Considering building a custom home? Not sure what’s involved?
We understand. Building a custom home is a Herculean task, and understanding what’s involved in the process can be downright overwhelming.
Not being familiar with all the steps can lead to you paying more than you need to for your new build. But, when you’re familiar with all the steps, you’ll have more control over and enjoy the process.
If you’re wondering what’s involved in building a custom home, you’ve come to the right place.
Canaan Builders here: we’ll provide a high-level overview of what to expect at each of the five steps of the custom home building process, so you can show up prepared and ready for action.
Here are the 5 steps of building a custom home.
5 key steps of building a custom home
| 1. Choosing your plot of land and your builder 2. Designing your floor plan and sealing the deal in writing 3. Secure home financing (and your fixtures & finishes) 4. Send your finished plans to the Architectural Review Committee (ARC) for approval, and once approved, begin building 5. Conduct final walkthroughs so you can get the keys to your beautiful new custom home |
1. Before you build a custom home, choose your home site and your builder
The first step to building a custom home is selecting the right lot that accommodates your needs. You can always make changes to a home and renovate it after it has been built, but choosing the site of your home’s build is non-negotiable after the home has been built.
As such, you want to make sure you’re buying the right plot of land. Consider the following elements when choosing your home’s plot:
- Amount of acreage and frontage
- Where the community is located
- How the home will be positioned on the land
- The views and lookouts from the home
- Whether the home is gated
Once you’ve determined where your home will be built, you’ll also want to decide who will build your home. You can work with your builder of choice, or if you’re unsure, you can ask a land consultant for a list of quality, luxury design-build builders.
2. Design your floor plan and seal the deal in writing
Now that you’ve decided who’s going to build your home and where it’ll be built, step two is where the magic happens. To make your dream home a reality, the first step is to create a rough design of your dream home.
Key points to consider when developing your home’s design include:
- How large do you envision your home being (the size)
- The number of bedrooms and bathrooms (the types of rooms)
- Whether your home will have multiple stories (the layout)
- Key necessities, like a wet bar, wine cellar, or sun room (home additions)
- Key materials used to build your home (the materials used)
- How the home will be situated on the land (the orientation of the home)
- How much money you’d be willing to spend on your new home (your budget)
Once you’ve made your decisions, you’ll want to chat with your builder to price out your home. Then, your builder will crunch the numbers and come back to you with a purchase agreement.
Alternatively, if you don’t want to design your home yourself, your builder can show you existing floor plans and photo galleries of homes they’ve built in the past. Either way, once you’re happy with your design and purchase agreement, you’ll sign your purchase agreement.
Should you be dissatisfied with anything during the design phase, your builder should provide you with material, architectural, and floor plan changes to ensure your complete and total satisfaction with your home.
Once you’re satisfied with your home and have signed the purchase agreement, it’s time to talk financing.
3. Secure home financing and pick fixtures/finishes
Prospective homeowners: once you’ve designed your plan and signed the purchase agreement for the floor plan, it’s time to secure the necessary financing (if needed) to kick off the home construction process.
Your custom home builder should be able to refer you to a lender if you don’t already have one. What’s more, you may be able to engage in a one-time close for your land, financial loan, and home mortgage.
By having a one-time close for all three of these custom home construction processes, you’ll be able to streamline the paperwork process to ensure approval for your custom build.
4. Send plans to an architectural review committee for approval, and start building
If you’re part of a local homeowners association (HOA), chances are they have a system in place to review and approve architectural drawings for new custom home projects.
As such, you’ll need to send plans to an architectural review committee (ARC) for the committee to approve your building plans. The ARC’s job is to make sure your plans are sound, meaning that everything complies with the planned community’s Covenants, Conditions, and Restrictions (CC&Rs).
CC&Rs are a set of rules governing the use of real estate in communities, common interest developments like condominium complex buildings, and private neighborhoods.
Fortunately, your builder will submit all your documents for review. Your custom home design-build firm will keep you in the loop on the progress of the approval of your new build.
Once the plans are approved, though, the fun begins. Once the plans for your new home are approved, it’s time to build your dream home!
From the time the first shovel dives into the first mound of dirt, your custom home project will take shape fast and furious.
You’ll reach five different milestones along the way.
- Site preparation: Your team will excavate the land to stake and mark where your home will sit.
- Foundation and framing: The structure of your house starts to take shape.
- Insulation, drywall, and utilities: Consisting of the bulk of the work on your home, your team will install heating, cooling, plumbing, electricity, and much more.
- Flooring and painting: New floors, trim, cabinets, and paint are applied indoors.
- Fixtures, appliances, and landscaping: Building the structures and space for lighting, fans, appliances, and landscaping are all part of the final stages of building a home.
Once the home is built, all that’s left to do is review the final work — the final step in the process of building a custom home.
5. Conduct final walkthroughs, and get your keys
The last step in the custom home design and build process is one of the most straightforward. But, don’t be tempted to overlook it.
When your house is finished and the building is complete, you’ll create a punch list of any last items that need to be addressed. You and your builder will walk through and inspect every last nook and cranny of the house.
During the walkthrough, you’ll ask any last questions about everything under the sun in your home. You’ll finalize all construction processes on your home.
Whether you’re looking to ensure cabinetry and plumbing fixtures operate as they should, or whether you’re checking that no paint has chipped on countertops, your builder should resolve any last fix-its you’re thinking about for your new home.
Once you’ve received your answers, and all details are addressed, you’re ready to close on your house.
Once you have the answers, you’ll be handed the keys so you can plan move-in day and enjoy your beautiful new home.
Did you know this about the custom home building process?
Did you know that the number of residential construction projects completed over the last five years has reached an all-time high over the last six years, according to recent U.S. Census Bureau data (2025).
In the data, the U.S. Census Bureau didn’t include the size & complexity of the homes and how much they cost. Speaking of size and complexity, want to see what $799,000 can buy you in Nashville, TN?
Check out what your money can buy you here.
Need a builder? Canaan Builders — at your service
Looking to build a custom home? Already know the location of your lot? Need some help with the process? Want to discuss your preferences and needs with an experienced team of licensed and certified home building professionals?
Then reach out to your knowledgeable and friendly Canaan Builders team.
With more than 20 years of experience under our belts, we’re Middle Tennessee’s premiere luxury design-build construction firm. Whether you’re looking to build a beautiful new backyard pool or a regal two-story family home, we’ll help guide you from new housing idea to brand new address.
To start making your next home project a reality, contact us today! One of our construction specialists will be in touch with you shortly.
