When you sit down with a financial planner one of the first questions they will ask is "what is your investment horizon" as they are trying to determine what your goals are...short term, long term or somewhere in between?  Your builder should ask you the same thing related to your home design. How long do you plan on living in your new home?

They need to recommend different specifications depending on how long you plan on living in your new home. That is crazy you say? No it actually isn't.

Let me respond by asking a question. If you put $15,000 in granite counter tops in your new home will it appraise for $15,000 more? If you put $40,000 into a geothermal heating system your home is worth $40,000 more right? Unfortunately, the answer is a resounding NO!

Like it or not a homes value is determined by an appraisal that is generated in the most part by substantiating value through comparable sales or comparable properties on the market. Again, unfortunately those sale numbers do not necessarily correlate directly to cost.

Certain features incorporated into your new construction will have a direct correlation to value at the sale, some items will give you part of their value and some will not increase the value one bit.

I don't want to over simplify this subject because the total appraised value of the home is effected by the neighborhood it is being built, the price range, the style of home and the amenities.

Suffice it to say, you need to clearly explain to your builder what your expectations are, and the time horizon that you plan to live in your home so he can make proper recommendations.

Words of Wisdom!

Thinking though your goals and future plans when you build will save a lot of money for you in the long run and prevent you from over or under building.