Renovation Costs: Reframing Homeowner Expectations
Clients often don't have a great deal of experience with renovation costs. According to the latest Houzz & Home Survey, staying on budget is one the top challenges a homeowner faces when it comes to home renovation. That's why it's important to educate them on project costs and help to reframe their expectations.
Budgeting Guidelines
A spokesman for the Appraisal Institute (US) recommends creating a budget based on the approximate value of each room as a percentage of the overall value of the home. This is especially helpful since it’s a neutral way to discuss the budget, particularly if a homeowner presents a budget that you know is insufficient for their wish list.
Preliminary Pricing
Studies show that homeowners appreciate transparency when it comes to estimated project costs. Rather than withholding your pricing, consider quoting a preliminary price with an exploratory question for more dialogue. You can use the Typical Job Cost section on your Houzz profile to begin setting expectations starting with homeowners who are still browsing and researching.
Detailed Proposals or Estimates
When it comes time to giving a proposal or estimate, being thorough can provide the context and transparency that potential clients seek. Using Houzz Pro’s proposal or estimation tool can make it easy to quickly create these documents for potential clients.
Distribution of Costs
Help homeowners understand what’s driving the project costs. Help them make educated decisions when there’s an opportunity to make adjustments to spending.
