Everyone has given great advice here. We've built our own house and my best advice is to get a detailed quote from the builder and plan on time and cost overruns.

Others have written about builder grade materials quoted when the client expects high end. Make sure your expectations are realistic. Are quote numbers in line with what want in your home? (Solid surface countertops versus laminates)

Changes are expensive - carefully think about your home design before starting. And working with a designer can save you money.

Talk with your builder and visit the site as much as you can.

Our home was finished on schedule and was just above budget.

I found this cost breakdown : https://www.nahbclassic.org/generic.aspx?genericContentID=248306

I am going to put together some ideas for you to help you control this project better hopefully. About 2/3 of the building costs are pretty set associated with site prep, and infrastructure, roofing and rough in plumbing and electricals. I will explain more later when I get to my desktop. Hang in there. We can help you a lot.

Karen, I know you are on a tight budget, and logically you may think that because you are on a tight budget you should not spend the money on a designer. But a good designer can not only save you money on a new construction, they can prevent you from making big and little mistakes and help to make your new home truly your dream home. Those of us on Houzz (the pros) are going to try to help you, but in reality, you need someone local who can look at your plans and suggest things you won't even be able to predict. I know personally I can help my clients save money because I know who the least expensive, yet excellent countertop fabricator in town is, and who to go to for high quality yet fairly priced cabinets etc. If you can find someone local who you trust, their knowledge will help you! In addition, once your blueprints are complete, before you sign a contract with the builder, you can take your plans and get exact pricing on your kitchen and bath appliances, cabinets, countertops etc so that you know how much you really need to have allocated in your budget for those most important rooms. Good luck and please go find a reputable local designer- you won't regret it!

2000 square feet for 2 retired people who "won't be entertaining much"! Are you serious???

Wanna save money? Downsize! JCK910 is right. What do you two need with 2000 square feet? Look at your first photo--look at all the wasted space that is used only for walking through. 25% of that space is wasted, at least. You can't afford the stupid waste of space in that house.

Trimming 500 SF drops your cost by $150,000. That's how you watch your budget, not nickel-and-diming people over a faucet or floor finish.

My house is 1600 SF with LR, DR, Den, Kitchen, 3 BR, 2 BA, Laundry room on 3 floors. And people have raised whole families in it for over 100 years (and it only had 1 bath until I got here).

You need to match reality with your budget. And, seriously, if you're worried about budget, why are you building at all? Is there no house in the region that is good enough for you?

Pleaassee! We are just gathering information and the poster is wise enough to ask questions at this very early phase. We don't even know where they are in their process yet, so hold our fire. And who said 2,000 sq ft is too big for two people? I think they have lived this long and they are smart enough to make their own decisions. Our job is to help them make GOOD ONES. Maybe they do need to go to a lower amount of space, but we can get there without insults. I have put together a "checklist" for you and if you would be so kind as to email me at manganflo@gmail.com, I can send it to you. I would post it, but it is a couple of pages long! But it will give you a good "roadmap" to help in making decisions.

Karen -- I'm not a designer or an architect or a builder. But I am retired and living in a sweet little house that I bought with retirement in mind. My best advice is to think small. Consider a "little gem" house with beautiful finishes rather than a larger house with disappointing materials. A small house is a delightful treat after years of cleaning and maintaining and furnishing a big house.

And do consider your inevitable old age. When you're waiting for cataract surgery or planning for your first joint replacement, you'll be thankful for things like easy access from the garage into the house, and grab bars in the low or no-threshold shower.

Good luck on your new adventure. Retirement is the BEST!

Flo--sorry, but the OP's entire post is about saving money, making every cent count. But she can't see the forest for the trees.

She's trying to save money online shopping for deals without actually looking at the big picture. She'll save more in the cost of the foundation alone by going down to 1500 SF than she ever would by shopping online for every interior fitting. I think she also greatly overestimates how much she can actually buy online at any discount over what the contractor pays.

And, no--I don't think they should be building if money is such a concern. Buy a new-ish house that's a fixed price--no surprises that prove insurmountable as in new construction. If money was no object, I'd have posted differently.

God, I feel like Suzie Ormond, hectoring the folks on PBS about money management. You cannot retire and be house-poor.

