Building a custom home in the Hill Country is exciting. You get to choose the view, the layout and every finish. It also comes with more decisions than buying an existing home. I work with buyers looking for homesites and with developers listing new subdivisions, so I see the process from both sides. Here is how I help my clients get started the right way.
Step 1: Choose the Right Lot
The lot shapes everything that comes after. Before you buy, look at:
- Location: Inside the City Limits, in the ETJ or out in the county. Each has different rules and services.
- Utilities: Is there city water and sewer, or will you need a well and septic? Where is electric service, and what will it cost to bring it to your build site?
- Access: Is the road public or private? Who maintains it? Is there legal, recorded access?
- Topography and rock: Hill Country lots can be rocky and steep. Grading, driveways and foundations on slopes can add cost.
- Views and orientation: Think about sunsets, morning sun, wind and what neighbors might build later.
- Floodplain: Check whether any part of the lot is in a flood zone.
Step 2: Read the Deed Restrictions
Many Hill Country subdivisions have restrictions on minimum home size, building materials, setbacks, outbuildings and rentals. Some require architectural approval before you build. Read them before you buy the lot. My guide to deed restrictions in the Hill Country explains what to look for.
Step 3: Understand Septic
If the lot is not on city sewer, you will need an on-site sewage facility, usually called a septic system. In Gillespie County, septic permits are handled by the county's Sanitation Office.
- Since August 1, 2025, the County Engineer's Office handles floodplain determinations. The county asks applicants to submit a Development Permit Determination form to engineering before submitting a septic application.
- Your septic designer will look at soil, slope and the home's size. The type of system affects your budget and where the house can sit.
- The county keeps lists of licensed installers and maintenance providers.
Step 4: Plan for Water
Out in the county, most homes rely on a private well. Groundwater in Gillespie County is managed by the Hill Country Underground Water Conservation District. The district has registration forms for exempt wells and permit applications, so contact them early about what your well will need. Their number is 830-997-4472.
Things to ask about:
- Registration or permit requirements before drilling
- Spacing from property lines and septic systems
- Typical well depths and water quality in the area
- Water testing once the well is drilled
Some buyers also add rainwater collection. It is popular in the Hill Country and can supplement a well.
Step 5: Pick Your Builder
Your builder is your partner for the next stretch of your life, so choose carefully.
- Visit their homes. Look at finished work and homes under construction.
- Talk to past clients. Ask about communication, budget and timeline.
- Understand the contract. Know whether it is a fixed price or cost-plus agreement, and how changes and allowances are handled.
- Check insurance and warranties. Ask what is covered, and for how long.
- Ask about their schedule. Good builders are often booked ahead.
I am happy to share names of builders my clients have worked with and loved.
Step 6: Financing
Most custom builds use a lot loan, a construction loan or a construction-to-permanent loan. Lenders have specific rules for land, draws and inspections. Talk with a lender who knows Hill Country construction before you buy the lot.
Step 7: Know the Timeline
Every build is different, and timelines depend on the builder, the site, permits, weather and materials. In general, plan for these phases:
- Due diligence on the lot: Survey, restrictions, utilities, septic and well research.
- Design: Working with an architect or designer on plans.
- Bids and pricing: Getting bids and finalizing your budget.
- Permits and approvals: Septic, floodplain, any city permits, and architectural review if required.
- Site work: Clearing, driveway, utilities and foundation.
- Construction: Framing through finishes.
- Final inspections and move-in.
Ask your builder for a written schedule, and build in a cushion. Hill Country rock and weather can surprise you.
Building in Town vs. the County
Inside the City Limits, you will work with the City of Fredericksburg on permits and city utilities. Out in the county, you will deal more with septic, wells and private roads. Both can lead to a beautiful home. The best choice depends on how you want to live.
Ready to find the right homesite? See my current land and lot listings.