Model Homes -- The Real Deal?

Model homes are mesmerizing to many of us But what are we really seeing when we walk through them?

In order to separate the glitz of strategically placed furniture and “chotchkies” from the everyday practicality of the floor plan -- the sizzle of upgrades and decorator-produced sleight-of-hand from the steak of included features in each model home -- you've got to work a little, not permitting the magic of the moment to lull you into a premature buying decision.

Let’s begin our model home tour with the drive into the community. Perhaps you noticed the signs to the new home neighborhood months before it invited visitors, saw an ad in the paper, watched the model homes being built, heard about them from a friend, or found them on the Internet. As you drive past the signs announcing, for instance, “The Estates”, look for things that demonstrate how the neighborhood may eventually turn out, such as:

• How wide are the streets?

• Are gutters and sidewalks in place?

• Are there street lights?

• Did the builder include some landscaping corridors or open space areas to give a feeling of roominess?

• If it’s a town home or condo project and garages are included, see how they are arranged for cars pulling in and out and what conflict there may be for traffic patterns at certain times of the day.

• Carports and parking spaces should be wide and roomy as well. Check to see how much guest parking may be offered.

• Blissfully “retentive” type homebuilders hose down their construction sites and collect debris before the weekend to encourage you to drive through. Are the construction sites a mess on a weekend, or are they cleaned up enough to look presentable?

• How far did you just have to drive from a major freeway or through-street to get there?

• Did you notice any public transportation nearby?

• What types of buildings surround the neighborhood? Apartments? Single family, older homes? Other new home developments? Commercial or retail businesses too close or just far enough away for comfort?

You can take note of some or all of these things as you follow the flags and signs to the builder’s sales office. The sales office is usually found in a trailer (temporary or permanent) or in the converted garage of a model home. Office hours can vary around the country, but new homes sales offices generally don’t open before 10 a.m. or close before 5 or 6 p.m., depending on the time of year. Many companies open one late morning or early afternoon per week to accommodate a mandatory meeting where agents, building superintendents, in-house lenders and design center personnel gather to monitor the status of each home being built or planned.

The busiest time to visit is on weekends; the lowest traffic times tend to be mid-week. So if you want the undivided attention of a salesperson, plan your time accordingly.

The sales office is a place not only where the on-site salesperson greets you but also information central for a potential buyer. Oftentimes buyers will breeze through, without examining the builder’s floor plans, exterior renderings of each house, lists of amenities, or an area map that displays the locations of the homes. One of the most telling graphics in many sales offices is the aerial view of the neighborhood-to-be. This is a bird’s eye view of how the community is located within the general plan of the area. Ask the sales person to identify what surrounds the neighborhood if this graphic is displayed. Also on hand may be the builder story, explaining how many homes the builder has had experience building and how long they have been in business as well as a mission statement of sorts. This can give you insight into the builder’s corporate culture.

This may be a good time to use your high-tech gadgets, like your digital camera – to chronicle what you will see for the day and review it upon arriving home. Get permission for photography sessions from the on-site salesperson. You should, however, not get the type of resistance you would with a re-sale home, whose owner might not permit photographs for security as well as privacy purposes. These homes have imaginary residents, remember?

Once you’ve gotten a feel for the builder’s offerings, you’ll step into the model home and begin your tour. Most on-site agents will touch base with you after your tour to see if you have questions. The really good ones will offer to actually “demonstrate” their model homes if either time or prospect traffic permits (although some are skilled at doing this with more than one visiting group at a time.) You don’t have to take them up on this offer, but if you do, you might be in for a highly informative experience while walking through a model home.

Keep in mind what a builder’s salesperson cannot talk with you about, however. They’ll steer clear of discussing who is buying or has already bought homes in the neighborhood. This is a violation of Fair Housing laws and privacy rights for which they can be held liable or have their licenses revoked. They also will not guarantee particular schools available to new residents’ children, since district zoning and classroom sizes can vary. Tax advice is another area they will refer you back to experts to query.

Confident builder salespeople will talk up their own builder -- without the need to throw any competing builders or their communities “under the bus.” They may even encourage you to compare both neighborhoods and builders before you buy, handing you a “dare-to compare” list, featuring all the advantages to buy from them. This is actually a handy comparison chart whether or not you buy from them, as each builder will have a slightly different set of criteria they boast about.

Doing an “apples for apples” comparison when considering several different builders’ homes may have you taking note of what is included in the base price as well as some details about the builder, its legacy and its product. Ask questions or look for information such as:

• How wide are the baseboards?

• Are ceiling heights the same as what I see in the model?

• Are windows all dual pane? Low-E? What kinds of frames do they have?

• Do the doors come raised-paneled or flat?

• Are wall corners knife-edged or softly rounded?

• Do appliances use gas or electricity and is the cook-top separate from the oven(s), is it built-in or does it slide-in?

• What is the size of the water heater?

• What are the typical bathroom fixtures?

• Is the heating and air conditioning zone-controlled or does it use a single thermostat?

• Is there structured wiring to the neighborhood or within the house for computers, networking, security and entertainment systems?

• What types of flooring are included in each room?

• Are the things that can be taken for granted as “standard” (depending on what is customary in the area) included in the price -- such as bathroom medicine cabinets, a microwave, front yard landscaping, laundry cabinets or cable outlets?

• What is the insulation material and what are the “R” values (degrees of thickness) of insulation in inner and outer walls as well as ceilings? Find out how this contributes to both energy efficiency and sound abatement within the home.

• What is the typical dollar range homeowners tend to spend on upgrades at the builder’s design center?

• How much flatwork (concrete) is included in both the front and backyards and what landscaping is done by the builder? Is there a timeframe owners must observe to finish their front or backyards to be in compliance with the neighborhood’s governing rules (C.C.& Rs)?

• What type of new home warranty does the builder provide?

• Are homebuyers required to pay special tax assessments or homeowners’ dues if they purchase in this neighborhood?

• How extensive are the C.C. & R.s – if any? Are there homeowners’ dues?

• What is the school district and where can more information about it be obtained?

• Where else has the builder built homes and how long have they been in the area?

• Where will this builder build next?

If you’re really curious, this is the short list.

Once you’ve toured the models, perhaps you saw a floor plan you liked and the price was within your comfort range. If you weren’t treated to a guided tour of the models with the sales person, you can now attack him or her for information as you filter back through the sales office.

Most homebuilders don’t try to hide the fact that they have added many more bells and whistles to the model home decorating schemes than most people would add. Some season their models with disclaimer placards or stickers to various items, either boasting that they are

• “included” (standard and part of the purchase price)

• “upgrades” or “upgrade opportunities” – available at an extra cost through their retail design center, or

• “decorator” -- merely a creative touch brought to you by the interior design geniuses of America and not available to the average consumer.

Not all home sites are created equal. Because the local city authorities have guidelines as to the minimum distances (called setbacks) from both the sides and back of the house to the property line, some of the builder’s” footprints” may not fit every lot.

You can also take note of each home site’s exposure. Where will the sun rise and set each day? Are there plans for single levels or two stories on adjoining lots? Where does the street go? When are the rest of the homes along that street going to be built out (in other words, how long would you have to put up with the noise and dust of construction)?

The builder’s salesperson may already be in possession of helpful materials designed to show how the house is destined to be plotted on a particular lot – with the footprint for each of their floor plans traced on a clear acrylic sheet ready to place on each potential home site – all printed to scale. Computer program renderings may also demonstrate the possibilities . . . . it doesn’t hurt to inquire about this. And if the on-site salesperson isn’t Johnny-on-the-spot with the information or has these options, he or she may be able to petition their builder to provide the data for it and get back to you.