Model Homes: A Wise Investment Choice Supported by Sales Data and Market Insights

Julia Wasserman
cover image


When it comes to building new homes efficiently and at scale, there's a smart choice that can lead to impressive returns: pre-designed model homes. These carefully curated options, created in collaboration with our dedicated supply-chain, offer our Home Construction Collective investors numerous advantages. These homes have been built by our partners thousands of times, resulting in a wealth of sales and market data and construction expertise throughout the supply-chain. Join us in this blog post as we explore the world of model homes, unveiling the benefits and potential they hold for savvy investors.

Understanding Pre-Designed Model Homes:

Instead of constructing custom homes from scratch, we choose from a thoughtfully curated menu of pre-designed options. These model homes offer consistency in design, layout, and construction processes, ensuring a streamlined approach. With numerous successful replicas, these homes are backed by a trove of sales and market data. Additionally, at Collective we’re acutely aware of the dearth of attainably-priced housing in the U.S. Today, less than 10% of homes built are at the entry-level price point.That’s why we seek to build model homes in the $250,000 - $390,000 price range.

The Benefits of Investing in Pre-Designed Model Homes:

Demonstrated Market Demand:

Pre-designed model homes are a direct response to market demand. Meticulous research and analysis go into developing and refining these options, which align with the preferences and needs of potential buyers in specific communities. By investing in these model homes, you tap into a proven formula, avoiding  the risks associated with untested designs.

Access to Comprehensive Sales Data:

The extensive number of pre-designed model homes that have been built and sold provides us with access to a wealth of sales data. This valuable information offers insights into buyer preferences, popular features, and pricing trends. Armed with such data, we can build what buyers want, making informed decisions, setting optimal prices, and better predicting market demand.

Streamlined Construction Processes:

Pre-designed model homes benefit from refined and streamlined construction processes. Contractors have honed their methodologies through countless iterations, optimizing efficiency, cost-effectiveness, and timelines. Investing in pre-designed model homes that have already been built numerous times  leverages proven construction processes, with the aim of mitigating the risks of unpredictable timelines and potential cost overruns.

Marketing Advantages:

The replication of model homes based on pre-designed options provides distinct marketing advantages. These homes enable potential buyers to physically experience a fully constructed and furnished property, forging an emotional connection and facilitating their vision of a future home. The consistency and well-defined nature of these homes enhance their perceived value, expedite the sales process, and potentially lead to higher selling prices and faster turnovers.

Building model homes at volume presents investors with a unique and data-driven investment opportunity. These homes, replicated numerous times and backed by comprehensive sales and market data, have an established record of success. By investing in pre-designed model homes, you can take advantage of market insights and streamline construction processes, leveraging established marketing advantages and aiming for more consistent returns. Embrace the world of pre-designed model home investments, supported by data and market insights, and maximize your new home construction investment. 

(Disclaimer: With new home construction, as with every speculative investment, past performance is not a guarantee of future success. Please refer to the disclaimers at, incorporated herein by reference.)