Flo-Thank you. Really, tatt! Come on-even Sophie sounded downright motherly this time!!

Ah Karen-We love retirement and I identify so much with enportlanfore's comment. You must live in a fairly large home now. Ours was only 2000 sf and we moved into 1350sf. I didn't know how I would do it. I can't tell you how many ways we love it. Not having to take care of all the THINGS we used to have is more liberating than you can imagine! After two years I am still purging. I have empty drawers. It's easy to put things away because they have a place.

We have a small yard. About the right amount of exercise and gardening. My husband broke his hip. I wish we had a patio only!

I agree about the Sarah Susanka Not so Big House book. Read it cover to cover and determine square feet really needed. Then have a realistic sit down face to face with your builder and a local architect. Good luck!

Karen Sue - thanks for using my project as the ideal for what you're striving for. Though that particular project, which is detailed here, is a Florida, waterfront home, the open quality and split floor plan are ideally suited for a retirement home.

As for budget, experience has taught me that a project that's over budget simply doesn't get built. So, by definition, every project that gets built is "on budget." That doesn't mean the project cost what we initially thought it would cost. Only that our initial guess at a cost was either too high or too low (yes, there have been times when the project cost less than initially anticipated).

The trick is to make sure that your initial guess is as accurate as can be. You can do this by asking yourself some basic questions and being honest about the answers. And having a professional (architect, designer, etc.) guide you through the questions and answers is money well spent.

lastly, for now, try to build a home that is integral to its land and location. Not only will you be happier with the result, you'll save some money in the long term.

Good luck and have fun!

As a builder I give comprehensive prices for premium work and I have a really hard time competing with the "come in low and hit them with the extras" guys. It's maddening. I can understand why builders do that because if my overhead was any higher I would have to do the same thing to survive. Consumers shop based on price and are usually totally ignorant on ROI over time. Welcome to the land of IKEA.

I'm in both camps. A simple and beautiful 1400 square feet can be open , light, bright, coastal, craftsman and a lot of other things.

By definition, new build is pound for pound more expensive per square foot. It matters not if you are as the poster declared, "not needing luxury finishes". A kitchen can be lovely at many price points! If you've been in the same home for thirty years or more, I can CERTAINLY understand the OP saying there's an awful lot that will feel just great, fresh, and even luxurious to her.

Since this is a warm clime she is headed to, I assume it's probably on a slab or crawl space foundation. Slab....implies lots of planning , advance thinking for wiring and plumbing. But a fairly amazing and fresh space at 1400 square feet, with simple finishes.....and compromises where necessary ? Is ON AVERAGE , even far outside metro areas......not going to be less than 385 k. Recent "used" and similar space is generally less.

Get with an architect, refine the needs to razor sharp point.......and focus like a laser.

i recall dear friends who longed for retirement and building their dream home in rockport, maine. they retired, built the dream home, moved to rockport maine. 2 years later moved back to where they were from, for even tho they had spent summers in maine for years (they were teachers), it turned out they hated living there year round.

my advice: sell your home, and rent in your dream location for a year before you build. i'm not saying you'll change your mind as my friends did... but you might build your home in a different way once you've been in the area year round.

i think you are putting too much pressure on yourself, doing this from a distance. you might also find something to buy before you build if you are there keeping an eye on things.

You haven't said (or I missed) what type of land you bought, rural or conventional planned community type with services? If rural, then you may have the additional costs of installing a driveway, well and septic, running power from the street to your home. Those vary regionally and your builder should have that info on costs or point you to the right people. Is it on/near the Gulf itself? We moved from the Houston coastal area after hurricanes and storms drove the insurance rates ever higher, even though we had no damage claims. In some areas the big companies quit writing new policies altogether, which concerned us about being able to sell. The buyer did find coverage. If you haven't already, make sure you're aware of the costs of hazard and flood insurance where you're planning to build....and know that those premiums rise every year.

boernegal, the land is in a developing subdivision inland from Mobile Bay. No well as it's on city water, no septic to deal with and power is already there so we're good that way. We will be (hopefully) building a Gold Fortified home which will reduce the insurance somewhat. We have previously lived in "tornado central", so I was thorough about investigating the insurance issue. That is one area I do feel confident about my research and results! If everything else were as clear cut.....Thanks for pointing out an area of concern not directly related to the home building issue.

