Buying a brand-new home can be exciting. You may have the opportunity to choose flooring, cabinets, countertops, fixtures, paint colors, appliances, and other finishes that make the property feel like your own from the day you move in.
However, the advertised base price may be only the beginning.
Model homes are designed to impress, and many of the features buyers see during a tour may be optional upgrades rather than standard builder selections. Understanding what is included—and what costs extra—can help you establish a realistic budget before visiting the builder’s design center.
Read the original Realty Times article:
https://realtytimes.com/consumeradvice/buyersadvice/how-much-will-new-home-upgrades-cost
What Is Included in the Base Price?
Before comparing new homes, ask the builder for a written list of the standard features included in the advertised price.
Pay close attention to:
• Flooring materials
• Cabinets and countertops
• Kitchen appliances
• Bathroom fixtures and tile
• Lighting and ceiling fans
• Interior trim and paint
• Garage-door openers
• Landscaping and irrigation
• Window treatments
• Patios, porches, and outdoor living areas
Do not assume that a feature displayed in the model home is included in the base price. Ask the builder or sales representative to identify which features are standard, upgraded, or available only with a different floor plan.
How Quickly Can Upgrade Costs Add Up?
The total cost depends on the builder, community, floor plan, materials, and number of changes selected.
One upgrade may appear manageable, but several seemingly modest selections can quickly increase the final price. Upgraded flooring, cabinets, countertops, appliances, lighting, bathroom tile, additional windows, and structural modifications can create a significant difference between the advertised price and the completed home price.
Buyers should establish an upgrade allowance before making selections. This creates a spending limit and helps prevent design-center decisions from pushing the home beyond a comfortable budget.
Prioritize Structural and Functional Upgrades
Some upgrades are easier and less expensive to complete during construction than after closing.
Consider prioritizing items such as:
• Additional rooms or expanded living areas
• Higher ceilings
• Additional windows or exterior doors
• Electrical outlets and dedicated circuits
• Plumbing connections
• Garage extensions
• Improved insulation or energy-efficiency features
• Changes to the kitchen or bathroom layout
Cosmetic items such as light fixtures, cabinet hardware, paint colors, and some flooring materials may be easier to replace later.
The right priorities will depend on your lifestyle, budget, and how long you expect to own the home.
Consider the Coastal Environment
When purchasing new construction along the Grand Strand, selections should not be based on appearance alone.
Ask the builder about roofing, windows, exterior materials, drainage, HVAC systems, moisture-resistant finishes, warranties, and maintenance requirements. Buyers should also understand the property’s flood-zone designation, insurance considerations, homeowners association requirements, and any community restrictions.
A feature that performs well in another market may require different maintenance or protection in a coastal environment.
Can Upgrades Be Included in the Mortgage?
Depending on the builder, lender, appraisal, and loan program, some upgrades may be incorporated into the purchase price and financed with the home.
That may reduce the amount of cash needed before closing, but it also increases the loan balance and monthly payment. Buyers should review the effect of proposed upgrades with their lender before finalizing selections.
The completed home must also support the contract price for appraisal purposes. A buyer should not assume that every dollar spent at the design center will automatically add an equal dollar of appraised value.
Will the Upgrades Increase Resale Value?
An upgrade may improve your enjoyment of the home without producing an equal financial return when the property is eventually sold.
Kitchens, bathrooms, storage, durable flooring, functional layouts, and energy-efficient features often appeal to a broad range of buyers. Highly personalized finishes may have a more limited audience.
It is also important to avoid over-improving the property compared with other homes in the neighborhood. The most expensive home in a community may have difficulty recovering the full cost of extensive upgrades at resale.
Build a Complete New-Home Budget
Your budget should include more than the base price and design-center selections.
Depending on the property, additional expenses may include:
• Closing costs
• Homeowners association fees
• Insurance premiums
• Window treatments
• Appliances not supplied by the builder
• Landscaping or fencing
• Furniture and décor
• Moving expenses
• Post-closing improvements
• Property taxes and utility deposits
Maintaining a separate contingency fund can also help cover unexpected expenses without disrupting the purchase.
Get Guidance Before Finalizing Selections
New construction contracts, upgrade agreements, deposits, allowances, completion dates, warranties, and inspection rights can vary significantly from one builder to another.
A real estate agent familiar with new construction can help you compare communities, evaluate the total cost, review comparable sales, identify questions for the builder, and consider how your selections may affect future marketability.
Thinking About Buying New Construction?
Before focusing on countertops and paint colors, make sure you understand the complete financial picture.
I would be glad to help you compare new construction opportunities throughout Myrtle Beach, Surfside Beach, Garden City Beach, Murrells Inlet, and the surrounding Grand Strand.
Dan Sine, REALTOR®
Dunes Realty Sales
(843) 455-6319
www.dansinerealtor.com