[imported_Shade]

You can purchase a house placement tool from the same vendors that sell houses I believe. From there, find a open lot and double click the tool, this will give you three options.
The first option is regular houses, it will give you the entire list and prices of the old school houses.
The second option is 2 story lots. These come in various sizes but can only be built up to 2 stories, plus a rooftop.
The third option is 3 story lots. These come in larger sizes than the 2 story ones and give you 3 floors plus a rooftop.

Once you place the empty lot you can select customize from the house sign menu. Here you will be given tools as if you were playing the Sims, where you can add walls, floors, roof pieces, doors, etc. When you finish with your design you can select to commit the changes to the house. This will charge you based on each item you have placed times however many floors you are using. This can add up quickly if you build a nice house but customizing is worth it in my opinion.

While you customize the house you are totally invisible to players and completely safe. Though you must be at full health and not have a combatant to begin.

[Jhalaila]

Thanks a lot shade, very helpful info

[Eighty Swords]

I think Shade had the best suggestion so far: Custom house with walls set one tile inside the foundation's edge.

No exploits, no scripting to change, no excessive expense compared to placing a normal house (they're not *that* expensive).

Not trying to be a killjoy, just looking for the simplest and least exploitable fix.

-edit-
Oh, and I wasn't implying that Gordon was trying to exploit anything with his one tile square, but if you introduce an exploitable change that affects everyone, they won't all be as honest (or even know that they're not supposed to fence.)

So if I pay to place a 18x18 custom house I really only get 17x17 tiles?

[imported_Rabbi Samild]

whats the current restriction? i think having one tile around houses is a great idea and I've always wondered why you could have the stairs but not all the way around the house.

[Eighty Swords]

whats the current restriction? i think having one tile around houses is a great idea and I've always wondered why you could have the stairs but not all the way around the house.

I think you've previously only been allowed the stairs because people will do like Eru posted and connect houses to block off an area.

[imported_Rabbi Samild]

If house limit is already 3 tiles then you won't be able to block off areas

[imported_Rabbi Samild]

that's why I was asking... what's the current limit between placing houses? and if you can already do it with customs... then can't you already block off a safe area?

[Eighty Swords]

If house limit is already 3 tiles then you won't be able to block off areas

My bad! I misread this post by Taran. I took it to mean they can't be less then 2 tiles apart:

Houses cannot be placed within 2 tiles of eachother, at least they shouldnt be.

[imported_Rabbi Samild]

So yea it'd be awesome to be able to lock items down... as long as it wasnt so many that it caused lag

[imported_Eru]

So if I pay to place a 18x18 custom house I really only get 17x17 tiles?

So you're wanting to pay for an 18x18 house and get 19x19 tiles? ^_^

[Eighty Swords]

Yea I rather that happen! I've never known anyone that wants to pay more for something less