Building your own home—whether it’s in Oklahoma or elsewhere—is a multi-step process, and there are lots of moving parts and pitfalls along the way. This comprehensive guide will walk you through the essential steps of how to build your own home from scratch, giving you a clear understanding of what to expect and how to prepare.
We'll cover everything from budgeting and land selection to navigating permits and managing your time effectively. By the end, you'll have a solid foundation of knowledge to help you embark on your home-building journey with confidence.
A Basic List of What You Need to Build a Home
Before diving into the details of how to build your own home step by step, it's essential to understand the basic components required for this ambitious project. Here's a comprehensive list of what you'll need to build a home on your land:
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A well-planned budget, including a buffer for contingencies
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A reliable source of funds (cash and/or a construction loan)
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Suitable land to build on
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Detailed house plans
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Comprehensive specifications and selections
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Necessary permit(s)
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Engineering plans and surveys
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Dependable suppliers and contractors
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Sufficient time and energy to commit to the process
Some of these items work together—almost like chicken-and-egg. For instance, your overall budget will significantly influence the type of land you can purchase and the size of the home you can build. So, let’s explore each in greater detail.
Figuring Out Your Budget For Building a Home
How much you can (or want to!) invest in your home is usually driven by two things:
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The overall amount you're comfortable investing
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How much you can actually afford—considering available cash, loans you’ll be taking out, and what the monthly payments will be
For most people building their own home, a construction loan is necessary. This loan is typically refinanced into a mortgage once the home is completed.
Because of this, we recommend thinking ahead. Look for a mortgage lender who also offers construction loans, or a construction lender that partners with a local bank to easily transfer your loans into a mortgage.
But why does this matter?
Your budget will be determined by the monthly mortgage payment you can comfortably afford. This payment depends on the amount you’ve borrowed, the interest rate, loan term, and whether or not you'll be paying Private Mortgage Insurance (PMI).
The right lender will help you crunch the numbers and determine a realistic budget based on your financial situation and comfort level.
Remember, when figuring out how to build your own home from scratch, your budget will need to cover both the land purchase and the home construction. Be sure to allocate funds wisely between these two major expenses to ensure you can build the home you want in a location you love.
Finding and Evaluating Land on which to Build a Home
Once you've got a handle on your budget, it's time to tackle one of the most exciting parts of building your own home: finding the perfect piece of land. This step is crucial in your journey of how to build your own home from scratch.
When evaluating land, consider these factors:
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Location preferences: Do you want a quiet neighborhood or a specific view? If you have children, have you looked into schools in your ideal area? Do you want a yard for your kids (and/or pets) to play?
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Budget allocation: How much of your total budget are you willing to spend on land versus the house itself (materials, construction, furniture, etc)?
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Zoning and building restrictions: Is the land you’re looking at suitable for residential construction?
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Access to utilities: Consider the availability of water, electricity, and sewage.
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Natural features: Think about topography, soil quality, and potential flood risks.
Don't rush this process. The perfect balance between land and house budget depends on your priorities. If a specific location is your top concern, you might need to compromise on the house size or features. Conversely, if your dream home is non-negotiable, you might need to be more flexible about the land or location.
Buying Land: There are Hidden Costs to Watch Out For
When figuring out how to build your own home, it's easy to get caught up in the excitement of finding the perfect plot of land. But hold your horses! There are some hidden costs you need to be aware of before you sign on the dotted line.
The cost of land isn't just about the sticker price. Here are some additional expenses that might sneak up on you:
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Land clearing: Unless you're buying a perfectly flat, empty lot (which is rare), you'll likely need to budget for clearing trees, rocks, or other obstacles.
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Earthwork: Moving dirt to create a level building site can be expensive.
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Access roads: If your property isn't right off a main road, you might need to create an access road.
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Utilities: Bringing electricity, water, and other utilities to your property can be costly, especially in rural areas.
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Water source: If city water isn't available, you'll need to factor in the cost of drilling a well.
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Septic system: No city sewer? You'll need to install a septic system.
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Soil tests: These are crucial for determining if the land is suitable for building and what type of foundation you'll need.
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Surveys: A professional survey is often required and can reveal important information about your property boundaries.
When learning how to build your own home from scratch, it's crucial to do your due diligence and factor in these potential expenses.
Some land might seem like a bargain at first glance, but these hidden costs can quickly add up. And be cautious with "cost per square foot," too. This metric can be deceptive. A lower cost per square foot doesn't always mean a better deal.
Pro tip: Work with a local real estate agent or builder who knows the area. They can help you identify potential issues and estimate these hidden costs before you commit.
Finding or Creating a House Plan to Build
If the house plan itself is more important than the land, then you’ll want to start there. This is where your dream starts to take shape, after all!
First: figure out what your “must-haves” are. You’ll want to prioritize these to make sure you can fit them into your budget. If not, then maybe you’ll need to wait until you can increase your budget to fit in what you need and want to build.