You are doing a great job of verifying all issues Karen Sue. That is the hallmark of getting a good decision and final action. I think you will find the right path for you and your hubby. Best to you!

Karen Sue - I'm just reading your post and all the replies. It's been a wild mix of of opinions and information but please don't get discouraged. Keep the focus on your goal. It can be achieved.
I too am 60 and recently retired. I love it.
Over the last 40 years I have lived many different homes - from small apartments, huge old Victorians, new builds, and now have downsized to about 1200 SF ( yikes!!).
I can echo an earlier post that there are many advantages to small house living (liberating in the ease of cleaning and maintaining) and after years of "much stuff and more stuff" I really like having pared down. It's been liberating. And it fits my life now where it would certainly not have in the past.
So, I do encourage you to give "smaller" some thought. But only you will know what's best for you. And going too small can be as much as a problem as too big.
I would like to reinforce having the big decisions thought out before ground is broken is extremely important to keeping costs down. Making changes during construction is very costly. So find that floor plan that really works - truly makes sense for you and your life style. And fortunately for you I think efficient floor plans - even for small homes- are more easily found than ever before.
I'm not a pro at all but I have learned much over the years - some of it "the hard way" and still surprise myself with goofs, so I can't offer you as much as the others can. But I will offer this:

After finding that builder that you trust and have clear communication with, trust yourself. At this age you too have acquired a wealth of knowledge and experience. You can do this!

Houzz Home Building Forum. Good Luck. Very Exciting.

http://ths.gardenweb.com/forums/build

Here is a lovely house in Panama City.

https://www.zillow.com/homes/for_sale/Panama-City-FL/pmf,pf_pt/42784605_zpid/46978_rid/st-andrews-bay-_att/globalrelevanceex_sort/30.491876,-85.133744,29.822178,-86.01265_rect/9_zm/?

Your description of your lot and the price point in your neighborhood is not quite specific.

I can tell you what it would cost me to get a house up ,on the cheap, in my location: $250,00 a sq foot.

PS - one thing I learned was that so many of the questions that I fretted over and would lie awake thinking about were resolved as part of the building process. I learned that by Dealing with a team of professionals many things that I did not understand were a matter of course firm them. To be sure, you will want to be vigilant but I would bet there are many areas cAusing you anxiety because you are over thinking it.

PSS: kudos to Flo! You rock!

smil101, you are so right. When I have a situation in uncharted territory I tend to dwell on one aspect and work it to death. what can I say, I am a control freak and don't like giving control to someone else and admitting it's beyond my capabilities. And in a life changing decision such as this I'm far outside my comfort zone. At this stage in life I feel like there won't be a chance for a "do over". Thanks for the upbeat words.

Don't forget about window treatments. Often in a home, these are left until last after you've already gone over budget. But privacy is pretty important and you don't want to live in a fishbowl. Your least expensive product would be faux wood blinds, which would hold up well in the Gulf Coast as long as you go through a trusted dealer. It doesn't have to be a spendy item, but if window treatments are forgotten, you'll likely put up something pretty unappealing once you move in.

If you want to save money the best thing you can do is make sure you have a floorplan and amenities that will suit you at 90 as well as it does now in your active 60s so you can stay there as long as possible to make it worth the expense of building it. This means flat land, no stairs, wide doorways, accessible bathrooms, easy care surfaces, wall to wall instead of area rugs (tripping hazard), etc. Dad broke hip, FIL broke hip. Both were very active and healthy. It really changed my view in what I want in a house. Also choose materials that make sense.

You need some professional design help. Saving money with open shelves? Or drawers (which actually cost more, not less than shelves)? Open shelves look good when they are stylized to death. Otherwise, they look junky. And this isn't even close to where you'll save money or where you should be focused in my opinion.

The problem with bargain shopping is timing. It is very hard to time and store the bargains pending building. Store on-site and you risk having things stolen. It is also hard to come up with a complete design look when purchasing piecemeal.

"Store on-site and you risk having things stolen." Yes. This happens more often than you would think. Once someone came in over night and stole the entire kitchen of a house my dad was building. Everything. Gone.

