With housing difficult to find and quite expensive in many parts, people now are turning to different options beyond just buying a single-family home that’s already built. Where possible, that can mean building a dream family home from scratch on your own lot.

If that’s something you find yourself considering, there are a few key considerations to keep in mind. At Reality Homes, we often help guide customers through this process — here’s what we tell them:

First Consideration: Your Custom Home Budget

Of course, this is where it all has to start.

The constraints of your budget naturally determine the limitations of what you can do. If you don’t already own a plot of land, it’s even more impactful as land prices can vary quite a bit depending on location, potentially affecting the realistic options of where you could buy land and build.

So, first thing’s first: What’s your overall budget? (And, if that includes the need to buy land first, how much does that leave you with for the actual building part?)

At the same time, if you have to buy land — and potentially even if you already have it procured — consider the costs associated with that that go beyond just the land itself; this includes things like surveying, soil tests, utilities and road access, potential environmental risks, and more.

Of course, the construction cost itself is the huge one, determined primarily by house size, materials, and design choices.

Besides just the cost of land and home-building itself, however, realize that your budget will also have to consider funds for:

• Regulatory Requirements
  • Permits
  • Inspections
• Utilities Setup For Components Like:
  • Water
  • Electricity
  • Sewage
• Any Additional Expenses To Complete The Project Such As:
  • Landscaping
  • Driveways
  • Outdoor Amenities
  • And More!
• Any Other Contingencies

The last one is important, and not everybody takes that into consideration. Just like with any project, things don’t always go perfectly according to plan. In fact, they often don’t! Assume you’ll get thrown a curveball or two during the purchasing, inspection, and construction process, and plan your budget accordingly.

Long story short: Have a financial buffer for unexpected expenses — it’s way better to have leftover money than run out partway through.

On that note, we have a financial calculator for mortgages if you are looking for a little extra help with this breakdown.

Second Consideration: Where To Build Your House

There are two distinguishing scenarios here:

One, you could be looking to build your own home and want to find the ideal lot and location for it. The second situation is if you already have a spot of land.

Either of these scenarios will come with differing considerations but, regardless, you have to consider the realities of your dream home location — do you currently have land to build upon, or will you be looking for a new lot of land?

For now, let’s assume you’re looking for the right lot for you. Beyond just living in that location itself, there are various other considerations for you to think about when deciding on a lot:

• What are the local zoning laws and building regulations?
  • How will that affect your home construction?
  • How will that in turn affect your day-to-day quality of life?
• What size or shape is it?
  • How will that impact your home’s layout?
• How close are essential services such as:
  • Schools
  • Hospitals
  • Shopping Areas
• What is the natural environment and landscape?

These questions can lead you to think beyond just the perfect location to the practical implications for, not just building your home, but living in it for years to come.

At the same time, if you already have a lot of land and are looking to build on it, these questions still apply, just as pre-existing parameters. Just like when you’re looking for a new lot of land, really think about how these parameters will impact the home you can build.

If you’re located in Washington or want to move here and are looking for areas to build, we have compiled a guide to buying land in the PNW!

Third Consideration: Designing Your Home

This is the fun part of building your dream home!

What’s your vision for your perfect home? What’s your preferred layout and style? What features does it have that you absolutely can’t live without?

To begin, don’t limit yourself — start with an ambitious imagination, and then you can work down from there on what’s practical both within the physical, environmental, and financial parameters that determine what can come to life.

This crucially includes your floor plan. What do you want out of it, and how can different layouts work to that ends? Whomever you’re working with to build your house should be able to help guide you in this process, too.

For example, at Reality Homes we have insight into which floor plans are particularly popular for which environments, however, overall our most popular floor plans are Falon Crest, Spyglass, and Gold Mountain.

If you’re building with a homebuilder like Reality Homes, you’ll ideally have many customization options like what we offer to ensure your home reflects your needs and preferences.

Other factors for your custom home include:

Do you want a one-story or two-story home? Each has their own pros and cons — be open-minded!

What energy efficiency features can you prioritize and subsequently save on monthly utility costs?

Bottom Line and Next Steps

First off, we recommend you get into sponge-mode and read as much as you can about the process. While it may be a lot to take in, you should absorb as much information as possible so you can be fully prepared.

We offer many resources for first time home builders such as our step-by-step guide to home ownership and a full breakdown of the construction process.

And, if you’re interested in working with Reality Homes specifically, you can find all our locations in Washington and Oregon, providing personalized service to people in both those states and northern Idaho. Schedule a consultation today – the first step towards your dream home!

In the end, starting out with these three considerations — budget, location, and design — will give you an excellent foundation to build off (pun intended). When planning on creating your own custom home, thoroughly establishing your needs, wants, and limitations is the first step.