When you begin the new construction process, many clients are quite surprised when they realize what is considered a standard versus an upgrade. New home clients in a developed community should expect an average of 10-20 percent on top of base pricing. On the flip side, if you are building a designed custom home, there are so many options, which of these truly add value and how can you stay on budget? I have put together a list of upgrades that I believe are some of the BEST options for return on investment:
- Exterior Elevation: Creating curb appeal with roof lines, front porch design, stone, and brick are all ways to increase the value of the exterior of your home. This is the first impression to create the 'wow' factor of your new home for you and later for resell.
- Ceiling Height: Choose the raised ceiling, vault main living areas, and add height in the basement. You will get a return on your investment on this height increase every time.
- Kitchen: Your kitchen is the heart and center of your home. A good portion of your budget will most likely be spent in this room. Cabinet height and style, solid surface countertops, an ample pantry size, designated spots for pots/pans, microwave and trash can all add function and luxury. Choosing a mid-line appliance can keep you on budget, you can always upgrade later if you like.
- Energy Efficient Materials: This is one option most people want to skip but spending a little extra on insulation, roofing, energy-efficient windows, or even a thermal heating unit will save you daily throughout your ownership.
- LVP/Wood Flooring: My personal preference is an engineered wood or LVP unless you are committed to keeping up with wood floor maintenance. Completing this upgrade, in the beginning, will not only outlast the carpet but create a polished look for your new home.
- Baths: Next to the kitchen, bathrooms are the most expensive to upgrade or add later. Choosing the rough-in bath for the basement is a must! Oversized showers, free-standing tubs, dual vanity, and storage options all need to be chosen in the beginning. If budgeting allows, add radiant floor heat. Resist the urge to go too trendy in this space, choose materials that will stand the test of a decade.
- Additional Lighting/Electrical: Choose the built-in electric for your main living area entertainment and hardwire for your office or gaming rooms. Designate funds for recessed lighting, hanging pendants for the kitchen, entryway lighting, and extra light in the baths. Now, I do not think you should go too high on the actual fixture with a developed builder however if you are custom building - get the lights you want!
- Additional Windows: No one has ever said I wish we didn't have that window! Adding a couple of extra in the basement, a picture window on the stairs, an extra in the bath, and even adding height in the main living areas will add natural light and is totally worth every penny.
- Outdoor Living: Your home should include a poured patio, deck if there is a second-story door, or you may want to spend funds on a sprinkler system prior to sod. Don't go overboard in a developed community with decking, this is much more affordable with a contractor later. For custom buildings, outdoor space is essential for new homes.
- Storage Options: Making a home functional and space-friendly will keep you sane and make daily living much easier. This includes a bump out in the garage or even an additional bay, cabinets over the washer/dryer, a built-in drop spot if this is important to you.
These are my picks for upgrades but your lifestyle will determine your necessities for daily life. A dog wash bay may mean more than extra kitchen cabinets; a second bath for your family may save you from mornings of chaos. These are all things that a new construction specialist will help you prioritize while keeping home value at the forefront of decision-making.
Angi Dunham is a real estate agent at Compass Realty Group in St Louis. She holds a New Construction Buyer Accreditation through NAR and is an expert in new home construction in West St Louis including St Charles County.