Putting a house on a hill?

For future reference, I usually build the house first, move it to where I want the house to sit, raise the foundation, then the terrain. If I want a foundation higher than the terrain, I'll raise it a little more. The terrain is usually my last thing I do before landscaping and floorplan.

Also, that is an awesome house. It really fits the vibe of Forgotten Hollow, and a great use of terrain manipulation.