One of the reasons many homebuyers are drawn to buying a brand-new home is that they often get to choose many of the home’s features to suit their tastes. With a resale home, you pretty much get the place as is. But with new construction, you can call the shots on countertops, fixtures, flooring, paint colors, and so much more to make your home feel like, well, you!
However, prospective new-construction customers should realize that certain builders may offer a wide array of options, whereas others may offer few to none. Or, some may offer changes, which they charge extra for.
“When shopping for a builder, it is important to understand what is included in the base price for the plan you like—or you could end up spending thousands more to add the options and features you want,” says Kimberly Mackey, founder of New Homes Solutions and a sales and marketing management firm in residential homebuilding.
In other words, it’s important for anyone shopping new-construction homes to have an understanding of what is standard and what will likely require an upgrade (meaning more money out of your pocket). Here’s how to know the difference, and what’s worth the additional investment.
What comes standard in a new-construction home?
In the new-construction business, “standard” is a relative term, since what is included in the base price will depend on who’s building the house.
“What is standard and what should be standard will always be subjective and based on the builder’s price points in the market,” says Don Turner, national director of sales for new construction at Realtor.com. However, with rising mortgage rates and housing costs nibbling away at what buyers can afford, builders will need to provide more to lure buyers away from resale homes that have everything in them and can quite often come turnkey, adds Turner.
“What we are more commonly seeing now, especially with rates being higher, are builders increasing their level of standard features to include all appliances, even washers and dryers,” says Turner. And as long as home prices remain high, this trend is bound to stick around and can help seal the deal for cash-strapped buyers who have little money left after moving in.
However, homebuyers who just assume that items like appliances would automatically be part of the sale could be in for a rude awakening when they’re not. That’s why it’s vitally important to ask builders exactly what is included in the baseline price.
How to find out what a builder includes as standard
“New-home shoppers should always ask for the standard features sheet as well as the list of possible upgrades,” says Erica Bell, marketing manager for the homebuilding company Miller & Smith.
Mackey also suggests that new-construction buyers use the standard features sheet while touring model or spec homes to differentiate what designer upgrades they may have. This will keep potential homebuyers from assuming what they see in a model home is exactly what they’ll get (and being disappointed or surprised if they must pay more to make their home look like the model they toured).
What is considered an upgrade?
What is deemed an upgrade depends on what is included from the outset. An upgrade for one builder might be a standard feature for another. This is why it’s important to get very clear about what is included in the base price you’re quoted on any new-construction home.
That being said, Turner suggests examples of upgrades might include the following:
Quartz countertops instead of granite or Formica Bigger kitchen cabinets Stainless-steel appliances Hardwood flooring or tile versus carpet throughout the home Double-door entrances or a three-car garage Dual vanity sinks and/or separate tubs and showers in the bathroomBasically, anything that isn’t included on a builder’s standard features sheet will be charged as an upgrade, which can definitely affect the final price of a new-construction home.
What are the best new-construction upgrades to get?
Personal preferences aside, if you don’t have unlimited funds, what are the smartest upgrades to make that will increase the value of your new-construction home?
Many experts agree that the biggest bang for your buck will probably come from upgrades to the flooring, kitchens, and bathrooms.
“Generally speaking, kitchen upgrades are going to give you the best ROI of all the options,” says Bill Samuel, owner of Blue Ladder Development. He adds that his favorite upgrade is a separate top cabinet with a glass front and interior lighting.
“If you pay attention to the fine details when designing your kitchen and do the upgrades in the right places, you’ll wind up with a very high-end-looking home,” says Samuel.
Finally, you might also want to add structural options that will increase square footage and maximize living space.
“When you create your budget, focus first on the structural options, like bonus rooms or extra bedrooms, garage extensions, morning rooms, etc., because those are the things that are more expensive to go back and do later,” says Mackey. “Even if the builder offers the space unfinished, you will want to include that space to give you room to grow down the road.”
Which new-construction upgrades might not be worth the money?
Basically, any features that are not firmly attached to the structure of your house are fine to keep standard for now if you’re looking to save money. This includes most appliances, lighting, and basically anything that can be easily swapped out later.
“My belief and guidance to buyers is they should keep standard lighting and standard plumbing fixtures as those are easily switched out aftermarket,” says Bell. “However, it is totally worth it to upgrade materials in your kitchens and bathrooms.”
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