Your guide to designing and building your custom home in 11 steps

It sounds pretty straightforward: To design and build your custom home, start by brainstorming your vision, establishing a budget and selecting a plot of land in a desirable area with zoning regulations that accommodate your plans. From there, secure financing, assemble a team and begin construction.

While the process involves many important steps, being informed and proactive can help you navigate them smoothly. Understanding local zoning laws early on, for example, ensures your design aligns with regulations, helping you avoid delays or revisions. With thoughtful planning and the right guidance, you’ll be well-positioned to bring your dream home to life.

Let Homes.com walk you through the process of planning, designing, funding and building your next home with a design team. You can also check out the Homes.com New Homes feature for information on dozens of builders nationwide and their latest developments.

Your home should evolve with you. Designing with your future in mind could save money and increase your property's resale value.

For example, a single homeowner might initially opt for a minimalist, one-bedroom layout. But that individual may want to eventually start a family, so adding a second bedroom for $20,000 during the initial construction could prevent a $30,000-plus remodel years later. That extra space can also boost your home's resale value. If you can afford the upfront cost, it’s a smart investment. This is what strategic design looks like. Your family will thank you later.

Develop your vision by:

• Defining your long-term goals. Where do you see yourself in five years? Consider career changes, family plans, hobbies and retirement.  
  
• Choosing flexible layouts. Opt for floor plans that can be reconfigured as your needs change.  
  
• Setting a budget. Align your design choices with your income, savings and projected financial growth.  
  
• Thinking about resale. Will your choices today add value tomorrow?  

The next step is to create what design professionals call a project brief, a plan outlining your design requirements. You’ll need to include project goals, desired features and specifics, a budget and a timeline. After completing this step and a few others, you’ll need to hire an architect. We’ll explore that below, but start thinking about what you want now and be prepared to fine-tune your vision.

Questions to ask:

• What is my lifestyle, and how could it change in five years?   
  
• What are my “must-have” and “would-be-nice-to-have" features?   
  
• How would a remodel affect my financial situation in five years?   
  
• How could my design vision affect resale value? 

More on this topic:

• Building a home? Here’s how to begin. 
• Buying an existing home vs. building one: What to consider 

Before you reach out to an architect, determine the style you want for your new home.

Here are a few styles to get you started:

Common architectural styles include:

• Victorian 

• Colonial 

• Bungalow 

• Ranch

• Midcentury modern 

• Prairie style 

• Modern farmhouse 

• Mediterranean revival

Create a list of must-haves and wants for your design.

"Plan for functionality, not just aesthetics," said Justin Olewack, president of Virginia-based BOLT Builders. "Start by making a list of things that are important to you and things you dislike about your current house. Someone who loves baking will prioritize a kitchen with lots of counter space. A movie enthusiast might list a home theater among their 'must-haves.' Consider what works and what doesn’t in your current home."

He suggested asking the following questions: "How do you want it to change in your new home? Are you frustrated with an area of your home that feels off somehow? A designer or architect can help you come up with solutions to your current problems."

It is the best way to conceptualize your design needs fully. You can use Pinterest, Houzz.com or a similar platform to get started. It’s good practice to make separate mood boards for each area of your home. This will make it easier for your team to review later in detail before beginning work. Within each board, describe why you like each element and what concerns you may have. However, be prepared to pivot once your design team gets involved.

“Have a Pinterest board of ideas, but use it as inspiration, not the finished product," Olewack said. "Builders and designers love it when you bring them a Pinterest board because it tells them exactly what you expect."

Questions to ask:

• Which architectural style best reflects your personality and lifestyle? 
  
• What design elements could enhance comfort, energy efficiency or resale value?  
  
• How does the exterior style look in relation to the neighborhood?   

 More on this topic:

Explore architectural styles at Homes.com

Hiring the right architect, real estate agent, builder and interior designer is extremely important. Here’s how you should approach assembling your design team:

To find an architect, you can visit online directories like the American Institute of Architects or the National Council of Architectural Registration Boards.

Here are questions you can ask the candidates to help you assess their experience, compatibility with your vision and ability to manage the process effectively:

• Can you show me examples of homes you've designed in the style I'm considering?  
  
• How do you approach blending a client’s vision with practical design constraints?  
  
• What does your design process look like from start to finish?  
  
• How often will we meet or communicate during the project?  
  
• How do you present design concepts — sketches, 3D renderings, virtual walkthroughs?  
  
