Guesstimating budgets is common with renovations. We have to, otherwise we couldn’t even start. But so often people lowball their renovation budgets, which is where problems lie. They have the best intentions but underestimate the costs, and by a lot! Even as a designer I sometimes find I’ve underestimated things.
I don’t mean to scare, quite the opposite. I want to help you understand so you can feel more confident. If you’re aware of the traps then you can try to avoid them. So here are some reasons why I think this happens.
What Your Friends Say
Friends talk to friends about their renos all the time, especially if you ask. The problem is this can give you false confidence. You’ve probably heard it: “We bought the house only five years ago for $1.5 million and now it’s worth double that!” Beware, this kind of comment doesn’t give you the full picture. They probably left out things like stamp duty, council application fees, or the fact their brother is a builder!
I don’t believe people are trying to mislead you, they’re just rounding out the numbers. Renovating is a long game and it’s human nature to forget some of the hassles and costs. Plus, your friend is probably proud of their hard work and results, as they should be. But it’s no surprise it gets romanticised a bit.
By all means, talk to people about their renovations, it’s a great way to gather broad information, but always take it with a grain of salt.
Renovation Shows
It’s all for TV people! It’s not real life! The timelines and budgets are ridiculous. It’s great entertainment, but it’s a long way from real renovating.
Contestants get a lot of support from companies that want to be featured: sponsors provide trades, suppliers give them discounts, and companies donate products. The budgets aren’t real because there are a lot of contra deals. And don’t forget the TV network doesn’t want them to fail.
You can watch these shows for design ideas and inspiration (and of course the drama) but do not think your renovation budget will be anything like theirs!
Planning
Okay, this is a simple statement but it’s a big issue. You have to do a lot of research and careful planning if you want estimate the cost of your project reasonably accurately.
To help your planning, I suggest building a relationship with a builder early. Ask them to look at plans in the initial design stages, rather than at finished plans. This way you find out if your project is in the right budget ballpark before falling in love with it. Don’t put time and money into finished drawings until you know you can afford to build it.
Architects and designers will do their best to work within your budget, but they aren’t the ones building it, so don’t solely rely on them for accuracy. Talking to builders along the design journey is also a good way to meet them, get to know them, and develop a relationship. Getting help from the right professionals early on will help your budget stay on track.
Things You Can’t See
It’s easy to create a spreadsheet that lists all the pretty things, like tiles, taps, bench tops, pendant lights. The things we can see are easy to understand. It’s the cost of the ‘unsexy’ parts that typically get underestimated. Replacing plumbing, installing insulation, fixing stormwater drains, re-pointing the roof, hiring scaffolding. I think you get the idea: these things often get missed in a budget.
The problem is, if you aren’t an experienced renovator, how do you budget for the things you don’t know about? This is where a good builder comes in. They will let you know all the extra stuff that needs to happen and help you understand why.
It helps so much if you can develop a good relationship with your builder so you can get advice along the way. And ask lots of questions. A good builder will be happy to talk you through. Then you will feel confident you’ve covered all the important (and expensive!) stuff in your budget.
Rose Coloured Glasses
People are so wonderfully optimistic. Which is a good thing, otherwise we wouldn’t ever take risks, but it can cause issues if you’re budgeting for a renovation. We all hope and pray everything goes according to plan. I say this in the nicest possible way: it won’t.
Sorry to be a bummer, but it’ll be far less stressful if you accept this from the start. Even if it weren’t for lockdowns and border closures, things in your renovation will change: it might be stalled by weather, or there’s a delay in deliveries. Perhaps a pipe system fails, or a wall you were going to keep gets destroyed. Work on older buildings in particular can have a lot of unforeseen events. You never know what you’ll get when you open up that old wall.
People often believe these things won’t happen to them, so they don’t budget for it. But something will happen, so always add 20 percent to what you think a project will total when budgeting. And expect the unexpected.
Conclusion
Renovation is full of surprises, but it’s not a good feeling when it’s your budget doing the surprising. Do your research, do a lot of good planning, get advice from professional contractors, and allow for a spare chunk of money.
It’s so important to have a good working relationship with your builder. Get them involved early and invested in your project. A good builder can help you understand your project budget deeply. After all, they’re the person who has to build it, and they can’t do that if you run out of money.