Newsday
A Closer Look: Buying a New Home for Less
A builder's model may save money, but with some drawbacks
January 13, 1995

By Joe Catalano. Joe Catalano is a free-lance writer.
If you want to pay top dollar, consider buying the project's model. Savings will vary, depending on the builder and project. At some developments, a person can even buy the furniture and window treatments at a discount. The trade-off is that the buyer has to accept the kitchen cabinets, carpet colors and other decor the builder has already installed. The Holiday Organization decided in 1993 to phase out production of attached townhouses at The Hamlet Golf and Country Club in Commack and introduce detached units, which were in greater demand. Westbury-based Holiday started marketing the detached units last July. Two furnished townhouse models are for sale for $540,000 each. Their actual market value, including the cost of the furnishings, is $627,000, said Ron Bloomfield, sales director. But a buyer doesn't always have to wait until a project is sold out or the developer changes designs. In larger developments, builders sometimes sell the model and erect a new one with the same floor plan to create a fresh look and stimulate sales, said Marilyn Larsen, owner of Lane Realty in Great Neck. Some developers sell models when a buyer needs a home immediately.At a Farmingville project Larsen represents, the developer sold the model before the sales office opened. It gave the buyer an immediate home and the builder quick cash, Larsen said. Another model is under construction.

At Beechwood at East Meadow, a development of single-family houses that sold out in October, the model was sold in June, said Michael Dubb, president of the Beechwood Organization in Williston Park. The model had every option Beechwood offered, and the buyer saved $7,000 compared to the cost of ordering each option separately, Dubb said. Another model was built. At the company's recently opened two-family house development in City Island in the Bronx, the model can be purchased at any time, Dubb said.Options available to buyers of model homes - either free or at a discount - can include fireplaces, decks, mirrors and window treatments. Also, a model is often landscaped with mature trees and lush lawns.

But there are drawbacks:
Models are sold as-is. Some developers, such as Dubb, clean the homes, spackle dents, repaint walls and clean the carpeting. But the sun might have faded some of the wallpaper or the carpet might be worn
because of customer traffic. The model may be near the project's entrance or on a main road, since it has to be accessible to potential buyers. However, location can also be a strong point - for instance, a high floor in a high-rise condo, or a lot overlooking a pond in a suburban development. The builder may require an immediate closing if the model is being discontinued, or the project is sold out. At the other extreme, a buyer may have to wait months for delivery until all remaining units are sold. Dubb sold the second East Meadow model when the development sold out in October, but the closing won't occur until this month. The buyer agreed to allow the developer to use the model to sell homes for another project.A buyer can't select cabinet designs, tile patterns or carpet colors.Larsen pointed out that the home is professionally decorated to entice buyers, so neutral colors that appeal to a wide audience are often used. However, Bloomfield said, developers sometimes use bold colors to make models memorable.

Copyright 1995, Newsday Inc.
Joe Catalano, A Closer Look Buying a New Home for Less A builder's model may save money, but with some drawbacks., 01-13-1995, pp D04

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