It's not just the total cost, it's the cash flow (do you have that money right after closing), the uncertainty of cost overruns and timing, and having to organize the work. It will always make better sense to buy the updated house, if there is one.

When you see people making renovations right after purchase it usually means they were willing to pay a premium for that particular lot instead of taking their money to a different location with an updated house.

About 200k -250k more for updated kitchen and appliances and 2.5 bathrooms.

I've noticed the updated houses get a lot more interest than non-updated ones, which of course makes sense. But I am wondering, for it's say the same house, how much would you be willing to pay for an updated version? How much does it cost these days to upgrade the house before moving in? Let's assume no major floor plan changes, just updating kitchen and 2.5 bathrooms? I know renovations cost a lot but I assume it is cheaper to do a bigger project before move in than piecemeal right.