How Much Does It Cost to Build a House as an Owner‑Builder?

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Show Notes: Thinking about building your own home and wondering what it will really cost? This episode shows you how to get an accurate owner‑builder budget without relying on unreliable “cost per square foot” charts, books, or AI guesses. Steve explains why the only numbers that matter come from real plans priced by real local contractors, and how a detailed, permit‑ready plan set lets subs give serious bids instead of guesses. You’ll learn the difference between hard costs (foundation, windows, roof, materials, labor) and soft costs (plans, engineering, permits), how Landmark’s one‑stop design and engineering package actually reduces change orders and surprises later, and where DIY work truly saves money versus where you’re better off hiring pros (especially for HVAC and other critical systems). Steve also breaks down how owner‑builders can realistically use their own skills plus Landmark’s detailed plans and support to manage subs, control costs, and avoid underestimating key items like windows, foundations, and code‑driven requirements such as egress and tempered glass — turning a vague “I want to build a house” into a confident, funded, line‑item budget.

Transcript:

Steve Tuma: You know, we’ve been doing this 32 years — almost 33 years. We’ve seen an amazing amount of things. But every once in a while, you get a curveball. The thing is, we have the resources to get you the answer of how it applies to your particular project on your building site.

Interviewer: Hello everyone, and welcome to Episode 76 of the Panelized Prefab Kit Home Building Show.

With me today, as he normally is, is the President and Founder of Landmark Home and Land Company, a company which has been helping people build their new homes where they want, exactly as they want, nationwide and around the globe since 1993 — Mr. Steve Tuma.

Steve, how’s it going, pal?

Steve Tuma: It’s going great again — another day of helping people figure out how to build houses. We’re getting more and more customers that are coming back and doing some duplexes or investment properties.

Interviewer: Well that’s good.

Steve Tuma: Yeah, which is cool. Some new customers, some that built with us years ago that are like, “Hey, it’s time to do an investment property.” It’s kind of cool. It’s similar in process, and then other times it’s a little different, depending on codes or where they’re building or site conditions.

Interviewer: Return customers can never be bad.

Steve Tuma: It’s always fun. It’s just kind of cool when you get a call out of nowhere and they say, “Hey Steve, remember me?” I’m like, “Yeah,” reminisce for a while on the houses, and move on to help them with their new projects.

Interviewer: Better than you saying, “No, I have no idea who you are.”

Steve Tuma: Yeah, no!

Interviewer: I thought we’d talk today about a subject that’s on the minds of potential homeowner‑builders — and just about anybody these days, actually — and that’s the question of cost. The cost of living in general is so high these days, but for our purposes I thought we’d talk about the cost of building a home.

Can we do that?

Steve Tuma: Yeah. Well, it’s kind of interesting because a lot of people want to be an owner‑builder because of the savings. They can do some work so they don’t have to pay for someone else to do it. And then also, that savings — if they have a mortgage — saves considerably on their mortgage and the interest they pay over the life of the loan.

But yeah, costs are varied. It’s a unique economy. There’s a lot of things going on. But there is still a great opportunity, because houses in general are appreciating and doing pretty well.

So a lot of people will call up and say, “Hey, how much does it cost to build a house?” or, “How much does it cost to build this?” And there’s a lot of variety — or variables — in the elements of the cost:

• The land
• The improvements
• Water supply
• Sewage supply
• Any permitting fees
• Driveway, sidewalks
• The foundation
• And the actual home part as well

So what we always suggest is that people work with us to get a real set of plans and go get estimates from local contractors and find out what the details are.

I use the word real set of plans — complete, that we’ve drawn up — because sometimes people just want to sketch something on a napkin and bring it to a contractor and say, “Hey, how much is it for this?”

And it’s kind of like garbage in, garbage out. If the guy’s got to guess for you, he’s probably going to guess high — or most likely just not take you seriously.