Really, the cheapest way to assemble a house is to let the builder go builder grade. He's using those items because they are cost effective for what they are, and he's getting them at discount because he buys in bulk. Anything else will just add to the cost. I'm sure he'll be happy to put whatever you want into the house, as long as you're willing to pay for it.

If you have a builder and a budget then your builder is going to give you what will work from his subs for your budget. Example, my friend built their first house and she showed up one day and the kitchen cabinets were already installed and not what she thought she was going to get......her builder said, that is what you get for your budget.....so please go see what your builder has already built this year and what everything beyond the basics cost in the house....if you look at his model homes you will see his budget and that will be your budget......say the house for basic items like cabinets, flooring, windows, bathroom and kitchen finishes is 100 dollars per square foot and is 250,000 dollars for 2500 sqare foot house, but the model shows all the amenities your builder can do and the model is 200 dollars a square foot.....and cost 500,000 dollars; you will be able to compare and see what your dollars buys you, so decide your budget and then see what your builder gives you for x amount per square foot. And remember you will get beer on a beer budget and champagne on a champagne budget. It will also not be pick and choose the lowest bidder and do those subs...you will be using your builders subs and some things are cheaper and some things cost more but it all fits into the budget he has given you.....please have your eyes wide open when you look at what he offers and what you choose. There should be no surprises. Also because the builder is building this house for you he will be earning his profit margin because he is running a business and that is what he earns to do his work and manage all those tradesmen; some people resent it but it is not different than getting a paycheck every two weeks for your work.....so find a builder that will build for your budget and make sure you do not change anything along the way. A changed work order is very very very expensive and adds up quickly.....courage, conviction, and a budget will get you a lovely home.....

Another issue is that labor costs in our case where the majority of costs. So I didn't want to buy cheap cabinets or appliances when I was already spending tens of thousands on labor. Similarly, in our bathrooms we spent more on tile because it didn't make sense to buy cheap tile and spend $$$ to install it. We did save by choosing premade, not custom, cabinets and really nice remnants. But you're not in the area and like others have pointed out your contract may limit your vendor choices. While we renovated - two bathrooms, a kitchen and more - I agree that costs were about double what I expected. Sorry.

One more idea. Ask your builder for a designer / architect reference, more than one and start there. Ask to see pictures and talk to the people they worked with. Designers and builders who do repeat business with each other have more incentive in my experience to get it right.

When we decided our previous house was no longer suitable for our needs (way too much garden, and far too many stairs, plus lack of local medical facilities) we started looking at houses in other areas. We finally settled on a town 500 miles away, but where we had friends. Over the course of several years, we drove down to look at houses there perhaps a dozen times, and would have seen something like 100 houses. We got a very good feel for what a house built to our middle-of-the-range specs would cost to buy already built (and we kept an eye on real estate websites as prices started to climb). We just couldn't find anything that suited us.

So when we finally made the plunge and decided to build, we had a fairly good idea of what we were going to be in for, cost wise, in our area with the standard of finishings we wanted. You can't beat having a good understanding of the local market: in my opinion, it is critical. So, if you want some "control" over the process, I think that's where you start. - in understanding what X numbers of dollars actually gets you. And that may mean modifying your design plans (or not). Better to find that out before you start construction.

Sitting down with the builder and/or architect will also give you that information, but it's pretty useful to have your own sense of what say $300,000 buys where you will be living.

We and our builder were able to reach a price that gave us what we wanted at a price that we felt was fair in that market. Just as well, too, since we were not there for most of the build. We selected things like sinks, appliances, countertops and flooring at the builder's usual vendors but left it to the builder to make the arrangements for purchase and delivery. He had the contacts and the discounts, and we didn't. Selling, decluttering, packing, moving is stressful enough without spending time glued to a screen looking for the cheapest sink.

Contingencies in the actual construction aside, there are expenses related to a move that you have to factor in: in our case, we moved most of our furniture so we had pack up and almost six months of storage costs plus insurance; window coverings when we did move in; small appliances like toasters and kettles; a new TV and a unit to put it on; telephone and broadband connections; etc etc. Plus new licences for our cars (and our dog). Lots of little things, but they add up.

