Budgets and plans

I don’t know how other builders work, but I would imagine if a builder tells you that he can build you a particular home for $X, that means that the floorplan has been reviewed by both parties and both the builder and the buyer have a pretty accurate idea that the money being put up is for a specific product. You wouldn’t go into Starbucks and ask for a cup of coffee, get charged $1.50, and THEN ask if you can put a flavor shot in there and not get charged extra. Nor should you expect that the time it takes to put the flavor shot in would take the same exact amount of time as just the pouring of the coffee.

When you sign a contract with a builder, I would imagine most builders issue a contract with the understanding that you are not only securing them as builders and possibly the lot they are building on (assuming you do not own the lot already yourself) but you are agreeing to a product. You have discussed the floorplan, you have talked about any bells and whistles you would like for your custom home (stuff that does not appear on the floorplan) and you have arrived at a meeting of the minds.

You will not be doing yourself any favors if you fib about your budget. That’s not to say that your life-savings is up for grabs. However, if you tell your builder you can only afford $200,000, then they will try to squeeze you in to a certain size home with a certain level of amenities. On the other hand, it is perfectly understandable if you can afford a certain mortgage but choose not to max yourself out. The point is that people always want more than their “budget” allows and a builder cannot fit a square peg in a round hole.