• How do you help clients stay within budget?  
  
• What’s your typical timeline for a project like mine?  
  
• Do you handle permitting and zoning approvals?  
  
• Will you be involved during the construction phase?  
  
• Can you share a challenge you faced on a past project and how you resolved it?  
  
• Do you have experience designing for energy efficiency or sustainability?   

“Understand what you are paying the architect for, which typically includes more than just drawings," said Miles Smith, senior industry growth and strategy manager at Graphisoft. "Trust their expertise to bring your vision to life and consider working with an architect who uses visualization software."

Interview at least three. An agent can offer advice on neighborhood activities and new developments. Use the Homes.com real estate agent search feature to find experienced candidates in your area.

More on this topic:

12 questions buyers can ask prospective agents

Here’s a comprehensive list of questions to ask prospective home builders to ensure they’re the right fit for your project and vision:

• Can you provide references from recent clients or show me homes you’ve built?  
  
• Can you work with my architect?  
  
• How often will I receive updates, and in what format (email, app, in-person)?  
  
• Do you use project management software to track progress and changes?  
  
• How do you handle cost overruns or unexpected expenses? 
   
• Can you commit to a completion date, and what happens if it’s missed?  
  
• Do you work with a consistent team of subcontractors?  
  
• How do you ensure quality control during construction?  
  
• Do you offer post-construction support or maintenance services?   
  
• Are you familiar with local zoning laws and HOA requirements?  

Pro tip: "How do they schedule their projects? What is their change order policy if you make changes after construction starts? Ask these questions when evaluating builders," Olewack said.

This person will ultimately help you pick out paint colors, flooring, tiles and more. You must be firm with your vision while also opening yourself up to feedback. Here are some questions you can ask to determine whether the designer is the right fit for your project:

• How would you describe your design preferences? 
  
• What is your typical design process from concept to completion?  
  
• How do you collaborate with architects, builders and contractors?  
  
• How do you structure your fees?  
  
• How do you help clients stay within budget while achieving their goals?
  
• What tools do you use to present ideas (such as mood boards, renderings)? 
  

Establishing a budget for a custom home project is a complex process that depends on various factors. However, it’s arguably the most important phase of the process. But you won’t be able to finalize your budget until you reach the team-building step, so, for now, estimate your costs and be prepared to revisit your expenses later.

• Research the price per square foot in your area. Custom homes are generally priced based on square footage. Each state has an average price per square foot for construction.   
  
• Determine your potential home size. The average size of a home is about 2,000 square feet.   
  
• Grab a calculator. Multiply your desired square footage by the average price per square foot in your area, then you’ll have a more concrete number for your budgeting.
  
• Draft a budget. When you assemble a team, they work with you to fine-tune it with specific information.   

Once you’ve outlined your preliminary budget, your architect will begin translating your vision into drawings — including site and floor plans, elevation specs, section layout, a ceiling plan and more. The most reliable cost estimate comes after working with a builder, who will provide you with specific price points based on size, finish level, geography, site topography, design style and more. While it is vital that you establish a budget for your project, you must also account for surprises. “If your budget is tight, you might find yourself constantly checking to ensure you’re on track,” said Olewack. “A good tip is to set aside at least 20% of your budget to cover unexpected expenses. Even with companies that have great reputations for sticking to the budget, unforeseen issues can arise. With that cushion, you won’t panic if they do.”

Pro tip: Look for hidden fees and include them in your preliminary budget.

Pro tip: "A reliable cost estimate is typically finalized after working closely with a builder. For the most accurate number, consult an architect to provide a thorough set of drawings and specifications upon which the pricing can be based," Smith said.

Questions to ask:

• What is the average cost per square foot in my area, and how does that affect my home’s size?   
  
• What is my maximum budget?   
  
• How much of my budget am I willing to allot to unplanned expenses?   
  
• What local zoning laws will affect my budget?   

Next, you will need to secure financing for your new construction project. Custom home financing comes in two forms: construction loans and mortgage loans.

Construction loans fund the building project, including materials, services and more. A mortgage covers the cost of an existing home. In some cases, you can select a hybrid loan that covers both options. Or you may need to secure both of these loans separately.

Construction-to-permanent loans: Also known as "C2P loans," this option covers the physical part of your home’s construction. After the home is built, the loan transitions into a traditional mortgage, eliminating the need for another loan. These loans typically require a 20% down payment or more, depending on the lender.

