I figure this is the brick & mortar equivalent of an exit scam, or a tech startup's "incredible journey". Build up lots of good will over several years and then blow it all as you collect enough money to retire and never deal with people again.
Stick to buying spec houses. They will always be better than a custom home because people get to examine the house before they agree to buy it. Whole world changes when you are under contract for a build/remodel.
I also got to visit the site every day and take pictures, which is really nice to have. Especially the day before they did drywall, I went nuts with pictures and now I can tell you exactly what the inside of every single wall looks like, what the electrical looks like, the plumbing, conduit, smurf tubes, etc.
Also, if you are nice and polite, you can talk directly to the subcontractors in some cases and get even more customization at a great price. E.g. the electrical guy offered to run cat5 throughout the house for a few hundred bucks. He couldn't terminate it, because he's not licensed for low voltage, but he could run the wire itself and leave it coiled up in a single gang box in every room. The builder didn't think to offer that, but having a chat with the electrician when he was on site gave us that option.
I would be livid and consulting lawyers if I was exposed to this brazen bait and switch by so called “reputable” company.
Some close relatives bought a plot in a newly developed area, and tried to find a contractor to build their home. After listening to others in the area, it was pretty clear there was a couple of good, reputable ones and one avoid-at-all-costs.
So they went with one of the reputable ones. The guy decides at some point to have a look and see how it's going, and finds a somewhat confused-looking 17 year old trying to pour the basement floor/deck on his own.
Guy asks wtf he's doing there. Turns out he's the son of the guy running the avoid-at-all-costs contractor, and this was the first time the kid had done this kind of thing. His dad had told him to go and fix this, so being an obedient son he gave it his best...
Of course the reputable company had hired the avoid-at-all-costs company to do the job since they were too busy for some reason...