Flo, I find myself in a somewhat similar position as Karen. May I also email you for your checklist? I'd be very grateful.

Absolutely, it is two pages long, and quite detailed, so don't let it overwhelm you, but it covers everything I can think of and have experienced. manganflo@gmail.com

I will add one thought on a designer. Builders pay designers rock bottom fees to keep their costs and your price low, so while there are good ones out there, I recommend locating a totally independent person, so you know for sure you are getting "clean" unbiased advice. I have worked for builder's and their clients and generally, we when both parties have become comfortable with each other we then move on to a fully independent arrangement with myself and the clients. Of course, I always work toward best deals and best resolutions for both parties with the client being foremost in my priorities, because at the end of the day the builder will be doing "warranty" and punch list work for a year or more, so maintaining positive relationships is very important to all.

The handrail can cost as much as the staircase

We too had to design and build our house from a distance, and saw it only 5 times during construction. My advice is to try to make the trips as frequently as you can afford. Each time we went we found screw ups that wouldn't have happened if we had lived closer. Some were able to be corrected, some we lived with, some were to our advantage. Also as already mentioned, saving a few bucks on internet shopping for fixtures etc will only drive yourself nuts. I mentioned a few of those possibilities to our builder and he balked to install them. He wanted us to shop at the local design centers. His designer would meet us at the design centers when we were in town for a whirlwind selection spree, and advised us what would look good and fit in our allowances. Tears usually followed. That's when you find out the standard carpet is crap and decide to spend more. And on and on. Take advantage of the builders in house designer if they have one. Try to pin down as many specifics as possible in the estimate. Our railings for the stair cases and loft hadn't been designed yet, so they weren't included. Surprise, when the change order fax, $7500, came over. More tears. My advice is focus on the big things that can't be changed later, like quality of construction, and an easy to build design in a carefully thought out footprint. We went with some 'builder grade' choices in some of the lighting, plumbing and laminate in the baths, but we chose stylish ones with the help of the designer and are perfectly happy with them 10 years later. We got the kitchen of my dreams, but even that wasn't a huge splurge. No inset doors or quartzite, mostly Corian and some granite, but it's perfect. This is our retirement home as well...approx 3400 square feet. Some guest areas are not used as much as others but every foot was planned, so don't let people tell you what's right or wrong for a retirement home. Everyone's lifestyle is different. Only you can decide what you need, just make it purposeful.

rocketjcat, did you have an architect from the area in which you were living at that time or in your new locale? How closely do architect and designer need to work, or can we utilize the architect to nail down our blueprints to hand over to builder and then utilize designer at center he uses to work on the inside? Your description of the process is in line with what I am envisioning, so thank you.

That description is pretty much on target of the challenges of building when living in another state. The reason builder's don't want to get products you buy (at least in large amounts) is because it throws his "warranty" program off track. His warranty, which he gets insurance and coverage for, is based on product and his sub-contractor's agreements. His warranty work will be done by the sub-contractors he puts on your job and he/she has inhouse agreements with them on what they will service without charge to him or your based on their work. He/she isn't being mean, it is just the way the business works for warranty. It would be like you buy a car, go get a speaker system from some other company and want the dealer to warranty it, if you get what I mean. Most builder's will give you some slack on things like a specialty chandelier (no big warranty issues there), or even a unique appliance (but you will have to warranty it and the installation), so that might help on that topic a little bit. Another key cost factor is "labor". This is a kind of mysterious cost that is equal to most cost of product or more and often times described as "installation" costs. Well, if a bathroom tile cost is say $4,000 the labor to install it is about that same amount or more depending on the complexity of the layouts for the tile, (diagonal, more; herringbone, super more) etc. Lots of fun!!! But when you are looking out your breakfast window on some beautiful morning in Alabama and going to get some fresh in shrimp from the Gulf, you will say, it was all worth it. :)))

@karen sue, the architect was near (1 hour) the location we were building. He was affiliated the timberframe company we used. They both coordinated with the local builder who was finishing the house, and the designer worked for the builder. Some trips we met with the architect only, some the builder only and some just the designer. Yes, as Flo said they were accommodating with installing specific "owner provided" items like antique ceiling fixtures etc., but I understood the majority of items needed to be more in their normal scope. I now think back on how I drove myself nuts trying to save a few bucks, and in hindsight I should have relaxed a little more without over analyzing every item, as the savings were minimal. It's very hard to do while it's happening though! And as I mentioned the more standard items we installed with the intent to change out, we evidently chose well and still like them and now see no need to change.

