If you are in the market for a new home, which is the better deal?

A. The 2200 sq.ft. home that sells for $245,000

B. The 2200 sq.ft. home that sells for $265,000 in the same community.

You may have guessed that $265,000 would include many more features and therefore be the better deal. You would be right if the builder that valued their home at $265,000 included more of the features that the other builder omitted at $245,000.

Much like a restaurant, in home building, anything extra (bonus rooms, stainless steel appliances, etc.) and above code carries a higher price margin a la carte versus standard inclusion.

The perception of a lower price may attract the buyer, but at the end of the day, it’s likely the happier buyer is the one who didn’t have to pay extra for their features. The better deal lies in perceived, up-front costs versus what you’re really getting your money for in the end.