May 10, 2021 | Custom House

Cost Effective Ways to Build Custom Homes




If we have undertaken to research how to build your dream house, we know how challenging it can be to make one in your budget. We have to think about the most effective ways to spend our money. The task becomes more complex and confusing when thinking about a whole house but not about some rooms.

We don’t have to spend a lot of money while building our dream home but can save some if specific tips are followed. With adequate planning, a well-made budget, and an economical approach, we can have our dream home without any financial hassle.

The Design Phase

A bigger house will cost more money:

After entering the planning phase, we have to decide how big we want your house to be. However, we also have to stick with the budget while planning it all. While being in the design phase, we might think that building a house of 1200 square feet will cost almost the same as making a 1000 square feet house. If our home costs $100 per square foot, it will cost additionally $25,000 more. We can quickly maximize the dollar by keeping the floor plan small but functional.

Creating an open floor plan with multipurpose living spaces is a perfect way to stretch the dollar more. This will give us the feeling of a bigger house without any added building costs.

Choosing the aesthetic:

This is one of the vital components in the designing phase and can quickly increase spending if we skip thinking about it from the beginning. For instance, we might choose concrete flooring if we want an industrial aesthetic. However, dying these floors might break your budget and cost us way more than we think. We can instead skip this part and save for the future, saving a considerable fortune. If we choose the correct interior with the floor’s unfinished concrete look, we will get a very aesthetic look in the house.

Must-have features that are also cost-effective:

By setting clear expectations, we can make sure that the costs don’t increase suddenly, and we have to do it in the design phase. The features that are a must-have for us also have to be cost-effective. For instance, we can choose high-quality faux wood floors in place of traditional hardwood floors.

Try to cut cost while researching:

Researching is a significant part before starting any phase of making your custom house. This is the part where we will get to know almost everything about our upcoming project. It’s the time when people generally make their budget also. Try to cut costs as much as possible while researching about everything and finding out possible options that will be effective and cheap at the same time.

Cut cost by choosing a proper contractor

Don’t bargain too hard on bidding:

Saving money while choosing the right contractor does not always start with the lower bidding process. Instead, an inexperienced contractor can make you spend more in future phases of building the house. So save money indirectly by choosing the proper labor who will complete the work within time and budget.

It is also advised not to skip bidding totally as opening up the bidding helps find fair bidding. Let the contractor explain logically why he or she should be paid the amount that was claimed.

Build pros and cons:

Another option before choosing your contractor is to create a chart of pros and cons and present it to each contractor. Keep in mind things like recently completed projects, reviews, sound upgrades, inclusive based prices. Ask them if they have a relationship with national suppliers and vendors. This kind of latter relationship can save considerable costs in the building phase.

Make a clear line of communication:

Whether the contractor works independently or as a part of a design-build firm, the communication channel must be clear. The contractor has to be clear about your preferences and priorities. Make your budget clear to the contractor so that he or she can offer input on additional ways to cut the cost. For example: if you have envisioned custom windows, the right contractor will suggest standard measurements to save thousands of dollars.

During construction phase

Buy your materials:

There are many material options out there in the market to confuse you easily. Some of them will make your house gorgeous but will cross the budget. On the other hand, with proper research, we can get an alternative material that will cost us less but make it look expensive. We can also buy high-quality material’s from big retailers at lower prices.

Use the connections of family and friends:

The tax credits won’t save the money while the actual construction phase is taking place. Instead, we can call them a great way to gain some of your money back when our custom home is built. Don’t forget to research the possible home improvements before you start the construction phase. In fact, we can get back thousands of dollars by selecting the perfect energy-efficient materials and appliances by doing this research process.

Don’t forget about your budget:

The easiest path to hold money while the construction phase is going on is to remember your budget. If we want to stay within your budget, we should

  • make a plan that can be implemented.
  • Make decisive decisions.
  • Be ready and build space for random splurges.
  • Make sure that all of the costs of the construction phase are identified.


Starting From getting permits to final inspections, we have to keep in mind that we might splurge on post-construction landscaping if we want to be glued to the budget, and we need to be truthful with ourselves, the contractor. Nothing is more dangerous than getting “in over our head” and having panic attacks because we can’t pay more to complete our dream home. Fortunately, these tips can guide us to save money and help us stick to our budget.




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