I am not an advocate of over spending or buying more house than you need. But from a cost and return standpoint, now is the time to stretch what money you have as far as possible, particularly if you are building new. Home builders are emerging with so many great options on houses and costs are still reasonable for the improvements you can only do at the time of the original build. So a quick list of what I think does and does not make sense when going the extra step in todays environment.
1. Put as much basement in as you can
2. Upgrade windows and doors
3. Do the bump-out or extension
4. Insulate Insulate Insulate
5. Buy the fireplace
1. Overpay for “standard” appliances
2. Upgrade the landscaping package
3. Settle for an “ok” lot
4. Overpay for builders carpet
5. Use the listing agent
Buying a house right now can be beneficial but as demand rises those permanent improvements you made will make a difference in future appraisals and resale.