10 Tips for Building Your Dream Home

2. Research local building codes. Depending on where your new home is being built, there may be special environmental factors to consider, such as flooding, hurricanes and earthquakes. Make sure that your builder addresses -- and even exceeds -- local building code requirements.

3. Obtain estimates for property taxes and insurance. Depending on your situation and location, these items may represent a huge portion of your housing costs. Real estate agents and construction companies will do a very nice job in underestimating these costs when you are shopping for a lot.

The property taxes on the lot you are buying will likely be only a fraction of the fully assessed taxes after construction. Contact the county tax collector's office for help in coming up with the estimate. The taxes may be much higher than you expect, especially if you are moving from a different part of the country.

You should also contact an insurance agent early on to find out how much your homeowner's insurance will cost, along with any additional coverage you may need for hurricane, earthquake or flood damage.

4. Choose a builder carefully. The most important factor in the success of a construction project is the integrity of the various contractors involved. The builder acts as the general contractor and is responsible for completing the project on time and within budget. The builder will likely employ many subcontractors to complete various important parts of the project, including framing, roof construction, plumbing, electric, etc. If a builder fails to pay a subcontractor, you will have a major problem on your hands.