The lower the builder's costs, the more room there is to negotiate upgrades on your new construction. The cost of labor and materials generally won't change much, but if you build on a less expensive lot, you should be able to convince the builder to roll that savings into some upgrades for you.
New Construction Upgrades that Add Value
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.
When it comes to upgrades, essentially you have three choices: finance them through your loan, pay cash, or wait and do them later yourself (aka pay as you go.) There are pros and cons to each decision.
Real estate professionals and builders can work together in harmony, because they have the same goals: sell more houses and get more referrals.
If you are interested in buying a new construction, the builder's agent will be ready to help you with the process. But make no mistake: You need your own real estate agent from the get-go.
If you are planning to keep the builder's carpet for longer than six months, then upgrade the underpad to the highest that the builder offers. If your budget is stretched thin, then we recommend upgrading the pad, and not the carpet. A higher grade pad will help a carpet to feel and perform much better.
Appraisals for new construction are based on comparing the proposed new home to recently sold homes similar in size and features. Since most sales are from existing stock, appraisals for new homes are often less than the cost to build them. This often prevents banks from lending the full amount needed by the buyer.
6 Upgrades to Boost Resale Value
You want to prioritize correctly to spend your money on the things that add the most value to your home, both for your comfort and for future resale value. One other note, most builders will wrap the price of upgrades into your mortgage allowing you to pay for them over time.
Fantasy vacations, new cars, in-ground swimming pools, luxury appliances, zero closing costs, these are just some of the builder incentives homebuilders may offer to attract buyers. The slower the sales market, the more over-the-top the sales inducements can be.
6 Ways To Save Money While Building A Home
Yet No Comments