When you’re looking to buy a home, you have many options. If you’re looking at a new construction home rather than a pre-existing one, you’ll be given an entire list of options, much like buying a new car. Many of these upgrades offered by builders are places for them to maximize their profits. By positioning themselves as a “one stop shop” they can make the process as simple as checking boxes with dollar signs next to them. The simplicity of saying ‘I’d like quartz counter tops, this tile flooring, these cabinets, etc’ can be alluring, but you’re trading your time for top-dollar prices on materials & labor.
How many smaller items do you purchase without shopping around? If you’re furnishing your home do you walk into a store & “say I need a couch”, take what ever they bring out to your car & pay what ever they’re asking? If you do, stop reading, I can’t help you. These upgrades, while much smaller in price than say a car, or a home itself, can add up very quickly. Perhaps you could assess the upgrades offered & select the ones most important to you, then buy the new home from a builder, and get multiple bids from quality contractors that can even do a better job, with better products, for less money. Doing this means you’ve added value to your home for less expense thereby creating net worth for yourself when it comes time to sell or refinance.
Now one more thing to keep in mind, is the idea of diminishing returns. Meaning Read More