Building a home comes with many benefits. Not only do you get to choose floor and home plans that reflect your needs, but new homes generally require less maintenance than used. You can also customize your new home, both inside and out, with green options that benefit both your family and the environment. But before you buy a lot or call a contractor, it’s important to understand what you’re getting into.

While constructing your own home can be a rewarding experience, going into it without the proper preparation can result in headaches and unnecessary expense. A good understanding of the basics of building homes will help you make an informed decision about whether to build a new home or purchase an older existing house.

New Home Building 101

House building is complicated. However, the process can be broken down into three key steps:

• Choosing a lot
• Designing or buying a building plan
• Hiring a builder.

Choosing a Building Lot

The first step in building a new home is choosing a location. While this may seem to be relatively straightforward, it can actually be quite complicated. Before choosing a site and purchasing a lot, make sure you do your research. A lot may look beautiful, but factors such as soil type, drainage and topography can significantly affect construction costs.  You should also consider factors such as proximity to schools, stores and other amenities, as well access to services such as water, gas, electric and phone.

Selecting a Building Plan

The next step is deciding what you want your house to look like. It may be tempting to draw your own plans, but unless you have significant experience in architecture or construction, you’ll probably want to seek the advice of a professional.

The options for obtaining home plans are numerous, including hiring an architect to design your home, purchasing an existing plan, and working with a design/build firm. Whatever plan you choose, however, be sure to consider things such as how the house will look on the lot and potential construction hurdles. You’ll also want to consider factors such as energy efficiency and your lifestyle and living needs.

Hiring a Home Builder

Before hiring someone to construct your home, it’s important to research the builder’s reputation. Get referrals from friends, relatives and neighbors. You can also contact local architects, building suppliers, financial institutions and the Better Business Bureau to learn more about a builder’s reputation.

Before signing a building contract, research the builder’s previous work, and be alert for any potential signs of trouble, such as a bankruptcy or unpaid suppliers. If possible, talk to individuals who have worked with the builder in the past. You’ll also want to make sure that any builder you hire is properly licensed.