Building a custom home doesn’t have to cost you a small fortune. In fact, with a bit of cost-effective planning, a well-defined budget , and an economical approach, you can build the home of your dreams, all while saving money during each phase. From choosing a smart design , to selecting the right builder, avoiding common mistakes , and knowing where to purchase your materials, the following tips can help you to cut costs , while still building the perfect home for you and your family.

Saving Money During The Design Phase

The following tips are meant for someone who is quite far along the path to home building – someone who has picked their lot, worked out a budget and has narrowed down the type of house they want to build. If you aren’t yet at this stage, you will still pick up some helpful tips for the future!

If you have entered the design phase, the following four tips can help you to save money.

5. Saving Money with the Right Contractor

Money can be saved when selecting a contractor, but it happens indirectly. You save money, or rather you don’t waste money later on, by hiring a competent building firm who delivers on time and within budget. Trying to make savings in the bidding phase is not always a wise choice.

But opening up the bidding allows you to find a fair bid. Extreme bids, at either the high or low end, should probably be discounted unless the contractor can justify the bid in a way that seems logical and reasonable to you. The danger is that a low bid comes at a cost later on covering delays and poor workmanship.

The easiest way to select the right contractor is to build a pros and cons chart for each candidate. Look at things like reasonable upgrades, inclusive based prices, reviews, and the projects that they have recently completed. We’ve put together a helpful guide to find a contractor you can trust . You can also ask a contractor about any relationships they have with national vendors and suppliers. The latter relationships can result in huge cost savings during the building phase.

At Legal Eagle Contractors, we are a design-build firm which provides both design and construction services and streamlines the entire process while offering a single point of communication. This setup is particularly helpful in our custom home builds or extensive additions requiring structural change. When design and construction teams are part of the same company and both are involved from the very start, there’s a much stronger likelihood of the project coming in on time and within budget.

Whether your contractor is part of a design-build firm or operates independently, make sure that you establish a clear line of communication with your selected contractor. He should know your priorities and expectations for the home building journey. The contractor should also know your budget , so that he can offer input on additional ways to cut costs . For example, the right builder will know that you can save thousands of dollars by choosing standard measurements rather than the custom windows you had first envisioned.

6. Be Frugal and DIY (When It Makes Sense)

Even though you will be working with a trusted contractor, there are some projects that you can DIY, especially if you are handy with a basic set of tools. For example, you can save money by purchasing and installing the hardware for your bathroom and kitchen cabinets and drawers. Knowing what projects to DIY will depend on your carefully selected contractor and the projected cost of the project. Keep in mind that you can always finish small projects after the contractor has completed his work. Just like our earlier concrete floor example, some home building projects are best saved for a rainy day, or for when you are feeling particularly handy.

Saving Money During the Construction Phase

The following five tips can help you to save money throughout the construction phase.

The Bottom Line: Follow These Tips to Save Money on a Custom Home

Cheaper is not always better; however, when you are building your custom home , you don’t have to break the bank. Instead, with your own lot , and the above tips , you can save money throughout each phase of the home building journey.