Reframe Homeowner Expectations on Renovation Costs
Share Reasons Why Remodels Go Over Budget
According with los angeles modern architects recently showed that while 77 percent of homeowners had a budget in mind when planning a renovation project, nearly one-third of them went over that budget. What can be helpful is to explain that, much of the time, the client holds the reins in terms of making decisions that lead to cost increases.
For example, the No. 1 reason budgets are busted is that homeowners decide to buy more expensive products or materials, and the No. 3 reason is that homeowners decide to change the project scope or design. Of course, some projects go over budget due to products and services being more costly than expected. This is an area where you as a pro can help.
“Homeowners are generally interested in pricing at two stages: the beginning, when they want to know if their budget is realistic, and right before making a decision, when their project estimate is close to final,” Kearney says. Many pros recommend being forthcoming with clients about costs right from the start. “Having confidence that your estimate is fair and in alignment with the needs of the project helps you develop trust with your clients,” Kearney says.
Helping homeowners understand the drivers of costs can also help them reframe their expectations. For example, cabinetry and hardware might make up nearly 30 percent of a kitchen renovation budget, while countertops might be 10 percent.
Some homeowners may not realize that creating a beautiful home is a custom process that must be tailored to the homeowner and the space, and not a matter of simply replicating a photo the homeowner likes. Making a client aware of your detailed menu of services can be a good way to reframe this challenge. For example, an architect might describe services such as a comprehensive site analysis with a geo-technical report, preliminary floor plans and exterior elevations, architectural drawings and 3D modeling, managing contractor bidding and more.