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It's not a question that I have asked very often, but in some scenarios it can be helpful to know, and here's why:
By knowing your budget, the seller can also find out where you are willing to wiggle on. If you are willing to sacrifice in one area, you may be able to pick up some slack in another area based on the restricted budget.
Let's use housecleaning as an example. Standard service is $200 per trip. You want your stovetop deep cleaned because you are a heavy cooker, but that's only included in the $300 package. You don't use your 2nd bedroom though so that can be removed from the package, allowing some wiggle room in the standard package which gets you the deep cleaned stovetop.
Not everyone uses it in an "honest" way and I can't remember the last time anybody has asked it of me, but it's not necessarily nefarious.
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