Know How to Price Upgrades When Purchasing a Home

    An important decision in life is purchasing a home. This process is not easy and considerable time is put into having all the pieces in place. New home buyers want to make the best and sound decisions when it comes to purchasing their first home.

    Everyone wants to buy a home that is comfortable, functional and fits the budget. One thing to consider when buying a home is if the upgrades are worth the price, and will it increase the worth of the property in the future when selling is a consideration. Upgrades should combine fashion with function to improve the value.

    Upgrade choices

    Popular upgrades are improvements in the kitchen and the bathroom, but other amenities that are offered can be flooring, cosmetic features such as fireplaces, Jacuzzis, decks, specialty rooms, etc.

    Besides talking to Realtors, contractors or developers, new home buyers should attend home improvement shows, or read magazines, check out a prospective neighborhood as well. Upgrade options can depend on the price of the home and the lifestyle chosen.

    Another consideration when purchasing upgrades is if the upgrades are worth the amount of money you are paying. Many times the more popular upgrades will be offered at a higher price for lower quality materials.

    Sometimes smaller houses are built with more upgrades. This entices the buyer or builder to accept something lower that they planned to buy. What you want to pay for a home and what they actually cost today is generally not aligned. Naturally more expensive homes will come with more upgrade choices.

    Financial considerations

    The key is figuring out how the upgrades you want can be rolled over into the loan needed to purchase the house. The whole notion of owning a home is the ultimate American dream, and upgrading features in that dream home is one of the main items on the home buyers list. Due to a rough economy and low home buying market, home buyers are considering more practical ways to spend their money.

    All upgrades should be listed in the sales agreement. You do not want the loan to close before the upgrades have been added. Look for upgrades that can be used as tax deductible items such as heating and cooling efficient upgrades. Tax credits can be gained for installation of energy efficient systems through the Energy Policy Act of 2005.

    Amenities vs. Upgrades

    Be sure to know the standard amenities from upgrades when purchasing a new home. There are many upgrades in most model homes to make them look very appealing to the buyer. These upgrades do not necessarily mean the home is built better or less than other homes.

    The main thing is not to get side-tracked and buy a house that is not within your budget. When purchasing an existing home many upgrades may have already been made by the seller. The cost of theses upgrades should be disclosed by the seller, and can be used as a comparison tool when shopping for other properties.

    Trackback from your site.

    About our blog

    +1 us on Google Plus!