A couple of comments but no legal advice other than contact your local real estate attorney to see how you can get out of the current contract for the lot.

Building a home is nothing like buying a resale property. There are extras: common extras include permit fees, lot prep, sometimes sewer and water connection charges and naturally, the cosmetic items you choose in the showroom. If you are over budget now, at the very beginning, you need to reconsider building. JMO.

The entry price is rarely the finish price. Prices are going up. As Denita advised, you would be wise to spend an hour with a real estate attorney to educate yourself about what you are about to get into.

Did you get a list of all the finishes that were included at that $X price on the MLS? Builders usually price at the lowest quality level and then you will have to pay more for any finish you want to upgrade. The house could then end up costing $X + 20% or more, with the upgrades. If your budget is already tight then building might not be the right thing to do.

Thanks everyone. Already took into account all the upgrades. My issue being the base house doesn’t include a Construction Permit - they are asking me to pay for the permit out of pocket. I would think the construction permit would be included in the MLS list price.

If 18K puts you over budget? You’re not buying a home at the appropriate price level. Never ever buy at the max of your budget! Always have a 20% contingency fund.

That’s a good point Memphis. That 20% contingency fund is a solid and necessary plan. My point is the “construction permit” is not a contingency coverage. That’s just basic. Like a dealership telling you the alternator on the car is extra.

No, not the same. It would be like you expecting the dealership to include your insurance in the car price. Insurance is provided by a third party, just like permits are provided by a third party that the builder has no control over. Permit fees can vary drastically between states, counties and even individual towns in the same county.

Title and registration is extra after paying for the car so that is probably a more comparable example. I do agree that I would expect a new construction house sold through the mls to have permit fees included in the price. However, I know very little about the actual process of buying a new costruction house. Yes, permit fees vary by area, but once the house plans have an actual lot, the permit fees can be determined.

I would want to make sure what other expected costs are not included in the sales price. What about utility connection fees and any impact fees? Are those included as part of the $18K?

The success of a construction project depends on how well both parties meet the expectations for their actions. In my view, the party with the most knowledge should be explicit with their information and set realistic expectations from the beginning. Builders should set the standard with clear explanations of what is covered in the base price and what additional required charges are expected and also specify prices for the optional upgrades available. It is unfair to ask a customer to pay charges that were not discussed before the contract was signed. If the list of charges and fees scares off potential customers, it doesn't waste the time of buyers, builders, agents and numerous support personnel. As is, this customer has a bad taste in their mouth and will be on edge looking for potential issues and that isn't a good place to be, long before construction even starts.

Double check your contract if it is not listed that it is included then it is not. I bet there is some clever wording to that effect. As noted above 3rd party fees are typically not quoted in the price as they can change, just like auto dealership analogy.

Pete, this is how deals like that usually get you. They bait you with a low house price and after your bite, they hit you with everything they can "a la carte" style.

I haven't seen this going on lately but I remember in the old days they would advertise a new development for X amount, they even provided buses to bring people in, to an open house in crazy numbers to a point they had to do a lottery system and they would charge everyone extra for the prime lot, basement, extra for every nail you want in it, etc, and for price that was advertised they would basically get a box with without a basement.

By the time a few woke up it cost them double.

That said not much you can really do, I'm sure this system set up in a legitimate fashion, and everything comes down to take it or leave it.

Of course they want to upsell. They're in business to make money. And third party fees are generally not included in the quoted price. My permits were extra.

Chocolatebunny123, et al, I agree that for what is probably going to be the most expensive item you’ll ever purchase, there should be more disclosure on what the total costs will be.

The MLS listing should include all clauses to deliver what they are selling. Carefully read your contracts as well as a print out of the listing.

Custom homes can be built without contingency funds. It takes planning and self control. If you plan a 20% contingency fund, it will get spent early.

Here, all permits required to build a new home is usually the responsibility of the builder. After all, how in the world is a buyer supposed to know what permits cost upfront?

And, also, what is printed in the MLS is not a legally binding contract between the seller and the buyer. This is where your contract comes in.