8 New Construction Home Upgrades: Which Are Worth the Cost?

The best new construction upgrades are often the ones that are difficult or expensive to add later, such as extra square footage, upgraded insulation, electrical wiring, and plumbing rough-ins. Cosmetic finishes are usually easier to change after closing, so it can make sense to prioritize structural and functional upgrades first. 

When buying a newly built home, it can be tempting to choose every upgrade that catches your eye. From upgraded countertops and flooring to additional living space and energy-efficient features, builder design centers can quickly turn a base model into a much more expensive home.

But not every new construction upgrade is worth the cost. Some improvements are difficult and expensive to add after closing, while others may be easier and less expensive to tackle later. Whether you’re building a house in Philadelphia, PA or buying a newly built home in Charleston, SC, this Redfin guide will help you understand which upgrades can improve your home’s function and where to spend your budget.

What to consider before choosing new construction upgrades

Before choosing new construction home upgrades, focus on the features that will improve how you use the home and be difficult or expensive to add later.

“The most worthwhile upgrades are those that improve the home’s function and long-term value,” says Blaire Ryan Wenzel of Ryan Legacy Builders. “Structural upgrades such as additional living space, a larger garage, higher ceilings, expanded windows, a finished basement, or a bathroom rough-in can be smart investments.”

Prioritizing structural and functional upgrades first can help you decide where to spend your budget.

1. Upgrade insulation

Upgraded insulation can improve the home’s energy efficiency and may help reduce heating and cooling needs. Ask the builder what insulation is included in the base price and what changes are available before deciding whether to pay for an upgraded option.

Consider the home’s climate and the areas where additional insulation would be installed. An upgrade may be more useful in some parts of the home than others, depending on the construction and local conditions.

2. Add extra square footage

Additional square footage can give you more usable space and may increase the home’s appeal to future buyers. If the builder offers the option to expand a room, add a bedroom, or otherwise increase the home’s size, compare the cost of the additional space with the value it could provide.

“Springing to add extra square footage, if it’s an option, can usually be a good ROI since the cost per square foot is usually less than how high the cost per square foot will be when the property sells down the line,” says Justin Short of The Short Real Estate Team. “If you have any interest, it’s usually a good idea to add extra canned lights or cabinets as well. These can be difficult to match after closing, and the cost from the builder is typically pretty similar to what you can find after closing from a contractor. I’m also a big fan of springing for the upgraded countertops that you really like.”

Consider how the added space would function in your daily life before committing to the additional cost.

3. Upgrade the kitchen

Kitchen upgrades can make a noticeable difference in how you use and enjoy a new home. Depending on your priorities, you might consider upgraded cabinetry, countertops, or appliances rather than accepting the builder’s standard selections.

“I tell my clients that the best choice depends largely on how long they plan to live in the home and what matters most to them,” says Christopher Lorenzo of Mōdish Custom Homes. “If this is your forever home and resale isn’t a primary concern, spend the money on the things you’ll truly enjoy. If you love to cook and entertain and a custom kitchen with commercial-grade appliances is a must-have, the extra investment may be well worth it because you’ll get years of enjoyment from it. On the other hand, if you expect to move in three years, it makes more sense to be strategic.”

The best kitchen selections will depend on both your intended use of the space and how long you expect to own the home.

4. Upgrade electrical and wiring

Electrical upgrades can improve the home’s functionality and accommodate technology and equipment you may use over time. Additional outlets, recessed lighting, technology wiring, EV charging preparation, and plumbing rough-ins are some options to consider during construction.

“I always tell buyers to spend their money on things that are difficult or expensive to change later,” says Shawn Britt, owner of Shawn Sells Raleigh. “I would also consider additional electrical outlets, recessed lighting, prewiring for technology and EV charging, plumbing rough-ins, upgraded insulation and anything that requires opening walls, ceilings or concrete later. Cosmetic items can usually be upgraded over time, but changing the structure or adding something that should have been done during construction can become very expensive.”

