New Build - Final Value

VitaHQ

Hello,


I am looking at a new Redrow home and the list price is £332,995. I understand that there are multiple options and extras to complete the home in terms of flooring, fixtures and finishes, etc. For mortgage purposes I have been advised that the list price is used. In terms of the extras that can be added to the house, I have calculated around £28,000.


It appears that the £28,000 doesn't affect the value of the home, but I am struggling to see that if two people bought the same properties and one spent £50,000 on extras and the other only spent £10,000, that both properties would still be worth the same (£332,995).


Is the re-sale value affected? Or am a missing something?


Appreciate your thoughts. Thanks.

AdrianC

What are the options? Different finishes like cupboard doors, flooring, carpets - and whether the builders turf the garden or not? There is an assumption that all houses will be finished, so everywhere will have a garden that's not just bare earth. Everywhere will have kitchen worktops and cupboard doors. All floors will be finished, etc etc. Then there may be build-in extras like extra/differently placed power sockets.

So the main real difference is in the quality of finish and - to be brutally honest - taste. You might have specified an expensive granite worktop which somebody else thinks is a hideous liability. They may not affect the value, but they may make one house easier and quicker to sell than another.

£28k sounds like one hell of a lot in extras... Are you sure a lot of them can't be done cheaper after completion?

VitaHQ

Thanks Adrian. What you have said makes sense and in turn, I appreciate that the money spent on extras isn't particularly linked to the final value - as you say it's part taste and the fact all houses will have virtually all of the basics. I produced a spreadsheet after viewing all of Redrow's options for tiling/flooring/etc. and have another column with a heading 'Presumebly cheaper elsewhere'! I guess initialy the thought of some work being done prior to moving in is desirable. However, I appreciate it is probably worth doing research and putting the time in to get quotes to have the work done by someone other than Redrow. I assume there is a hefty premium (due to the convenience) of having Redrow as responsible for the work.


Are you aware of any positives of having Redrow do the work? For example, any guarantees on work etc.?


The main bulk of the £28k was lighting, flooring, tiling and wardrobes.


I drew the line at paying £65 for a toilet roll holder and £75 for a soft close toilet seat!

scottishblondie

I'd say that the extras that are really worth having are the ones that are difficult/messy to do after the fact. I had the builder add a lot of extra sockets, network cabling, TV points etc., and spent quite a lot on changing the kitchen layout. The default layout had a lot of tall pantry type cupboards and not a lot of worktop space, presumably because one big cupboard is the cheaper option!!

Our house already came with wall tiling in the bathrooms, so for me that wasn't a concern. The flooring we did DIY between getting the keys and moving in, except for the stairway carpet which I got a few weeks later. I didn't even ask the builder how much it would be, but my neighbour had them do hers and it sounds like it was ~60% more than I spent on the materials. Labour was courtesy of myself and my Dad, which was a big saving! The other option is to ask the builders if they will allow your own contractors access before your move in date.

I actually had the builder leave out the built in wardrobes. I had them in my previous property and they really tie you to one layout and I don't feel like they offer good storage. I added my own "built in" ones using the Pax system from Ikea, and the builders gave me some money off the rest of my extras.

The only thing I wish I'd had the builder do that I didn't is some changes to the lighting - the positioning of some of the light switches and the placement of downlighters - that I didn't even think about at the time. I've manage to fix everything to my satisfaction except the switches - I can't bring myself to let an electrician make a mess cutting holes in the walls!