Building a new construction home can be a rewarding experience when done the right way. However, you can be overextended and underwater very quickly if you do not make the right choices regarding upgrades.
Many of us have fallen in love with a builder’s model home at one point or another. Model homes are expertly decorated and filled with costly upgrades. At times, a model home may feature custom built-in fixtures not offered by the builder. Additionally, people are attracted to new construction because the listed base prices are often much lower than existing homes. Buyers may not realize that the true price of a model home is about $50,000 – $150,000 more than the base price. So, if your budget is around the base, your home will not look like the model.
Despite this, getting a beautiful new construction home for much less than a model home is still possible. In this article, I will discuss with you my personal experience with where to get the most bang for your buck in upgrades.
Upgrades are a Necessary Evil
I would never encourage anyone to buy a new construction home for the base price. It is not worth buying a new construction home if you cannot afford upgrades. Builder-grade materials are often subpar and lack durability. So, if you cannot afford any upgrades, you are likely better off skipping new construction and finding an existing home that meets your needs and budget, perhaps one that already has some desirable features.
Each builder is different, so always shop around. Some builders’ true prices are closer to the base than others, including more standard features. Other builders charge you for basic things, such as doors to your master bath or even mirrors in the bathrooms! Do your homework and compare standard feature lists carefully.
Upgrade Bedrooms and Bathrooms
Builders provide different floor plans that offer much flexibility for new homeowners. Always look at each plan, and find a plan that is the most cost-effective for adding space. Choosing a plan that gives you the option to add extra bedrooms and bathrooms is generally best, assuming the cost aligns with your budget and local market values.
Open floor plans are trendy and may be great selling points to some extent. However, if you look carefully at the builder options, you may find that you can fit in an extra bedroom or bathroom without making the home appear too cramped, sometimes by converting a “flex space” or “loft.”
Even if you think you will never move out of your custom-built home, never build a home that will be unattractive to future buyers. You never know how your life may change. Buyers consistently value extra space. These spaces can be used as a craft room, office, workout room, guest room, or extra living space for children. So, you generally can’t go wrong with having an extra room or two as an upgrade, provided it makes financial sense. This is especially important if you cannot afford a basement, which is usually a costly option on a custom build.
In addition to the convenience and future flexibility, extra bathrooms and bedrooms are well-known for adding value to your property, often providing a good return on investment compared to other upgrades.
Upgrade Cabinetry
Builder-grade cabinets are often made of lower-quality materials like particleboard with laminate or thermofoil finishes. They can be less durable and are not always pleasing to the eye. Model homes generally feature the highest grade options (solid wood, dovetail joints, premium finishes), so you may not realize the difference until you visit the design center or selection room.
I have seen many articles that suggest you can skip the cabinetry and upgrade later. However, unless you are absolutely certain that you will have the time, energy, and money (often more money later) to remodel your kitchen and bathrooms soon after moving in, you should strongly consider paying for this upgrade during the build. Replacing cabinets involves significant disruption and cost down the road. Getting at least a mid-level cabinet upgrade (e.g., solid wood frames, plywood boxes, better finishes) during construction is often a worthwhile investment in daily usability and long-term value.
Upgrade Window Trim
Model homes frequently feature custom trim packages around windows, adding depth and a finished look. These trim upgrades may come at an extra cost, but the cost is usually relatively small compared to structural changes or high-end kitchen upgrades. Always ask the sales representative if the window trim featured in the model is standard or an upgrade. Upgrading your window trim is a relatively inexpensive way to make your windows appear larger and more aesthetically pleasing, enhancing the overall feel of your rooms.
Prioritize Flooring (Wisely)
Flooring is another area where builder-grade options can be disappointing, often consisting of basic carpet and vinyl sheeting. While flooring can be replaced later, it’s a major hassle involving moving furniture and significant disruption.
Consider upgrading the flooring in high-traffic areas like the main living spaces, kitchen, and entryways during the build. Opting for a durable mid-range option like Luxury Vinyl Plank (LVP), engineered hardwood, or tile can be a good investment. You might save money by keeping builder-grade carpet in bedrooms initially and replacing it later if needed, focusing the upgrade budget on the areas that see the most wear and visual impact. Avoid the absolute cheapest carpet upgrade; often, a small step up in quality offers much better durability for minimal extra cost.
Electrical and Lighting
Think about how you live in your space. Do you wish you had more overhead lighting? Need an outlet in a specific spot for a lamp or electronics? Adding recessed lighting, ceiling fan pre-wiring, or extra outlets during construction is far cheaper and easier than doing it after the drywall is up. Builder-grade lighting fixtures are often basic and easily swapped out later, so focus your electrical upgrade budget on the placement and type of lighting (like recessed cans) rather than the specific decorative fixtures, unless a particular fixture package offers good value.
Consider Structural Options Carefully
Some builders offer structural upgrades like extended patios, bay windows, higher ceilings (e.g., 9ft instead of 8ft on the main floor), or finished basements. These are impossible or extremely expensive to add later. Evaluate these based on cost, your lifestyle, and potential resale value. Higher ceilings, for instance, can make a home feel much more spacious and are often highly desirable. An extended covered patio significantly enhances outdoor living space. These can be big-ticket items, so weigh them carefully against your budget, but recognize their permanence.
Final Thoughts: Be Strategic
The key takeaway is to be strategic with your upgrade budget. Focus on items that are difficult, disruptive, or significantly more expensive to change later. Prioritize structural elements (extra rooms, ceiling height), built-ins (cabinets), and essential infrastructure (electrical placement, durable main flooring). Cosmetic items like paint colors (beyond neutral), specific light fixtures, cabinet hardware, or elaborate landscaping can often wait until after you move in, allowing you to personalize your home over time without paying the builder’s markup or financing those costs over 30 years.
Always get a detailed list of standard features versus upgrade costs. Don’t be afraid to ask questions and negotiate where possible. Building a new home is exciting, but smart financial decisions during the upgrade process will ensure it remains a rewarding experience long after you move in.
