Here at Lowder New Homes, we notice that most people choose a new home construction for the primary purpose of living in it — whether it be for a few years, or for a lifetime. However, real estate is always considered a sound financial investment, with property values inching upward (and sometimes shooting upward!) over time. If you think you might sell your home at some point, there are some strategic customization choices you can make during the building process — new construction upgrades that will help maximize your home’s resale value, enabling you not only to recoup your investment but also perhaps make a sizable profit.
Choosing the right new construction upgrades is important because not every home upgrade will directly affect the value of your home. For example, a high-quality roof or premium plumbing are great upgrades to have, but since most buyers expect the roof and plumbing not to leak, these don’t necessarily affect the appraised value of the home. However, some upgrades definitely have an impact on your home’s bottom line — especially when you pay attention to construction trends and understand what future buyers might be looking for with regard to design decisions. Let’s look at eight custom upgrades that can help you get the most from your new construction home, when and if you decide to sell.
1. Kitchen upgrades
Experts across the board agree: If you want to increase your home’s value, start with the kitchen. To most home buyers, the kitchen is the most important room in the house. Top-of-the-line appliances, upgraded wood cabinetry, kitchen islands, extra space and natural stone countertops are all value boosters. They’ll cost you more upfront, but you’ll recoup more when you sell.
Another place to focus added value in your new home construction is in the bathrooms. Upgraded countertops, natural stone finishes, deep bathtubs and walk-in showers are all value-boosters. So are his/hers closets. After all, everyone loves to have plenty of storage space!
Another place to maximize value is right under your feet. Cheap flooring isn’t so cheap when you have to replace it, and most home buyers would prefer not to do so. Upgrade wood laminates to natural hardwood flooring or even bamboo. Better yet, opt for natural stone or tile when possible, especially in kitchens and bathrooms. Stone is easy to keep clean, offers an elegant, timeless look, and lasts a long time even under heavy foot traffic.
4. Energy efficient and “green” options
As people become more environmentally conscious, expect eco-friendly or “green” upgrades to begin adding value to homes in the next few years. Obviously, an energy-efficient home will help you save money, especially in the cold of winter and the heat of summer. But the more energy-efficient features you can add, the more you can increase your home’s perceived value, if not its actual value. Upgraded insulation and high-quality windows and doors are the first places to focus your attention (windows and doors are expensive to replace, so these are great places for retaining home value). Zoned heating/cooling and smart thermostats are two other great features.
Some of these energy-efficiency upgrades are more expensive than others, of course, and not all will directly affect your appraised value. However, energy efficiency definitely matters to buyers. when buyers realize how much they can save on their energy bills month after month, they will be more likely to respect your asking price.
5. “Smart home” technology
Rapidly becoming the dominant participant in home shows across the country, “smart home” features are not just a fad — they are the future. As tech-savvy millennials become the dominant demographic among home buyers, the ability to control heating, lighting, and security via mobile devices will become a huge selling point. These upgrades won’t necessarily increase your appraisal values today, but they are a forward-thinking investment that could definitely impact your home values in a few years.
6. Open-concept floor plans
These days, even homes with traditional architecture on the outside are typically built with open-concept floor plans on the inside. We expect demand for this trend to continue as millennials comprise more and more of the buying market. When making a choice of floor plan with the builder, look for layouts within your budget that maximize the use of space. An open-concept floor plan will help to maintain or improve your home’s overall resale value.
7. More space
Generally speaking, if you can afford to make the home bigger — make it bigger. Homeowners place a high value on having plenty of space. Even with existing homes, expanding floor space by 1000 square feet can increase home values by up to 30 percent, according to studies by the National Association of Realtors. More specifically, that extra bedroom or bathroom could have an enormous impact on your resale value.
8. Upgrade the outdoor space
If you want to add value, don’t neglect your curb appeal or your backyard space. Along with open-concept floor plans and square footage, a good outdoor space is one of the top features people look for in a new home. High quality, well-maintained landscaping can do wonders for perceived value and adding backyard features like a covered deck, outdoor kitchen or outdoor fireplace can add to your appraised value, as well.
Making Upgrades Affordable
One note of caution: Obviously, the more upgrades and luxury add-ons you include in your home design, the higher the price tag will be. You don’t want to increase your own financial strain now for the sake of eventual resale value later. However, you can often negotiate some of these upgrades with the builder to bring your costs down. (Be sure to ask us how you can save up to $5,000 on upgrades.)
At Lowder New Homes, our commitment to quality construction isn’t just for the sake of our customers today — it’s also to help them retain and increase their home’s value tomorrow. That’s why we offer so many quality choices during the building process. To learn more about custom upgrades that can maximize your home’s resale value, call us today at 334-270-6789.