Steps To Build Your Own Home

You’ve been saving to finally make the move from a dingy one bed-room apartment and be the proud new owner of your own home. Congratulations!

A new home is often the first, large benchmark of financial independence in one’s life. You have decided that you want to be a home owner – but now what?

Do you buy a house or build your own?

The answer to this depends on your desire for customization, convenience, and cost.

If your two primary considerations are customization and cost – then owner building is for you.

Now let’s tell you where to begin!


1. Buying Land – You will need to either pay cash for the land, get a land loan from a bank, or buy land from the seller with owner financing. Buying the land with a land loan first allows you to take the land off the market so others cannot buy it before you do. It also allows you plenty of time to pick out house plans, submit the plans to the county for approval and obtain a building permit all while obtaining the best construction loan. Construction loans can include the land into the construction loan only if you already own the land with a land balance to add into the construction loan.

2. Know Estimated Cost Of Your Home – This is the breakdown of each particular cost of construction of the home. The foundation, lumber, framing, plumbing, heating, electrical, painting, and builder’s profit, etc. Often times an owner-builder chooses to purchase their own equipment for future use and save money long-term. There are good deals available online for forklifts for sale and a lot of other useful equipment. It is important to keep an eye on overall construction cost, as it can add up quickly.

3. Pick A House Plan or Hire An Architect – There are some great house plan resources on the internet. Just go to Google and type in “house plans” or “architect” for your local area and you will have more sources than you can handle. If you go with a stock house plan from the internet, you will still probably need to make some modifications for your local building codes and building practices. To do this, you will probably want to hire a local architect. Once you pick out a house plan that fits your needs and expected budget, simply buy a few sets and start getting estimated bids from builders.

4. To Hire A Builder or Be An Owner-Builder – The goal of being an owner builder is mainly to save money. Some people can save quite a bit of money if done correctly. However, some people are not meant to be owner-builders, as it takes a strong personality to manage contractors.

You are now on your way to building your own home! Keep focused and enjoy the fruits of your labor!


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