Purchase or pick out everything such as plumbing, light fixtures, flooring, counters etc... That way you know what these items cost. It will keep you within your budget too. As you get to the end you get tired and just want to be done so you might splurge to be done!!

But by purchasing ahead if time I saved close to two thousand dollars on my plumbing, electrical and door/cabinet hardware by prepurchasing when things were on sale or closeouts. We also bought our lumber during a lower market and saved $5,000

I had a contractor build a major house addition to the "dried in" stage and I was responsible for the rest. I saved a lot of money and got what I wanted. However: I did not deal with a bank, it took much longer than having a contractor complete it (of course), and I knew (mostly) what I was doing. I was also fortunate to find dependable subs for stuff I didn't want to do myself. When it came time to proceed to renovate the rest of the house, the contractor ghosted me, probably because he had better things to do than deal with my stingy ways.

So it seems to me the biggest issues are money, time and knowledge.

Find friends on a rough crew. Or find a rough crew by visiting smaller developments. Same for a drywall crew. Register with your state as a company and get a sales tax license. Use your company to get lumber and truss bids. Drop the use of a GC. Submit your own plans for permits. Do your own sub management.

Spend some substantial money up front on good design, and a ongoing interactive design review from a contractor. You want simple, but not the expensive ”simple modern”, like 43’ spans that have to be steel and engineered, or flat roofs that cost the gross national product of Paraguay—and still leak, etc etc.

@Charles Ross Homes Yes & a cooperative lender.

Save up your cash and develop personal lines of credit lender resources, otherwise you may be restricted to lender guidelines that require a GC guarantee to complete the project so they can install permanent financing that meets FNMAE guidelines.

Building up may or may not be the most cost effective with composite costs (joists, beams, OSB) increasing 25-30% late this month. Watch what the tract builders do for your size target and that will usually meet all your cost effective design goals.

Good point about keeping the lender's requirements in mind.

I only did one project like this a number of years ago for a client who paid cash. We constructed the dried in shell, did all the mechanical and plumbing rough-ins and he took it from there. What made it work was a clearly defined endpoint for our scope before his began and the ability to transfer the permit to him upon completion of our scope of work. Our mechanical and plumbing trade partners also agreed to do the trim outs under contract with the owner. It went well.

You’ve got a great list started. Wish I’d done something similar before we started our new build. We just finished foundation on our new custom home, and here’s what I’d add based on our experience so far.

Select a build-friendly site in a build-friendly city. Talk to folks who are or have just built in the city you’re considering. Ask how long it took to get permits, about any special requirements, permitting costs, etc. Lengthy delays add to cost as prices continue to rise.

Find out everything you can about the lot you intend to build on (before you buy it). Unique lots are lovely, but they can add considerable costs. Critical areas (streams, etc) and slopes can add considerable costs in reconnaissance surveys, geotechnical engineering, and foundation requirements.

Interview custom home architects and talk to their previous clients. Ask especially about budgets going in and as-built costs. Is your architect on board with simplified designs and designing to fit your budget? Ours was not, for example, he fought to keep every single of the many, many corners in his original design. Even with the scaling back we did manage to do, the estimated cost of our build was 50% over the budget we gave him initially.

It may seem counter-intuitive, but pick one or two things that you really want and splurge on them. It helps to have a reason to stick tight to the budget in all other categories and gives you something to look forward to on the days during construction when you just want to curl up in a ball and cry :)

Be prepared to give up some “nice to have” things. Oh yeah, that metal roof I wanted? Didn’t make the first cut.

And most of all, enjoy your build! Dream about it, play with it, be delighted when things go right.

Random thoughts about keeping costs down:

- Good design won't cost any more than bad design.

- Keep your size modest; this will not only save on building, but it will also save on heating and cooling in the future. Bigger is not better ... efficient and well-organized is way better than "large".

- Keep your design simple inside too: classic three-piece bathrooms, simple kitchen shapes, etc.

- Skipping a garage will save you a good bit of money. Building a detached garage later is a possibility. Building a too-small garage is not a money-saver. A front-facing garage requires a shorter driveway, which will save money.

- Depending upon your details, building "up" may or may not be cheaper. Yes, "up" saves you on the foundation and the roof, but it also requires a staircase and complicates heating /cooling.

- Depending upon where you are, a basement may or may not be cheap living space. (They're a no-go in my area.)

- Building on a flat piece of land will cost less.

- Building in a city suburb is cheaper than building on farmland because utilities are already run down the street -- do not underestimate the cost of "bringing in" utility lines. Hooking up to water and sewer is more expensive than you expect.

- Glider doors (updated sliding glass doors) are cheaper than French doors. Glider /sliding doors are also more energy-efficient and harder for thieves to enter.

- Stop at ONE. One sink per bathroom, one shower head per shower, one staircase, one dishwasher, one fireplace, etc.

