I just had a house built this year. The builder's favorite thing to tell people is that he builds for cost + 15%. So whatever materials cost, add %15, for his cost. It sounded too good to be true, and in the end.. it was. We were given weekly, a budget sheet. We cut that sucker to hell and back, slashing off costs, and building the house for as cheap as we could get it. I reno'd a house for 10 years, so I knew that I would be changing and adding stuff to the house, after the builder was gone. I just couldn't do it myself, and hold down a career at the same time.
The bank "estimated" our cost in October of last year. We know we cut at least 20 grand out of the budget, and when we finished.. the cost came to exactly what the bank estimated 8 months earlier.. Hmm.. something was fishy.. We used the builder's bank, and everytime we added something, that cost some money, the builder would get all huffy about it, and say that we were going to bust the budget. He got totally pissed when I added an extra 8 ft to the driveway apron. Now, I know why.. because that cost came out of his pocket. He had a deal worked with the bank, that no matter what we did.. the cost was not changing. All of the money we saved, he pocketed. So when you talk to the bank.. watch out for this.. We have a very nice house, and he was cheaper than other builders in the area, but they still lied to us. The builder, and the bank...