NOT ALL UPGRADES COME WITH A MAJOR PAYBACK
It’s easy for prospective buyers to become smitten with the staging and decorating when buying a brand new home. While we are smitten, however, there may be some details that we overlook.
Let’s consider some differences between resale and brand new homes. In almost every case, the new home will require some relatively costly expenses that a resale home doesn’t. Your landscaping, fence, deck and window coverings will be additional costs. You can easily spend upwards of $30,000 or more, depending on yard size.
If you do the work yourself, you can cut that number down by more than half, depending on how elaborate your plans are. All of these expenses are out-of-pocket costs and are not included in your mortgage payment like they would be in a resale home. And unlike most resale homes, the basement is undeveloped.
If the additional costs don’t dissuade you from buying new, let’s look at some important considerations. When buying a new home, it’s important to give some thought to future resale. There are some upgrades that can give you a positive return on your investment, but many don’t.
My top picks for payback upgrades would be nine-foot ceilings, hardwood floors, and granite or quartz countertops. These upgrades are easy to see, and they are expected in most new homes. An oversized garage that will fit a full-sized pickup truck is a nice upgrade when it comes to resale, so you don’t exclude potential buyers that need the bigger garage.
Lot location can be important, but it is often overlooked by buyers. When buying a typical twostorey home with an attached garage, my preference is a lot that has a south-facing backyard to take advantage of our winter sun. A west-facing backyard would be my second choice, but the house would likely need air conditioning, as the setting sun would stream through the living room and dining room windows. North-facing backyards will give evening sun during the summer, as our sun sets to the northwest. An east-facing backyard will be shaded during summer evenings.
The location of your new home may not have bus service — if that’s important to you — and depending on how new the development is you may have to drive or walk further to get to a corner store or supermarket. Fire hydrants next to your property can restrict parking, and utility access panels or pedestals can limit your landscaping plans. Corner lots often mean more snow shovelling in winter, but they can also offer extra windows and additional parking.
In terms of layout, almost every client I deal with prefers doing laundry on an upper floor. It just makes sense to have the laundry next to the bedrooms. Also, the main floor half bath should be nowhere near the kitchen or dining area, for obvious reasons. Other upgrades or design elements depend on your personal taste.
Ideally, I wouldn’t want to be the first house built on the block. The entire street becomes a construction zone, dealing with roughly two years of construction noise and mess. However, buying the last house built on the block limits your lot selection.
If you’re thinking about purchasing a new home, you may want to consider getting a consultant working for you. Working with a realtor who has experience helping buyers can make all the difference in the amount of enjoyment your home delivers for years to come.