The Bly Team's Real Estate Blog

Building a New Home in League City | Buying a New Home in League City

Buying a New Home From The Builder Tips, Tricks, and Reason's Why You Need a Realtor.

Lot Premiums, Options and Upgrades

When looking at building a new home consider the premiums, builder options and upgrades, all which add to the cost of the home you are considering buying. As you first drove through the neighborhood you took note of the lots in the neighborhood that caught your attention. Was it the ones that backed to the lake, pool, or perhaps the community playground?  

A number of the lots have premiums associated with them. Premiums vary between builders and neighborhoods, and can run between $5000 and $25,000. There are some lots with no premiums. Are those lots really less desirable? This is a question you will have to answer for yourself. What about safety? If you have young children you might want to consider cul-de-sac streets. There is frequently a lot premium associated with these as well. How much will the lot premium cost you over the life of a 30 year mortgage? All of these are questions you need to ask yourself before you add the cost of a lot premium to your mortgage.

When you toured the model home you noticed all of the little signs that suggested that the upgraded appliances, tile, granite, and many other items are not standard. Fequently builders have a 25% markup on those items over what you would pay for them retail? When you select an upgrade to be installed from the builder you are paying for convenience, which isn't always a bad thing on big ticket items but on others the cost can escalate quickly. Some of the biggest markups come on appliances, granite, and hardwood floors.

Take the option sheet and prices that the builder gives you and make a few calls or look online at local stores. With free delivery, free installation and discounts you could save yourself thousands of dollars by passing on the builder upgrade and having them installed yourself. I know you want a house that knocks your socks off the minute you get the keys. How much will those options cost you over the life of a 30 year mortgage? Just do the math and make an informed choice of what will be the right thing for you.  

The final thing a builder wants you to consider is options. When we talk about options these are the bigger ticket items such as brick fronts, porches, decks, finished basements, and extra bathrooms. These are items that are harder to handle after market and most builders actually make these options fairly affordable for what you get.

When the time comes that you need to start making some of these hard choices, call me and we'll sit down and talk about what options will be in your best intrest.