Builders or building companies often construct a model or “show home” to use as a live advertisement for their work, especially when they’re building a new subdivision or exclusive community. These homes are usually designed to showcase the builder’s best work—an aspirational example of what your dream home could be.
A show home typically features all available upgrades and numerous designer touches. While it’s technically a “new home” because no one has lived in it, everything is already complete and move-in ready.
With the real estate market experiencing fluctuations, many builders are scaling back on new construction. To reduce costs, they often sell off model homes. This allows them to recoup some investment now, and when the market rebounds, newer trends or neighborhoods may call for entirely new models anyway.
Buying a show home from a builder can be a win-win situation. However, there are a few important things to keep in mind when considering a model home purchase.
The Ups and Downs of Buying a Show Home
Pros and Cons of Buying a Show Home
The biggest advantage of buying a show home is that everything is top-of-the-line. Remember, this home was designed as a sales tool for the builder. The more upgrades they can display, the more they can potentially sell—meaning most show homes include premium flooring, cabinetry, countertops, molding, lighting, windows, doors, architectural features, appliances, and other fixtures.
These homes are often professionally decorated as well. While builders usually retain any furniture brought in for staging, buyers may benefit from extras like curtains, blinds, floral arrangements, or even wall art. Professional landscaping is also commonly included.
You might even find luxury features such as decks, fireplaces, spa tubs, or pools—amenities that would normally cost tens of thousands of dollars as upgrades—already built in.
While that all sounds ideal, it’s important to ask a few key questions. For example, has the home ever been lived in, even temporarily? Don’t make assumptions. While most show homes are only used for display, a builder may have allowed someone to stay there—or may have even lived in it briefly themselves.
Even if no one has lived in the home, remember that it’s likely been visited by hundreds of people. The carpet may have been cleaned frequently to maintain its appearance, and the walls could have had numerous touch-ups. Be sure to ask about any damage that may have occurred and how it was repaired. Builders may fix things cosmetically without considering long-term durability.
Before committing to a purchase, spend time walking through the home and evaluating its practicality. Show homes are sometimes designed to be visually impressive, but they may sacrifice functionality. That stunning double-sided fireplace may be a conversation starter, but does it leave you with no logical spot for your television?
When hiring a home inspector—which you absolutely should—make sure they’re aware the property was a model home. Ask them to look out for details often overlooked in show homes, such as improperly installed appliances or unsealed tub enclosures. A home may look beautiful but still not be ready for day-to-day living. Make sure it’s ready to be lived in—not just looked at—before signing on the dotted line.
Closing the Deal on a Show Home
As with any home purchase, it’s crucial to have someone representing your interests. Buying a show home offers the opportunity to enjoy high-end features that might otherwise be out of reach. However, don’t let excitement lead you to rush the process. Work with a trusted Realtor or real estate lawyer who can carefully review all the paperwork before closing the sale.
Keep in mind that this is a buyer’s market. Even though show homes can be rare and desirable, you shouldn’t feel pressured to act too quickly. Builders with show homes are usually well-established businesses and are likely to be far more experienced in negotiations than you. Don’t let that imbalance work against you.
Having a real estate professional guide you through the process can help you avoid the common pitfalls that come with over-eagerness. Protect your interests, take your time, and you could end up with a beautiful, feature-rich home—one that makes you the envy of your friends and family.
Good hunting!
