Why New Construction Housing Associations Eventually Sell Model Homes at Lower Prices

When it comes to new construction housing, model homes are often the first properties to be built and the last to be sold. These homes are used as showpieces to attract potential buyers, showcasing the best features and finishes that the builder has to offer. However, when the time comes to sell these model homes, they are often priced lower than the rest of the homes in the development. This may seem counterintuitive, given that these homes are typically upgraded with high-end features and finishes. So, why do housing associations sell model homes at lower prices? Let’s delve into the reasons behind this practice.

Reason 1: Wear and Tear

Model homes are essentially showrooms. They are open to the public for viewing, which means they experience a lot of foot traffic. Over time, this can lead to wear and tear, even if no one has ever lived in the home. While the damage is usually minimal, it can still affect the home’s value. Therefore, housing associations often reduce the price to account for this wear and tear.

Reason 2: Outdated Features and Finishes

Model homes are typically built at the beginning of a development project, which can sometimes span several years. By the time the model home is put up for sale, some of its features and finishes may be outdated. While these homes are still beautiful and functional, they may not command the same price as a brand-new home with the latest features and finishes.

Reason 3: The Cost of Converting the Home

Model homes are often used as sales offices, meaning they may have been modified to suit this purpose. For example, the garage may have been converted into a sales office. Converting these spaces back into their intended use can be costly, and these costs are often reflected in the home’s selling price.

Reason 4: The Need to Sell Quickly

Once a development project is nearing completion, housing associations are eager to sell off the model home and move on to the next project. This urgency can lead to lower prices, as the goal is to sell the home quickly rather than hold out for the highest possible price.

In conclusion, while model homes are often upgraded with high-end features and finishes, there are several reasons why they are typically sold at lower prices. These include wear and tear from foot traffic, outdated features and finishes, the cost of converting the home back to its intended use, and the need to sell the home quickly. So, if you’re in the market for a new home, a model home could be a great option that offers value for money.