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Unless the upgrades are free which I think you could easily negotiate these days. I would stick with standard items unless I was building a custom home. I have always refused to pay for upgrades when buying a used house as upgrades do not always appeal to the buyer so why pay for them when buying used. So if you decide to sell your house be prepared to take a possible loss on upgrades!
I have always refused to pay for upgrades when buying a used house as upgrades do not always appeal to the buyer so why pay for them when buying used. So if you decide to sell your house be prepared to take a possible loss on upgrades!
Having sold my house in the past 6 months, I disagree with this statement. You may refuse to pay for upgrades but that does not appear to be the case in the general market. There was a significant difference in the selling price of my house and a very similar house a few doors down from us. Almost all of that difference can be attributed to the fact that his house had many more upgrades than mine. Most buyers seem to be willing to pay for that.
Selling upgrades to people buying new construction is what I've done for nearly ten years, and here's the best advice I can give you:
1. Make sure the "bones" of the house are upgraded:
a. Cabinetry in kitchen (42", or tallest you can afford)
b. Wood floors throughout the first floor (keep the flooring consistant, so that if you get wood flooring, get it installed throughout. If you get tile, do the same. Don't get tile in one area, wood in another and then carpet in yet another area. It chops up the "flow" of the first floor.
c. Get fireplaces and any major plumbing and electric, such as double sinks, island in the kitchen, hi-hats.
d. If you're being offered upgrades such as higher ceilings , upgrade them (in the main areas only!) This is a sore spot for me, as I believe that these types of structural items should be included. It's just another way for the builder to get more money out of the buyer!
In any case, these are the things you will probably not tackle by yourself after you've purchased the home.
2. Items that can be changed later (or what I call "bells and whistles"):
a. Counter tops: Formica is fine, in upgraded colors. NEVER get light Formica without a beveled edge, as it will show an ugly dark line on the edges. Stick with dark Formica. Granite and any other solid surfacing is always less expensive done on your own, as builders mark these items up BIG TIME!
b. Appliances. Get the standard stuff and upgrade yourself later. You have more bargaining power at an appliance store when you're buying five appliances, than if you would buying them from a builder. I worked for a builder not too long ago, who marked up appliances to 75% more than what the retail appliances stores were selling them for!
c. Carpeting: get the upgraded padding, if available, then you don't neccesarily need the upper-level upgraded carpeting. NEVER get builder's grade carpeting! You'll be replacing it in a matter of 18 months, especially if you have pets and children.
d. If the builder offers upgrades in plumbing fixtures and lighting fixtures, only consider them in the foyer, kitchen, powder baths and master bath. Stay standard in all other areas, as you can upgrade them yourself later on.
Good Luck! Hope this helps.
Wow great advice! I'm purchasing a 1700 foot ranch from KB homes. Are they really giving me a deal with 50% off options or am I going to get killed on there lenders interest rate? Also since I am in a ranch, should I go with wood floors through out except for the bedrooms?
Having sold my house in the past 6 months, I disagree with this statement. You may refuse to pay for upgrades but that does not appear to be the case in the general market. There was a significant difference in the selling price of my house and a very similar house a few doors down from us. Almost all of that difference can be attributed to the fact that his house had many more upgrades than mine. Most buyers seem to be willing to pay for that.
I generally find that upgrades do not translate into more money on a resale. I would not buy upgrades solely for resale reasons. My advice is to spend as much on upgrades as you can afford. Just stick to your budget and you will be happy in the end. Good luck!
I generally find that upgrades do not translate into more money on a resale. I would not buy upgrades solely for resale reasons. My advice is to spend as much on upgrades as you can afford. Just stick to your budget and you will be happy in the end. Good luck!
that depends, we bought a 5 yr old resale that HAS ALL THE UPGRADES and got a great price HOWEVER there are homes selling for alot more money in the area we bought as well as sub-division with hardly any upgrades, OH and if YOU GET A NORTHENER buying your resale and it has all the upgrades which they do love, becuase here people u DO NOT get the kind of upgrades in a resale here at least in NJ unless your spending 750k plus.. than u do there...so I have to disagree with that statement..our new house has Wroght Iron spindles that was a Plus for me, surround sound throught whole house that was a plus, hardwood floors 1st floor that was a plus..I wasnt buying a home that didnt have some of the upgrades I wanted...we also go waines coating crown molding downstairs in all the rooms and upstairs in some of the bedrooms my sons bedroom downstairs has molding as well...Just remember its WHAT U LIKE and for resale purposes, Most people DO like upgrades...but just keep it neutral the colors...
that depends, we bought a 5 yr old resale that HAS ALL THE UPGRADES and got a great price HOWEVER there are homes selling for alot more money in the area we bought as well as sub-division with hardly any upgrades, OH and if YOU GET A NORTHENER buying your resale and it has all the upgrades which they do love, becuase here people u DO NOT get the kind of upgrades in a resale here at least in NJ unless your spending 750k plus.. than u do there...so I have to disagree with that statement..our new house has Wroght Iron spindles that was a Plus for me, surround sound throught whole house that was a plus, hardwood floors 1st floor that was a plus..I wasnt buying a home that didnt have some of the upgrades I wanted...we also go waines coating crown molding downstairs in all the rooms and upstairs in some of the bedrooms my sons bedroom downstairs has molding as well...Just remember its WHAT U LIKE and for resale purposes, Most people DO like upgrades...but just keep it neutral the colors...
I agree that most people like upgrades. I disagree that those same people will gladly pay more for a house with them It really depends on the buyer and the market.
I agree that most people like upgrades. I disagree that those same people will gladly pay more for a house with them It really depends on the buyer and the market.
yes that is true but It does also depend i think on where and what kind of home they are coming from would I pay 20k more for a home that has everything I want..Yep I sure would..Now there is a difference between paying more and Over paying for a home...
yes that is true but It does also depend i think on where and what kind of home they are coming from would I pay 20k more for a home that has everything I want..Yep I sure would..Now there is a difference between paying more and Over paying for a home...
I personally would pay more for a home with upgrades (like you), but I do not think the average home buyer sees it this way.
I think the overall condition of the home and curb appeal surely helps as well. I have looked at almost identical homes and the difference inside can be dramatic based on the people living there (forgetting the upgrades).
For the original poster though I would upgrade what you can afford and your tastes. I personally wouldnt upgrade worrying about resale because no one knows what the future holds. I prefer to purchase a nice home, in a quality area, with good school systems. Then I worry about the extras when it comes to resale.
Unless the upgrades are free which I think you could easily negotiate these days. I would stick with standard items unless I was building a custom home. I have always refused to pay for upgrades when buying a used house as upgrades do not always appeal to the buyer so why pay for them when buying used. So if you decide to sell your house be prepared to take a possible loss on upgrades!
I have to disagree Duke. Case and point. Last week I was taking a client around and we came across 2 homes same neighborhood. Price difference around $15K. Once we were in the house we realized same floor plan the only difference were the upgrades.
You could tell a big difference. Cabinets in the kitchen were upgraded counter tops etc. The upgraded home just looked a helluva lot better. Needless to say my client went for that one.
You can buy your own stove...JennAir makes a gas freestanding it is gas top but a double electric oven..check Lowe's it is about 1800.
We wanted to do the same thing, buy our own oven,stop top and etc.
You can not do this because it will not pass inspection. Code says the house has to be "livable" upon move in and it isn't livable with out these.
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Hope this helps.
