There’s a big time problem with the new construction upgrades advice people are getting from agents on YouTube channels just like mine
Hey, I’m Phoenix real estate agent John Cunningham with exp Realty and I’m here to help you get those new construction upgrades in that home that you’ve been dreaming of in an exciting and responsible way. So to start, do your research and block out the noise. Do that by subscribing and clicking on the notification bell. And that way you’ll be included in my inner circle for home buyers. You know, having the right connections is one of the best ways to get all the home you aspire to. If you order the wrong new construction upgrades, it can drive you into a deep dark money pit that could take years to crawl out of. And that guidance is spot on with what my home finding plan offers.
Access to me and I’ll remind you at the end of this video to click on the link in the description to get my moving kit and you’ll discover what makes my home buying plan unlike any other home buying plan on planet earth. Well at least in my corner of the world here in Arizona, and one of the things I’m going to cover today are the eight dues and the eight don’ts of new construction upgrades. Now before I cover that, I do want you to check out, get moving kit.com or at least write that down and sign up for that so that you can get thousands back when you buy with me and my team, you know here on YouTube there are literally thousands of videos designed to help people with the moving process and that includes mine. So just talking about this is a little bit weird, but really there’s only one important thing when it comes to all of this. And quite honestly if you follow the wrong advice, it can actually do you more home.
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Now, it doesn’t mean that it’s intentional, it’s not actually deceit. It’s just that one size does not fit all and that goes double for new construction upgrades and new home buying. For example, one of the most common pieces of advice that I keep hearing from new home sales people. When people are in there looking at the model homes, is to go ahead and buy the flooring from the builder.
So that, you don’t have to worry about moving furniture later on and that advice stacked up on top of other upgrades that the new home sales advisor may recommend to you. It could really put you in a position of what I call the new home money pit and at some point, if you keep going down that path, it can put into a deep, dark area. That can make it difficult for you to achieve equity in your new home for years.
You can find advice right now on YouTube where you’re being told to hold off on buying the cabinets that you really want for your kitchens and bathrooms. Now let me ask you something. Do you really think that you’re going to want to rip out your kitchen and bathroom cabinets? Haven’t gutted just to save a couple of bucks later on after you’ve taken possession of the house from the builder?
If you take the wrong advice, you could actually end up with something you really don’t love and isn’t that the whole idea of these new construction upgrades to begin with to end up with a house you’ve been dreaming of that you really love. Now, there’s something that I want to share with you that I heard an agent used several years ago when I was selling new homes for a top five national home builder.
That’s right. I sold new homes for big builders for almost 10 years. So I’ve got some serious inside knowledge on how the big builders train their sales staff to sell those new construction upgrades. And I can tell you that those salespeople are absolutely trained. Trained on how to get you to say yes to things that you might not have otherwise because they mean massive profits for the builders. I can’t blame builders for making money. They’re in business to do that, but in some cases you can make some really poor buying decisions. Just because some slick salesperson is making something sound really good and the most important thing for you is to stay within budget.
Get the floor plan you love and end up with the house you’ve been dreaming of. So here’s the tip. When we find the floor plan that you think is going to work for you, we’re going to invite that new home salesperson to walk through the model with us and we’re going to ask them starting at the front door. Right as soon as we enter what is included, what are the included features and which ones are the upgrades, and we’re going to write down all the upgrades that you’re attracted to and how much they cost.
One of the things that I can tell you about the new home building business as the new construction upgrades are a bit of a shell game. It’s hard to track. In other words, a construction upgrades with this builder is going to cost X number of dollars and it’s going to be a lot cheaper with this builder. While this other upgrade with this builder is going to be less expensive with them and a lot more expensive with the other builder.
So it’s really hard to track if you don’t know exactly what upgrades you want and you don’t have them written down. So that’s one of the things we want to do. We want to find out what features are with that particular builder on that floor plan right from the get go. One of the things I want to do in this video is go over how one of my clients saved $37,000 on new construction upgrades.
Do’s and Donts of New Construction Upgrades
But before we do that, I want to cover those eight do’s and eight don’ts of new construction upgrades. Let’s cover the dues first. They’re just more fun. So structural options. If you are going to be making a decision about ceiling Heights or bonus rooms or extended garages or a third car garage or anything that would require that there be an adjustment to the framing. You want to do that upfront? Absolutely.
Because if you don’t, it’s going to mean tearing something out later and that’s going to be costly and messy. Item number two would be cabinets. Yes, we want to make sure that you select the cabinets that you want, have them installed when the builder puts the home together before you take possession. Next we want to check with the builder to see if there’s a gourmet kitchen option that you are attracted to. If you really want a double oven, sometimes that feature is only available with a gourmet kitchen options, so we’d want to get that configured upfront.
