SANTA ANA, Calif. - New homebuyers Mike and Shannon Clarson have looked at more than 50 houses in the past two years, so they know there's no place like a model home.

"I think when a house is decorated as they do the models, it's eye-appealing. That's what makes you want that home, the way it's decorated," said Shannon, who was waiting to meet with a salesperson at one such model home.

Seated next to her and their infant son on a sofa, Mike nodded: "The details and nice touches really sell the home."

The Clarsons and other savvy veterans of a tight housing market might be surprised at the level of care and calculation that go into making a house a model home.

Yes, model homes are designed in part to tempt buyers into purchasing top-of-the-line "upgrades": the granite countertops, the restaurant-grade ranges, the knotted and cracked hardwood floors made to look as if they were salvaged from a 100-year-old schoolhouse. But putting together a model goes far beyond displaying the latest and greatest in luxury fixtures and furnishings.

Model homes are elaborate stage sets where each pillow and knickknack and every other element - from the Provencal ceramic rooster and the bamboo rice box placed side by side on the kitchen island, to the movie playing on the VCR in an upstairs "retreat" - are designed to strike a chord within prospective homebuyers.

"The buyer group we were trying to appeal to normally wouldn't think of new homes," said Steve Cauffman, president of design firm that decorated the house. "So it was meant to feel comfortable and give a sense of 'this doesn't feel like a new house.'"

Sometimes, the details in a house are less subtle. For example, if the neighborhood boasts equestrian trails and stables, the designers are likely to choose photos of horses and show ribbons and trophies to decorate a child's bedroom. Or if the schools in the area are noted for their sports teams or programs, those will be highlighted.

"It gives the parents the idea that this isn't just a house - a whole community that I'm buying into," Cauffman said.

Builders also realize that, unlike most other products, a house is expected to maintain or increase its value, and they want potential buyers to be able to see its long-term potential, its possibilities and flexibility. A spare bedroom can be decorated with a couch, a television and other furnishings and shown as bonus room or retreat.

The buyers, for their part, are not unaware that many developments place restrictions on the changes they can make to the outside of their homes, so the interior becomes one area where they can express their individuality. And these days, designers say, it seems that everyone reads Martha Stewart Living or Metropolitan Home, watches Trading Spaces and flips through a Pottery Barn or Design Within Reach catalog.

"Everyone out there is very sophisticated. They know how to put these things together," Cauffman said. "We're trying to keep their interest piqued and push that envelope."