Buying a newly built home as compared to buying a resale home poses some unique challenges. When you buy a new home, you are faced with many more decisions. That is because a new home offers you more options in terms of design, finishes, location and upgrades. When you buy a resale home, what you see is what you get. While the decisions are good ones, they are nevertheless challenging even for the most experienced of buyers. This column will examine how the decisions you make for your new home can affect its market value in the future when you decide to sell the home.
Buying a new home is an exciting event in anyone’s life. When you buy a new home, the builder will offer you some choice in how you would like the home to appear. Typically, you will decide on such items as the flooring throughout the house, some of the lighting, the kitchen cupboards and the bathroom finishes. In order to make informed decisions, the builder will often provide you with a set of its standard samples. Should you choose them, they will be provided at no extra cost to you. However, if you decide that you would like to select upgrades from the standard samples, this will cost you more money. The cost will depend on the builder. Some will allow you to upgrade some of the less expensive items for a nominal cost.
Generally speaking, you would be wise to upgrade those items that will provide you with a functional house which is also aesthetically pleasing to the eye. For instance, many buyers of new homes choose to upgrade the flooring package to select hardwood floors. This, in my opinion, is a wise move. Hardwood floors look good, are easy to clean and last for years. If you or members of your family have allergies, they make even more sense compared to carpeting. Lighting is also worth upgrading even if there is a cost involved. The best house in the world will not look appealing if the lighting in it is poor. There are a variety of other items that will make your home more appealing to yourself and a future buyer. Spending your money on the wrong upgrades will cost you in the long run. Do it right the first time. There is a good chance that you will one day sell that new home that you just bought. The same logic applies. If you decide to add improvements to the house, spend your money wisely. If you have to decide between painting your house or installing pink carpet, think about what a future buyer would most value. A fresh coat of paint adds tremendous value to your house and will have universal appeal. Pink carpet will likely appeal to only a small group of buyers.
Finishing your basement is also an upgrade that will accomplish two objectives. First, it will add more living space to your home. If you have a large family, the added space will be much welcomed. Second, a future buyer of your home will recognize that a finished basement is a valuable item. This will translate into a better sale price down the road.
It is probably accurate to state that you will never recoup the investment you make when you improve or add to your house. If you spent twenty thousand dollars to finish your basement you will not recoup this money when you go to sell it. You will not recoup the three thousand dollars that you spent in painting your house. Nevertheless, you should choose your upgrades wisely. Failing to do so, can adversely affect your ability to sell your house at the price you feel it is worth.