- Cabinets are amazingly expensive. Plan for a smaller kitchen /put most of your storage into a large pantry ... storing things on shelves is way less expensive than storing them in expensive cabinets /under stone countertops.

- You don't have to have the same quality of cabinets /countertops throughout your house ... it's fine to splurge in the kitchen /use "lesser" cabinets in bathrooms and laundry rooms.

- Stained cabinets are pretty significantly cheaper than painted cabinets ... and years from now you can have your worn-out stained cabinets professionally painted for "new life". It doesn't go the other direction.

- Straight cabinets are significantly cheaper than lazy-susan corner cabinets, etc. Traditional cabinets are cheaper than drawer cabinets, though most everyone here will say that drawers are a worthwhile splurge.

- Kitchen islands are expensive because they must be finished on all four sides.

- Similarly, glass-front uppers are expensive because they must be finished on the inside as well as the outside. If you want the look for less, consider a mirrored door ... if they're up high, people won't notice at a glance.

- Stick to standard-sized appliances.

- Shower pans are cheaper (and last longer) than tile flooring in showers. They do lock you into standard sizes.

- Showers are cheaper than tubs.

- Shower curtains are cheaper than glass doors.

- Look at LVP -- Luxury Vinyl Plank -- or engineered hardwood flooring for a moderately-priced floor.

- A masonry fireplace is very expensive ... an insert or a woodstove is cheaper.

- Splurge on your lighting in the main living spaces /skimp in the bedrooms.

Consider that some things cost more up front, but they save you money in future years:

- You're discussing adding things later -- that's fine, but don't build in things that you intend to tear out /throw away. For example, paying for laminate countertops today /putting in granite in a couple years is more expensive than just putting in what you really want today, and we as citizens of Earth can't afford to throw perfectly good things into landfills.

- Put money into things that can't be changed later: solid framing, etc.

- A metal roof costs more up front, but you'll probably never need to replace it. In contrast, a typical shingle roof probably has a 20-25 year lifespan.

- A steeper roof will cost more now, and it will cost more when it needs replacing.

- Never skimp on quality of plumbing. Don't skimp on the size of your water heater.

- You don't want the cheapest windows on the market; you'll lose out on heating and cooling. On the other hand, the tip-top windows are so very expensive that you'll never "save back" what they'll cost. A middle-of-the-road window is probably your best bet.

- In places where your windows don't need to open (small window above a shower, in a closet), consider stationary windows.

And a warning:

- You're talking about leaving things unfinished for future years. If you're planning to finance any part of the house, your lender may or may not allow this. From their point of view, they want to know that they could take custody of the house /resell it to someone else without a lot of trouble to themselves.

- You're talking about leaving some attic space for later ... be sure the flooring is installed "for living". Upgrading the floor so the space can become "living space" later can be really, really expensive.

- Adding on later can really be expensive. Remember that cost of materials is always going to go up, and the labor for a small project later can cost more.

My List

Avoid: architects [waste the insane amounts of time], banks, build faster to avoid unnecessary interest payments, pull permits yourself, avoid dumpster fees, extensive rents on porta potty. Stay on the budget: Insist on good details but not super expensive. [matt risinger can advertise some super expensive details - don't fall for those e.x whole house liquid flashing].

Pre-order windows and doors, avoid goofy exterior details / pediments, avoid decorative true beams that require a crane to install. Dimensions should never be even + few inches. 11' 8"-3/4 - good but never 12'-5", same with like carpet that sold in 12' rolls. Avoid high pitch roofs, esp if you are planning a metal roof. Avoid super low pitch in a snow country. Windows could cost unlimited amount of $, so pick some decent brand unless you budget permits $200k for windows, avoid structural windows. For ex: Simonton proBuild are very inexpensive windows. Avoid window store front that can only be built with the steel beams, corner windows. E.g. If I see 12' opening (slider or foldable glass door) - always assume steel beam above. The width of your house impacts also windows and doors headers. Avoid pocket doors if you can. Avoid custom stair cases: require weeks to install and may cause months of delays. design with the space for HVAC

Unfinished Garage cost pennies compare to the rest of the house. Locate house closer to the road to avoid paying for long driveway. Instead of cabinets use pantry. Avoid IKEA. They seems to never have any cabinets in stock, you will be waiting for years.

Have your own scaffold, tractor and backhoe handy.

Advice to not have a dumpster or portapotty is illegal in most locations, and unconscionable everywhere. A dirty smelly build site is counter productive to a quality result. And good neighbor relations.

@Mrs Pete has a great list there!

"Advice to not have a dumpster or portapotty is illegal in most locations, and unconscionable everywhere".

