New-home buyers are spending more money on options than ever before.

Considering the state of the economy, you have to wonder - except that with relatively low interest rates, options bought over 30 years at 6 percent or even less don't look so expensive.

Since the terrorist attacks on Sept. 11, and with the threat of war looming, buyers have gotten the nesting feeling and they can’t seem to shake it.

This sense of immediacy, or “instant gratification,” has always been an attribute of the baby-boom generation, or so the experts tell us. But, in the increasingly uncertain times since Sept. 11, it has become a more common trait. Many builders reported a dramatic drop in sales and traffic at developments in the week after the terrorist attacks. Then, activity pretty much returned to normal. And it has been better than normal since, with the strength of real estate buttressing an economy that would probably collapse without it.

As always, "people are buying for lifestyle," said Gopal Ahluwalia, director of research for the National Association of Home Builders. "For many two-paycheck families with money to spend, it's more satisfying putting the money into a house than into savings." When looked at in the context of mortgage payments, the cost of options is just incremental.

The questions these buyers are asking new-home sales staff are: Does it work for the mortgage and is it worth it to me. The small difference in monthly mortgage payments allows them to live the way they want to live.”

Although figures on spending for upgrades, as they are called, are not available for 2001, such spending has increased steadily over the 1990s. Part of that increase could be attributed to the rise in house prices in the last years of the decade. Whereas builders were unwilling to pass the additional costs of materials and labor on to buyers in the slower years, they had no such qualms in boom years.

The typical homebuyer in the United States spends $5,000 to $7,500 in upgrades, according to the builders’ association's figures. 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.

First-time new-home buyers are more sensitive to increases in mortgage interest rates, and concern about the size of monthly payments 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.

What are the most popular upgrades these days?

One popular option is the "grand morning room," which typically translates into a 12-foot-by-18-foot area adjacent to the kitchen. Depending on where you are in the country, such an option could cost close to $25,000.

The morning room is becoming for many families a place for all the day's meals, and often includes a sofa and love seat for relaxing.

In markets in which two baths and a powder room tend to be standard features of new houses, there is the third or "princess" bathroom, at $5,000 to $10,000 for the chosen child.

Other popular options include granite countertops ($3,500 to $5,000) and gourmet kitchens ($5,200 to $7,000). In areas where houses have basements, a finished one, which includes increased basement height and waterproofing, is another popular addition.

How do builders determine what an option costs? It depends on the item and the going rate. 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 homebuyer. 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 become standard features of houses as demand for them grows. Over the last several years, for example, 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 in kitchens - a change from the 36-inch-high cabinets that were the standard in the 1980s and early 1990s. Fireplaces can be a standard feature or an option, depending on the community. In some, a wood-burning fireplace will be standard, while a direct-vent gas fireplace is optional.