What Miss Alison said. :-)

A great team of (separately hired) architect, builder, and interior designer is the best way to go. Add in a landscape architect, too, if possible.

Do you have any idea of the price range of the items that go into building a house? You might want to visit tile stores, plumbing supply stores, flooring stores, lighting stores, etc. and see what some of the choices are.

Will you be happy with Home Depot tile or do you want a unique handmade tile from Walker Zanger or Ann Sacks? Do you want vinyl floors and carpet or site finished wood floors everywhere?

You can then decide which areas you want to save or splurge on. Get a good builder, because you certainly don't want to skimp on the structural elements of the house.

I would also visit model homes or open houses for new homes and see what type of quality you get at different price points.

Are you dead-set on building? Buying something that already exists will almost always be cheaper.

What are your goals? That is, are you looking for a first home that'll do you for 10 year or so, or are you heading into this thinking, "This is our forever house, and it must be exactly right."

Yes we are building on land we already own

A good first step could be to make a list of what rooms and features you actually need and another list of what you want.

If you're unable to find a plan in one of the many books/magazines sold in chain grocery stores and big box stores that fits your need and/or want list, invest in a pad of graph paper. With pencil (and large eraser nearby) begin drawing, to scale, the rooms you need.

On a budget, you might opt for a carport in lieu of a garage -- or neither.

Is your lot sloped, thus making a basement or split level practical? Do you want a two story home or all the rooms on one floor?

What is the size of your lot? On what side of your property is the road located -- what direction is north, south, east and west.

Is your land in the city or in the country or have you bought a lot in a suburb that has rules as to the size and kind of home -- rules in addition to the county building codes, with which you must comply as you build?

Most homes have a better resale value with at least three bedrooms -- one for the parents, one for the sons, one for the daughters.

On a tight budget, a great room -- a large center room that is the living room and dining room and kitchen -- can be more practical and desirable than a bunch of much smaller chopped up rooms.

For us even with spending eons deciding on who to work with we still have to actively work to stay on budget. We’ve been shown things way over budget on the design side and had stuff that hasn’t changed listed as surprise costs on the build side. Having a realistic idea of true costs plus contingency is key.

The best professional to start with is a licensed architect. Without a good set of plans, sections and elevations a general contractor can't do much for you. Don't rely on the builder for design. They are professionals at building, not professional designers.

I think an architect or designer can design a beautiful home but you needs builder on board early to keep the design on budget. Our builder successfully squashed a few things we would have loved and been unable to afford. Easier pill to swallow early in design then once house is planned and we are getting pricing. I honestly think everyone working together is the best.

I will second what Alison said - at the end of the day YOU are the person most invested in making sure you stay on budget. We have a great architect, builder, and interior designer, and I'm still the one watching costs because they just aren't as conscious of it, especially when it comes to materials selection.

What is a "designer"?

Include the landscape design & costs right from the start. Don’t estimate. It’s a rude awakening even if you have some money earmarked....

Plan right now, that your budget is at least 25% to 50% short for "the materials you want for your new home". No....I am not kidding : )

Honestly what Jan is saying is true , most of my clients have no idea of the cost of anything when we start a project. I always tell them to be realistic and expect that budget they have to be a starting point. You also need to be aware of wants and needs they are not the same. You need an architect so start there and make sure they are aware of your budget from the beginning.

I like teaming up with a builder early in the process. Construction costs are extremely volatile right now. The same project this year is substantially more expensive than it was last year. Builders have a much better feel for the pricing trends, though I'd have to say it's pretty tough for them now too.

Why is it you're asking about materials? And what materials do you mean, exactly? Do you have a plan already?

Plan a house that is 40% less than what you really want to spend. You WILL go over and there WILL be unforeseen things that eat into your budget that you don't anticipate. If you get fortunate enough to not run into any issues, you'll have money left in the end for nicer finishes, landscaping, and furnishings.

I agree with all the comments above. Be sure to have some contingency funds. Be sure to always keep in mind what amount you feel comfortable. You could go over budget if you feel comfortable (ie have the funds). However if you go over budget and cannot pay for the additional things, then you are treading in deep water. It's easy to go over budget, you have to be frugal about your purchases. Do not say that 'this is my dream home and i will only be building it once, so might as well buy what i want.' You'll find yourself in a bad position if you think like this.

Sorry if that sounds awkward, like i'm lecturing or something. I just wanted to say how we thought when building the house. It's unfortunate to see people who build a beautiful house only to sell it later because they cannot afford it. I've heard of one story from a friend about this.