One of the advantages of
purchasing a new home is the opportunity to select features and finishes that
reflect your own personal tastes and lifestyle. But for many homebuyers,
particularly first timers, the array of choices can be dizzying.
Cabinets, countertops, flooring,
fixtures, appliances — and even structural changes such as additional bathrooms
or garages — are just the beginning of a potentially endless choice of options
or upgrades that your builder may allow you to select.
So what’s a buyer to do?
1. Structural Changes
Select structural additions or
changes when you sign the contract, or immediately thereafter. “Buyers are a
little overwhelmed when they sign the contract because of all the legal
documents,” says Sue Goodrich, vice president of sales and marketing for Cachet
Homes in Scottsdale, Ariz. “The only thing we talk about then is structural
options.”
Buyers who want to add rooms or
garages, move doors or add a fireplace or recessed lighting, for example, need
to make their structural changes early in the process because those changes may
impact the building permit pulled by the builder. These types of changes — as
well as any electrical or plumbing changes that would require walls to be
opened — would also be costly to make after the home is completed.
2. Post-Purchase Upgrades
Remember that it might make sense
to make certain changes after you purchase your home. Cosmetic features in
particular, such as paint, landscaping, lighting and plumbing fixtures, epoxy
garage flooring, crown molding, chair rails, window treatments and even certain
appliance upgrades can often be made after the closing, particularly by
homeowners who have a budget.
Grenadier Homes in Dallas, for
example, doesn’t include refrigerators in the base price of their homes, says
Kathy Costa, a Grenadier Homes design consultant. That way buyers might be able
to get a good deal on their own. Still, by purchasing these upgrades through
the builder, you might be able to roll the cost into your mortgage, as opposed
to paying out of pocket.
In addition, upgrades completed
after the closing will not be covered by the builder’s home warranty — and may
void it, Costa warns.
And, of course, there is the
hassle factor as well: are you willing to spend time after the closing to work
on your home — or would you rather move in knowing that your home is exactly
the way you want it to be?
3. Builder Timeline
Follow your builder’s timeline to
select other options or upgrades. About two to three weeks after the contract is
signed and approved, your builder will arrange a meeting at its design center.
Depending on the builder, you may or may not be able to make changes after this
meeting, so be prepared with a list of the items you want. Consider bringing
photos of kitchens and baths you like to help guide the designer.
4. The Model Look
Remember that the model home you
fell in love with may have thousands of dollars of options and that the base
home may look very different. While many builders include a number of standard
features in the base price of their homes, others don’t. That thick carpeting
or granite countertop may cost extra.
5. Prepare a Budget
Prepare a budget — and stick to
it. Walking into a builder’s design center is a little like being a kid in a
candy store. You’ll see cabinets and granite and top-of-the-line flooring. To
avoid overspending — and overextending yourself — prepare a budget before your
design meeting.
Goodrich, of Cachet Homes, says
that a good rule of thumb is to expect to pay about 12 percent of the base
price of a home on interior upgrades. Make sure that the price of your home,
including any upgrades, falls within the pre-qualification guidelines for your
mortgage.
6. Needs Versus Wants
Be flexible. Remember that you
have a budget and that you may not be able to afford all of the extras you’d
like, so prepare a list of must-haves and want-to-haves. For example, Joel
Whitley and his wife Taylor purchased a three-bedroom, two-bath home from
Cachet Homes at the Santa Rita community in Phoenix for $346,900.
The couple budgeted an additional
$30,000 for options, of which they spent $26,000 to upgrade cabinets and
flooring and to add additional ceiling fan outlets and a soft water loop for a
water softening system.
“We would have loved to do a
backsplash throughout the entire kitchen, but we knew we didn’t have the budget
for that,” says Whitley. “So we came up with a compromise where we have a
backsplash just behind the oven in a fancy stone design.”
7. Resale Value
Don’t over-customize. Of course,
new-home buyers want their homes to reflect their personal style and taste.
But, it’s important to consider the resale value, as well. “Those lavender
granite countertops in the kitchen that you’re thinking about may make your
home difficult to resell in a few years,” says Andy Weiser, a real estate agent
with Coldwell Banker in Fort Lauderdale, Fla.
“A better choice might be to paint
the walls a great shade of lavender, but to go with more neutral countertops.
That way, when you decide to move, you will appeal to the most buyers
possible.”
8. Builder Trust
Deal with a builder you trust.
Its design team will guide you through the process and offer expert advice on
not only design choices, but also how best to apply your budget.
“It’s their job to make your home
everything you want it to be,” says homebuyer Whitley. “Trust your home builder
for their expertise. After all, this is what they do every day.”
By Robyn A. Friedman from NewHomeSource
Interested in a new home? Please do not hesitate to call us at Landon Homes, (904)567-3430!
