Everyone fantasizes about building their dream home, but few people actually do it. If you’re one of those ambitious, can-do souls, you probably already have some kind of a plan put together. But just to make sure you don’t miss anything, we’ve put together a checklist for building your own home.  And if you don’t have a plan yet, this guide should help you figure out where to start.

1.Design your dream home

How big will your house be? What will it look like? If you don’t yet know the answers to these questions, it’s time to figure them out. The first step is planning your home: including size, layout, materials, and finishes. You may want to collaborate with a designer or architect for this phase.

Designing a home can feel overwhelming, so here are a few pointers to help you figure out what kind of a house you need:

• How many bedrooms do you need?

• How much kitchen space do you need?

• Do you plan to have guests over a lot?

• Do you want to include a home office?

• How much yard space do you want?

This is the fun part, so enjoy!

2.Fund your project

This part isn’t so fun, but it’s a vital step and it’s important to get it right. Building a home is expensive, so unless you’re loaded (or have been saving for a really long time), you’ll need to secure funding. You may want to talk to a bank or other financial institution to see if you can get a loan or mortgage. Be sure to look at several different options and compare rates.

3.Get the right permits

At this point, you’re probably eager to start building, but we’re not there just yet. First, you need to get the right permits from your local government: building permits, zoning permits, and anything else required in your area. Do some research to make sure you have all the important paperwork in before you start building.

4.Clear the property

The last step before you can start building is to clear off the property. Obviously, you can’t build on top of trees and rocks, but make sure you also remove any obstacles below the surface that might mess up the foundation of your home. You might also want to level the property. Needless to say, this is a big job for one person, so you may want to enlist some friends or hire a professional. 

5. Build the foundation

Now it’s time to start building your house! The first step is laying the foundation: either by pouring concrete or putting down blocks so your house has a solid base to sit on. Make sure the foundation is level and reinforced so it can support your house’s weight. Again, this is a big job for one person, and unless you have construction experience, you’ll probably want to hire a contractor for this and the next step.

6. Build the frame

Now that you have a solid base to build on, it’s time to move on to the frame. These are the bare bones of your house: the floors, walls, and roofs, usually constructed out of wood or another material. 

7. Install plumbing and electricity

Once your frame is complete, the next step is installing plumbing and electricity: things like wires and pipes so your house will have water and electricity. Again, unless you’re experienced in this area, you should probably hire professionals. While some skills, like putting up drywall, can be learned, installing plumbing and electricity is complicated and important to get right.

8. Put up insulation and drywall

Insulation and drywall help soundproof your home and regulate its temperature. This is something you may be able to do yourself, but it’s a lot of work (and you’ll probably have to watch a lot of YouTube DIY videos). Most people hire contractors for this step. You may also want to put in windows and doors during this step.

9. Polish it off

While you’ve made a lot of progress by this point, you’re far from done. Now it’s time to paint the walls, install flooring, cabinets, and countertops, and add light fixtures. 

10. Landscape and add outdoor features

This may come before or during the last step, depending on whether or not you want to add something like a deck or patio, which you may need to integrate with the rest of your house. With your home completed, it’s time to add any landscaping features you’d like. Then, you can sit back and appreciate all your hard work!

11. File and pay your taxes

Tax geeks that we are, you probably wondered when this was going to come in. An important part of building a home from scratch is filing and paying the related taxes, which might include property and construction taxes, among others. Research the tax laws in your area and be sure to budget for taxes when you estimate the cost of your home. You might qualify for certain credits or deductions, especially if you use sustainable building practices or install energy-efficient features.

When you file, you may want to itemize your deductions, as you can then deduct the interest you paid on your mortgages. You can also usually deduct the points you paid for your primary residence. 

If you bought a home in the current tax year, you should get a Form 1098 from your lender showing the amount you paid in mortgage interest, as well as any points or mortgage insurance premiums you paid.

If you need help figuring out taxes after building your own home, it’s never a bad idea to consult with a tax professional. Find one on TaxGlobal and be ready to go!