Hi, everyone. Naomi Findlay here; the creator of the rapid renovation formula. Today, I want to talk to you about something. Have you guys ever felt that everything seems so much easier and so much simpler on reality TV renovating shows?
You know what? I found in some cases the budgets and costings that they have on these shows can be really unquoted and make it really hard for everyday people to estimate and budget when they’re quoting for their own renovations.
Experience has actually shown me that renovators that complete renovations similar to those on TV, the budgets actually come in up to three times more than what appears to be quoted on some of these TV renovating shows.
In fact, I worked with a client once who was trying to replicate a bathroom that they’d seen on one of these shows. It turns out that their budget came in $24,000 above the budget that was quoted. As you can imagine, this can be really confusing and it can leave a lot of renovators in a position where they have under budgeted, which greatly affects their end product. Or means, even worse, that they don’t get to the end.
I want to share with you today some of my top tips for making sure that your budgets are on track, on target and are going to give you the product that you’re after.
The first thing that’s really, really important to do: it’s essential that you complete a thorough inspection of the space. Let’s take a bathroom, for example. You need to complete a thorough inspection of that bathroom and document down all the elements of the bathroom that need fixing, changing or replacing.
From that, you then need to create a list of the hard items that you’re going to need to buy in. In this example, you’ll need to create a list of whether you’re going to be replacing the bath. What sort of shower screen are you going to need? How much are the tapware is going to need replacing? If you’re looking to replace tiles, you’re also going to need to work out exactly what meterage of tiles you’re going to need to replace.
You’ve first completed an inspection and you have a list of all the items that need attention. The next thing you’re doing is creating a list of the hard costs – the items that you’re going to have to buy in.
The third item that you need to do on this list is you need to take that to your trades. You either need to get your estimates or, depending on how you work with them, your fixed quotes on how much that work is going to cost to complete.
The tricky step in here is many people think that that’s it.
There are a pile of what some call hidden costs in renovations. I just like to call them the ignored costs. They’re not deliberately hiding, people just often forget to take them into account.
Again, in this example of a bathroom, it may be things such as the demolition. People often think that the demolition just happens. You have to budget for your demolition and you also need to budget for any repairs that need to be completed as a result of an overzealous demolition or just as a result of a normal demolition.
Another hidden costs, for example, in bathroom renovation can be tipping fees. The old tiles and the old cement slabs can be quite heavy if you need to take that up. That will then impact on your tipping fees.
The first thing was making sure you do a thorough inspection and inventory of what needs to be done. The second thing was make sure that you complete a solid list of all the hard costs, all the items you’re going to need to take back in. The third thing was consulting with your trades and making sure that you have a good, good understanding of the estimates and quotes. The fourth thing was making sure that you pay attention to the hidden costs.
The last thing is – this is your responsibility – making sure that you add all that up. Make sure you’re across the plan and you’re across the budget before you go demolishing a thing. Don’t get sledgehammer happy, guys.
One way that you can not fall into the trap that I mentioned earlier where a client I knew started to undertake a renovation based on budgets they’d seen on a reality TV show, which were highly unrealistic to their situation to achieve that same look.
Make sure you follow those five steps and that will give you your best possible chance of not being left in that position where you have an unfinished renovation because you used an unrealistic budget.
Thanks, guys. I hope I can see you guys soon at one of the next Ultimate Property Conference Events. I look forward to catching you there.