Can you upgrade too much?

Can you have too many upgrades? Yes and no, builders and designers say. It depends on how long you plan to stay, says Ashcroft’s Christia Zachariou.

“If a purchaser intends on living in their new home for the next 10 years, then the answer is no. They should design their home for their lifestyle. I had a client about 20 years ago that wanted 18-karat gold faucets. Is this excessive? Well, certainly for me it is, but not for the client.”

But the resale value of the house won’t necessarily reflect the cost of all those upgrades, says Urbandale’s Peter Weiss. “You need to find the balance between what you want and what another buyer will also value.”

Buyers are unlikely to pay much more for all your bells and whistles when they can get the house across the street for much less, even if it has fewer upgrades, says author Katherine Salant in The Brand-new House Book: Everything you need to know about planning, designing, and building a custom, semi-custom, or production-built house.

“You can upgrade to the point where ... you don’t get your money back for the extras you put in,” says Campanale’s Richard Bureau.

But the difference between adequate and overboard is a fine line, Salant says. While you may not get all of your money out, you may sell your home much faster than the one across the street.

You also need to look at your enjoyment factor. If soaking in a whirlpool tub after a long day hits the spot for you, then it may be worth it. Just don’t expect the next buyer to pay for that upgrade.

“It is important to understand the market value of the homes in your neighbourhood,” says Richcraft’s Shawn Bellman. “Knowing how long you will be staying in a home can help determine the investment you might want to make.”

A good way to see what the market standard is for the area is to look at resale homes three to six years old, Salant says. Also ask what options other buyers have chosen.

At Claridge, upgrades are typically about 10 per cent of the purchase price, says vice-president Shawn Malhotra. “If done correctly, $15,000 to $20,000 in upgrades can look as good as $50,000.”