Think about where you’ll place furniture, electronics, appliances, and other equipment when reviewing the home’s electrical plan.

5. Finish the basement

If your home has an unfinished basement, finishing it during construction can turn otherwise unused space into finished living space. It can also eliminate the need to plan a separate basement renovation after moving in.

“Finish the basement through the builder. Paying the builder to do it during construction is always going to be cheaper than bringing a contractor in after the fact, and the gap is not close,” says Adam Chubbuck of Team Alpha Charlie. “Most builders in our area charge $15,000 to $25,000 to finish a basement at construction. A private contractor after settlement is going to start at double that, at a minimum. You are buying the same finished space for half the money, and you are adding livable square footage to the home immediately instead of carrying an unfinished level for years.”

Review exactly what the builder’s finished basement package includes so you can compare the price with the scope of work.

6. Add a bathroom rough-in

A bathroom rough-in can provide flexibility if you think you may want to add a bathroom in an unfinished area later. Having the necessary plumbing connections planned during construction can make a future project more straightforward.

This can be particularly useful in a basement or other unfinished portion of the home. If you don’t need a bathroom immediately, the rough-in can allow you to postpone the full renovation while preserving the option to complete it later.

7. Install a full gutter system

A gutter system can help manage rainwater around the home, making it a particularly useful upgrade in areas that receive substantial rainfall. Before paying for additional gutters, find out what the builder already includes in the standard package.

“If you’re buying new construction in Southwest Florida, a gutter system is the first upgrade I’d spend money on,” says Yevgen Zakarukin, CPI, of Above and Beyond Home Solutions. “When I perform home inspections, most builders only run gutters across the front of the house since that’s the side buyers look at, skipping the rear and sides completely. Florida code doesn’t require them on a typical home, so nobody’s forcing the issue. But with over 50 inches of rain a year here, every bare roof line dumps water right at the foundation.”

Whether a full gutter system is worth upgrading can depend heavily on your climate, lot drainage, and what’s included in the builder’s standard package. 

8. Add a deck or outdoor living space

A deck or other outdoor living area can extend the home’s usable space and provide an area for relaxing or entertaining. If you already know you want an outdoor space, consider including it in the initial construction rather than treating it as a future project.

Compare the builder’s options and pricing before making a decision. You can also consider how the home’s yard, layout, and climate will affect how useful the finished space will be.

Which new construction upgrades can wait?

Not every upgrade needs to be purchased before the home is finished. Decorative finishes such as paint, hardware, mirrors, and certain lighting choices can often be changed after closing without undertaking a major renovation.

Flooring can also be an upgrade worth pricing separately. Builder selections may offer convenience, but homeowners can sometimes find different materials or installation prices after moving in. If you aren’t sure about a finish, waiting can give you more time to decide what you actually want.

How to decide which upgrades are worth the cost

Start by getting the price of each upgrade from the builder and identifying exactly what is included. For improvements that can be completed independently, research the potential cost of materials and labor after closing.

Also consider how an upgrade fits into your overall budget and how you expect to use the home. A feature that significantly improves your day-to-day experience may be worth paying for even if it doesn’t provide a clear financial return.

>>Read: How to Buy a New Construction Home in 9 Steps

FAQ: New construction upgrades

What upgrades are worth it in a new home?

Upgrades that improve how you use the home every day can be worth considering, particularly when they would be difficult or expensive to change later. Structural options, additional electrical outlets, cabinetry, and flooring are examples of upgrades that may make more sense to address during construction.

Which builder upgrades should you do during construction?

Consider completing upgrades during construction when they require work behind the walls or would involve significant labor to add later. Additional square footage and electrical work are examples of changes that can be more practical to make before construction is complete. Think about the cost and effort of making the same change after you move in before deciding.

Which new construction upgrades can wait until after closing?

Decorative changes are generally easier to postpone because they don’t require changes to the home’s structure or systems. Light fixtures, cabinet hardware, and backsplash tile can be updated after you move in, allowing you to spread out these projects over time. Landscaping can also be completed after closing depending on your plans and budget.

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