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pricklypearcactus

Paid for Custom Home Design and now Bids are Way Over Budget

I thought we were doing everything right and now we are in a dilemma. We bought a lot about 6 months ago in our dream mountain community. Prior to closing on the lot and selling our house, we met with multiple builders and designers to discuss a design and discuss whether it was feasible and within budget to proceed. Although all parties said it would be tight, they said we could indeed build what we wanted within our budget. Now that we have a complete design ready for bidding, the bids are coming in way way over budget. 50-75% over budget. This is so far over budget that we literally cannot afford to proceed.

We worked with a designer familiar with the mountain area (even lives just down the street from our lot) who has been designing homes for 40 years. He claimed (and our preferred builder vouched) that the designer was familiar with the cost of design choices and that he would be able to keep us in budget by making smart design decisions. During the design process he warned us that certain choices would be expensive and we made some compromises (support columns in the garage, completely different roof design, etc) based on the designer's recommendations. His original design was larger than we requested, but we loved it. We made minor adjustments inside and we did increase the width of the house by 6", but otherwise the design was essentially his original design.

The contract with our designer required that we pay as each design phase completed. During the process he said he was discussing with our builder and made a few changes to the roof design after discussing with the builder. He never once said that we could not afford this design or that we were insanely over budget.

Well, now that we have the completed plans (and paid a pretty penny for them), we sent it to our builder to bid. He came in about 75% over our original budget. We reached out to some other builders and while we are still waiting for more bids, the next one came in 60% over budget. The clear trend is that we cannot build this design with our budget. We could stomach 10% or even 20% over budget, but 60+%?!

Now what do we do?

At the moment we are waiting for a few more estimates and bids to come in. We are assuming that we need to sit down with our designer and at least one builder (together) and discuss what can be done to change the design to meet the budget. We are devastated and terrified that we will end up paying the designer double and wasting more of our precious savings that should be going into the cost of construction.

Thank you for letting me vent. (I am on the verge of tears as I write this.) I would certainly appreciate hearing from others who may have been through this experience.

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