The average cost to build a house is $155,000 to $416,000, not including the land or lot. Building a custom home costs $100 to $155 per square foot, depending on the location, size, finishes, and customizations. Prefab or modular homes cost $80 to $160 per square foot to build using a pre-designed floor plan.

Building a home takes 6 to 12 months on average, including obtaining the permits, drawing the architectural plans, and construction. Bad weather conditions, changing finishes, or a shortage of laborers and subcontractors can increase the overall building time.

Custom home builders and general contractors manage the entire house building process, and adhere to zoning regulations and building codes. The best home developers do the following:

1. Consults with the customer to plan their new home.
2. Estimates the total cost of materials and labor.
3. Hires and manages dozens of subcontractors such as architects, carpenters, plumbers, and roofers.
4. Schedules and coordinates the subcontractors' work.
5. Oversees the construction process from start to finish.

Real estate agents are not required when building a new home, but they can help with contracts and negotiations on upgrades. Plus, realtors can provide information about a neighborhood or city and connect you with lenders and home inspectors to make the process seamless.

Here are the steps and what you need to know when building a house:

1. Figure out the house style wanted and start looking for land.
2. Create a budget and get feedback and estimates from home builders near you.
3. Purchase the plot of land.
4. Hire a new home builder or general contractor to build and manage the project.
5. Develop the architectural plans.
6. Get the required permits and inspections.
7. Consider purchasing insurance to cover the project.
8. Start the construction.
9. Schedule the final inspection before moving in.
10. Finish by landscaping the lawn.

Custom home builders and general contractors build houses. Custom home builders have an in-house team of contractors from start to finish, while general contractors hire and manage dozens of subcontractors. Both choices are common and have similar fees of 10% to 20% of the project cost.

To find the best home builders in your area:

• Get at least three estimates from home developers to compare.
• Ask for references and to see a portfolio of their past work.
• Verify their insurance, worker’s compensation, and bond guarantees.
• Read reviews and check out their previous work on HomeGuide and Google.
• Ask about their warranties and guarantees.
• Ask for a full itemized contract in writing in case of a dispute.
• Avoid making large payments upfront. Come up with a payment schedule for work completed.

Ask the following questions before hiring home building contractors.

• How long have you been in the home building business?
• What types of homes do you build?
• Will you work with me to create a floor plan?
• How many similar homes like mine have you built?
• Can you provide me with a list of references?
• Can I see your portfolio, or can you give me the addresses of houses you've built?
• Are you licensed, insured, and bonded?
• How do you handle damages that happen on the job?
• Who's the project manager, and will you use subcontractors?
• What qualities do you look for in subcontractors?
• What hours do you and your crew work?
• How long will the project take?
• Is landscaping included?
• What permits do I need, and will you obtain them?
• What does your warranty policy include?
• Can you provide me a written estimate or contract with a breakdown of all costs?
• What’s your payment schedule?
• Do you offer in-house financing?
• What do I need to provide to get started?