So you might clarify why you think LVP is "hazardous to health" and why most everything else in your new house won't be "hazardous". The fact is nearly all products used in construction are hazardous and you are much better off in an older home.

The $20k as a last sold issue with resale will not matter much unless you are going to sell very soon. Comps are done with recently sold comparable houses. The last sold price may have a small role but nothing to lose sleep over.

Now - you can't use a mortgage for that money - that is an often mentioned factor.

The tile contractors that you hire could be terrible and you have a bit less power over them compared to the new house installers.

Lastly - wood look tile is a very trendy decision. Trendy decision are generally a bad idea from a resale standpoint but it does depend on your time line. You will of course be silently chastised by the occasional guest who feels this way. It is probably true that things that are "real" are more timeless. That is tile that looks like tile, wood that looks like wood, etc.

While you can get a cheap bad Home Depot tile install, why on earth would you *want* to? Real world skilled tile labor doesn’t work for box stores, and starts at twice as much. Plus the tear out and disposal of the old stuff that is required to be installed In order to close.

Huge markup is very common and most often the ordinary with any developer/tract home "upgrades", it is actually a huge source of their profits. That is why it is most often recommended to NOT upgrade anything that is reasonably easy to change later. Concentrate and upgrades to the bones of the home, windows, insulation, etc..

So, what did you finally do, builder or outside contractor?