How to Deal With Clients’ Top Budgeting Challenges
Renovating homeowners share why they exceeded their remodeling budgets, and pros offer tips for how to help
For many homeowners, managing a renovation budget can be tricky, which is why the experience of a professional is invaluable. Houzz users who took part in the 2022 U.S. Houzz & Home Study revealed the things that caused costs to rise when updating their homes. Read on to find out how to guide your clients through a project and make it as budget-friendly as possible.
Decided to Buy More Expensive Products or Materials or Change the Scope of Work
It’s easy for costs to rise when clients start shifting their expectations. They might begin with an initial budget, but then halfway through the project choose a more expensive material or product (34% of renovating homeowners who exceeded their budget) or change the scope of work or design (28%).
Hoad says, “We try to avoid the costs of project creep coming as a surprise by ensuring each additional element is quoted for as it arises and that the client thinks about it in the context of the entire project.”
She’ll also look at different solutions at various budgets for each issue. “Ideally, the project has a contingency built in for exactly this sort of situation,” she says.
It’s easy for costs to rise when clients start shifting their expectations. They might begin with an initial budget, but then halfway through the project choose a more expensive material or product (34% of renovating homeowners who exceeded their budget) or change the scope of work or design (28%).
Hoad says, “We try to avoid the costs of project creep coming as a surprise by ensuring each additional element is quoted for as it arises and that the client thinks about it in the context of the entire project.”
She’ll also look at different solutions at various budgets for each issue. “Ideally, the project has a contingency built in for exactly this sort of situation,” she says.
The Project Was More Complex Than Anticipated
Without a background in design, it’s hard for many clients to imagine the complexities of a project. Of those respondents who went over their renovation budget in 2021, 31% said the project was more complex than expected. Fortunately, technology allows professionals to help homeowners understand the real scope of a project.
Many renovation specialists find 3D tools an effective way of enabling clients to visualize how a proposal will look. “It’s important to understand that many [homeowners] can’t fully understand plans, sections and elevations,” says Angus Eitel of Fiftypointeight Architecture & Interiors. “We frequently use 3D modeling software to provide 3D visuals and walk-throughs to help provide a greater understanding of the proposals.”
Find out more about the Houzz Pro 3D Floor Planner
Without a background in design, it’s hard for many clients to imagine the complexities of a project. Of those respondents who went over their renovation budget in 2021, 31% said the project was more complex than expected. Fortunately, technology allows professionals to help homeowners understand the real scope of a project.
Many renovation specialists find 3D tools an effective way of enabling clients to visualize how a proposal will look. “It’s important to understand that many [homeowners] can’t fully understand plans, sections and elevations,” says Angus Eitel of Fiftypointeight Architecture & Interiors. “We frequently use 3D modeling software to provide 3D visuals and walk-throughs to help provide a greater understanding of the proposals.”
Find out more about the Houzz Pro 3D Floor Planner
Discovered Unexpected Construction-Related Issues
Unwanted surprises can cause delays and extra costs during a project. In the 2022 U.S. Houzz & Home survey, 25% of those who went over budget cited this as a reason. It’s difficult to avoid these unexpected issues altogether, but there are ways to make them less stressful for clients.
Anticipation is key, according to interior designer Claudia Dorsch, who holds regular meetings to discuss crucial milestones that need to be achieved. “We review those at the end of the week and specifically ask ourselves: what’s the worst case that could happen; what could go wrong, and where are the potential pitfalls on each project in terms of design or implementation?” she says.
“It’s human nature to avoid problems and there’s a tendency to avoid difficult topics until they start ‘burning,’ so we practice forward-looking problem anticipation,” she says. In their morning meetings, Dorsch and her design team discuss the week ahead and any crucial milestones that need to be achieved.
Also, be realistic about schedules and try not to overpromise. “I will always quote a longer lead time to a client,” Sarah Davies of Floella Interiors says, “as it’s better to deliver early than late.”
Tell us: How do you deal with these common client challenges? Share your ideas in the Comments.
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Unwanted surprises can cause delays and extra costs during a project. In the 2022 U.S. Houzz & Home survey, 25% of those who went over budget cited this as a reason. It’s difficult to avoid these unexpected issues altogether, but there are ways to make them less stressful for clients.
Anticipation is key, according to interior designer Claudia Dorsch, who holds regular meetings to discuss crucial milestones that need to be achieved. “We review those at the end of the week and specifically ask ourselves: what’s the worst case that could happen; what could go wrong, and where are the potential pitfalls on each project in terms of design or implementation?” she says.
“It’s human nature to avoid problems and there’s a tendency to avoid difficult topics until they start ‘burning,’ so we practice forward-looking problem anticipation,” she says. In their morning meetings, Dorsch and her design team discuss the week ahead and any crucial milestones that need to be achieved.
Also, be realistic about schedules and try not to overpromise. “I will always quote a longer lead time to a client,” Sarah Davies of Floella Interiors says, “as it’s better to deliver early than late.”
Tell us: How do you deal with these common client challenges? Share your ideas in the Comments.
More for Pros on Houzz
Read more stories for pros
Learn about Houzz Pro software
Talk with your peers in pro-to-pro discussions
Join the Houzz Trade Program
Of the renovators who said they went over their initial budget, more than half (55%) said it was due to the cost of products or services being more than they’d anticipated. Starting the conversation early is an effective way to mitigate these nasty surprises, according to Cat Hoad of Absolute Project Management.
“One of the first bits of paid work is to set up an outline budget,” Hoad says. This includes headings for the approximate costs of different professionals involved and estimated costs for each part of the second fix.
“It’s a means for the client to see clearly how their money is likely to be spent, and it helps them to make decisions and prioritize accordingly,” she says.
Jessica Spencer of My Bespoke Room recommends giving the clients options on products to put the decision back in their hands. “We try to give them a choice of pieces for each element of the design at different price points,” Spencer says. “This way, the client can choose themselves where to spend and where to save.”
An easy way for designers to share products with clients is by using the Houzz Pro Product Library tool. It allows you to save products from your favorite vendors to a product library on the app. You can then add these to a specification list, which your client can view and quickly approve or decline.