Not true. In order to appear on the show, the homeowners must already own the house. So the whole house hunting half of the show is a total farce. The budget is also a farce. The homeowners' budget must contain a 25% contingency, which is pretty much unheard-of (typically 10-15%). So when you see all this drama about a $5000 structural issue with a $100,000 budget forcing them to cut corners, it's just that...drama. Those corners were going to be cut anyway. They just have to give the homeowners something to get pissed off at Jonathan about.
At the end when they show the $7000 range or the $3000 sofa, do you wonder why didn't they put $5000 into opening up that wall or converting the fireplace instead? Those are the freebies they get that they aren't allowed to spend on labor.
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