Model homes are finished, viewable display models of homes that real estate agencies and developers show to potential buyers in housing developments. Located in the development, they are generally fully furnished and decorated, allowing potential buyers to see what homes in the neighborhood should look like when arranged for habitation. Particularly common in suburban areas, or any other type of housing subdivision in which new homes are produced through tract or manufactured methods, model homes generally depend on the similarity of homes in the development. Display models are also common in more densely populated urban areas that feature nearly identical dwellings, such as condos, townhouses, and loft apartments, and are sometimes available for purchase.
Instead of simply allowing potential buyers to view unfurnished, and often unfinished, homes when visiting a housing development, model homes allow realtors to take customers on a tour of a finished, livable house in the area. Basically, these furnished display houses allow home seekers a chance to visualize how a purchased home in the development might look. These homes provide guidance for buyers on how a home in the area will appear when inhabited. A display home also allows potential purchasers to get a sense of the spatial dimensions of the home when occupied.
While some model houses are available for purchase in their furnished condition, in stand-alone housing developments they mainly function solely for display. The display function also allows for buyers to view the work of the contractors who furnished the model home. By doing so, the display home provides a connection to these professionals, whom the buyers can then engage to furnish the home they purchase according to their specifications.
In denser urban areas, buildings that house condos and loft apartments may feature several model homes to display the varying sizes and layouts of units available in the building. As a result, there are generally more fully furnished model homes available for purchase in these types of multi-unit developments. Varying degrees of furnishing are often available for buyers depending on their desires. In addition to its display functions, a model home also provides real estate agencies and developers with space to house a functional office on development grounds in which realtors can conduct business with buyers.