Building a new home should be exciting, not stressful. But those tempting builder upgrades can drain your savings fast.
In this article, you’ll find the new construction upgrades to avoid and why they’re rarely worth the investment. I’ll show you:
- 15 specific upgrades that aren’t worth your money
- Smart alternatives that save thousands of dollars
- Which few upgrades actually deserve your investment
I’ve helped hundreds of families navigate the new construction process. After seeing the same expensive mistakes repeatedly, I knew I had to share this guide.
You want to make smart choices about where to spend and where to save. That’s exactly what we’ll cover. Stop wasting money on overpriced builder upgrades that underwhelm once you move in. Instead, learn which improvements truly add value to your home and lifestyle.
Let me show you what the builders don’t want you to know.
The Upsell Trap: What’s Really Happening
Builders don’t make their real money on the base price of your home. The profit is in the upgrades. When the design consultant tells you “most people upgrade this,” they’re using a classic sales tactic. Nobody wants the “basic” version of anything!
That “only $50 more per month” sales pitch adds up quickly across dozens of upgrade options. Before you know it, you’ve added $30,000 to your mortgage, that’s over $50,000 with interest over 30 years.
The model home you fell in love with? It’s packed with every premium upgrade available. What you’re quoted is the stripped-down version that looks nothing like what you saw.
Cosmetic Upgrades That Look Better Than They Live
1. Builder-Supplied Luxury Light Fixtures
- What it is: Fancy-looking pendant lights, chandeliers, and statement fixtures.
- Why it’s offered: They catch your eye in the model home.
- Why to avoid it: These fixtures often cost 3-4 times retail price with builder markup.
- What to do instead: Go with basic fixtures during construction, then install your own statement pieces after move-in.
2. Decorative Backsplash Tile
- What it is: Upgraded kitchen backsplash with “designer” tile.
- Why it’s offered: It’s a high-visibility item that makes model homes pop.
- Why to avoid it: Builder backsplashes often use outdated styles and rushed installation.
- What to do instead: Hire a local tiler post-build for custom work.
3. Crown Molding and Baseboard Upgrades
- What it is: Larger, more decorative trim around ceilings and floors.
- Why it’s offered: Creates a higher-end look for minimal material cost (to them).
- Why to avoid it: The markup is ridiculous—often 300%+ over material costs.
- What to do instead: Add custom trim with better craftsmanship later. minimal material cost (to them).
4. Wall Niches and Faux Columns
- What it is: Built-in display shelves and decorative columns.
- Why it’s offered: They look fancy in model homes when perfectly staged.
- Why to avoid it: These are dated trends that are hard to decorate around.
- What to do instead: Use art, floating shelves, or custom millwork with personality.
5. Over-the-Range Microwaves
- What it is: Microwave installed directly above your range.
- Why it’s offered: It’s the cheapest way to check two boxes: microwave and ventilation.
- Why to avoid it: These ruin kitchen ventilation and look outdated in modern kitchen design.
- What to do instead: Plan for a proper range hood and microwave drawer setup later.
Functionality Flops – Features That Underperform or Age Poorly
These upgrades might seem helpful but often break, get outdated, or are rarely used.
6. Central Vacuum System
- What it is: Built-in vacuum system with wall ports throughout the home.
- Why it’s offered: Sounds convenient and high-end on paper.
- Why to avoid it: High maintenance, prone to clogging, and requires special bags and filters.
- What to do instead: Go with a powerful cordless or robotic vacuum.
7. Electric Fireplaces
- What it is: Built-in electric fireplaces with fake flames.
- Why it’s offered: Creates a “cozy” focal point without the complexity of gas or wood.
- Why to avoid it: More show than function, often cheaply installed with tacky flames.
- What to do instead: Design a statement wall with an efficient insert after closing.
8. Built-In Desks or Tech Nooks
- What it is: Small built-in desk areas, often in kitchens or hallways.
- Why it’s offered: Appeals to busy families who want organization space.
- Why to avoid it: Not suited for modern work-from-home needs – too small and poorly lit.
- What to do instead: Design a flexible, ergonomic home office post-move-in.
9. Finished Garage Interiors
- What it is: Drywall, paint, and basic shelving in the garage.
- Why it’s offered: Makes an unfinished space look more complete.
- Why to avoid it: Costly for minimal upgrades with the cheapest materials.
