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Comparing custom home builder proposals is confusing, and that's by design. The lowest bid is rarely the best deal. True custom homes in New Braunfels start around $850K and commonly exceed $1 million.
Red flags to watch for: Vague line items, unrealistic allowances, hidden exclusions (septic, well, utilities), missing warranty details, and builders who rush you to sign.
What matters most: Identical specifications (not just square footage), realistic allowances based on actual product examples, detailed inclusions/exclusions lists, written warranty terms, and transparent communication from day one.
Bottom line: Ask detailed questions, document everything in writing, and never sign a contract you don’t fully understand. For KC Custom Homes’ transparent, itemized proposals, schedule a free consultation or call 830-534-7003.
You’ve collected three builder proposals for your dream home in New Braunfels. The prices are all over the map, $875,000, $1.05 million, and $925,000, for what looks like the same house. How is that possible?
Welcome to the confusing world of custom builder bids, where “apples-to-apples” comparisons require a decoder ring and a healthy dose of skepticism. After building hundreds of custom homes across the Hill Country, we’ve seen every bid trick in the book, and we’re here to help you spot them before you sign anything.
Here’s the truth: the lowest bid is rarely the best deal. In fact, it’s often the most expensive choice you’ll make. Let’s break down exactly what you’re looking at.
Important note: The pricing examples in this article reflect general market ranges for educational purposes. Every custom home is unique, and actual costs depend on your specific lot, design, finishes, and scope. For accurate pricing tailored to your project, schedule a free consultation with KC Custom Homes or call us at 830-534-7003.
Before diving in, here’s what every proposal should clearly define:
✓ Apples-to-apples scope sheet — Same square footage, specs, and finishes
✓ Allowances vs selections — What’s budgeted vs what’s actually chosen
✓ Inclusions list and exclusions list — What IS and ISN’T included
✓ Timeline and milestone clarity — Start date, phase completion, final walkthrough
✓ Warranty terms and service — What’s covered and for how long
✓ Change-order process and fees — How modifications are handled and priced
✓ Communication cadence — Weekly updates? Single point of contact?
Answer: True custom homes in New Braunfels start around $850K and commonly exceed $1 million. If you’re seeing significantly lower bids, you might be comparing production builders to custom builders, two entirely different categories.
Part of the bid confusion comes from terminology. "Custom home builder" means different things to different builders, and understanding the distinction will help you compare proposals fairly.
Production Builders:
Semi-Custom Builders:
True Custom Builders:
All three approaches have merit depending on your needs and budget. But when you’re comparing bids, make sure you’re comparing within the same category. A $650K semi-custom package from a production builder is not comparable to a $950K true custom proposal, even if the square footage looks similar.
We specialize in true custom homes for clients who want complete design freedom, hands-on involvement, and craftsmanship that reflects their unique vision. Our projects typically start around $850K and scale based on size, finishes, and site complexity.
Explore our portfolio to see the level of customization and quality we deliver. (Learn more about the differences between custom and production builders in our detailed comparison guide.)
For pricing specific to your project, request a free consultation and we’ll walk you through realistic budget expectations based on your goals.
Answer: You need identical scope documents, same square footage, same specifications, and same finish levels, or you’re comparing apples to oranges.
This is where most homeowners get burned.
Builder A quotes 3,500 square feet for $875K. Builder B quotes 3,500 square feet for $1.05M. Builder C quotes 3,500 square feet for $925K. They must be comparable, right?
Wrong.
Is it heated/cooled space only? Does it include covered porches? (Common in Hill Country designs.) Are garage conversions or bonus rooms counted differently?
Pro tip: Ask each builder for a detailed breakdown showing exactly how they calculate square footage. We’ve seen "3,500 SF" homes that were actually 3,100 SF of living space plus a 400 SF covered patio counted in the total.
Even when square footage aligns, the specs can vary wildly:
Building in New Braunfels and Comal County requires specific foundation engineering. A builder quoting a basic slab on expansive soil is setting you up for cracks and foundation issues down the line.
KC Custom Homes accounts for local soil conditions in every proposal because we’ve built here long enough to know what works, and what fails.
This is where the real divergence happens. Three builders can quote the same home with "luxury finishes" and deliver completely different products:
Ask each builder to provide brand names, model numbers, and product lines for major components. If they say "granite countertops," that could mean $45/SF builder-grade or $125/SF exotic slabs with custom fabrication.
