Model Unit is a residential unit as a sample to be shown to prospects, but not for sale, unless all the housing units in the category are sold.
In real estate, a ‘model unit’ is a sample apartment or home that is equipped with proper furnishing, lighting and plumbing system to showcase the layout and finishing of a property to potential buyers. It is usually located in the same vicinity as that of the actual building which is under construction or already on sale as vacant units. This unit, however, is not on sale unless the property owner decides otherwise.
Prospective buyers tour these units and a salesperson accompanies them on the tour to highlight all the features the home offers, indicating all the features that buyers will be getting when they purchase the property. It is made to be as luxurious and inviting as possible.
A model unit is usually created for multi-family properties such as apartment complexes, condos and duplexes and triplexes that show the interiors of the home that people will be buying. It can also give decor ideas to buyers for when they purchase a similar unit.
Developers spend a large amount of money on model units that are fully functioning and visually appealing so that it can attract buyers or renters. It is a chance for potential buyers to visualize how the space would look if they purchase or rent it out. The very purpose of a model unit is to attract potential buyers and convert them into an actual sale.
A model unit is not just a way to help potential buyers visualize the space but also a chance to highlight the unique selling features of the property. For example, a model unit can be equipped with hardwood floors, marble countertops, baths with additional features such as a sauna or a walk-in closet. Such features are highlighted when people tour the unit.
A model unit is typically not put up for sale and is only reserved as a marketing tool for display and promotion purposes only. However, an owner may choose to put the model unit on sale after all the other units of the property have been sold. This is, however, quite unusual and it is only sold under special circumstances.
Hence, a model unit can technically be put up for sale but it is highly uncommon. If a buyer wants to purchase the model unit, they will have to speak directly with the owner of the property and agree to the terms and pricing. Additionally, a model unit will also be sold for a higher amount than the other units of the property.
A model unit is a great way to show potential buyers the unique features and unique selling points of a property by fully furnishing the unit. It is an important marketing tool in real estate as it provides potential buyers an immersive and realistic experience of the property. This experience greatly influences the buyer’s decision and can generate sales more quickly.