Spec House Features, worth it or not?

Question

What is everyone's thoughts on if the following items are "worth" it from an ROI perspective on a higher-end new construction spec house in New England, based on experience? I'm doing my own analysis, just looking for input from someone who has been through this before (I've only done rentals previously.)

"ready to assemble" (RTA) vs. assembled vs custom cabinets?

Level 5 drywall coating?

Textured Wall-paper?

Primed baseboard/crown/casing vs. the "wood" look?

More ornate baseboard/crown/casing vs. the builder grade trim?

Tankless water heater vs. tank?

Humidifier on forced hot air furnace?

Sprinkler System?

Outdoor pool?

Hot tub?

multi-zone heating system

Whole house water filter (well water)?

Staging with furniture for sale?

Alphalt drive way vs. pavers vs. stamped concrete.

Central vac?

Gas vs. electric (smooth top) range?

Thanks!

JD Martin · Answer

You already have pretty good answers (i.e. most of it depends, what is "normal" in your market) so I'm only going to comment on a few things:

1. Wallpaper is buyer specific. Some hate it, some love it. Buyer specific is usually avoided on spec houses.

2. Taller baseboards, wider trim makes a house feel more expensive. When it is painted, no one knows the difference if it is wood, mdf, pvc, or something else.

3. Tankless is a good green seller but they have their own issues.

4. Humidifier - no way. I have one on my furnace in my primary home and it's been more of a hassle than anything else.

5. Filter on well - absolutely.

6. Asphalt in cold areas. Heaves & thaws better than anything else solid and helps melt snow and ice besides.

7. Central vac - cheap and easy to add when there's no drywall.

8. Gas if it's available, smooth top if you only have electric.

Mike Wood · Answer

@Benjamin K. If your talking $350-400k for a 3000ft2 house, that's pretty much a builder basic price point.  I doubt you can afford much over the most basic finishes.  That is a sale price in the $116-133/ft2 (which includes the land cost).

I would be wondering if those comps can support new construction, if that is really the comps. My guess is that at the basic level, your build cost would be in the $85/ft2, then add land, your likely not to make much money (if any).

Benjamin K. · Answer

Was looking at 3000 sqft, 4 bedrooms 2.5 bath.

What about a lawn irrigation system?

Thanks for the input!!

Mike Wood · Answer

@Benjamin K.  I think alot of your questions are regional.  It would be helpful to know what sq footage you are talking about for your target price of $350-400. Its is a totally different response if your talking about a 1500ft2 house, or a 3000ft2 house.

Assuming your talking about a 2000ft 3/2, I would suggest the following;

Cabinets - Now a days, there are some very nice cabinets coming flat backed from Asia available for local cabinet dealers.  Unless your talking very high end, I would not agree with custom cabinets.  I would recommend looking a local cabinet dealers, since the shipping kills most of the online RTA costs.

Level 4 drywall, the expense for level 5 is likely not be noticed for all but the most picky buyers.

No wallpaper, might limit the buyers, as lots of people dont care for wallpaper, so why risk it.

Painted trim

Yes to extra detail on the trim.  Trim should match the scale of the house (i.e. min. 5 1/4" base on ceilings over 8ft).  Crown in main living areas (kitchen, living room) and the master.  No need to go crazy with a 3-4 piece crown molding, but something that looks nice.

The water heater will vary by region, but around hear, most buyers dont add value to more expensive tankless water heaters.

Sprinkler system - I would say absolutely no on this. While required on multifamily 3 units and larger, it is rare in residential houses.

Pool and hot tub, I would say not unless this is common in the area, and even that I would not do it due to the very poor return on investment.

Yes to multi-zone heating

Yes to a whole house water filter

Yes to staging anything over $300k

I assume that your talking about just the driveway, in that case I would do the basic, which is most likely asphalt.  The other options are just too expensive given your price point.

Central Vac - I have one and love it. But I think most buyers would not put enough value on the property to justify it.  Pre-plumb could be an option, but your likely to spend almost half of the total cost for that, so your practically committed to it.  Given your price point, I would say no.

Gas range if you have it available.  I also agree with Jay that named brand high end appliances will do wonders, and buyers are willing to pay for them.

Hope this helps.

Benjamin K. · Answer

As far as "wood" for trim, I meant something like:https://s-media-cache-ak0.pinimg.com/736x/97/3e/8a...orhttp://hookedonhouses.net/wp-content/uploads/2008/...vs. Primed baseboards/trim such as:http://www.oneprojectcloser.com/wp-content/uploads...

(Examples show stain vs. priming, I just picked random links from the web.)

Looking at 350 - 400k which is considered near the "higher-end" for Western Massachusetts.

Karen Margrave · Answer

@Benjamin K. I'd ask what do other homes in the neighborhood, on the market and same price point offer? As to "wood look", what do you mean by that? We have high end custom cabinets in our house in Dana Point. They are wood cabinets, but the finish is a laminate wood look, (they're quite popular here, especially in modern style) and quartz countertops. See photos.  However; you want to have a cohesive look in your house, so depending on architectural style, etc. What price point will you be in?

Jay Hinrichs · Answer

great questions .. much of the interior is regional..

what you would do in Honolulu you would not do there.

as for basics I think unless its a VERY high end you do not do pool or hot tub and if its that high end hot tub is built into your infinity pool.

Central vac   y

gas  stove  high end Wolf is what I like  sub zero refer  etc

I would go stamped concrete pavers sink and you don't want to be coming back you can use pavers for walkways

yes on staging  we stage our 400k product here

big house then yes on multi zone

filter yes

central vac you can plumb for it most will expect it.

water heater regional question.

finish work sells the house no one is going wood look unless its a cabin in the woods

wall paper no  to personal in my mind

wall coating regional

cabinets  custom to semi custom  paint grade