Home Smarts - New Homes and Condos Article 4

Understanding Model Homes 101: Looking past the surface

It’s no secret that one of the most enjoyable aspects of shopping for a new home is touring the builder’s decorated models. A well-designed model can help you envision living within its walls, as well as providing excellent inspiration for the decoration of your own space. In these ways, models constitute a valuable resource for purchasers.

On the flipside, builders are well aware that model homes are one of the most powerful selling tools at their disposal. It’s clearly in their interests to dress these homes up to the nines – both to increase their appeal, and to encourage purchasers to splurge on the featured upgrades. They’re banking on an emotional response, and they usually get one. In order to stay objective, what should you be looking for when touring a model home?

With the recent proliferation of television shows about staging and “flipping” homes for sale, you’re probably aware that there’s a real science to creating alluring spaces. Through judicious use of colour schemes, mirrors and well-proportioned pieces, decorators are able to make homes appear larger and more luxurious.

But it’s the lavish application of upgrades that can be really misleading. Many models feature a laundry list of stunning decorating options: hardwood and slate flooring, stone fireplaces, intricately tiled steam showers and well-finished basements. On the home’s exterior, stone may be substituted for brick, elegant front doors installed and the lawn lushly landscaped. The accumulated cost of so many high-end features can run upwards to over $250,000 in some cases pending the type of housing product you are viewing.

It’s easy to imagine losing perspective at the prospect of living in such an incredibly appointed home. That’s why it’s crucial to have a grasp on which features are standard and which are upgrades. Don’t be shy: ask the sales representative to walk you through the home and have them write down exactly what is upgraded, and at what cost.

If the builder has a design centre, it should be simple to compare standard selections with available upgrades. Go over the standard specifications with a fine-toothed comb, so that you understand exactly what is included in the asking price; ask for a menu of upgrades with clearly marked pricing.

Next, take this information home with you and consider carefully. Will this upgrade add value to my home when I sell it in the future; will it increase my home equity? How much will this feature enhance my lifestyle? Can this feature be easily added at a later date?
Be careful not to “over-upgrade” your home. This may seem counter-intuitive but, when it comes to resale value, it’s not necessarily an advantage to own “the castle in the neighbourhood.” Often, those buyers who can afford a spectacular home desire an equally spectacular neighbourhood.

As a general rule, upgrades that recoup their initial expense include hardwood floors, fireplaces, finished recreation rooms and double showers in master ensuites. But above all, keep to your budget; you won’t be doing yourself any favours by overextending yourself financially.

Email your questions to news@bennettpros.com

Marnie Bennett formed her boutique real estate marketing firm after meeting with remarkable success as an award-winning realtor and as Executive Vice-President of a market-leading custom home builder. Bennett & Company provides a full range of services to real estate developers, builders, property managers and investors. Marnie is a broker with Keller Williams Ottawa Realty, and team leader of Bennett Real Estate Pros a top-producing five-star team, providing five-star treatment.