How to Create a Rough Budget Number for your renovation
One of the first questions I ask a new client is: “what is your rough budget number?” - here’s what designers are looking for…
The question is asked, and I see my client's eyes widen as they say, "I'm not sure. How much do you think this will all cost?"
There are typically two budget numbers you should have in mind. They do not have to be firm or exact. A range of what you are comfortable with will always work!
The first number is overall construction cost. If you are working with a contractor or sub-contractors for a remodel or renovation, your designer and contractor will need to know where to start.
I could pull a faucet for your kitchen presentation that is $400, $2,000, or $10,000! Knowing your budget for this design phase will help narrow down your selections as we create the overall design. It also ensures I don't present a stunning Waterworks faucet that is thousands of dollars, you fall in love, now every facet from Delta and Moen I show you aren't good enough - let's not let that happen!
The second number is for your furniture and accessories. As a designer, I love working on custom furniture pieces and visiting trade-only showrooms - but that isn't a luxury every client can afford, and that's ok! Working within your comfort zone is key!
Just like expensive shoes, you aren't going to wear $800 loafers every day. Most of us will put them high on a shelf until that special occasion - don't make this your family's sectional.
Yes, there are some fabulous furniture pieces on the market, but if you are not going to let your family drink soda during your next movie night because the boucle will stain - don't do it! Communicate these boundaries with your designer. What are the key performance aspects of the sofa you are looking for, durable fabric maybe? What feels like a reasonable price for something?
Now, how do you come up with your budget? I'm not a financial expert, but when I work on my projects or help a client find their range - this is what I usually do!
Start by being in the space. It's easier to think about the pinpoints you experience every day when you are physically there. Does the faucet leak? Are the appliances working ok? Is there a cabinet you'd want to customize, or would just refinishing them do?
Jot down the items you want to have replaced. List the plumbing fixtures and appliances if you'll want new cabinets, countertops, backsplash, and flooring. Know if you'd like to keep your grandmother's accent table or if the armchair is in good shape but needs new fabric. All these nuggets are helpful!
Hop on your computer! Market research is a powerful tool. Go onto a few websites and check out the costs of things. This will manage your expectations and help you develop a budget. I find build.com is an excellent tool for plumbing, tilebar.com for hard finishes, and lightology.com for lighting and furniture. I check out potterybarn.com and stretch to rh.com when needed - remember, this is for my projects. Do your research where you are comfortable, but try to avoid places like Wayfair or Overstock for furniture and Lowes or Home Depot for hard finishes - prices have too far of a range. Quality is hard to tell online, making it easy to jot down a lower-end product's cost when it's not a natural material for your home.
I know you probably don't know how many square feet of tile you need, but having a starting point is key! You can quickly level up your budget by running some quick math. Based on your list, jot down some prices. Just multiply the length by width, and add 20% - the overages will be needed for cuts, and sometimes vendors have your order by the box.
Add up everything on your list. Yes, you don't have the cost to do the work… that's ok!
Look at your bank accounts or household budget. Is this something you have been saving for? How much is available to spend? When push comes to shove (which it will), what is your absolute hold to number - what can't you exceed? My projects always involve this tight rope walk. I'll flex my budget up when it comes to upgrading to a better quality item that'll last or a statement piece.
For a construction budget, use your lower number - what you have to spend. Subtract your goods from your overall budget. This is roughly how much you have for construction cost. Now, this is a rough number! We are building a conversation for you to have with your contractor and designer. If your budget is too low for the construction, you'll be able to work with your contractor to develop a solid number to hold for this project or revisit the scope of work in the future. As for furniture, you should have a pretty solid number! We aren't done yet.
Your final budget number needs to include a cushion. Depending on the market's stability, I add 20-30%. If your bank account shows you have $10,000 to spend, you should be coming to the meeting thinking of $8,000. Your buffer could be your budget range. So you have $10,000 in your account, but by the time the project is complete, you should have $15,000 saved. You can tell your designer you have $10,000-$12,000 to spend but know you have up to $15,000 and can play that card when needed - like when you fall in love with a $2,000 faucet!
Know your number and work with your contractor and designer to solidify the costs. Both your contractor and designer will provide you with a budget. Remember, both of these professionals will have their own fee structures. Some contractors price per job, and others have their contracts structured for a percentage. Designers can be the same! Keep that in mind! If you intend to hold their fee in your overall budget, let them know upfront.
Stay flexible! You can pick between time, budget, and quality - you usually can have 2 of the 3. Typically, I ask this question to my clients. What would you choose? Most of the time, I personally would rather wait for the item in my budget to my quality standards. Sometimes, you have to pick a time but pay more to get a quality item rushed. Or you order something quickly offline from a discount site that comes in faulty.
There you have it! This isn't a perfect science, but if you come to your first meeting with me ready with some of these key takeaways - you'll save so much time and money!
Here's a bit to think about. Remember that flex number. Here are some areas I choose to spend up for…
Lighting - it's the jewelry of your space, so if you have a chance to select something artful that will be the focal point, I'd spend up for it!
Plumbing and Hardware - these are two items you touch every day, especially in the kitchen or primary bathroom. There's a sweet spot. You want something that feels weighty, which usually means it's made from a good metal, not plastic or aluminum. Dark finishes faucets and chrome can be deceiving. I've "gotten a steal" on a Grohe chrome faucet that deteriorated - pretty sure the handles were made of plastic.
Fabric - especially on a sofa! It's rare when I select a Grade A fabric at any vendor. Typically, the lowest tier is not durable. Yes, it might be in your budget, but try a Grade C, or D. Look for fabrics with "performance" in the title. Fill is another one to consider, but the cost difference for better fabric is usually more substantial than your fill options. It's important to the longevity of your sofa.
What is your next project? Does this help you develop a range for your budget number? Hopefully!
You are welcome to reach out if you have any questions or if you think additional content around this topic would be helpful!