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How Much Will New Home Upgrades Cost?

Written By: Jaymi Naciri
Friday, March 13, 2020

If youre thinking of buying a new home, understanding and considering these extra costs is important. Many buyers fall in love with a model home and are disappointed to see that the real home they are buying is full of builder basics, like unimpressive flooring and countertops, and no fancy backsplash or tiled shower. There may not be any grass or landscaping in the backyard or window coverings at all either.nbsp;

Heres what you need to know.

What is included in the base price?

Whats the first thing you do when you get to a new-home community? You tour the model homes, right? And now youre all in love and imagining your furniture sitting atop the wide-plank wood floors in the living room and your kids cozying up to the quartz-covered breakfast bar. Thats when you get hit with a big shock of reality: The model costs 200,000 more than the base price of the house.nbsp;

Can you upgrade for less?

Of course. You may want to replicate that model down to the very last knob and pull, but picking and choosing where to put your money can help you stay within a reasonable budget.

So how much are we talking?

Could be a little, could be a lot. It enti>

In general, everything you add or change will cost you. Individual prices will vary depending on the builder, the home, and the specific finishes they offer, but here are some examples of what to expect:

Wood flooring throughout the entire house could cost between 20,000 and 40,000, depending on the brand and quality.
Upgrading a kitchen could bust your budget. Depending on the builder and community, you could add better appliances, more expensive countertops, a fancy backsplash, and a nicer grade of cabinets. Before you know it, youre looking at the cost of a luxury car.
Adding another bedroom could cost 15,000.
Raising the ceilings? This could be a 10,000 upgrade.
Bathroom upgrades can get also get costly quickly. Want an expanded shower, freestanding tub, and upgraded flooring? Youre likely well over five figures.

Where should I start with my upgrades?

In the kitchen. The kitchen is the heart of the home, the spot where you will spend the majority of your time and make the most memories, said New Home Source. It can never be overly well equipped. Pay special attention to cabinets and appliances, as this is what future buyers will focus on, as well as the tools you will use every day.

Do any builders include upgrades in the base price?

Some do. For example, Lennars Everythings Included EI program includes some of the most popular amenities, such as GE or Electrolux stainless steel, energy-efficient appliances, upgraded polished granite or quartz countertops, and upgraded cabinets and flooring, in the price of the home.nbsp;

Other things you need to know about new-home upgrades:

Youre going to have decisions to make.

Many, many, MANY decisions. Youll need to choose products and colors and finishes for every room and nearly every surface. Sometimes, there will be multiple decisions that need to be made at once. Just selecting your cabinets from among the standard options and colors can be an adventure.nbsp;

Thankfully, many new-home builders today have design centers that are staffed with professionals who can provide guidance.

Upgrades can often be rolled into your mortgage.nbsp;

This makes them seem painless since you dont have to come out of pocket for those wood floors. But it will raise your monthly payment. And, if youre already at the limit of what youre qualified for, or what you feel you can afford, that increase may be problematic.

Its important to consider the value.nbsp;

Are you making smart upgrades that will add value to your home? Obviously, you have to weigh the importance of your personal wants and needs against what the general public might want when its time to sell. Your real estate agent should be able to provide important insight into items that willor will notmake the home attractive to future buyers.

You also want to think about whether you are over-improving for the neighborhood. If you put 100,000 in upgrades into the home, will you ever be able to get that money back out of the home? If your improvements make the home more expensive than any of the other homes in the neighborhood, you may end up losing money down the line.nbsp;

Copyright© 2020 Realty Times®. All Rights Reserved


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