A new display home might be just the thing your family is looking for during its next move, these houses offer an unprecedented opportunity to upgrade for a bargain price. However, there are some considerations to be made before jumping on any opportunity like this. Do your research and understand the major upside and potential pitfalls of a display home before considering the move.
A fabulous buying opportunity at a great discount
Above all else, display homes offer buyers an unprecedented opportunity to purchase a new home, complete with all the trappings of a luxury build, without the price tag. Display homes are constructed in order to show off the floor plan, master bedroom, bath upgrades, and a physical representation of the square footage of the homes a developer plans to build in a new neighborhood.
They are a key arrow in the quiver of a salesperson trying to convert viewers into buyers. But once all the lots are sold, they have no need for the display homes any longer and look to move them as well. A display home comes complete with a number of upgrades, a fully landscaped lawn, and the benefits of a new home with no previous owners or tenants. They can save you tens of thousands of dollars—if not more.
Because of the dramatic reduction in price, buying a display home can save you even more over the lifetime of your mortgage. Because interest rates and repayment plans vary based largely on the percentage of the down payment, a drastic reduction in cost will go a long way to denting the remaining balance due. You get a brand new home for a fraction of the price, and a fraction of the accrued interest that will build up over the term of your loan repayment agreement.
All of these benefits also make display homes a great option for those buying in order to flip the house or rent it out over the coming years to turn a modest profit. They offer a lucrative opportunity not only as a family home but also as an investment vehicle for someone looking to branch into the real estate market.
Limitations and Cautions
While offering a great buying opportunity for those with a keen eye, display models are also limited in their solutions. Because they are constructed to show off the design features that a contractor plans to offer in the area’s homes under construction, they are prebuilt with some inclusions that may serve your purposes and others that might not. You cannot customize these homes without additional renovations, which, some might think defeats the purpose of buying a truly new home.
They’re also used as the model and countless prospective buyers have wandered through space you may be calling home for the foreseeable future. This means some light scuffing or damage to wooden floors, appliances, and fittings. Some of this may be repaired by the contractors, but any defects left when you close on the home are ones you will have to deal with yourself. As well, while the rest of the block has carefully selected the positioning of their individual homes, yours must sit in the space chosen by the contractor, oftentimes at the front of the development.
These setbacks are largely minor, but enough problem areas could add up to be a real nuisance—possibly enough to make you regret your decision. All this is to say that contemplating a display home requires a careful eye for detail and the knowledge of possible shortcomings in the home you are considering.