The BS. Most builders today avoid paying for dumpsters. Stop at any build site, see either none or hand built receptacles with 12 - 2x4s and 6 sheets of plywood or a requirement for a sub to remove all trash. If you have a dumpster it has to be picked up within a week and all neighbors will put own trash in it. Not paying $450/week for that.

You are not required to have portapotty if you have a functioning toilet. Buy a $100 on sale /craigslist toilet and install it, trash it at the end. Alternatively you can reduce scheduler for portapotty pickup.

My portapotty is $65/month with weekly cleanings. Not having a decent place to potty will cost you way more than that in ick and annoyed contractors. $650 should be "saved" elsewhere.

Order stock sizes of things.

I would use IKEA - but realize that lead times are all longer than usual. Consider scratch and dent for appliances or some of the wholesalers on ebay. Sweat equity to do some extra sealing and insulation, painting, etc.

Do a classic design with good details - they can make a huge difference in the perception of quality. Pick simple, but functional finishes - subway tiles for backsplashes, lower level granite, etc.

There's a designer on here - Beth A - who does some great design with simple materials. Quality installation, attention to detail, and good design will more than pay for itself and that's often things you can do yourself - they are not "hard" - just time consuming.

My father, a commercial GC, had a saying: The first cost is the least cost. Use quality materials and crews who know what they are doing. It might cost more up front but save across your lifetime in the house.

Wow thank you all for the amazing insights and helpful tips!

These are great, and a lot of them never crossed my mind. This was the right place to go!

I'm actually going to compile all of these tips into a checklist for myself including those I included above. I'll add it as a comment here for any future visitors. Any more thoughts - please don't hesitate to share! I look forward to seeing more pop up here. Thanks again!

"Drop the use of a GC."

Yeah, compete against guys with leverage over subs when labor is in short supply. Horrible advice.

You're a onesie. Don't ever forget it.

Dropping GC is ONLY if you know what are you doing. You need to have someone to know the details and if it was done correctly. Some places use architects. Someone have to be there to ensure that the specs are followed.

"Use quality materials and crews who know what they are doing...

Many people underestimate the effort and expertise required to build a home. It may not be rocket science, but if residential construction isn't your day job, expect a learning curve. And in construction, like many other undertakings, you pay for your education.

It might cost more up front but save across your lifetime in the house."

Often people are fixated on the lowest price-- which is different from the best value. And in many instances, those low-price decisions have long-term implications for the home: the quality of the design, the livability of the home, the quality of the structure, the sustainability of the home, the energy usage, the indoor air quality, the health and safety of the occupants, etc.

If you have a basement, put in a good one. Don't skimp on ceiing height or window size. Install twice as much lighting as you think necessary in mudroom, hallways, laundry and bathrooms. Recessed LEDs are cheaper than fancy fixtures. Make sure to run extra capacity to garage for power tools and potential car charger.

Linen closets are cheaper storage than vanities.

Consider showroom display or closeout cabinets for mudroom, laundry and other secondary locations. If you don't have a basement, add extra closet space or easy attic access for sports equipment, luggage, holiday decor, etc. 

I think the best upgrade I made in my remodel was using spray foam insulation in my basement. It was more expensive than the alternatives but I am glad I spent the money. Same thing for all the LED lighting. Both pay off every month in cheaper utility bills.

Check out permit, insurance, build fees for potential parcels. Our area requires school impact fees per square footage (so bigger equals more cost), fire fees (fire rated windows and doors, FD fees). get to know your parcel. our neighbor’s smaller foundation was a lot more than ours because they decided to build in a lower area prone to floods and needed to raise their foundation. Lots of odd things to figure out before you even break ground. Is solar required? What about a whole house fan? Outlets for potential e vehicles? hello, California! which leads into my number 1 tip: take your time so it is correct the first time. Will you still have regrets? maybe, yes, but that is part of the process of life :). Good luck! you got this!

Slab cheaper than crawlspace - crawlspace is customary in many warmer areas but a slab will do just fine.

Brick and stone are fairly expensive compared to Hardie which is expensive compared to vinyl. Like massive difference.

Ditto the LVP - which can also be used in bathrooms and becomes way cheaper than tile.

I am going to duck now but don't be afraid to use J&K cabs - they are great value.

Builders still use dumpsters in my immediate area but we had a homemade one on our last build in a very picky suburb in a high end neighborhood. Always had a portapotty. It is a long time into the build before you can have a functioning toilet. I suppose the dumpster issue may be dictated by jurisdiction.

Construction cleaning is very expensive. Easy to DIY - some of which can be done over time like getting stickers off things. Sawdust out from drawers etc.

Partially finishing can be a permitting and code issue. You may need to separately insulate areas that aren't completely done. That can mean getting to a finished floor but that depends on jurisdiction. In some jurisdictions, planning heating and cooling can be tricky for a partial house. And some will get quite snarky as they may expect you to be trying to minimize tax burden by finishing without permits right after CO.