Building a new home is costly, so it’s not surprising that many people stay on the lookout for ways to save on the process. While you’re pretty much guaranteed to spend big on new construction, it is possible to reduce your overall expenses–if you make smart decisions.

The key to saving money on construction costs is planning. By having clear goals and making decisions ahead of time, you should be able to control your construction cost budget.

Budget for Construction: How to Save Money

Saving money on new home construction starts with a detailed budget. If you budget is vague, you’re more likely to end up with cost overruns. A clear budget will help you decide what you’re going to spend money on, and how much you can afford. Build a cushion into the budget for extra expenses, but try to avoid revising it too much along the way.

Specific things you can to do control your total home construction cost include:

• Be careful about last-minute upgrades. Changes and additions to your budget can quickly add up, even when they seem like minor expenses.
• Choose the right lot. Some lots cost more to build on than others. Picking a site that doesn’t require extra work will save you money.
• Do some of the work yourself. While you obviously want a licensed electrician to do the wiring of your new home, you may consider painting, installing flooring or doing some of the landscaping yourself.
• Look for deals on materials and fixtures. You may be able to save by purchasing floor models, salvage materials or products that are on sale.
• Opt for an affordable house style and building plan. Some types of homes will cost more to build than others. Obviously, an unusual floor plan will cost more than a more traditional one. But choosing a two-story design over a sprawling ranch house – even if they’re both the same square footage – can also reduce your overall cost.

What Not to Do

Many people think they can save money when building a new home by acting as their own general contractor. By some estimates, this can shave up to 10 percent off the total cost of building your home. But this approach isn’t for everyone. If you’re highly organized, good at managing large projects or have experience in construction, you may be able to act as a general contractor. But if you don’t have those skills, you’re probably better off hiring a professional.

You also don’t want to try to save money by working with a cut-rate builder. Qualified, licensed builders will charge fair rates for their services. If you get a number of bids on your project and one is significantly less than the others, make sure you examine the offer–and the builder’s reputation–carefully. You don’t want to hire a contractor who does shoddy work.