Which New Construction Home Upgrades are Worth It?

Are you in the exciting phase of purchasing a new construction home? One crucial aspect often overlooked is deciding on upgrades during the construction phase versus those that can be deferred. There are several key considerations to make informed choices for your dream home.

Base Price vs. Purchase Price

It is important to note that the base price advertised by builders does not cover essential upgrades. Many buyers assume that they don't need extravagant upgrades, but in reality, most buyers end up spending more than the base price for customization. As you consider purchasing a new construction home, it is wise to allocate an additional 10-15% of the base price for upgrades and customization.

Exercise Caution Against Over-Upgrading

It's tempting to go all-out with upgrades, but it's vital to consider your long-term plans before committing. If you are only planning on living in your new home for 2-3 years, it may not be wise to opt for all of the upgrades and "overbuild." A new construction home that is overbuilt has a risk of selling at a lower price compared to what you purchased the home for, even considering any appreciation of the neighborhood during that time.

Prioritize Structural Upgrades

Structural enhancements, such as adding additional rooms, a sunroom, or altering windows, should be prioritized upgrades during construction. Performing these modifications to your new home during its initial construction will save you money. These structural upgrades are also challenging post-construction and can incur substantial costs if completed later on in the life of your home.

Smart Electrical and Plumbing Choices

Other items important to prioritize upgrading during the construction of your new home are electrical and plumbing choices. Examples of these items are additional lighting, electrical outlets, or plumbing fixtures. These items are best done during the build to save money and minimize potential damages that might arise if done after the initial construction of your home.

Enhance Resale Value and Personal Comfort

When you are considering which upgrades you would like for your new home, you should consider which upgrades boost resale value. The areas of your home that future potential buyers will pay attention to are the kitchen and primary bedroom/bathroom, so you should focus on upgrades in these rooms. However, while catering to resale value, you shouldn't forget your own personal wants and needs. While you may not achieve 100% of your wishlist, ensure that the critical elements are addressed.

Post-Construction Upgrades

There are several upgrades you should consider waiting to perform until after the construction of your new home is complete. Builders often charge a high premium for upgraded lighting fixtures, plumbing fixtures, and appliances. These upgrades can often be found at much more reasonable prices when purchased and installed after construction is complete. Other upgrades, like backsplashes, are projects that some homeowners can tackle themselves to save on costs and allow for more personalization options. Another key item to consider for post-construction upgrade is fencing. Builders may not offer an extensive range of fencing options and may charge a high premium on fencing installation. Installing fencing post-construction may both save you money and allow for a wider range of installation options.

Crown Molding and Flooring

While crown molding adds character, it's often quite expensive when installed by builders. This is an upgrade item that most likely will be more cost-effective to install after construction is complete, but be prepared for the mess that post-construction installation may create. Builders also charge a premium for flooring upgrades. If you are open to post-construction work, this is another item that may be more cost-effective to install using independent, licensed contractors.

Final Thoughts

Building your dream home involves making numerous decisions. Prioritize wisely, balancing immediate needs, future resale potential, and personal comfort. If you're uncertain about a specific upgrade, take a look at our newest video below and feel free to reach out to us directly for more information. Your new construction journey should result in a home that aligns perfectly with your vision and lifestyle. Happy home building!