Subcontractors don’t make money off of providing bids, especially when they sense that people are just pricing around to keep themselves busy and feel it out. Quality contractors are in limited supply. So you want to make sure when you go to a contractor you have:

• A real project
• A real set of plans
• Real details of what you intend to build

Then you’ll actually get a number that’s more realistic — and probably more accurate — to help.

So that cost — we tell people, get a set of plans and go get it quoted. We can always do rough targeting based on general square footage or details, but it’s always good to get a cost.

One thing I want to caution people about is, some people go online and think that ChatGPT and all these other AI programs have every single answer in the world. They might have some answers, but the accuracy of it is not there.

So I would not suggest using general books, some internet site that has general guidelines of costs. Things can vary significantly in:

• Location
• The actual building site
• The design of the home

So it’s best to work with a contractor to get the actual costs.

I’ve never seen a book be accurate in quoting costs. I’ve never seen an internet site that’s accurate. So we always suggest people get a real set of plans, get into it, be committed to the project, and let the subcontractors know that, “Hey, I’m doing this. I’ve got this project that’s going on at this specific address, and we intend to start and finish in a certain timeline,” and let them know that you’re financed or funded and move forward. You’ll find that the contractors are more responsive.

So it starts with a set of plans. At that point you also know what you want, and it leads our customers to think it through. When you’re drawing the plans up it’s like:

• “How big of a window do you want here?”
• “How do you want your kitchen laid out?”
• “How big is your garage?”
• “What are you doing in the basement or bonus room area?”

So you can actually give the subcontractors the information that they need to provide an accurate quote.

I know that’s not the easy answer. Sometimes people want to have the easy button or the magic button on a computer to do that. But it is one of those things that it’s best to:

• Understand what you want in a home
• Have us draw it up on the plans
• Include the details in the plan so it’s accurate and clear

And then you work on getting the estimates back — probably more accurate estimates and quicker response when they see that you’re actually doing something and not just asking for a bid out of curiosity.

So you want to show that you’re organized, you know what you’re building, you have a timeline, you’re funded to do it, so that they can move forward. And that’s the best thing.

I understand sometimes people say, “Hey, I have no place to start.” Well, that’s when they give us a call. We can work through things and kind of mold a little bit of a plan together so that a potential customer understands how to move forward.

Interviewer: How early in that process can you actually put together an owner‑builder cost breakdown? Is it an itemized list, or how do you do that?

Steve Tuma: Well, what we do is we work with the customer to get general ideas. So if someone said, “Hey, I want to build a house in Orlando. How much does it cost? What’s going on?” — we can go through, look at general cost ideas, get a general budget number that they believe they want to spend, and then you just kind of fine‑tune it from there.

So we work with them to get the plans, and we can get them a line‑item list of what they need to go get estimates. But we always believe it’s good for the customer to understand what they’re building and go get those estimates themselves.

And then in that process you’re also vetting the contractors that are:

• Responsive
• Knowledgeable
• Helpful
• Do what they say

So there’s a little bit more to it than just the budgeting. It’s developing your team. And that’s an important part of it.

Interviewer: Yeah, of course.

So also, at Landmark you guys — well, your expertise has got to be pretty helpful to show people how to save money building a house. It’s not just about throwing money at a house, but how to save. Let’s talk about hard costs versus soft costs, and where do you come in in advising a potential customer where to — not cut corners — but to save money overall?

Steve Tuma: Well, the hard costs are like the actual things — the foundation, the windows, the roof, stuff that makes a house. A soft cost would be things like permits and the actual plan services, engineering, different details that aren’t a physical item on the property.

So what we do is, our one‑stop shop is we combine it. We’re able to provide a value for the whole:

• Architectural design
• Structural design
• Energy calculations

…tying the whole project together to get it put together — instead of someone hiring individual architects, structural engineers, energy code people, site plan people, surveyors… all these things, which add up.

