Why Hiding Your REAL Renovation Budget From Your Contractor Is The Most Damaging Thing You Can Do
Answering budget-related questions is one of the most difficult parts of our job, because there’s always a fine line between giving clients what they want and what their budget allows.
We often see budget-conscious customers wanting to choose lower-quality products to keep costs down. The problem is, those options don’t always match the quality of the rest of your home, and can ultimately affect resale, often doing more harm than good. On the other hand, some clients have a pension for high-quality products and create visions for their space that, if executed, would take them well over their stated budget.
So how do we help clients when they are not willing to share their budget? The simple answer is: we can’t. Most customers think that if they explain what they want to a contractor, the professionals should be able to easily tell them how much it’s going to cost. Unfortunately, that’s a complete misnomer. Imagine walking into a used car lot and telling your salesperson you want a white sports car with power windows and navigation, and asking how much it will cost. They’d look at you like you’re crazy, not sure whether to steer you toward Toyotas or BMWs, and unable to help you until you share some solid numbers.
The same goes for renewals. Take a kitchen sink, for example – they can range from $60 to $8,000! You’ll soon discover that big price swings like that will apply to every selection you make during your renewal. Even simple picks like a toilet can be a choice between a basic American Standard for $250 or an ultra-contemporary Toto for $1,400 or more.
What most people don’t realize is that preparing a proposal for a renovation project is a delicate and detailed process. To arrive at an accurate estimate, a good contractor recognizes the homeowner’s tastes and desires, takes note of the quality of his current home and what he’s trying to achieve, and uses his experience with various products to craft a unique proposal for each client. The best contractors are those who truly have their clients’ best interests in mind, both set expectations and acceptable levels of quality that clients don’t even know about.
Interior designer Lauren Liess puts it plain and simple on her blog, Pure Style Home:
“People are often afraid to tell a designer their budget because they’re afraid she’ll ‘spend it all.’ If a client tells me she has $45,000 for a room, I’m going to use every penny of that $45,000 to get her the best quality she can afford. If a client really has $15,000 to spend and tells me she has $10,000… I’ll make decisions and present based on a lower level of quality and value than she can actually afford.“Reality Check: How Much Does It Really Cost to Furnish a Room?” http://purestylehome.blogspot.com)
A good design professional knows the difference in quality and price of the products that will be used in your project. Contractors who have their own in-house design staff will be even better equipped to help you choose, as well as understand the differences, between various finishes and materials.
Once your contractor and designer understand your budget, they will be able to determine which elements can be highlighted in your renovation and which need to be reduced to achieve the vision. Will you be looking for lots of bells and whistles on your cabinets, or a special “distressed” finish? To achieve your cabinet goals, your appliance or plumbing budget may need to be a bit more modest. Or perhaps your current flooring is out of date or a change in wall configuration calls for new hardwood – these important items may require streamlined options for other finishes such as countertops, tile, and light fixtures.
It takes a lot of strategic consideration and creativity to achieve everything on your wish list AND stay within your budget. It is the job of your contractor or design professional to know the products and construction costs involved so they can strike this delicate balance and put your mind at ease. In the end, it all comes down to trust. You should feel comfortable sharing your investment amount (if you need help determining a realistic budget, the Cost Versus Value Remodeling Report is a great resource), and also know that your contractor is your partner in creating the best quality renovation possible for the resources allotted.
As a homeowner, it’s smart to stick to your budget, but don’t be afraid to let your designer or contractor share their knowledge when it comes to getting the most for your money or adjusting the scope of the project to achieve your vision. A relationship that is built on trust will ensure that your best interests are always in mind!