At this gift-giving time of year, what is the ultimate house gift?
For Sharon and Harry Beepath, it was buying and moving into a completely decorated and furnished home in November. The couple, with their daughter Rabina, 8, and son Akshay, 2, moved into the Glenwood, one of three models sold by Kirk Homes now that the builder is completing The Lindens of Aurora development.
The Beepaths didn’t start out intending to buy a builder’s model. In fact, they were not sure whether they wanted to buy a new or existing home. But when they stepped into the house earlier this year, both of them felt they had wandered into the perfect setting–from floor plan to interior design–for their family.
Though the three-bedroom, two-bath house was the smallest of the models being shown, Sharon Beepath said she preferred it because “it was so nicely laid out” with features she knew she wanted–a kitchen opening to the family room at the back of the house–and some features she hadn’t even thought necessary until she saw them.
“I like the stairs going from the kitchen” and the big walk-in master closet, she said.
“It was perfect. My 2-year old is into Harry Potter, and the boy’s room has a Harry Potter theme. My daughter is a little princess and the room was decorated for her. And my husband found a space in the master bedroom that is perfect as his personal library,” Beepath said.
“We love this house. We don’t want you to build us a house. We want this one,” she told the builder’s sales representative.
The salesperson took note and called the Beepaths several weeks later when Kirk finalized prices and put the homes up for sale.
Buying a model home is not for everyone. Many buyers would miss the thrill of participating in the building process–from choosing the floor plan and interior finishes to watching the various stages of construction.
But for those who are willing to be patient or who crave the goodies shown in the home at a discount, buying a builder’s model could be an option.
The advantages for buyers are obvious, said Janey Amidei, vice president of sales and marketing for Streamwood-based Kirk Homes, which has models on sale at the Wing Pointe development in Huntley.
Not only does a buyer know exactly what they are getting in the house, including the pictures on the walls, but “they get up-to-the-minute interior design, a lot of built-ins and–if they want–all the furniture at a low price” as well as “many options and upgrades” for a discounted price, Amidei said.
“It is definitely an advantage. You can bring groceries and clothes and move in,” says Robin Johnson, vice president of sales for Lakewood Homes based in Hoffman Estates. Johnson said she has sold models in several communities in just the last year. Two models are for sale, though occupancy is not estimated until late fall 2006, at Lakewood Grove in north suburban Round Lake. There are less than 24 homes available in the development of nearly 800.
Some builders sell the models as soon as they open to investors who then lease back the homes to the builder. Since models are typically used for three or more years, the arrangement allows builders to get their money back immediately while the buyer’s investment appreciates as the development is sold.
Builders such as Kirk and Lakewood Homes, who use the models as sales offices, typically put the models on the market when a development is almost completed, Amidei said. The sales staff will take names of those expressing interest in the model from the day it opens, Johnson said. The reality, of course, is that most people on the list have made other arrangements by the time the builder calls.
Prime candidates to buy a model home are other residents in the development who are ready for a new home and corporate transferees.
The transferees “want something new but don’t have time for the window treatments, faux painting, wainscoting, and to wait for the landscaping to mature,” Johnson said.
Others do buy models, but the timing can be tricky both for the sellers and the buyers.
“I have to time it right so that the buyers are not living in the middle of a model court,” Johnson. She also has to see that real driveways are put in (many models are shown with grass in front) and convert the sales office back to a working garage.
The Beepaths lived in two different rentals during the six months between selling their former house and moving into the Glenwood, which they bought for $340,000.
Buyers should be aware that “we price it with today’s prices then we take a close-out or model discount,” said Amidei.
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“I look at how long I’ve had [the models], the wear and tear and how up-to-date the interiors are. I look at the options and I put a value on the furnishings,” said Johnson.
Amidei and Johnson said they generally do not repaint the house or install new carpeting, although they will shampoo existing floorcoverings. But when pricing the homes they take into account that the mechanical systems such as the air conditioner and furnace and appliances, while little used, are several years old.
On the plus side, most buyers are getting well-maintained homes, often cleaned several times a week to keep them fresh and appealing to buyers. They will have special designer features, such as built-in book shelves and corner cabinets, mature landscaping and, often, a prime lot.
A Lakewood representative walks through the house with the buyer to point out any flaws such as a rip in the wallpaper and chips in the countertop, which the builder will not repair, Johnson said. The builder gives a one-year warranty on model home.
Buyers usually have a choice of buying the house with or without furnishings. The Beepaths took the furnishings, for a set amount over and above the cost of the home, as do most buyers.
“We got a great price,” said Sharon Beepath, who advised there may be some room for negotiation and the “prices aren’t always set in stone.”
Although the home had been used, “in a sense it is not normal wear and tear,” she said.
“You couldn’t have bought all the furniture, the house and the decorating for the price we paid,” she said. “I have no sense of design and color. The decorating was a huge bonus to me.”
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Lakewood Grove, Round Lake
$529,900 with furniture
Available: Fall 2006
FACTS
The Lancaster model
Two-story, four bedrooms each with walk-in closets, 2 1/2 baths, partial basement and two-car garage
Address: 81 W. Norwell Lane
PROS AND CONS OF BUYING A MODEL HOME
CONS
– Several years old with use.
– Price is determined by discounting from current price, not from price when originally built.
– Move-in date can be tricky.
PROS
– Professionally decorated.
– Filled with upgrades and amenities.
– Mature landscaping.
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