1. Get your plan in place
Planning is the most important part of the construction process. Perhaps you’ve heard of the Winchester Mystery House? This San Francisco area mansion was built over a period of 38 years by an eccentric widow who thought if she stopped construction on the house, she’d fall prey to vengeful spirits.

The house is a labyrinth of stairs that dead-end into ceilings, hallways that grow narrower and narrower until they disappear, doors that open onto two-story drops. This is what happens when you build without a plan. It’s fascinating, but not a very welcoming abode.

Make sure you meticulously plan the details of your house. What direction will it face on the lot? What will the layout and flow of the rooms be? What kind of lighting will you use, and how many power points will you install? (tip: you always need more than you think).

There are a number of useful tools for planning out the design of your home. Sites like Floorplanner and RoomSketcher let you create mock floorplans. When in doubt, good old graph paper will work as well.

You’ll also want to start keeping track of design ideas that inspire you, and that you’d like to emulate. Think about starting a Pinterest board for each room of your house to file away examples of your favorite designs. As well as helping you plan, they’ll be a great point of reference to show your builders before construction is underway.

2. Budget more than you expect
No matter how much you think the building process is likely to cost, it’s likely going to cost more. There could be any number of items that aren’t included in the estimate your builder gives you. For instance, your builder is unlikely to include costs such as electrical and gas meters, internet & cable hookups or window coverings.

Items such as landscaping and outdoor concrete, fences and gates, decking and letterboxes might also not be included in the estimate. These are known as finishing costs, and could run anywhere from 15-25% of your budget.

You’ll also need to take into account site costs and zoning fees, which are the costs associated with preparing your site for construction, and you may also have to pay for planning application fees.

In addition to add-ons you might not have considered, you need to budget for unforeseen circumstances. For instance, you might want the luxury of changing your mind should any of the fittings or materials not match your expectations. You can use the table below to work out a rough budget.

3. Pick the right builder
This might be one of the most important decisions you make in the home building process. Whichever builder you choose, you’re going to be working with them for many, many months. It’s important to get the choice right at the outset to head off problems down the road.

There are several factors you should consider when choosing a builder:

Credentials
Make sure your builder is adequately licensed and insured. You’ll also want to make sure the builder is a member of the National Association of Home Builders.

References
Check into the builder’s past work. Were previous customers satisfied? Don’t be afraid to ask the builder for references before you sign a contract. Also, check online to ensure there are no complaints against the builder you choose. Also, check up on the warranty and service they offer.

Past work
Have a close look at some of the houses the builder has constructed in the past. Make sure the level of quality is high. Also, look into resale data on some of the houses the builder has previously constructed.

Style
When looking into the builder’s past work, check that it suits your design style. A builder might be very accomplished at constructing a particular style of home, but if what you want is outside their area of expertise, it might be wise to look elsewhere.

Personality
As mentioned above, you’ll be working with your builder for a number of months. Make sure you’re comfortable with them. Also, make sure they communicate well. If a builder doesn’t communicate well with you, it’s likely they don’t communicate well with their contractors either.

Price
All of this is a moot point if a builder is outside your budget.

4. Understand your agreement
Carefully read through the contract with your builder to make sure you understand its contents. Make sure you’re not taken by surprise by what the construction costs cover and what they don’t cover.
Make sure it includes a cooling off period, and that it specifies a timeframe for construction that suits your needs. Check to see that it includes detailed plans, warranty and insurance information. Also, pay close attention to the payment schedule.
Finally, it’s wise to have a lawyer look over the contract before you sign. Cross out any blank spaces, and make sure any variations to the contract are well documented and mutually agreed upon.

5. Know what you’re entitled to
If you’re building your first home or an environmentally-friendly structure, you may be entitled to grants, depending on where you live. This could substantially offset the cost of your home, so you should speak with your mortgage lender or local council to explore any possible credits and rebates

6. Get your financing in order
Chances are you’ll need a construction home loan to finance the process when you’re building a property. A construction home loan is structured differently than a regular home loan in that the lender won’t release all the funds at once. –Finder.com