A common problem when building is we get to "microscope" analyzing every detail choice and loose track of the big picture. This is why having a designer who has your best interest at heart is so valuable because we can keep you on "style" track (because you can and will get sidetracked with things you "like" but don't fit in the overall scheme of things) and still have a wonderful final outcome. But it is easy to get hyper focused. Designers can help you focus on what is important and let the rest fall into place. (Ha! I worry over every detail, but hey that's what I do!!) Just sayin...it happens to all of us.

You folks have, for the most part, been so encouraging and helpful. I am now trying to step back, taking deep breaths and looking at the big picture. I have contacted the builder to pose some questions, voice some concerns and ask for some input. Depending on his response, I have several courses of action planned and feel I can move forward making educated and responsible decisions thanks to my Houzz advisors.

Keep us posted! Good luck!

Any updates?

We built our home 3 years ago - both of us in our 60's. my husband was the general contractor (you don't have to be licensed in our state to build your own residence). This is the 4th house we have built so from long experience here are some things to think about!

1. Visit MANY model homes in the area and compare sq ft cost and upgrade cost to your plan. Add at least 25% to a comparable home and your estimate.

2. Make a list of non-negotiables for your new home - in other words things you will not compromise to save money - I.e. Hardwood vs carpeting or solid surface counters vs laminate, etc. Then when you have to cut pennies, you can do it without giving up the most important things. (I.e. Basic cabinets in the laundry room and guest bath vs top of the line in the kitchen or builder grade lighting fixtures that you can swap out over the years, etc.). Be willing to make some compromises, but you won't be disappointed if you can get the things you really want!

3. Make a spreadsheet of ALL costs. Get regular labor updates from your builder and copies of invoices of purchases. Have regular meetings to make sure you / he is staying on budget.

4. Do not make changes after building starts - it is very expensive to make changes mid-building.

5. I researched just about every item vi the internet to ensure best pricing. If your builder is giving you a lighting allowance, for example, count the fixtures (including closets, attics, garages, and the like) and then see what you can purchase them for personally. In one of our previous builds, we saved nearly $1,500 by buying our own and many were unique and better quality than the builder could have gotten for us.

6. Realize that your full time job, while building, is to stay on top of the planning, building and spend. It is much easier to get something fixed when you notice it immediately. Daily site visits are a must.

7. It will be a bit overwhelming, but don't get discouraged. Your contractor's phone number should be on your "favorites" list. Remember YOU are paying him - not the other way around

8. Enjoy the experience. Even when things get hairy (and they will), keep your eye on the goal and think about how rewarding it will be on move in day. Building does not have to be a nightmare but you have to pay attention to every detail.

Best of luck to you.

Anything new on this?

I'm back. After several conversations with builder and talking to an architect we have cleared our heads and are now concentrating on revising our floor plan and working to scale down size slightly ( found out H.O.A. will review and may accept a smaller footprint) without actually losing valuable living space. Architect seems to "get us" and already had some ideas for changes that will improve layout efficiency . When that is done we will work with builder for his pricing and go from there. Everyone seems sincere in wanting to help is make make our dream a reality. We are hopeful with laser focus and realistic expectations things will progress. Thanks to everyone here for your input and encouragement.

Awesome, very happy for you. Good when the whole "team" gets on the same train. Well done!

Can the OP update on how things turned out?

OP here. We celebrated our 4th anniversary in the new house on July 28 and we are so happy here. The building process, though done from another state,  went smoothly thanks to our incredible builder and we were pleased with the finished product.  We stayed within budget and even were able to get some interior design assistance to truly make the house our dream home.  There is nothing major we would do differently and the house totally suits the way we live. Unless we win the PowerBar, we don't envision leaving this house.

Thanks for the update :)

I’m glad to hear things worked out more than just fine.