Have you ever met a family who invested in a beautiful set of custom home plans, only to discover later that the design priced far beyond what they could realistically afford to build?
Over more than 40 years in the custom home building industry — and as an award-winning Austin custom home builder — I have seen this happen countless times. Families want to make the right decision, but they are unsure where to begin. The answer they receive often depends on who they talk to first.
Architects and plan designers generally believe it is best to get every idea on paper, then collect bids to determine cost. Builders believe the opposite: because they understand material prices, labor costs, and current supply realities, they feel buyers should start with the builder.
The truth is more nuanced — and success depends on how the process is approached.
Lessons Learned From Builders Across the Country
For more than twenty years, I served on the faculty of the University of Housing, the educational division of the National Association of Home Builders. I traveled across the country teaching builders pursuing their Graduate Builder and Master Builder designations.
These classes provided something more valuable than curriculum. They became focus groups where experienced professionals openly discussed what works — and what does not — in the custom home process.
In nearly every class, I asked:
“How many of you have had a prospective buyer bring completed plans that turned out to be far beyond their budget?”
More than 90 percent of the room raised their hands.
Then, speaking to architects and plan designers, I asked another question:
“How many of you designed and were paid for plans that were never built?”
Again, most hands went up.
The reason was almost always the same:
The builder — the person most familiar with real construction costs — was not involved early enough in the design process.
Why Budget Must Be the Starting Point
Clients often say they “don’t really have a budget.” But every client has a limit, whether they want to reveal it immediately or not.
When I ask:
“Okay, are we under two million dollars?”
There is always an answer. Suddenly the conversation becomes grounded.
Designing without a budget is like shooting into a forest instead of aiming at a target. The most successful custom home projects are not designed first and priced later. They are designed to a clearly defined financial goal.
That does not mean the project never exceeds the original number. It means when cost changes occur, everyone understands why — and decisions are made deliberately instead of reactively.
Why Getting Bids After the Plans Are Finished Often Fails
Many families believe the safest way to control cost is to complete the plans, then send them to multiple builders for bids.
In theory, that sounds logical.
In practice, it frequently creates problems.
No two builders interpret drawings the same way. No two proposals make the exact same assumptions. What initially looks like a “low bid” often excludes details, allowances, or contingencies that will absolutely be needed later.
There is an old industry saying:
“The lowest bidder is usually the one willing to lose the most money — at least on paper.”
What happens next?
frustration
change orders
schedule delays
disappointment
And sometimes, the plans simply never become a home.
Collaboration is the obvious answer.
The most successful custom homes begin with assembling the team before designing the house.
That team typically includes:
a Realtor (when land needs to be purchased)
an architect or plan designer
a professional builder
a financial partner, when appropriate
With all parties aligned from the beginning:
cost is monitored as ideas evolve
design decisions are evaluated in real time
budget boundaries are visible — not surprising
priorities can be discussed before drawings are finalized
Sometimes the difference between staying in budget and exceeding it is something as simple as choosing standard window sizes instead of special-order custom units. The design intent remains — but thousands of dollars are saved.What I Recommend After Four Decades of Building
After nearly 40 years in the industry, countless projects, and conversations with builders nationwide, my conclusion is straightforward:
Start with a realistic target budget.
Assemble the right team early.
Design collaboratively — with builder input at every stage.
Adjust intentionally when priorities change.
When handled this way, the process is smoother, the expectations are clear, and the finished home reflects both the vision and the financial reality of the family building it.
The alternative — designing first and asking “How much will this cost?” later — is rarely efficient, and almost never enjoyable.
Have Questions About Building Your Custom Home?
If you need guidance on where to begin, how to structure your team, or how to build a realistic plan for your new home, I’m always happy to help.
Steve Zbranek
National Master Builder & Instructor
Award-Winning Austin Custom Home Builder