Next, we want to make sure all the canned lights are in the house at the time that you take possession, so we want to find out where the included canned lighting is and how much it costs to add additional canned lighting and then have it scattered throughout your house wherever you want. Those CAD lights, we have over 42 of those cans in my house. They’re on adjustable dimmers and it really makes the house spectacular at night, so I always advise not to hold back on your electrical options.
Make sure that those get installed upfront so that you have a nice lighting package in your house when you take possession. Then, plumbing Ruffins, so you’ll probably want to have the soft water loop put in if you’re going to get a soft water system in your house. But likely you don’t want to buy this water softener system from the builder.
You can probably get that at about half costs from a third party afterwards. Also, if you want to have a sink in your garage or in your laundry room, you can have the plumbing done for that upfront and then just install those sinks after you closed. Next. Think about green energy efficient items. If the builder offers a spray in insulation in the attic instead of a cellulose blown in insulation, get that you’re going to, it’s going to save you a ton of money on your electric bill over time.
Lastly, pre wires such as fans, surround sound, that sort of thing. Have all those wires pulled and put in place before the drywall goes up. Okay, here are the eight don’ts. Number one, flooring upgrades. You do not want to pay for that from the builder. Get the basic flooring and you can take care of having your beautiful floors installed after you take possession of the home and usually save more than half of what the builder was going to charge you next or upgraded countertops if you want to have an upgraded countertop.
My suggestion would be make that purchase after you close and if you like a traditional look in your house, nothing breeds the look of crown mold. Do that after you close, not with the builder. Okay? Lighting fixtures. Just get this standard lighting fixtures by the ones you want after you close and have a handyman installed. Next construction upgrades is plumbing fixtures. Get the basic plumbing fixtures, all the faucets, all the things that we already talked about a little bit. Have that stuff installed after you close if you want to save a boatload of money.
Last construction upgrades but not least, our landscaping upgrades. Sometimes the builder’s gonna include front yard landscaping, but when it comes to the backyard, they may offer a really basic package that might be reasonable to get you by for awhile, but if you want to do anything elaborate, I highly recommend that you do this later on.
Get competitive bidding and have a little more flexibility with the design that you’re going to be able to make with your backyard with a third party contract after you close. Now back to that buyer who saved over $37,000 on new construction upgrades. Actually, I’ve got three of these buyers in the same community. None of them paid full retail for their new construction upgrades. Here’s what happened. Let’s take a look at buyer number one.
This guy bought a spec home. That’s a home that is already completed and it’s on the builder’s books. They’re making interest payments, utility payments, and they have home upkeep. Even though it’s new, they still got to cut the grass, take care of things, make sure that it’s clean and dusted and it’s in good shape until someone does buy and close on it. So that’s a home that the builder has serious pressure to offer a discount on so that they can unload it and get those costs off their books.
Now if it’s a super hot community, the builder may intentionally build specs because they know they can sell them quick and if that’s the case, there may not be a really big discount. But in this case, my buyer was able to take advantage of buying a really nice home and save about $20,000 by buying a spec home. Now buyer number two bought a really big house in the same community, just under 3000 square feet and what he did was he bought a base floor plan.
He did not put one upgrade into that house and after he closed, he hired the third party contractors, made the upgrades that he wanted and he was in a lot better position than those people around him in the neighborhood who paid the builder full boat for those new construction upgrades. And buyer number three hit a real home run because he bought his home about 18 months later as a resale house and he was able to get those new construction upgrades at a steep discount because he didn’t pay the builder for them.
He bought the house on the resale market. So all three of these guys still own in this community. They love it. They have no intentions of selling, but if they did need to sell they could and not all their neighbors can say that. Some of those guys, while they’re not upside down in their homes, it would cost them money in commissions and it would cost them money in title fees to get the home sold so they’re not in as good a position as those people who paid close attention to their new construction upgrades and those costs.
So that’s how the new construction upgrades game works. And I just wanted to encourage you before you leave, make sure to sign up for moving kit. You can go to get moving kit.com or click on the link below. It takes you to the same place and you can get in on Apple home products. You can get home services like unboxing, cleaning, painting, handyman services, and or use some of that money towards your closing costs.
In the meantime, I really appreciate you spending time with me watching this video today. Should you have any questions about new home construction? If you have any question about homes here in the Valley, just pose your question below. We get calls and text messages all the time and we want you to feel free to do that, to just reach out to us. We absolutely love it when people reach out to us. We want to help you. Thanks again for watching this video. We’ll see you on the next one.