The National Association of Home Builders emphasizes that comparing bids requires identical specifications and detailed scope documentation, not just matching square footage. It’s one of the most common mistakes homeowners make, and it costs them thousands in surprise expenses later.
For accurate, detailed specifications tailored to your project, schedule a free consultation with KC Custom Homes. We’ll help you understand exactly what different finish levels cost and what they deliver in terms of aesthetics, durability, and resale value.
Answer: Allowances are budget placeholders for items you haven’t selected yet, like cabinets, countertops, tile, and fixtures. The bid price assumes you’ll stay within these budgets, but most homeowners exceed them.
Allowances are the **#1 source of sticker shockuring construction. Here’s how they work, and why they’re often used to make bids look lower than they actually are.
How Allowances Work:
Your builder allocates a specific dollar amount for categories like:
When you make your actual selections and exceed the allowance, you pay the difference through a change order. Sounds fair, right?
It is, if the allowances are realistic for your home’s style and market.
The Allowance Trap:
Some builders lowball allowances to make their bid look competitive, knowing you’ll blow through them once you start making real selections. Here’s a real example from a New Braunfels project we consulted on:
Builder’s Cabinetry Allowance: $45,000
Reality for 3,500 SF Hill Country Custom Home:
That $45,000 allowance was unrealistic from day one for the finish level the homeowner expected. They would have paid an additional $28,000 in change orders, money they hadn’t budgeted for and didn’t have readily available.
Red Flag Language:
What to Ask:
KC Custom Homes’ Approach:
We base our bids on allowances and match our model home to set expectations. Selections are finalized after construction begins. When we use allowances, we base them on recent project actuals in your home’s style and price point, and we provide detailed documentation showing what the allowance covers.
Browse our kitchen and bathroom galleries to see the quality level our allowances are designed around.
For more insight into realistic pricing expectations, read our guide on how much it costs to build a custom home in Texas.
Want to understand what realistic allowances look like for your project? Request a free consultation or call 830-534-7003. We’ll walk you through real product examples and help you budget accurately from the start.
Answer: The most expensive surprises come from exclusions that should have been inclusions, things like site work, permits, utilities, landscaping, and "finish details" that nickel-and-dime you throughout the build.
Every builder has an inclusions list and an exclusions list. The difference between them is where money disappears, and where your budget can get blown apart.
Inclusions: What SHOULD Be Standard
A complete custom home bid should include:
Site & Foundation:
Structure:
Mechanicals:
Interior Finishes:
Exterior:
If major items like these are listed as "exclusions" or "owner-supplied," you’re looking at tens of thousands in additional costs, or more.
Legitimate exclusions (things truly outside typical scope):
Sneaky exclusions that should raise red flags:
A prospective client came to us after getting burned by exclusions with another builder. Their original bid looked competitive at $925,000 but excluded:
When they came to us, we provided a complete, transparent bid for a comparable home at $1.05M, with everything included. Our "higher bid" was actually competitive or lower because we didn’t hide costs in exclusions.
This transparency is exactly why communication matters so much, read more about the importance of builder communication throughout your project.
For a detailed inclusions/exclusions breakdown specific to your project, schedule a free consultation with KC Custom Homes. We’ll provide a transparent, itemized proposal so you know exactly what you’re getting, and what you’re paying for.
Answer: Vague line items, unrealistic timelines, no warranty details, and builders who rush you to sign or discourage questions. Trust your gut, if something feels off, it probably is.
After two decades building custom homes in the Hill Country, we’ve seen these red flags play out hundreds of times. Here’s what to watch for:
What it looks like:
Why it’s a problem: You have no idea what’s actually included. When it’s time to make selections, the builder will say, "Oh, that’s not in the allowance" or "That’s covered under miscellaneous, but you’ve exceeded it."
You’re left arguing over thousands of dollars with no documentation to back up your understanding.
What to demand: Itemized breakdowns for every category over $10,000. If they say it’s "proprietary" or "too detailed to share," walk away.
Transparency isn’t optional in a million-dollar transaction.
What it looks like:
Why it’s a problem: True custom homes in New Braunfels take 10–14 months on average, depending on size, complexity, and site conditions. A builder promising 5–6 months is either cutting corners, working with inferior subcontractors willing to rush, or flat-out lying.
You’ll end up with rushed work, quality issues, or blown deadlines, usually all three.
What to demand: A detailed milestone schedule showing:
KC Custom Homes provides a detailed timeline at contract signing, with milestone dates, weekly progress updates, and built-in contingency for weather and material delays. We’d rather underpromise and overdeliver than set unrealistic expectations.
