Can You Buy a Model Home With the Furniture?

A model home is a meticulously decorated and furnished property that builders use to showcase design, layout, and potential upgrades in a new housing development. These homes serve as a tangible example for prospective buyers, allowing them to visualize their future living space. A common question is whether it’s possible to purchase the model home with its existing furniture. This article explores acquiring a model home, specifically addressing the inclusion of its furnishings.

Understanding Model Home Purchases

Purchasing a model home involves a distinct process compared to buying a standard new build. Model homes are often among the last properties sold in a development, as builders use them to attract buyers for other homes. They typically come with numerous upgrades and design features already incorporated, showcasing the builder’s highest-tier offerings. While new, the structure has served as a public display, often sold “as-is” regarding its current condition. Builders are motivated to sell these properties to conclude a community’s development and free up capital for new projects.

The real estate transaction follows a process similar to other home purchases, though buyers should anticipate less room for structural customization. Many premium features and finishes are typically included in its sale price. This offers a buyer a high-quality, move-in-ready property with design elements that might otherwise be costly additions. The focus remains on the real property transaction, laying the groundwork for discussions about personal property.

Including Furnishings in the Sale

Including furniture and decor in a model home purchase is often feasible but requires separate negotiation. Furnishings are personal property, distinct from the real estate itself. Their inclusion is not automatic, necessitating a separate agreement or specific clause within the purchase contract. Builders may offer a “turnkey” package, including furniture, or negotiate individual item sales.

When valuing the furniture, builders may consider its depreciated worth or offer a flat fee for the entire collection. Buyers should be aware that furniture is usually sold “as-is,” without warranties. Personal property is generally subject to sales tax, unlike real estate. Lenders typically do not include furniture value in mortgage financing, meaning any agreed-upon price for furnishings would likely be a separate payment outside the loan. Furniture value is also not considered part of the home’s cost basis for tax purposes.

Specific Aspects of Model Home Ownership

Once purchased, a model home and any included furnishings are generally conveyed in “as-is” condition. While new construction, the home has experienced significant public foot traffic, which can result in minor wear and tear on surfaces, flooring, and fixtures. A thorough home inspection is always advisable to identify any such conditions. Builders typically provide a standard new home warranty for the structure and its systems, which generally applies to model homes.

A common arrangement with model home purchases is a lease-back agreement, where the builder leases the property back from the buyer for a specified period, often ranging from several months to a few years. This allows the builder to continue using the home as a sales office or showcase until the community is largely sold out. During this lease-back period, the buyer typically receives rental income from the builder, but cannot immediately occupy the home. This arrangement can offer a financial benefit to the buyer through rental payments, but it also means delayed possession and specific considerations regarding property tax and insurance during the lease term.