It’s also a great idea to browse online for house plans. You’ll be surprised by just how many ideas this step will inspire—but remember, these are just starting points! While online plans will help you start thinking about what kinds of layouts will work with you, having a house plan custom designed for you is often the best route.
Why? Well, if you're going through all the effort to build your own home, shouldn't it fit your needs 100%? Too often, people fall in love with a pretty picture of a house plan online, only to realize later that it only meets 3/4 of their needs.
Think of it this way: buying a pre-made house plan that almost fits your needs is like buying four tires for your car because they're cheaper, then throwing one away because it doesn't fit. Sure, you got a good deal on the tires, but you still can't drive the car!
The goal of learning how to build your own home is to create a space that's perfect for you and your family. A custom-designed house plan helps ensure that every square foot of your new home serves a purpose and meets your unique needs.
Sourcing Materials and Contractors to Build Your Home
Across the country, construction practices can vary, so it's important to understand the local norms. Here's a breakdown of how different aspects of construction are typically handled in Oklahoma:
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Turn-key items: Some elements like roofing, painting, and plumbing are often provided as complete packages.
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Separate materials and labor: For tasks such as framing, interior trim, and cabinets, you might need to source materials and labor separately.
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Mixed approach: Electrical work often involves the electrician supplying most materials, but you'll need to purchase light fixtures separately.
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Subcontracted work: Some contractors, like drywall professionals, may subcontract different aspects of their work.
That said, finding material suppliers is usually straightforward. Start by searching online for lumber suppliers, visiting their offices, and deciding which ones to use. Keep in mind that as an individual builder, you'll likely pay retail prices.
Finding reliable contractors can be trickier. Here are some tried-and-true methods:
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Ask for recommendations from your material suppliers, especially for trades they work with regularly.
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Drive around areas with ongoing construction and speak with contractors on-site.
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Seek referrals from friends or family who have recently built homes.
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Check online reviews and ratings, but always verify credentials in person.
Remember, the quality of your materials and workmanship is paramount. Take your time to find reputable suppliers and skilled contractors – it'll pay off in the long run!
Getting the Required Engineering, Surveying, and Permits
Once you have your house plans, you’ll need several more things, and the requirements for those things will vary with location and house design. Navigating the world of permits, engineering, and surveying can seem daunting. But don't worry! We'll break it down:
Surveying: When you purchase land, you'll need a survey done. This will provide a legal description of your property and identify which county it's in.
Jurisdiction: To determine if your land is within city limits, use Google Maps to check nearby town boundaries. Once you know the jurisdiction, contact the local building, engineering, or planning department for specific requirements.
Building Permits: In Oklahoma alone, requirements vary widely. Some areas don't require a building permit at all. Others might require a flood survey but no building permit. In areas requiring a permit, the specifics can differ greatly.
Engineering Plans: Depending on your location and house design, you might need to submit stamped engineer's plans for your foundation and truss designs.
Septic System: If there's no sanitary sewer available, you'll need a soil test to determine the appropriate septic system. Your chosen septic company can usually help with this.
Flood Zones: Check if your property is in a flood zone, as this can affect your building options and insurance requirements.
Requirements can also change, so always double-check with local authorities when you're ready to build. Being thorough in this stage of how to build your own home from scratch can save you headaches down the road.
Pro tip: Consider hiring a local consultant or working with an experienced builder who knows the ins and outs of local regulations. Their expertise can be invaluable in navigating this complex aspect of home building.
Budgeting the Necessary Time to Manage the Build of Your Home
If you’ve read this far, you’re likely realizing there’s a lot to consider when building your home. It requires a significant investment of time and energy, and it's crucial to budget for this aspect of the project as well.
Here's what you need to know about the time commitment involved:
Planning Phase: This stage involves researching, budgeting, finding land, and creating house plans. It can take several months to a year, depending on your circumstances.
Pre-Construction: Obtaining permits, hiring contractors, and sourcing materials can take several weeks to months.
Construction Phase: This is where the real time commitment begins. Expect to dedicate significant time each week to:
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Visit the job site frequently
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Answer questions from contractors
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Make on-the-spot decisions
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Solve unexpected problems
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Select materials if something is out of stock
Many people underestimate the time required. It's not an exaggeration to say that managing your home build can be like a full-time job. You'll need to be available at a moment's notice to address issues that arise during construction.
If this is your first time building a home, expect to invest extra time in learning about the process and making informed decisions. Even a small planning error can cost thousands of dollars, and a major mistake could potentially derail the entire project. That's why it's important to dedicate enough time to do things right.
If you’re feeling overwhelmed, don’t be discouraged. Understanding the time commitment involved is an important part of the process—but, with enough planning, anyone can do it. That said, if you’d like a seasoned guide to lead you on this journey, we would be more than happy to help—starting with a free copy of our eBook: Ins and Outs and Ups and Downs of Building on Oklahoma Land.
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