What it looks like:
Why it’s a problem: Texas doesn’t require new home warranties by law, which is why the Texas Attorney General’s consumer protection guidance strongly recommends getting all warranty terms in writing before signing any construction contract.
If it’s not documented, you have no legal recourse when the HVAC fails in month 13, the foundation cracks in year two, or the plumbing starts leaking after closing. You’ll be paying out-of-pocket for repairs that should be covered.
What to demand:
We provide all three, in writing, because we stand behind every home that bears our name. In fact, our 2024 Parade of Homes awards reflect that commitment to quality and craftsmanship that lasts well beyond closing day.
What it looks like:
Why it’s a problem: Builders who rush you or shut down questions are hiding something. Period.
Building a custom home is likely your biggest financial investment, you should feel empowered to ask every question, review every document, and take all the time you need to make an informed decision.
What to demand:
At KC Custom Homes, we actually prefer when clients ask detailed questions and involve their attorney. It shows you’re taking this seriously, and we want you to feel completely confident before moving forward.
What it looks like:
Why it’s a problem: Building in the Hill Country requires deep understanding of local soils (expansive clay and limestone), building codes, permitting processes, and established relationships with quality subcontractors.
Out-of-town builders or those without verifiable local work often make expensive mistakes, on your dime, because they don’t understand regional conditions.
What to demand:
Explore KC Custom Homes’ complete portfolio showcasing luxury custom homes across New Braunfels, Boerne, and the Hill Country. We’re proud to show you our work, in person and online, and we’re happy to connect you with past clients who can share their experience building with us.
Answer: Request written warranty terms before signing, and establish a communication protocol (weekly updates, single point of contact, response timeframe) in the contract. The builder who communicates poorly during the bid phase will be worse during construction.
The bid phase reveals everything about how a builder will treat you during and after construction. Pay close attention to responsiveness, transparency, and willingness to document everything in writing.
Warranty Vetting Questions:
These questions align with the NAHB's recommended due diligence checklist for selecting a builder, a framework developed specifically to protect homeowners from common contracting pitfalls. The builders who resist answering them are the ones you should avoid.
Communication Vetting Questions:
For a complete list of essential questions to ask any builder, see our comprehensive guide: Questions to Ask Your Custom Home Builder.
Red Flag Responses:
KC Custom Homes’ Communication Standard:
Every client gets a dedicated project manager and weekly photo updates via email or our client portal. You’re welcome on-site anytime during business hours, we’ll even grab coffee with you and walk the progress together if schedules align.
Why? Because it’s your home, and you should feel involved every step of the way. We’ve found that clients who are engaged and informed throughout construction are exponentially happier with the final product, and they refer more friends.
Communication isn’t a burden for us; it’s how we ensure you love the result.
Ready to experience what transparent communication looks like? Schedule a free consultation or call 830-534-7003 to start the conversation.
Comparing custom builder bids isn’t about finding the lowest price. It’s about finding the best value, the builder who delivers what they promise, communicates openly, and stands behind their work for years after you move in.
The Texas Attorney General’s office receives thousands of home construction complaints every year, with most stemming from unclear contracts, missing specifications, and undocumented verbal promises. Nearly all of them could have been prevented with the right questions asked, and documented in writing, during the bid phase.
If you’re still in the early research phase and want to understand the broader builder selection process, start with our guide on how to choose a custom home builder.
Building a custom home in New Braunfels, Boerne, or anywhere in the Hill Country is an incredible journey, when you partner with the right builder. You deserve transparency, quality craftsmanship, and a team that treats your investment with the respect it deserves.
Ready to see what a truly transparent, detailed bid looks like? Schedule a free consultation with KC Custom Homes. We’ll walk you through our process, show you real allowance examples from recent projects, provide detailed inclusions/exclusions documentation, and answer every question you have. No pressure, no rush, just honest conversation about your project and what it will realistically cost.
Or call us directly at 830-534-7003 to start the conversation today.
Chris Castro, VP & Director of Sales at KC Custom Homes
With years of expertise in custom home building across the Texas Hill Country, Chris brings deep knowledge of costing, premium building materials, and financing solutions, helping families navigate the financial and material aspects of creating their dream homes with confidence and transparency.
KC Custom Homes is an award-winning builder specializing in luxury custom homes in Boerne, New Braunfels, and surrounding Hill Country communities. Learn more about our team and process.
To request a free quote, please fill the form below. Let us know what features you’re looking for in your next home and our experienced team will contact you shortly.