Building on a Budget: Which Cosmetic Upgrades to Skip Now and Add Later
Wondering where you can save some money within your new home build?
When I sat across from my builder six years ago, deciding on selections for our Lakeville home, I remember that overwhelming feeling as the upgrade costs kept adding up. It's a feeling I've now witnessed with many Twin Cities families building their dream homes while trying to keep budgets intact.
As someone who's sold over 80 new construction homes and built my own, I'm sharing the insider perspective on which cosmetic upgrades you can confidently skip during the build and easily add later—potentially saving you thousands without sacrificing your vision.
Picking your Strategic Upgrades
New construction homes in the south metro area typically come with a base price that includes standard finishes. While model homes showcase beautiful upgraded options, many are purely cosmetic and can be added after closing without major disruption or significant cost increases.
The key is distinguishing between:
-Structural upgrades that should be done during construction
-Cosmetic upgrades that can wait until after you've moved in
5 Cosmetic Upgrades You Can Skip During the Build
1. Cabinet Hardware
Some builders do not include any hardware in their base price, and if it is, you may find that the included option isn’t your style. Many buyers don't realize they can easily install these themselves! Installing cabinet hardware is a simple weekend project that can significantly transform your kitchen and bathrooms.
Pro Tip: Purchase cabinet hardware jigs online or at your local hardware store to perfectly map out your drill holes on each door.
2. Backsplash Tile
Backsplash installation is surprisingly simple and can be installed after move-in without major disruption. Many builders charge premium prices for basic subway tile that you could install (or have installed) for significantly less after closing.
Real Client Example: Even though it was within budget, I have had buyers pass on the backsplash feature simply because they didn’t fall in love with any of the options in the design studio. They purchased their own tile from The Tile Shop in town and had it installed several months after move in. Now their kitchen is a great, creative expression of their style.
3. Lighting and Faucets
Builder-grade lighting packages and faucets typically come with basic fixtures at premium prices. Instead, opt for the standard package and upgrade these elements gradually after moving in. But remember, changing out these fixtures will void the builder’s warranty on their work. You can save a few bucks by swapping these out after closing but make sure you know what you’re doing or hire someone who does.
Strategy Tip: Have your electrician install dimmer switches during construction (a structural upgrade worth the investment), then add statement light fixtures and faucets later.
4. Paint Quality Upgrades
Many Twin Cities builders charge significant premiums to upgrade from their standard paint to premium finishes or custom colors throughout the home. Consider accepting the builder's standard flat paint, then repainting after you've lived in the space for about a year.
Builder Insight: New construction homes typically develop nail pops and drywall cracks during the first year as the home settles. Most builders will repair these at your one-year warranty mark. It's far more cost-effective to wait until after these repairs are complete before investing in higher-quality paint, as you'd need to repaint those areas anyway. This approach saves you from paying twice—once for premium paint during construction, and again after warranty repairs.
5. Fireplace Surround
While the fireplace insert itself should be installed during construction, the decorative surround can be an expensive upgrade through the builder. Many of my clients opt for the basic surround option, then customize it after moving in with stone, tile, or a custom mantel.
Upgrades Worth the Investment During Construction
While the cosmetic items above can wait, here are the upgrades worth making during the initial build phase:
1. Carpet and Carpet Pad
Upgrading your carpet and carpet pad during construction is typically more cost-effective than replacing it later. Quality carpet padding significantly affects comfort and longevity, making this a worthwhile investment during the build process.
2. Fireplace Insert
The actual fireplace insert and gas lines should absolutely be done during construction. While you can upgrade the surround later, the mechanical components need professional installation and permits during the building phase.
3. Additional Lighting and Outlets
Any changes to electrical systems should be completed during construction. This includes recessed lighting, additional outlets, pre-wiring for ceiling fans, and outdoor lighting. Adding these elements later requires opening walls and ceilings, which is disruptive and costly.
4. Finished Lower Level
If budget allows, finishing your lower level during construction is typically more cost-effective than finishing later, as the builder already has construction permits with the city, all trades on site, and inspections can be completed simultaneously.
The Building Budget Golden Rule
As a general principle, include all structural work and items requiring permits or licensed professionals in your initial build. This includes:
-Electrical systems and pre-wiring
-Plumbing rough-ins and gas lines
-HVAC systems and ductwork
-Window and door placements
-Wall configurations and ceiling heights
-Flooring in main living areas
-Foundation waterproofing and insulation
These elements are either impossible or prohibitively expensive to change after construction is complete. By focusing your builder budget on these structural components while postponing purely decorative elements, you can make smarter financial decisions without compromising your long-term vision.
Creating Your New Construction Budget Strategy
Before your first builder meeting, I recommend creating three lists:
Must-haves: Structural elements and features essential to your lifestyle
Nice-to-haves: Upgrades you want but could potentially add later
Can-wait items: Purely cosmetic elements that can be easily added post-move-in
This approach helps prioritize your budget for maximum impact while maintaining flexibility.
The Bottom Line: Balancing Present and Future
Building a new home in today's market requires strategic decision-making. By focusing your builder allowances on structural elements and postponing certain cosmetic upgrades, you can potentially reduce your mortgage amount while still achieving your design vision over time.
As I tell my Twin Cities clients: Your forever home doesn't have to be "forever finished" on day one.
Looking for personalized guidance on new construction in the south metro area? Schedule a new construction consultation to create a strategic building plan that maximizes your budget while protecting your long-term investment.
Want to dive deeper into new construction options? Let's connect!
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