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Power lines stretching across a green landscape, the kind of overhead lines that hurt a lot's value
Home Improvement & Renovation

Builder Reveals 5 Upgrades That Actually Pay You Back In Equity, And The First One Isn’t In The House At All, It’s The Dirt, Where Power Lines Over The Lot Hurt Value

Ask a builder what upgrades you can choose for a new home and he will hand you a list of 75 to 100 options. Most of them will not pay you back when it is time to sell. The host of @HowToBuildYourOwnHome, a builder, says only five really improve your equity.

Power lines stretching across a green landscape, the kind of overhead lines that hurt a lot's value

He walks through them in a tour of a home he built, and the first one is not in the house at all. It is the dirt itself.

Upgrade One Is The Dirt, And Power Lines Over The Lot Hurt Value

The builder says it is hard for many owner-builders to see that a lot has value, or does not, because most people look at the price and nothing else. “What’s the price? What’s the price?” is how he describes the usual shopping.

His list of things to check starts with power lines going over the lot, which he says you definitely do not want. Then he asks how close the parks and walkways are, whether there is growth in the area and whether a grocery store is nearby.

Utilities matter too. He says he lives where power is some of the cheapest in the nation because it comes from a cooperative, while a power company a couple of blocks away charges more.

He also looks at how easily developed the lot is and whether growth is happening close by. In his subdivision, a new phase has just broken ground down the street. He says a lot of the same size, elevation and view there would cost sizably more today than his lot across the street cost to build on two or three years ago. Growth nearby, he says, improves or sustains the value of your own homesite.

Upgrade Two Is Curb Appeal, And Do Not Skimp On The Front Door

Number two is curb appeal. He describes a well-manicured front landscape that is clean, with fresh mulch, fresh grass and fresh rock, not piled up or unkempt. This is something to keep up, he says, because it maintains the value of the home.

The front door counts as much as the plants. He has seen many owner-builders not care about the door they put on, and he says that is where you want to spend. A nice front door, even an iron one that is well lit, signals a custom home and gives the impression everything inside is great. He puts it plainly: it is a first impression, and you do not want a bad one.

Upgrade Three Is An Oversized Garage, And Men Always Peek In First

At home shows, the builder says, he watched women head to the kitchen, the open space and the master bedroom, while men went straight to the garage to see how much room it had. Number three is an oversized garage, though he does not mean one that overpowers the house.

A garage that enters from the side lessens the impact on the front of the house and creates the most versatile space in the home. He suggests thinking about size. An average truck is around 21 to 23 feet long, and his garage is extra deep so he can walk around the front and back of his truck. He once built a home where he could never close the garage door with the hitch on.

The width matters as well. He leaves almost nine extra feet on the driver’s side for storage and for getting in and out comfortably, and he suggests a bay window on a garage to add appeal without announcing that it is a garage.

He also shows an extended RV garage with water, power and sewer hookups and lighting on the sides so a parked RV does not block the light. Mom and dad could pull in and stay without interrupting the inside of the house. Buyers see a sewing room, a tool room or a side-by-side bay, he says, and that is the value of versatility.

Upgrade Four Is Keeping The Furnace Inside The Home’s Envelope

Energy efficiency is number four. A lot of people say they have a 93 or 95% efficient furnace, he says, and then it sits in an attic that reaches 130 degrees Fahrenheit all summer. He asks how efficient that can be.

Putting the heating and air system inside the envelope of the home, even in the garage, makes it more efficient and easier to maintain, including changing the filter. He says many builders just slap it in the attic, and homes from the 70s, 80s and 90s show the result, with equipment fighting the elements and UV damage to pipes.

He also points to a tankless water heater, higher grade windows and an inch of insulation under the stucco, which adds about 3.5 of R-value. Energy costs are not going down, he says, so a home built to save on them is a big plus.

Upgrade Five Is The Kitchen And Master Suite Buyers Notice First

Number five covers two spaces. Estimators, appraisers and realtors look at the kitchen first, he says. They want an open concept that invites activity, not a space so confined few people can pass. He has three and a half to four feet of width so several people can walk by. He also likes soft-close doors and good hardware, and he asks whether you spend more time at the sink or the stove and which one you want to face while the family is around.

He adds that you can never have too much storage, and a pantry lets you declutter the kitchen before guests arrive.

In the master suite he wants a double sink, because two people who wake at the same time do not want to share one. He recommends a walk-in shower with room to move, ideally a zero-threshold shower recessed into a slab on grade so there is no step. If you want a tub, he suggests a freestanding soaker tub with tile around it, which he says is more popular now than a built-in. He would rather have a jacuzzi outside than inside, because of maintenance and smell.

The walk-in closet is the last piece. After you experience a large one, he says, there is no going back. Better yet, put the laundry right off the master closet, which he calls extremely powerful logistics.

How To Use His List Before You Spend A Dime

His message is that realtors, appraisers and buyers are looking at these five things, and they really do pay you back. If you are building or buying, run through them in order: check the lot first, then the front door and landscaping, the garage depth, where the heating equipment sits, and the kitchen and master suite layouts.

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