We’re able to put it together as a package, which makes it a lot easier for the customer to:

• Control their project
• Understand the project

And it also allows us to support the customer best, because we’re designing it. Therefore we can make sure it can get built right. And that’s the key element.

A lot of people think that, “Oh, any set of plans is okay, let me get a cheap set of plans.” Well, the cheap set of plans is probably going to be the most expensive thing you bought because it’s unclear. So that’s why we put it together.

You ask about hard costs and soft costs — we’re kind of combining it because we’re doing:

• The architectural plans
• All the paperwork for the permits

…but then making sure that we build the proper panelized package — which is part of the hard costs — into it.

So the budgeting can be interesting because some people have a better understanding of it, some people have less. But overall, our customer base — people have been researching this. They’ve been thinking about it for a little while, so they have an understanding.

What we can do is help guide them in a direction that makes sense. So I may not know the exact cost difference of going with a cement block foundation versus a poured foundation, but we can get them the details necessary so that when they talk to the contractor, they have the right information so that the contractor can then follow through, provide the accurate quote that makes sense for the project.

The idea is, with a good set of plans — you know, the soft costs — you’re able to let the contractors know what’s being built so you can avoid change orders and headaches and scheduling problems down the road.

But we’re here to help people. We have a little sheet if someone needs it — we could give them the general breakdown of what’s included, talk to them about the ins and outs of doing things.

Windows are a perfect example. A house may have two or three different‑size windows; it may have 30 or 40 different‑size windows. And sometimes people will say, “Well, I just went online and got the price of the windows.” That may be okay, but in certain cases you need egress windows, you need tempered glass, or you need different sizes and you need performance values for the energy calculations.

So you want to work with, in that particular example, a window person that understands the use of the window. Because if you put a window, say in the garage — just a regular window for some light and some ventilation — that window, even though it may be the same size, could have different features than if that same‑size window was used in a bedroom, or by a stair, or in a location where it would need to be tempered.

Interviewer: So is there a general area — because you were just talking about hard costs versus soft costs — where people underestimate expenses? Where they think that they’re going to be able to build something a little cheaper than the actual reality? And how do you deal with that?

Steve Tuma: Well, sometimes the underestimating part isn’t necessarily underestimating — it’s that they just don’t understand. They’ll say, “Hey, I got this particular window; it was on sale.” I’m like, “Okay, but does it have the right features for what you need?”

Like I mentioned — if it’s a bedroom, you need egress. If it’s by a staircase or by water, it needs to be tempered. So sometimes it’s not always an intentional underestimating — it’s not realizing. And that’s where we come in to help.

When people say, “Hey, do I need an egress window in a bedroom?” Well, there’s different conditions where you do and you don’t:

• What if the bedroom has four windows — do all of them need to be egress, or only one?
• What if there’s a patio door in there?

So sometimes it’s the innocence of moving forward, where we’re able to help them learn and understand to go do it.

And what’s interesting is people enjoy it. That’s why they’re building their house — they want to learn. It’s their nature. They want to save money. They want to understand. They want to know that their money is being spent properly. And that is one of the real key elements to it.

I always tell people — since we work with owner‑builders — do work that you’re confident in.

If you know how to frame a house, frame it. If you know how to run wires, go ahead and do it. If you know how to paint, do it.

But don’t go watching YouTube videos on how to do your HVAC system and think you’re going to save something. You might get it installed — but is it operating right? Is all the ductwork right so that the HVAC system can do its job?

So we tell people, you’ve got to be honest with yourself. If you can truly build your own home — and we’ve had customers that have literally done everything — we’re all up for helping. But if you’re someone that hasn’t done it, it’s fine.

I don’t want to scare people away with comments like that, because we’ve had a lot of people that have never built a house — I don’t think they’ve ever built a birdhouse. But what they do is they then manage the project, which is also a significant savings because the general contractor fees are saved.

So what they’re able to do is then manage it, and then manage good subcontractors to get it taken care of.

So it’s really a reality check.