Construction loans: These loans cover the physical costs of building a home, from materials to services. After taking out this loan, you will need to get preapproved for a traditional mortgage. So, in essence, you will undergo two separate closing processes.

Owner-builder loans: These are self-build construction loans that are available if you decide to build the home on your own. You don’t have to hire a general contractor, but you do have to present a detailed plan to the lender with your schedule, budget and relevant experience.

Federal Housing Administration and U.S. Department of Agriculture one-time close loans: USDA loans are ideal for those looking to build in rural locations, and FHA loans can be applied to any homebuying transaction. Note: Interest rates for these loan types are higher than conventional options.

Speak with a broker: Your builder may refer you to a broker. If not, find a broker in your area and make sure to vet that person/company.

Questions to ask when vetting a broker:

• Do you regularly work with construction projects?  
  
• What lenders do you partner with to offer construction loans?  
  
• Which loan type is best for my project?  
  
• Can I obtain down payment assistance?  
  
• Will you perform a hard credit check?  
  
• What fees should I expect during origination, the draw stage (which is a process used to pay contractors in installments), inspections and closing costs?  
  
• Do you charge a broker fee?  
  
• How does the draw schedule work?  

You will need to the following documents:

• Pay stubs  
  
• W-2 forms  
  
• Tax returns  
  
• 1099  
  
• Social Security or pension awards  
  
• Bank statements  
  
• Purchase contract for the lot  
  
• Builder contract  
  
• Plans and specifications  
  
• Budget sheet  
  
• Appraisals  

Once you obtain a pre-approval letter from a lender, review it with your design team, particularly your architect and builder. Together, you will adjust your budget based on your loan amount.

Pro tip: When establishing a timeline, think about this:

"Many people see the building estimate of six months to a year and budget only for that time. However, that’s usually just the construction time," said Olewack. "Designing the house can take six months or more, depending on various factors. Getting the permits can take a couple of months. After that, the build can take anywhere from six months to a year or more. So, when making a timeline, include design time, permit time and build time."

Choosing the best lot isn’t only about location. You'll want to find one in a community where homes are appreciating and, ideally, a spot that:

• is not too close to the neighbors  
  
• is not near a commercial building  
  
• offers easy access to utilities  
  
• is not fronting a busy road   

Visit the community at different times of day to observe traffic, noise and activity. Test your commute and proximity to essentials like grocery stores, banks and coffee shops. It’s also important to understand county-specific residential zoning requirements that regulate how land can be utilized. “If the land is not zoned for residential development, this will be a major blocker," said Smith. "Other challenges include site size, easements for access and topographic feasibility."Questions to ask:

• What kind of area would I like to live in? 
  
• Is the area noisy or overly active?  
  
• How close is the land to other buildings or residences?  
  
• What local zoning laws could affect your building and budget?  
  
• Are there any environmental restrictions that may affect your project?   

More on this topic:

• The do's and don'ts of buying land  
  
• Find land for sale  

After selecting the land, you will consult with your team to finalize the budget. Here are the required elements of your final budget:

Factor in the cost of your lot. The asking price isn’t the only element that’s important. Closing costs also play a role, so it’s best to factor them into your estimate to avoid pitfalls down the road.

Determine the total cost of construction. The builder will typically give you a range based on the price per square foot. As the buyer, it’s your responsibility to take the price per square foot and multiply it by the actual size of your house. Use the same equation outlined in Step 4.

Here’s how each service provider typically charges:

• Architects: They charge by square foot and typically will operate on a fixed-price contract for production homes and an open-price contract for custom houses. A fixed-price contract offers a static cost for your architect’s services. An open price contract can be adjusted.  
  
• Engineers: Typically, the builder or the architect will recommend someone, so be sure to ask them for names. If you choose the wrong engineer, you may spend too much money on unnecessary elements.    
  
• Interior designer: These professionals typically charge hourly, or they’ll offer a package that’s priced based on square footage.
• Real estate agent: The builder will typically pay your real estate agent’s fee as part of the construction costs. 

Some builders also request a draw, or payment. You will pay interest on this as well, so calculate it beforehand with this equation:Next, your builder will bid the price of the house to contractors, who will handle each level of construction. The terms "builder" and "contractor" are often used interchangeably, but they refer to different roles. A builder is a person or company that oversees the project from start to finish. Pro tip: Don't forget to account for hidden costs.

