Can home builder increase the contract price?

There are cases where a home builder can raise the contract price. The most common is when structural changes are made or finishes are selected. Here are some of the reasons why your homebuilder may (depending on the terms) increase the contract after you sign it. Builders' policies vary and you'll need to ask about your builder's policy regarding closing dates.

Real estate lawyer Tonya Johannsen said builders are evoking clauses in contracts that allow builders to cancel for any reason. Different builders had different names for this contractual clause and only a very small percentage of builders included it in their contracts. Builders want to finish and close houses as soon as possible because that's when they get paid. Builders began to lose money on homes they were starting out because, for example, timber prices had doubled or more in a short period of time.

Nicole Cason and her husband say their dreams of a new home have been crushed by Life Style Homes Builders in West Melbourne. If you hire your new home before the builder has started building, you're likely to see a price increase when choosing finishes.