Now, a lot of people would say, “Well, that’s a big problem.” The reality is, our customer base — we talk to them, we help them through, they understand. And if they’re up for it, they continue the project. They’ve researched, they understand things.

So everyone has a different level of knowledge and experience, but it isn’t necessarily that they’re not capable of moving forward. Everyone just has to find their sweet spot, where they can do the project themselves.

Like I say, we’ve had some people that have literally touched every part of the house. We’ve had other people that are more managing the project. We’ve had other people that are in the trades — they do what they know how to do or they’ve done it before, and then they hire people to fill in the rest.

So there’s a certain situation where that becomes part of your budget — the reality of what you can do, and then also what you need other people’s help to do.

Interviewer:  With YouTube — you just mentioned that — people do think, I think, a lot of people overextend themselves with what they’re able to do. A pro can make it look easy.

Where does the do‑it‑yourselfer actually save money, and where does that person sort of start — like you said, “Just go ahead and hire somebody, because you’ll save time and money in the long run”?

Steve Tuma:  Well, where they save money is by doing the work that they understand. You don’t want to pay twice for it. So if they understand how to do drywall or electric or plumbing or whatever — go ahead and go do it.

But it’s also the savings. Where they also save is in the general contractor fee, because they can coordinate the project. And with our support and our set of plans, they have the ammunition, in a sense, to talk to subcontractors and suppliers logically, because our plans are detailed.

I got two calls today from people saying, “Hey Steve, what do I do here?” And I said, “Hey, it’s right there on page 2.0 or A3.0.” The details are there. So we’re able to help them understand each process.

So if they’re talking to a window person, a foundation person, or whatever it may be — we’ve got the information, and we will take the time for our customers to understand it. People sometimes just need a little help understanding it. It all makes sense, but putting those little final touches on there helps.

YouTube has a lot of great information. Maybe it’s something there just to open your eyes or give you ideas of what needs to be there and what you can and can’t do.

But I would say, if you went through our customer base, most of our customers are pretty knowledgeable right up front — to say, “Hey, I can do this, I can’t do this,” or, “Hey, the brother‑in‑law can help me with this,” or, “Uncle can help me with this,” or, “Friend can help me with that.”

Just make sure that you’ve got a realistic plan and you’ll be successful at it. It’s pretty rare that someone gets in trouble. People move along.

And like I say, we’re always available. So if someone needs some clarification on a foundation design or how the package goes together, we’re always available. And it’s amazing how our good set of plans, working with the customers up front, minimizes issues.

Interviewer:  Well yeah, I would imagine.

Do you think when somebody calls you, is your main goal to give them confidence that they can do this? Or what do you find when people are just kind of like a deer in the headlights, but they’ve made that move to give you a call? Is it just overall explanation of what’s going to happen, or do you feel that you have a psychological sort of bent here — just to give people confidence?

Steve Tuma:  You know, the people are confident. They’ve already made a decision to do it. I’m not going to say 100 percent, but 90‑some percent are. They’re like:

• “Yeah, I’m going to do this.”
• “I’ve already looked to see what I need for permits.”
• “I’ve already checked to make sure my land is buildable.”
• “We know our kitchen cabinets.”
• “We know what kind of roof we want.”
• “We know how big the garage is.”

So to get to those stages, people have already thought it through. So getting someone that’s completely lost is actually pretty rare.

We’re lucky in that our website, LHLC.com, has a lot of details there, so people can get comfortable with understanding it. And we’re always a phone call or an email away if for some reason they need help.

We’ve worked with seasoned contractors — they still ask a lot of questions.

Interviewer:  Sure.

Steve Tuma:  They ask questions. Things change. There’s different ideas. There are different permit situations.

We’ve worked with people that have built 18–20 homes with us, and they still ask questions. They’re like, “Steve, I’ve done 20 homes with you. I’ve never asked you about this,” or something changes — a code changes.

