Building a home allows you to construct the ideal residence for your needs, but the long list of requirements, codes, and design choices makes it hard to know where to begin.

A must in any new construction process is the requirement to work with licensed tradespeople and vendors. To know who you need to hire, begin the process of building a home by determining what route aligns with your desired experience.

In new home construction, you can work with a production home builder, custom home builder, a design-build firm or a series of tradespeople in a setup where you serve as the general contractor.

Working with a production home builder often means choosing a model with a set floor plan, finishes, optional add-ons and a preselected exterior style on a lot you choose within a new community. In other instances, a builder could offer “on your lot” options, meaning they build their model on a lot of your choosing.

The design freedom you have with production homes depends on the builder you work with. Some builders, for example, might allow you to select finishes, such as countertops, and products, such as plumbing fixtures and paint colors. Prices range for production homes, but builders with more design freedom often come at a higher cost.

If you want to build a dream home straight from your imagination, you want to serve as the general contractor and hire tradespeople or connect with a custom home builder who acts as the general contractor.

The first choice can be challenging, requiring you to make every decision on your own, coordinate production schedules, and hire tradespeople, such as architects, engineers, landscapers, framers, roofers, plumbers, electricians, window installers and carpenters. Without any experience, this can easily become unruly and take up a lot of your personal time.

“Although this may be a dream, if they’ve never built a house before, do they want to build a house for the first time and then live in that for their whole life? I’ve never seen that happen,” said Sean Sullivan, president of Living Stone Design + Build, an Asheville, North Carolina-based custom builder. “You’re either going to pay for your mistakes or pay a little bit higher for a builder that’s made the mistakes.”
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To avoid the challenges of serving as the general contractor, identify the type of building experience you want: Do you want an expert to guide you through every step of building and design, from selecting an appropriate lot to the types of plates you want on your outlets? Or do you want to work with a separate architect and interior designer and request bids from builders who would take a house plan and execute it?

Builders warn that the bidding process can be deceiving if you select a contractor solely because they agree to build within your budget. Keeping architects, designers, and builders siloed limits synergies. Without input from each side, some plans can be drafted that cannot meet an ideal budget because of estimation limitations.

The most expensive route, but a fully serviced one, is hiring a design-build team. These companies include on-staff or partnered architects and designers who work closely with a production team. They work from pre-construction through final delivery and offer project managers who oversee the project and serve as a point of contact along the way.

When you decide on a route to take, think of your basic asks and budget. This can help you describe what you need done to an architect or custom builder.

“You want to come with criteria: Here’s my total investment, here’s what I’d like to spend, is that realistic? Here’s the type of style we’re interested in. People typically put together a Houzz idea book or a Pinterest board,” explained Sullivan.

Many custom builders cannot quote a job accurately without knowing details like finishes, though some will offer a range. Budgets can easily change with production challenges or supply chain issues that hold up a project. Due to the extent of the project, Sullivan has clients sign a different contract and make a different payment for each step: pre-construction, design, and production.

If building a new home with a production builder, think of the functions and amenities. How many bedrooms do you need? Do you want a primary bedroom or suite on the first floor? Do you need an office? These requirements will guide you and the builder toward a house plan that matches your needs.

Real estate is always about location. Factors like community, school district, and proximity to dining and entertainment can change the experience of living in a home.

Jay Kallos, senior vice president of architecture at Ashton Woods, suggests identifying a community first, if taking the production new home route. Most builders will limit plan offerings for a community based on research on the style of buyers in the market.

“We try to envision who the buyer is before they come so we know what plans to build there and what finishes, what style,” Kallos said.

If searching for your own lot, hire an expert, like a builder or real estate agent, before buying. Lots have to be surveyed to determine if they can be built on, explained Sullivan.

“I recommend a four-part survey, and that four-part survey would include boundaries, so that’s your property line. You would have the setbacks laid over it, and then we need a tree survey and a topography survey,” he said. “You want to get that survey back before you close, so you have an opportunity to see how buildable it is.”

Begin researching contractors online, reading reviews, reviewing their websites and perusing completed projects. Ask friends and family for referrals but always double-check.

“You want to do both because people tend to be biased toward their own decisions,” said Sullivan. “A lot of times, they’ll say their builder is the best builder.”

Vendors could also be a strong referral source. More than a past client, vendors can vouch for a builder’s professionalism, punctuality and friendliness. Searching the directory of a local homebuilders association could also help find a respected contractor.

Most cities post licenses online for the public to access. If you’re researching a contractor, look up their license and see whether they have a license at all or any limitations on the license.

It’s also smart to see whether builders have legal claims against them for unpaid bills or poor craftsmanship.

“Then take into account the number of years of experience they have and ask about their process,” said Sullivan. “Are they a process-driven company? If not, chances are you’ll be frustrated during the build.”

Now that you understand what you want in a home, the location, and the route you’ll take to build it, it’s time to begin.