How to Cut Costs When Building Your Custom Home

Published January 19, 2024

How do you balance your idealistic vision of your dream home with real-world practicalities? Building a custom home can be an expensive endeavor, but there are several ways to reduce costs without compromising on quality. Below are some strategies to consider. 

Plan & Design

Simplify the Design: The more corners, angles, and intricate details a custom home design has, the more it will cost. Consider simpler shapes like rectangles and squares.

Optimize House Orientation: Design your dream home to take advantage of natural sunlight, which can reduce heating and lighting costs.

Learn More: Designing the Perfect Floor Plan: Unlocking Your Custom Layout

Budget & Finance

Set a Clear Budget: Know your maximum new build home budget and add a contingency fund (typically 10-20%) for unexpected expenses.

Secure Favorable Financing: Shop around for the best construction loan terms with a reputable custom home builder.

Learn More: 5 Cost-Saving Tips for Building Your Custom Home

Consider Land Costs

Choose a Less Expensive Lot: Some lots are priced higher due to location, view, or other factors. Consider compromises on your new home’s lot in order to save money.

Use the Land Efficiently: Sloping land or wooded areas might require additional excavation or foundation work. Use the natural terrain to your advantage.

Learn More: Building on Your Own Land: The Crucial Role of a Homebuilder in Crafting Your Dream Home

Choose Cost-Effective Fixtures

Choose Less Expensive Fixtures: Choose cost-effective features when you are building your custom home, especially light fixtures, door/bath/cabinet hardware, countertops, or flooring that can easily be replaced over the long-term. 

Local Vendors: Using local vendors to supply materials can save you money in shipping costs.

Learn More: Timeless Features for Your New Build

Increase Efficiency

Energy Efficiency: Investing in energy-efficient appliances, windows, and insulation can lead to long-term savings. 

Water Efficiency: Consider water-saving fixtures and native landscaping to save on water bills.

Learn More: What Smart Home Features Should I Consider When Building My New Home?

Avoid Changes Mid-Construction

Changing your mind after construction has begun can be expensive. It’s important to finalize plans before breaking ground. At LaFollette Custom Homes, our plan designer will produce a digital 3D model of the exterior of your home to give you a realistic perspective before we break ground. We harness the power of virtual reality so that you can do a walk-through of your home and make any changes to the design before construction begins. 

Use Second-Hand Items

You might find quality appliances, fixtures, and materials from salvage yards, Habitat for Humanity’s ReStores, or other second-hand sources.

Scale Down

Size: Do you really need that extra bedroom or a three-car garage? Reducing the square footage of your custom home will lower costs.

Luxuries: While desirable, items like hot tubs, high-end appliances, and extravagant light fixtures can be postponed or substituted for less expensive options. You can always add luxuries later. 

Consider Phased Construction

If certain parts of your dream home aren’t immediately essential, consider building in phases. For instance, you might add that deck or the outdoor kitchen in a few years instead of immediately.

Future-Proof Your Home

Design your custom-built home in a way that allows for easy and cost-effective expansions or upgrades in the future. Remember, it’s essential to strike a balance between cost-saving and quality. Cutting corners in areas like foundational work or roofing can lead to expensive repairs in the future. LaFollette Custom Homes always prioritizes structural integrity and safety while delivering luxurious, modern results. 

We specialize in creating structures that will result in your unique dream home! When you need a builder that understands your family’s dreams and desires come talk to our family at LaFollette Custom Homes. Contact us today to get started.



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When you are ready for a builder who understands your family’s dreams and desires, talk to our family at LaFollette Custom Homes. Our team of Custom Home Consultants will guide you through the process from start to finish.