When you ask a new-home buyer about options, the sky's the limit. But when it's time to write the check, the list of must-have options will likely be much shorter.

Still, new-home buyers are spending more money on options than ever, builders say. The economic downturn has yet to affect housing, and people continue to spend money on lifestyle enhancements. For many two-paycheck families with money to spend, it's more satisfying to put money into a house than into savings.

The highest option expenditures, of course, are in the luxury end of the house market, where money is often no object. Typically, the extra money is spent on wood floors, fireplaces, cabinet upgrades, carpet upgrades and "gourmet" kitchens.

Spending increases aren't limited to detached, single-family houses. Buyers of townhouses and condominiums, which tend to cost less than detached housing, are also spending more.

Part of the increase can be attributed to a rise in the price of construction materials and products in 1999 and 2000 that was triggered by record production of housing across the country.

In addition, when times are booming, builders feel more comfortable raising prices, often as compensation for the years in which product and material prices rose, but passing price increases on to customers would have not made good business sense.

National research shows that a typical home buyer around the country is spending $5,000 to $7,500 on options. When looked at in the context of mortgage payments, the cost of options is just incremental. The small difference in monthly mortgage payments allows them to live the way they want to live.

Move-up buyers, who are usually better-off financially and are looking for amenities that they didn't buy with their last house, tend to go for plenty of options. For first-time new-home buyers who are more sensitive to increases in mortgage interest rates, monthly payments concerns can lead them to put a brake on options.

For first-time buyers in the $200,000 price range, for example, options run about $2,000 to $2,500 -- the meat-and-potatoes stuff such as carpet padding, vinyl kitchen flooring, or stone fireplaces.

Recent research shows "carpet upgrade" as a popular option. But it more likely means better padding rather than more expensive carpet. Most people get tired of the color of the carpet or the stains on the carpet long before it wears out. Builders tend to recommend upgraded padding because it makes the carpet softer on the feet.

Some buyers are willing to spend an extra $30,000 for hardwood flooring in every first-floor room except the family room. In the kitchen, they'll forego vinyl for ceramic tile.

Selecting options can be a complicated process.

People want Corian-brand countertops in the kitchen, and are eager to spend $8,000 over the base price because those countertops are long-lasting. But they will agonize forever over the color because it's something they will have to live with until they move.

That is also true with items such as carpeting and tile.

Higher-end buyers are opting for conservatories and morning rooms -- expanded kitchen areas. This is because socializing is concentrated in the kitchen, even when nothing is cooking.

How do builders determine what an option costs? It depends on the item and the going rate in the marketplace. Builders look at what others are doing, consider the cost of overhead and supervision, and then figure in a 10 percent profit.

If a subcontractor is involved -- for flooring and carpeting, for example -- the subcontractor sets the price with the home buyer.

If the house is not a custom job, and the buyer wants something special, and the builder has to pull workers from other jobs to complete the tasks, the buyer could see a 40 percent markup.

Over time, options change. Some options become standard features of houses as demand for them grows. Over the last several years, buyers' preferences have raised ceiling heights to nine feet from eight. These higher ceilings have allowed builders to offer 42-inch cabinets as standard features of its kitchens -- a change from the 36-inch-high cabinets that were the standard in the 1980s and 1990s.

Gourmet kitchens are a popular option, too. A gourmet kitchen might include a wall oven, or the cabinets might have spice racks and other special features. Some builders might offer Sub-Zero-brand refrigerators as options.

Fireplaces can be a standard feature or an options, depending on the community. In some communities, a wood-burning fireplace will be standard, while a vent-free gas fireplace is optional.

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