Can a Builder Raise the Price After I Sign?

In many cases, yes. Some builder contracts include escalation clauses that allow price increases for material costs, lot premiums, or design changes. Read your contract carefully.

The Short Answer

It depends on what your contract says. Some builder contracts lock in the purchase price at signing. Others include provisions that allow the builder to increase the price under certain circumstances.

If your contract allows price increases, the builder may be able to raise the price and require you to either pay the higher amount or forfeit your deposit.

Types of Price Increases

Material cost escalation clauses allow the builder to pass along increased costs for lumber, concrete, and other building materials. These became more common after the supply chain disruptions of 2020-2022.

Design center changes and upgrades may add to your total cost beyond the base price in the original agreement.

Lot premium adjustments, change orders, and HOA or utility fee changes can also increase your total cost at closing.

What to Look For in Your Contract

Look for any language that allows the builder to adjust, modify, or increase the purchase price after signing.

Check whether there is a cap on price increases.

Understand whether you can cancel without penalty if the price increases beyond a certain threshold.

Some contracts state that the price is "subject to change" — this gives the builder broad discretion to raise the price.

How to Protect Yourself

Ask the sales agent directly: "Can the price change after I sign?" Get the answer in writing.

Have your contract reviewed to identify any price escalation provisions.

If your contract includes an escalation clause, understand the conditions that trigger it and whether there is a cap.

Keep records of all pricing discussions and any promises made during the sales process.

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