People often ask if they should tell a builder their budget right from the start. Whether it’s a big project or a small one, my answer is always YES! And this goes for working with a designer or architect too.
Your Fears
Sometimes it’s hard to talk about your project budget. I get it, I really do! As a designer I sometimes find it awkward too. The big fear people have is really common: if you tell the builder the budget, they’ll go and make sure they spend it all! This idea that you’re giving away your competitive advantage. Some people wonder if they could get it for less if they say they have less to spend.
But…
But builders, architects and designers need to know your budget. And they should know it right from the start, when you first meet them and start talking to them. It doesn’t mean you’re stuck with that amount forever, your budget can change, but it’s best to be as honest as you can from the start. I’m going to talk you through why this is a good idea.
The Right Fit
There are a lot of different renovation professionals out there, which means plenty won’t be right for you. You can spend $1000 per square metre or $6000 per square metre – there’s a big range! Some builders are keenly dedicated to the the finest, most luxurious, custom details, and others are good at getting your house done efficiently.
Builders also work in different ways. Some only take on one or two projects per year, some work with specific suppliers, some will only work in certain areas, and may charge a premium if you’re out of area. Talking about your budget helps your builder work out if your project will fit in to their business model. And you get to figure out if they’re right for you too. So, by talking about your budget from the start, you both save time figuring out if you should keep talking.
Budget vs Dreams
Do you want champagne on a beer budget? Don’t worry, it’s pretty common. We wouldn’t be human if our dreams weren’t bigger than our wallets. Builders need to see if you have realistic expectations about the cost of your project, and talking about budget is the best way to do this. I often talk about compromise and how it’s a normal part of home renovations. A big part of building/renovating is working out what you can do within your limitations.
So, it’s important for your builder to know how much you can spend because they can help educate you about what can be done for that price. Builders are often really good at figuring out how to get the most bang for your buck. You’ll get a better quality feedback, and a better result, if you’re honest about your budget upfront, which saves everyone time.
Remember, it’s okay if your budget changes as you come to understand more about what your money will get. I see it all the time. Once homeowners start talking, the designer and/or builder has to educate them about what they can actually have. But this isn’t possible if you don’t tell them your budget.
Are You Ready?
Building or renovating is never quick. A builder has to organise projects that go for many months, maybe years. There are a lot of pieces that need to fall in to place, so builders are booked up well in advance. Not to mention there’s a shortage of skilled trades in Australia at the moment. So, a builder is trying to understand when they might be starting your project and whether it will fit into their schedule. Talking about budget gives them a sense of whether you want to start in six months or six years.
The way you talk about your budget will help too. Some people start talking to builders when they have a full set of council-approved drawings, while others start with just a few ideas. Usually those who have drawings will have done a fair bit of investigation, eg. spoken to real estate agents to get a sense of value in the area, talked to the the bank about refinancing, talked to council about approvals. All this gives the builder a better sense of your timing.
Trust
Renovating or building is a long process, even before the builders start on site. So you want to work with people you TRUST, people you feel you can communicate with. It’s no good to be half way through a project feeling uncomfortable about asking questions, or feeling like you don’t understand what’s happening next.
If you talk about the budget up front, you’re developing a level of trust that’s so important during a build. Showing you’re prepared to talk about budget builds trust and enables your builder to help you with managing how much you spend. And, talking budget upfront makes money-talk more comfortable the whole way through.
Summary
Share your budget up front. Be open and honest about it. This way your designer/builder/architect can work WITH you to get the best outcomes. You’ll get the best advice this way, and save everyone time and energy.