I’ve been fortunate to have the opportunity to build a new home, and I’ve also completely renovated an existing home, so I’m in a position to ask and maybe even help answer the question of which is the better option when you’re ready to move into your forever home?
Custom architect-designed home I can’t afford, Las Vegas, NV
First of all, I’m not talking about multi-million dollar, architect-designed custom homes here. I photograph those, but I can’t afford to live in them! I’m talking about the average tract home that most Americans purchase and live in. Now, these houses are nice, but they’re not going to win any architectural awards. That doesn’t mean they can’t have great interior design, though.
Custom bar, wine cellar (in the background) and screening room in a private home, Las Vegas, NV
There are advantages and disadvantages to both options. Let’s look at building a new home first. One of the primary advantages to building a new home is you don’t have to worry about anything. Everything is taken care of for you. You just make a few design choices, plunk down a big, fat check, and a few months later your home is ready to move into. That’s pretty much it. The other advantage is that it’s brand new. There are no unknowns. The house will be in great condition when you move in, and it will likely be covered by the builder’s warranties, so you have peace of mind as well.
Custom-designed kitchen in a new build, Las Vegas, NV
Now the drawbacks. You have what seem to be a lot of choices for upgrades so you can design the home to be exactly as you want it. But those upgrades are going to cost you. A lot. You are paying a huge premium on upgrades over what you would pay if you just bought the basic house and upgraded it yourself later. Here’s just one example. When I built my house, one of the few upgrades I chose was a granite sink in the kitchen. That was about a $1500 upgrade. A few years later I moved to an older home and renovated it, and I was looking for granite kitchen sinks. I found the exact same one I had in the house I built, with the same distinctive shape. It cost $350. (I actually ended up buying a different granite sink that was $225.) That’s a huge markup--from $350 to $1500. Now, maybe it’s more labor intensive to install a granite sink rather than a regular stainless steel undermount sink, maybe the costs came down over that time, and maybe--despite the recognizable and unique shape--the sink from the builder was from a different company with a very different pricing structure from the one I found independently. But it could not have been that much more expensive. The upgrades--that’s where they get you!
Not only are upgrades hugely more expensive than their actual value, you are limited in your choices even if it seems like you have lots of options and decisions to make. One way builders of large home developments keep their costs down is by offering a limited set of options for each upgrade. That allows them to buy the materials at a discount while also simplifying their build process. So the limited options save the builder money and simplify their process, and in turn they charge you way more for those upgrades! They do provide options, but there are so many more options available if you were not constrained by the choices the builder has selected.
Next time I’ll discuss the option of renovation.
Looking straight up a two-story shower tower. Private home, Las Vegas, NV.