will be kept in pristine conditions as a showcase of the homes in the development.
Some builders like the lease-back situation, while others hold on to them to sell themselves.
Couples looking to purchase second or vacation homes find the model home very appealing. Many don't want to have to furnish a second home. But when given the opportunity to buy a home complete with linens and dishs, they jump at the chance.
While model homes aren't perfect for every buyer, they are great for flexible buyers who are planning ahead. They offer a great opportunity to those wanting a new home without the wait.
Model homes are no longer just for making decisions for new homes. They offer the chance to purchase a new home, without having to imagine the home while it is being built. You see exactly what you are buying.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Article Source: http://EzineArticles.com/?expert=Martin_Lukac |  |