- What to do instead: Finish it yourself with custom storage and epoxy flooring.
10. Laundry Room Upgrades (Cabinets, Countertops, Sink)
- What it is: Basic cabinets and a utility sink in the laundry room.
- Why it’s offered: Looks more complete in model homes.
- Why to avoid it: Generic layouts with poor functionality that rarely match your laundry workflow.
- What to do instead: Install a custom system after living in the home.
Tech Upgrades That Are Overhyped or Overpriced
These systems are often outdated or overpriced by the time you move in.
11. Smart Home Packages
- What it is: Pre-installed smart thermostats, doorbells, locks, and lighting systems.
- Why it’s offered: Appeals to tech-minded buyers and sounds futuristic.
- Why to avoid it: Limited and expensive with few customization options.
- What to do instead: Install your own smart devices tailored to your ecosystem (Alexa, Google, Apple).
12. Ceiling Fans from the Builder
- What it is: Pre-installed ceiling fans in bedrooms or living areas.
- Why it’s offered: Practical feature that most homes need anyway.
- Why to avoid it: Basic designs at inflated costs with poor quality.
- What to do instead: Choose stylish, energy-efficient fans and have them installed later.
Material & Finish Upgrades That Aren’t Worth the Markup
Common surface-level upgrades where the builder quality doesn’t match the price.
13. Upgraded Builder-Grade Countertops (Quartz/Granite)
- What it is: Basic stone countertops presented as luxury upgrades.
- Why it’s offered: High-visibility item that influences purchase decisions.
- Why to avoid it: Builders often use thin slabs (2cm instead of 3cm) or lower-grade material.
- What to do instead: Install premium stone with your own contractor later.
14. “Premium” Laminate or Engineered Flooring
- What it is: Slightly better versions of standard flooring options.
- Why it’s offered: Easy upsell with good profit margins.
- Why to avoid it: Often not as durable as claimed and costs more than local installation.
- What to do instead: Choose standard flooring and upgrade with a specialist post-move.
15. Outdoor Concrete Patios or Slabs
What it is: Basic concrete slab extended from the foundation. Why it’s offered: Looks complete in model homes and marketing materials. Why to avoid it: Bland, costly, and often poorly finished with improper drainage. What to do instead: Invest in a custom deck or pavers after move-in.
Upgrades That Are Worth It
Focus your budget on these structural improvements that stand the test of time:
- Ceiling height increases – Dramatically impacts how spacious your home feels
- Structural changes – Moving walls or adding windows is much harder after construction
- Upgraded insulation – Saves money long-term and improves comfort
- Plumbing rough-ins – Future-proofs spaces like basements
- Extra electrical outlets/circuits – Much easier to install during initial construction
How to Evaluate Builder Upgrades
Ask yourself these questions before saying yes to any upgrade:
- Is this something I can easily change later? If yes, skip it now.
- How much would this cost after closing with my own contractor? Get quotes to compare.
- Is the quality of the builder upgrade equal to what I could get elsewhere? Often it’s not.
- Does this feature have staying power, or is it trendy? Avoid paying premium prices for soon-to-be-dated looks.
Conclusion
Building a new home is one of life’s biggest investments. Making wise choices now can save you thousands while still creating the home of your dreams.
Remember that personalization happens over time. Your home should tell your story, not the builder’s catalog story.
By avoiding these 15 overpriced upgrades, you can save money for improvements that truly matter to you.
Frequently Asked Questions
Should I upgrade my kitchen appliances through the builder?
Most builder-supplied appliance packages have a hefty markup with limited selection. Buy your own during seasonal sales and arrange installation just after closing for better quality at lower prices.
Are structured wiring packages worth the investment?
Basic wiring is sufficient for most modern homes since Wi-Fi has become so reliable. Save your money unless you have specific needs for hardwired connections in multiple rooms.
When is carpet upgrading actually worth it?
Only upgrade carpet in areas where you’ll keep it long-term, like basements or formal living rooms. For bedrooms and main living spaces, the standard pad upgrade is more important than premium carpet.
Do builder warranties cover upgraded items differently?
Many buyers don’t realize upgraded items often have the same limited warranty as standard features. Always read the fine print before assuming premium products get premium protection.
How do I avoid feeling pressured in the design center?
Visit twice, first just to look without making decisions, then return with a firm budget and researched prices. Never select upgrades the same day they’re presented to you.