"Anticipate fees associated with attaining a building permit, subsequent inspections, water, sewer and electrical grid connections," Smith said. "There may also be fees from a managed development community's architectural review board and costs for engaging geotechnical engineers for challenging sites."

Once you and your team collect bids and select the appropriate contractors, it’ll be time to review the contract and sign it. Before you do this, it’s important to understand the different types of contracts and what they entail.

There are three types of contracts used for new construction homes:

• Cost-plus: These contracts charge you based on the cost of the work — which we outlined in the previous steps — plus the builder's fee. This is the most common contract type.    
  
• Fixed fee: These contracts charge a flat fee, and cost overruns don’t affect that price point.    
  
• Fixed price: With these, the price points are established based on detailed plans, specs and selections, giving you the most accurate price possible.    

Contracts typically have concrete protections that ultimately safeguard against conflict — including several warranties. Here are the three common warranty types you should look for in your contract:

• Workmanship warranty: A new home is guaranteed not to have any material or workmanship defects for one year.  
   
• Systems warranty: A new home is guaranteed not to have any defects in electrical, plumbing, heating or any other system for two years. 
  
• Structural warranty: A new home is guaranteed not to have any structural defects for five years.  

After you sign the contract, the attorney review period will commence. During this two- to three-day period, your attorney will point out any issues in the contract and relay it to the builder’s representative.Questions to ask:

• What contract type does my builder typically use?  
• What are the pros and cons of each type of contract?  
• What protections do I need in the contract to protect my interests? 
• Does the contract have clear language about expectations, timelines, etc.?   

As part of the final approval process before construction begins, your team produces construction documents that the municipality will review and approve.

It’s important that you review these documents and make any necessary changes before they go to the local authorities. This review process is the last opportunity to make any major changes or corrections to your plans without causing delays. You'll want to focus on the key elements, including the layout of the home, number of rooms, outlet locations, etc.

“If you make changes after everything is approved and construction starts, any major changes might require additional approval and permits, which takes time,” Olewack said.

Questions to ask:

• Do the plans reflect my design intent and lifestyle needs?   
  
• Are there any discrepancies that could cause issues during construction?   
  
• Can I afford extra fees, approval requirements and delays?   
  

During the final phase of construction, you will select your finishes, fixtures and appliances. Your designer or builder can help you stay within budget during this step. Be careful when selecting windows, doors, flooring and cabinets. Here are some high-priced items that can send you over budget:

• Siding  
  
• Roofing  
  
• Windows  
  
• Doors  
  
• Paint finishes  
  
• Flooring  
  
• Ceiling treatments  
  
• Cabinets  
  
• Countertops   

Once the rough-in work is done — installing electrical and plumbing systems, for instance — you will visit the home. Then, you will conduct a pre-drywall inspection — before insulation and drywall is installed — alongside the builder. Here, you must focus on the placement of these key items:

• Outlets  
  
• Switches  
  
• Stub-outs (the exposed portions of pipe and conduits)
  
• Doors  
  
• Windows  
  
• Framing  

Following that, your local building department will conduct the final inspections. Your municipal inspections office will provide a comprehensive list of the ones you need. Once that concludes, you will return to conduct a final round of inspections, including:

Your builder will walk you through the finished home. Make note of the following:

• Appliances  
  
• HVAC  
  
• Plumbing  
  
• Lighting  
  
• Cosmetic elements  

This occurs one or two days before closing. It confirms that all the items on the punch list have been addressed. Once this ends, your home is officially ready for you to move into after the closing.

It’s time to move in and set up your home using these steps:

This involves hiring movers, renting trucks and recruiting any other necessary personnel that can make your move smooth.

Call your local utility companies to set up the water, electric service, internet and other essentials. Oftentimes, your builder will already have set up electricity during construction, but you must contact the service provider to make the service permanent.

While waiting for your utilities to kick in, use the outstanding time to purchase the proper supplies.

Here are some items to start with:

• Vacuum  
  
• Duster  
  
• Broom  
  
• A mop and a bucket  
  
• Toilet brush  
  
• Spray bottle  
  
• Sponges  
  
• Dish detergent  
  
• White vinegar  
  
• Window cleaner  
  
• Baking soda  
  
• Chlorine bleach  

After the hard work ends, meet your neighbors and get a feel for the community. This is the fun part.

Update your address with banks, companies, employers, government agencies, etc.