[quote=ocrenter][quote=plm]Yes, on both of my new house purchases, they allow you to pay for upgrades separately. And usually they make you pay half up front in case you don’t go through with the purchase. I have found that the builder charges quite a bit more for upgrades but your kind of stuck using them unless you want to replace it yourself later.[/quote]
Yes, that’s my experience as well. You got to watch them like a hawk about it because the great majority of folks just include everything in the sales price so the “default” for the sales staff is to just mindlessly adding the upgrades into the sales price.
Also, when possible really best to just hire your own guys to do the upgrade unless the builder somehow was competitive with their prices, which usually isn’t the case.[/quote]
Agree with all about not paying property taxes on these overpriced upgrades. One option would be to put down more than 20%, and then do a quick refinance after it closes to pull that money back out and use it to do the upgrades. That way, you can still deduct the mortgage interest, and you have more control over the cost and quality and of the upgrades.
One possible way to get “instant equity” is to time the purchase seasonally. Not sure about new developments, but prices on existing homes are often quite a bit less expensive during the fall/winter months vs. the spring and summer months. If that’s the case with new homes, you can buy during the slow time and then refinance in the spring/early summer, which could potentially give you some extra equity over and above your extra down payment. Of course, this is a pure gamble, but it might be worth a try.
