Getting realistic with renovation costs

Love the design but not the price? It's a common story, but being too stubborn with your brief and budget will only lead to frustration for you and your designer or architect - here's how to get realistic with your renovation cost planning.

Creating a realistic budget for your home renovation is no easy task - especially when you have your heart set on those custom-made Italian fittings, marble benchtops or spare bedrooms. In this case, a cheap renovation is out of the question, but you may save money by being realistic and setting expectations before renovations begin.

When enlisting an architect for your renovation, acknowledging the uniqueness of the custom-designed process, including the budget, is paramount. Architect Stuart Vokes, of Owen and Vokes Architects in Brisbane, says this is a challenge because we're used to more 'retail' transactions of being able to look at something with a definite price tag before we buy it.

"The first step in creating a realistic renovation cost budget is to design a brief with the client's wish list and ambitions for function and looks. Through discussion, the architect's experience and builder's advice, an opinion of the likely cost, based on floor area, can be made, and then adjusted to accommodate the desired level of finishes."

Usually, the cost per square metre is for the building and static finishes (like floors and walls) and doesn't include loose furniture or landscaping, driveways, fences, pathways or retaining walls, so it's important to read the fine print. Consultation and authority fees, including development, council and servicing fees should be included in the total project cost.

Regardless of scale, correlation between the brief and the budget is imperative. "Before being commissioned, we sit down with potential clients and crunch numbers to ensure they're starting from an informed position," Stuart says. "Very rarely does the brief translate to the budget at the outset - hoping for a cheap renovation, people's expectations almost always exceed their budget."

Inevitably, this means biting the bullet and either downsizing the brief or boosting your budget. Determining what you'll get for your money is also important - there's no point thinking marble finishes if your architect is thinking fibro shack.

So is it best to be firm or flexible with costs in your renovation budget? Stuart advises sticking to a total project budget that allows around a 5 per cent design and 5 per cent total project contingency. And be honest. Telling your architect you have a $200,000 budget when you've secretly budgeted $350,000 will only confuse the design and/or building process down the line. "Be willing to entertain solutions outside your own preconceived ideas and keep your main agenda, be it luxury, extra space or room, in mind," says Stuart.

In creating a realistic budget, remember every step away from the 'norm', like tall ceilings, custom-made joinery or complex plans, will cost more. Talking openly and honestly with your architect will quickly confirm or challenge any cost assumptions you have, and have you well on your way to creating a realistic budget for your renovation.

Talk to professional home renovators for home improvement and design quotes, so you can successfully budget for renovation costs.