What upgrades at the design center actually add resale value?

What upgrades tend to hold resale value

Upgrades fall into two categories: those that affect the home's systems and structure, and those that are cosmetic or personal preference. Structural and systems upgrades, such as a higher-grade roof, larger HVAC capacity, upgraded electrical service, or improved insulation, tend to hold value because they address what future buyers need the home to do. Cosmetic upgrades, such as paint color, cabinet finishes, flooring materials, and tile choices, are more personal. A buyer may love your selection or may plan to change it, which means you may not recover the full cost.

The resale value of any upgrade also depends on the neighborhood and the price tier of the home. An upgrade that makes sense in one subdivision may not in another. A premium kitchen in a mid-range neighborhood may not return its full cost, while the same kitchen in a higher-priced area may be expected and valued.

How to think about design center choices

Before you commit to an upgrade, ask yourself whether it solves a problem or adds a preference. Does the standard HVAC system meet your needs, or do you need more capacity? Is the standard roof adequate for the climate, or do you want a longer-lasting material? These are structural decisions that future buyers will care about. By contrast, choosing a granite countertop over laminate, or a specific paint color, is a preference that may or may not match the next buyer's taste.

The builder's salesperson works for the builder, much like a car salesperson works for the dealer. Your own REALTOR is like an expert mechanic who protects you at the dealership. We can walk you through what upgrades tend to matter in your specific subdivision and price range, and which ones are better left for you to do later if you choose. Some upgrades are easier and cheaper to add after closing than others.

The timing question

Upgrades at the design center are locked in before closing. Changes after closing are your choice and your cost. If you are uncertain about a cosmetic upgrade, it may be worth choosing the standard option and upgrading later if you decide it matters to you. If you are certain about a structural or systems upgrade, the design center is often the right time to add it, because the builder can incorporate it into the build.

The right balance depends on your timeline, your budget, and how long you plan to stay in the home. Talk to us to find the right option for your circumstances.

Common follow-up questions

Sources

• TREC - Contract forms (promulgated)

Related questions

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