Walking into model homes can be a rollercoaster of excitement and immediate frustration. “Look at those beautiful waterfall Madrid Marble countertops! I love it! ….(Sales rep: I know right?! Those are upgraded finishes. You can have it for an extra $10,000). Appliances? Extra. Engineered flooring? Extra. All of sudden you stop seeing finishes and start seeing $$ signs everywhere. Don’t get me wrong, the options/upgrade process is great. You get to build a custom home to your unique personal tastes - a home no one else will have in the community. It’s better to have options than not. But if you’re looking to purchase a base unit, it’s may not always be appealing.
Now if you’re lucky, you’ll find certain builders ditch the upgrade process as a whole, and instead, INCLUDE the high end finishes as standard. We’re selling one right now where that’s the case. If that’s not the case, one of the key decisions you will have to make is whether to upgrade finishes with the builder or upgrade on your own after closing. Let’s take a look at the pros/cons:
Builder Upgrades
PROs
Convenience: By purchasing upgrades from the builder, you can enjoy the convenience of having everything done at once. You don’t have to manage subs/contractors or be worried about them disappearing to start a new project 3/4 of the way through yours.
Warranty: Builders offer warranties for the finishes they provide (1 year fit and finish warranty)
Financing: You can finance your options and roll it into your monthly payment! This is huge and will save you from dishing out tens of thousands in cash upfront. You can take that extra cash and reinvest it elsewhere. Speaking of cost savings, having the work done before you start payments on your house is also a money saver. If you have to find separate lodging for a couple weeks while work is being done - that’s thousands of dollars worth of space you’re not utilizing.
“No damage” - Consider having to transport a hefty new refrigerator up to the second floor with railings and narrow staircases. All those possible dents in the wall? You now have to fix. Whereas a builder will have moved it in before installing railings and would repair any damages from transporting and installing appliances/finishes.
CONs
Limited Options: Builders often provide a limited selection of finishes, limiting the buyer's ability to customize. Larger builders tend to have a wider selection.
Cost: Upgraded finishes from the builder can be more expensive than purchasing them separately
Timeline: Your upgrade selections may extend your closing timeline.
DIY or 3rd Party
PROs
Design: Upgrading on your own allows buyers to choose from a wider range of finishes, providing more options for customization.
Cost Savings: Upgrading on your own can be more cost-effective, especially if you are able to find deals on materials.
Creative outlet: With DIY, you are physically creating your space. It's a great opportunity to express your creative side and get your hands dirty.
CONs
Time-consuming: Finding trusted contractors, getting bids, researching options, and coordinating with contractors takes a lot of time and can be fairly stressful.
Responsibility: You are responsible for the quality of the upgrades and any issues that arise from DIY.
Warranty: Upgrades purchased separately will not be warrantied by the builder, including any damages done to the house from installation. This leaves you to open to covering any repair costs should your contractor not warranty their work.
Risk: Doesn’t always happen - but it does happen enough. Contractor goes MIA and delays your project. Now you're either trying to track them down or you have to find someone else to finish the job. There are builder delays as well, the difference is you're not paying mortgage during those delays since you haven't closed on the property yet.
The decision to purchase upgraded finishes from the builder or upgrade on your own depends on your priorities. If you prioritize time, convenience, and risk - I recommend going the builder upgrade route. If you’re creative, handy, on a budget, and/or have time to build/shop/manage projects - going DIY/3rd party contractor may be for you.
Happy House-hunting!
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