Now that we’ve looked at how the design center options/upgrades process works when buying anewly constructed home, it’s time to study which of the builder’s offerings are prudent to pay extra for, which ones can sit on the shelf for a while, as well as offer some food for thought as this “production line” home is being built.
Your home’s exterior
Former new home sales manager/sales manager Dena Kouremetis offers her expertise from the other side of the fence, saying, “If the builder offers you a choice of exterior elevations, such as siding, stucco, brick accents, river rock, etc., and up-charges for them, you may want to consider them seriously.” She goes on to say the maintenance of some surfaces mean regular investments (such as painting siding), whereas easy-care surfaces (such as stucco or brick) stay fairly timeless. Paying an extra $20k for an upgraded exterior, however, might find you in a quandary as to its value in the big scheme of things if this home is NOT your “forever” home. If you do plan to be there for a number of decades, however, she says passing up the upgraded elevation might find you having regrets. And if you have ideas to alter them yourself? “Whatever exterior options are offered, however, have been pre-approved by the city. Changing the exterior elevation of your home on your own after the fact may find you facing fines.”
“As for the remainder of the outside of your house, most builders include a minimum of landscaping to the front yard, but always hope you will improve upon it, depending on the neighborhood rules governing the look of your home,” says Kouremetis. “If the builder has an option to sod and add a larger or covered patio to your backyard space, however, compare the costs with outside contractors. There is certainly a beauty to your backyard being just as move-in-ready as the interior of your home. Living with dirt in the backyard for an extended period of time is simply a pain.”
Electrical and plumbing options
Homebuilders in some states are required to install energy-saving features in their new builds — amenities such as hot water on demand (to save water) but most of these also save you money on your monthly water bills. Solar as well. ENERGY STAR appliances are now the norm and not the exception to it, and may be required in most states. If the builder offers other electrical or plumbing options, however, this is the time to think long and hard about it. Kouremetis asks, “How handy would it be to have extra exterior weatherproof outlets for holiday lights and outdoor appliances/future kitchen? This is the time to do it, and chances are good that whatever they charge for things like surround-sound wiring in the ceiling, plumbing for a laundry sink, or recessed or canned lights in some areas will not be much different from having a contractor come in, charging time, materials and labor.” She warns against making quick decisions to have the builder install things like entire sound systems through the builder. “It can be a real crap shoot. Whenever a builder deals with an outside company it contracts with to offer a product in your home, they usually charge a hefty premium. This is the time to do your online homework.”
Flooring
There are a number of ways to look at this important element for your home. The amount of time you plan to live there, whether you have dogs and kids (promising lots of wear and tear), and your own sense of aesthetics all come into play. Many families with young children decide not to invest in an upgraded flooring, opting instead to change it out to a better grade of carpeting or to hardwood or tile later on, when the kids are older. Others decide they want bullet-proof flooring from the get-go. The builder will finish your house with the flooring you choose (in most states, lenders require flooring to be in place before COE), but before you make that selection, get a bid from a flooring company and compare. Should you decide to go outside, the best time to have the flooring installed by the builder replaced is immediately after close of escrow. As for the brand new carpeting or vinyl being torn out at that point, get a handle on either selling it to a private party (perhaps an apartment landlord/owner) or donating it to Habitat for Humanity or another charitable cause.
Window coverings
A builder’s design center usually offers a window covering package — at the minimum some blinds to cover windows throughout the house. The neighborhood rules (Covenants, Conditions, and Restrictions) may forbid sheets up on windows immediately upon move in. So compare the price the builder offers for this. If going fancier, such as with cellular shades, drapery, or plantation shutters, again — look around. For both flooring and window coverings, permitting the builder to install these items also means they may be covered by the new home warranty for a period of time. That might mean peace of mind as well.
Lighting fixtures
Chances are good that there will be some “standard” fixtures included in the sales price, such as an entry and dining room chandelier, recessed lights in hallways, bathroom fixtures, and lighting/ceiling fans in some rooms. But you will be asked if you wish to upgrade these items as well. “Light fixtures are a highly personal choice, but don’t pass up the opportunity to add recessed lights to rooms where they are lacking, such as bedrooms,” says Kouremetis. “Either add your own dimmers or look into how much extra dimmers cost through the builder. You’ll thank yourself later. The design center consultant should be able to show you a blueprint of the lighting locations in the house, and it’s before sheetrock goes up that your decisions should be made. Don’t snooze on this one.”
Paint
You may not have much (or any) choice in interior or exterior paint colors. If the builder offers choices, however, take it as a bonus. They may even offer accent wall colors. Just know that whatever kind of paint job is done by the builder, it becomes part of your new home warranty — a “punch list” item the builder will return to repair/redo if not done perfectly.
A buyer’s obligations/rights to the home during construction
If you are ordering up a home starting with dirt/sticks in the ground, there will be cut-off times for many of the decisions you’ll have to make. A production home is like a car on an assembly line. Once certain parts have been put into place, it costs a lot of time and money to backtrack and add things to the product. Same with construction. A building superintendent has a schedule to follow, with homes required to be move-in ready by a certain date. After that date, the finished-but-unoccupied home becomes the builder’s liability (a regular mortgage payment). So PAY ATTENTION to cut-off times for your electrical, architectural, flooring, and plumbing options. Some must happen before the foundation/slab is poured, others before drywall is installed, and others before cabinets and trim are started.
As a word to the wise, Kouremetis adds, “Just because you have placed numerous deposits on this home-to-be does not mean you have a right to be in or on the property before you own it, and it definitely means you can’t do any of your own installations (paint, flooring, appliances or even grandma’s antique crystal chandelier) before you hear the words ‘You’re on record,’ and someone hands you the keys. “The builder is liable for anything that happens on their property before move-in, so even if your building superintendent says it’s okay to walk around your home being built, wear the hard hats he offers you happily and don’t sneak around after hours. He does not have to permit you to be there at all.”
Afterthoughts
Your smartphone camera will become your best friend. Whether you are mulling over your choices at the design center, watching the walls go up or even catching some sloppy work before you have your new home orientation (the equivalent of a resale “walk-through”), let your phone document whatever prompts questions on your part. “No question is too silly or dumb,” says Kouremetis. “Don’t think just because you don’t know what you don’t know, the builder would not be both eager and happy to explain every step of the process. While it’s their job, it will become your home.”
I hope this was useful.
Thank you for visiting my blog, please leave a question or comment and come back again soon.
Roxy Redenbaugh, Broker
Sr Mortgage Consultant
Residential and Commercial
The Greatest Compliment I Can Receive Is A Referral From Friends, Family, and Business Associates,
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