Episode 32: The 10 Biggest Mistakes When Building a Custom Home 

Rick Bell: Everyone thinks the hardest part of building a custom home is the cost. But in reality, it’s the decisions. What I’ve seen over the past 40 years is that people don’t run into trouble because of one big mistake. They run into trouble because of a series of small ones, and by the time they recognize it, the project has already started to drift.

So today, I want to walk you through the most common mistakes I’ve seen. Not to overwhelm you, but to give you clarity so you can avoid them and stay in control of your build.

Welcome back to The Insider’s Guide to Custom Homes. I’m Rick Bell, and this podcast is here to help you understand the process, make better decisions, and ultimately enjoy building your home. Because when this is done right, it should be one of the best experiences you have, not one of the most stressful.

So let’s start where most people begin to go off track — and that’s right at the very beginning. The first mistake I see all the time is starting without a real budget. Most people begin with a number in their head, and then they try to design something that fits into it. But that number usually isn’t based on reality. So what happens? The design moves forward, decisions get made, and then somewhere along the line, the numbers catch up and it doesn’t fit. Now instead of building forward, you’re pulling things back.

A better approach is to flip that process. Start with what you want to build, understand what it actually costs, and then align that with your budget from day one. We actually did a full episode on this, so if you want to go deeper, go back and listen to Episode 2 on designing to budget.

Now once the budget is loosely understood, the next place people get into trouble is the design phase — and that’s designing without the builder involved. A homeowner works with an architect, they create something beautiful, and they fall in love with it. Then the builder comes in and says, “This is going to cost a lot more than you expected.” Now you’re in a tough position because it’s very hard to walk away from something you already see as your home. So instead of adjusting early, you’re forced to compromise late.

The fix here is simple. Bring your builder in early. Not after design, but during design. And I can tell you this is one of the hardest conversations I’ve had over the years. I’ve seen this happen many times where someone has designed a truly magnificent home and I have to sit there and tell them that they can’t afford to build it. Going back to the drawing board at that point, it’s not just a financial hit — it affects the timeline, it drains the excitement, and it takes a lot of the fun out of the process.

Now let’s talk about something that can impact everything before you even get started — the lot. Buying the wrong lot is one of the most expensive mistakes you can make. On the surface, a property can look perfect, but underneath there can be issues with the soil, wetlands, elevations, zoning, utilities — things that don’t show up until it’s too late. And now instead of building your home, you’re solving problems, and those problems cost money.

So the key here is due diligence. Take the time to fully understand what you’re buying before you commit. If you want a deeper dive into that, go back and check out Episode 7.

Now once you have your lot and your design moving, everything comes down to your team. And this is where I’ve seen projects either come together beautifully or completely fall apart. Because if your builder, architect, and designer are not aligned, you’ll feel it — in the communication, in the decision making, in the budget, and in the overall experience. A misaligned team creates friction, and friction creates problems.

Here’s another mistake that catches a lot of people off guard — underestimating soft costs. That includes architectural fees, engineering, permits, consultants. These costs add up quickly, so if you don’t plan for them, your budget is already off before you begin. And once you’ve built your budget, you have to protect it.

Not planning for contingencies is another major mistake. Something will come up. It always does. And if you don’t have a contingency built in, every one of those moments becomes stressful. Instead of solving the problem, you’re reacting to it. We also did a full episode on contingencies, and it’s worth going back and understanding how to structure that properly.

Now let’s shift into something that affects your timeline just as much as your budget — decision making. Delays don’t always come from construction. They come from selections. If decisions aren’t made on time, the schedule starts to slip.

At Landmark, we use a selection schedule. This is a series of prompts that guide you through making decisions at the right time. It’s based on the construction schedule and it gives you time to review options, compare products, understand pricing, and make confident decisions before they become urgent. Because when decisions get pushed too late, you’re no longer choosing what’s best. You’re choosing what’s available — and that’s where stress and mistakes start to creep in.

Another area where people unintentionally create problems is in the design itself — overcomplicating the architecture. More detail means more coordination. More coordination means more risk, and more risk usually means more cost.

For example, a lot of people assume a modern home is less expensive to build because it looks simple. It has clean lines and minimal design, but in reality, it’s often the opposite. Modern homes can actually cost more because of things like roofing and drainage requirements, larger expanses of glass, and custom details like trimless doors and recessed baseboards. So what looks simple is often more complex to build, and that complexity shows up in the cost.

That’s why it’s always best to involve your builder early in the design process so you understand what those decisions really mean before they become expensive surprises.

Now let’s talk about something that gets a bad reputation but shouldn’t — change orders. They’re a part of the process, but they need to be understood. During your build, changes will happen. Some are intentional, some are necessary, and some are simply part of how a custom home evolves.

But here’s what most people don’t realize — the cost of a change is not just the change itself. It can affect the schedule, which can increase supervision time, require rework from the architect or engineer, and in some cases even trigger additional permitting. So what feels like a small change can have a much bigger impact. That’s why the key is not avoiding changes, it’s understanding the process — how it’s priced, how it’s approved, and how it affects your timeline.

And finally, letting issues go unaddressed. Small problems grow if they’re ignored. Address them early. Sometimes something just doesn’t feel right. Maybe your builder isn’t meeting your expectations, or your designer isn’t quite aligned with your vision. That’s the moment to speak up and have a conversation, because more often than not, a simple honest dialogue can reduce friction, realign the team, and get the project back on track.

But when those conversations don’t happen, small concerns turn into bigger issues, and bigger issues become real problems.

Now if you step back and look at all of this, they’re small decisions that slowly pull a project off track. So how do you avoid them? You plan early, build the right team, and make informed decisions. Because the best custom home projects are not perfect — they’re well managed.

And if you want to go deeper on any of these topics, visit The Insider’s Guide to Custom Homes at TIGTCH.com, where you can find all of our episodes, show notes, transcripts, and a full glossary of terms. You can also find us on YouTube or listen on your favorite podcast platform.

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This is Rick Bell, and you’ve been listening to The Insider’s Guide to Custom Homes. Build it right, build it informed, build it the Landmark way. And most importantly, enjoy the journey.