Who wants a cookie cutter house? It's like asking "Who likes urban sprawl?"

To avoid the cookie cutter look, builders offer amenities and upgrades. Amenities are unique attractions that are neighborhood specific. The upgrades pertain to the lot and the house. Optional upgrades allow the buyer to customize the exterior and interior to the buyer's liking. The builder could build a basic house... but they'd rather not. Upgrades allow the builder and the buyer the opportunity to differentiate. Though a new home subdivision may look very homogenized in the early phase of construction, the neighborhood is born through customization.

Yet buyers are often weary of upgrades, declaring "isn't this just another way for the builder to make some extra money?"  Let's discuss this.

The builders tend to earn money in several ways. Here are the three most common:

• selling the house
• selling the financing
• selling the upgrade

The builder would love to sell all three. However, one shouldn't immediately jump to judgment that the builder is being greedy.

If the builder can sell the financing the buyer can be convenienced by one-stop shopping with a mortgage company that knows the ins-and-outs of the delivery of the house. The builder may also include additional incentives for using their lender. Buyers should, however, shop the financing. If another lender can provide a better overall deal- the buyer then has an alternative.

The builder's upgrades tend to cost more than the same upgrade purchased on the open market. The convenience of having the builder deliver the upgrade at close of escrow... AND... financing the upgrade over a longer time frame may offset this cost. Still... the buyer will want to weigh the cost of doing upgrades later. 

What are the upgrades?

• Exterior: Multiple Elevations, Colors and Finishes
• Interior: Fixtures, Cabinetry and Flooring
• Landscaping: Different packages

If the buyer is looking for a new home and desires to avoid the cookie cutter look,the buyer should try to find a builder that offers the most variety. For those on a fixed budget, they should look for builders who offer a greater number of floor plans and landscaping options. The neighborhood will appear to have variety even if the interiors are quite similar.

So... is the builder dinging the customer on the upgrades? Though there is a possibility, I'm glad they do give the buyer the choice. Differentiation is one of the best ways to fight the look of urban sprawl and to create a semi-custom appearance.