Or you know, let’s take heating and HVAC. A lot more people are going to mini‑split systems. It’s kind of a technology that’s coming in. So yeah, it still does the same thing — it either heats or cools your home. It’s just a different method. So people ask about that.

More people are asking about metal roof systems. More people are asking about energy codes and how it applies to the structure. So we’re here to help, and we enjoy it. It’s cool to help people.

Because it’s really neat to see how someone goes from an idea — and then a little while later, they’re sending you pictures of a house where they’re moving in, or just about finished, or starting framing. And the people are excited about it.

I got a couple emails over this weekend and a call saying, “Steve, here it is — the snow is leaving,” or, “The drastic cold is gone, we’re putting up the roof system now.” And you see people, and they sit there and go, “With your help, I’m able to do this.”

So a lot of our customers have built homes. A lot of our customers are in the building trades. A lot of them are just people with an idea and they know how to manage it.

So we just want to work with good people. I guess they work with good people and build cool houses — that’s what it’s about.

So I’m talking a lot here, but I think what I’m basically saying is: we’re here to help fill in where the customer needs help.

If they’re less experienced or if they’re very experienced, I think we can provide accurate support for people to move the project along.

Interviewer:  Yeah. And the word comfort does go back to confidence, because when you get comfortable with anything, you’re more confident in it.

Steve Tuma:  Oh yeah.

And the thing about it is, we’ve been doing this 32 years — almost 33 years. We’ve seen an amazing amount of things, but every once in a while you get a curveball.

The thing is, we have the resources — if I don’t have the answer — to get you the answer of how it applies to your particular project on your building site. Not a generic answer, but an answer for your exact project.

And I think that that’s what people realize, because what you’ve got to watch — and everyone’s done this — you go ask your four friends, “What do you think about this?” and you get five answers. It almost leads to bigger confusion.

So in our case, we can give a specific answer and support for your exact project and the house you want. And that, I think, is extremely key — that access to real information for your project. That’s the cool part.

Interviewer:  Well, again, always informative. And every time I get done with one of these podcasts, I have more confidence. Let’s get a house going.

Steve Tuma:  Yeah! But what’s interesting, like I say, is we’ve had people build 20 houses with us, and they’ll come up with questions. We’ve had professional builders work with us and they ask questions.

So everyone’s got their own perspective, and we’re able to fill in. And I think that’s the point that is pretty interesting for people — that we’re able to support and help them through the project, whether it’s:

• Ideas up front
• Plan ideas
• Budgeting
• Developing a schedule
• Financing

Whatever it is — we’ve lived it. So I think we’ve got an answer for you.

Interviewer:  Well, that’s just about going to do it for today’s edition of the Panelized Prefab Kit Home Building Show.

But before we let you go, Steve, as we usually do, let the listeners know how to find out more about Landmark Home and Land Company.

Steve Tuma:  Well, our website I think is the best place to get a preliminary review. You can see it at LHLC.com. It’s kind of the initials of Landmark Home Land Company. It’s actually Landmark Home and Land Company, but LHLC is the website.

You can look at different plans there, see different discussions on materials, how we do things, different opinions, different ideas, different pictures.

You can also email us through there. Or through the actual plans — you can send an inquiry saying, “Hey, I’m interested in this house,” and we can help you from there.

And then you can also call in to 800‑830‑9788. That’s 800‑830‑9788, and Mike will work with you to sort things out.

If someone wants to talk to me directly, I’m available. My direct cell phone is 708‑205‑2043, and we’ll do what we can to help you. It doesn’t cost anything to call in and talk to us and just kind of get some ideas together, see what makes sense.

Interviewer: Absolutely. Well, and there you have it.

Thanks again, Steve, and thanks to all of you for listening to the Panelized Prefab Kit Home Building Show.

So for Landmark Home and Land Company President Steve Tuma, and for myself — have a great week, and we will see you next time.

Thanks, Steve.

Steve Tuma:  Thank you.