Building your own house is one of the most exciting and sometimes scary projects you will ever take on. Between plans, budgets, and builders, there’s a lot to think about. But with a clear plan and the right team, you’ll go from empty space to front door keys before you know it.
Whether you’re still dreaming of a home in Chandler, AZ, or ready to start over in Naperville, IL, this Redfin guide walks you through every stage of the home building process, from land selection to move-in day.
Phase 1: Planning and preparation
1. Define your vision and budget
Before meeting with builders or a realtor, take the time to define what you want in your new home and what you can realistically afford. Think beyond the square footage and consider how your home will function on a daily basis.
Ask yourself:
- How many bedrooms and bathrooms do you need now and in five years?
- Do you prefer open concept living or traditional architecture?
- Are you looking for energy efficient upgrades or smart home features?
- What is the budget for everything you own, including land, permits, labor, finishes, landscaping, and contingencies?
Most experts recommend setting aside an emergency fund of 10–15% for unexpected expenses. Establishing a clear financial plan early on reduces stress and prevents mid-plan design changes.
2. Choose the right location
Your lot influences design possibilities, cost, and resale value. Beyond location and commute times, investigate practical factors that may impact your construction timeline and budget.
Important considerations before buying land include:
- Access to utilities (water, sewer, septic, electricity, gas)
- Zoning restrictions and HOA rules
- Lots of slope and drainage
- Soil condition and foundation requirements
- Future plans for neighborhood development
A real estate agent and builder can help you evaluate whether a lot supports your intended home design and long-term investment goals.
3. Build your dream team
Successful home construction depends on hiring experienced professionals you trust. Your team may include:
- Licensed builder or general contractor
- An architect or residential designer
- Licensed lender
- Real estate agent familiar with new properties
Take the time to compare bids, review portfolios, check references, and fully understand the terms of the contract. Clear communication about budget, materials, timeline, and payment schedules sets expectations and prevents disagreements later.
Phase 2: Permits, design, and solid foundation
4. Verify building permits
Before construction begins, you’ll need several local building permits to make sure your new home meets safety and zoning requirements. Your builder will usually handle this step, but it’s important to know what’s involved and how much it might cost.
Common permits for a new home include:
- Building permit: It includes the overall structure. Costs generally range from $1,000 to $3,000depending on the location and size of the project.
Electrical permit: It is required for all wiring and electrical systems. Wait $50 to $500. - Plumbing permit: Ensures water and sewer lines are properly installed. In general $50 to $500.
- Mechanical/HVAC permit: Covers heating, ventilation, and air conditioning systems. In general $50 to $500.
- Septic system clearance: Required if your home is not connected to a municipal sewer. Costs often vary $300 to $1,000.
- Land disturbance or grading permit: It is necessary when removing or reshaping land. In general $50 to $500.
Permit prices vary greatly depending on your city or state, but budgeting a few thousand dollars for this category is a good start. Ensuring this in advance helps your project stay on schedule and avoid unexpected delays down the road.
5. Complete the design and floor plan
This is the fun part, turning your ideas into detailed plans. Contact your builder and builder to refine:
- Room size and layout
- Window placement for natural light
- Storage and closet configuration
- Exterior materials and architectural style
- Interior finishes and fixtures
Consider both current needs and resale value. Efficient flow, ample storage, and flexible spaces can make your home more livable — and more attractive to future buyers.
6. Site preparation and foundation
With approved permits, physical construction begins. The area is cleared, graded, and prepared for utilities. Your type of foundation – slab, crawl space, or basement – will depend on climate, soil conditions, and budget.
Testing occurs at this stage to ensure structural integrity and code compliance. A properly installed foundation is important, as it supports the entire home for decades to come.
>> Read: What Are the Stages of New Construction Home Inspections?
Section 3: Framework, systems, and structure
7. Plumbing, electrical, and HVAC
Once the foundation is cured, contractors install critical systems behind the walls. This section includes water lines, electrical lines, pipes and ventilation systems.
Because these parts will soon be covered with drywall, the inspection is very important.
As Jason, President of Bald Eagle Inspection Services, explains:
“During new construction, many buyers think everything is fine just because the home is brand new. In fact, framing, moisture control, plumbing, and mechanical installation issues are often easier and less expensive to fix during construction than after closing. I recommend testing at key stages, including pre-drywall and final steps, so problems can be addressed before they become long-term performance concerns.”
8. Building a home
This is where your vision begins to take shape. Floors, walls, roof trusses, and exterior sheathing come together, giving structure to your floor plan.
This is often an interesting milestone because you can literally walk through the rooms and visualize the furniture placement, natural light, and traffic flow.
9. Insulation and drywall
Insulation improves energy efficiency and comfort by reducing heat transfer and controlling humidity. Options include fiberglass bats, spray foam, and spray-on insulation, each with different cost and performance benefits.
After the insulation is installed, the drywall is installed, taped, and finished. At this point, your home transitions from construction to physical living quarters.
Section 4: Completion and structures
10. Internal and external termination
Now it’s all about the details: siding, roofing, flooring, cabinets, and paint. You’ll make a ton of design choices here, so stay organized and check out materials early to avoid delivery delays.
Small decisions can have a long-term impact.
“Building a home may seem straightforward, but there are many details that are often overlooked and ultimately shape the final design,” says Lori Miller of LGC Interior Design. “Outlet placement, molding details, and cabinet location are very important.”
11. Fixtures, appliances, and lighting
Your builder installs light fixtures, plumbing hardware, counters, and built-ins. This is also where the kitchen and laundry equipment is kept. By now, your new home will look almost move-in ready.
12. Landscaping and outdoor spaces
As the construction unfolds, you can add the finishing touches to the outside of your home. This section may include grass or sod, light plants, walkways, or basic irrigation.
Landscaping costs vary, but most homeowners spend several thousand dollars on essential yard work. Even a small addition makes your home feel complete and increases curb appeal.
Section 5: Final steps and entry
12. Final examination
Local building inspectors will make sure everything meets code and safety standards. Once approved, you will receive a certificate of occupancy, which means the home is legally ready for occupancy.
13. Walkthrough and punch list
Before closing do a detailed walkthrough with your builder. Check for any unfinished or incomplete details such as a sticky cabinet, missing hardware, or a light touch of paint, and add them to your punch list to complete.
14. Move in and enjoy your new home
When everything is finished, it’s time to move in and make your new house a home. Keep all warranty information and contact information handy in case of minor problems in the first year, that’s what the manufacturer’s warranty is.
Build smart, dream big
Building a home is about creating an environment that suits your life. From your first sketch to your first night inside, each step brings you closer to a place that is truly yours.
Stay organized, communicate regularly with your team, and celebrate milestones along the way. When the dust settles, a home will be built for your story.
Frequently Asked Questions about the house building process
How long does it take to build a house?
Most homes take between six and twelve months from approval to completion, depending on weather, complexity, and material availability.
Is it cheaper to build or buy?
Building gives you control and customization, but it’s often more expensive than buying an existing home, especially when you add in land and soft costs like permits and design fees.
What is the biggest mistake that early builders make?
Estimating cost and time. Always put together a contingency budget of ten to fifteen percent and expect minimal delays. Patience pays off when you see the end result.
What is the most expensive part of building a house?
The most expensive part of building a house is usually the frame work and general structural work. This includes the foundation, materials, and labor required to build the skeleton of the house.
