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Why Does My Builder Want To Know My Budget?

Why Does My Builder Want To Know My Budget?

I am a member of several Facebook groups for people building, designing or decorating their home, and recently followed a thread where a potential client was infuriated that the builder had asked one simple question. This person posed the question to the group, “Why does my builder want to know my budget”? The responses were varied and incredibly interesting. Perhaps it’s a question you have asked yourself, perhaps you’ve been asked, either way there are some significant benefits to sharing your budget with your builder.

Why Does My Builder Want To Know My Budget

Time Wasters

Let’s confront the negative first, most builders do not charge for their quoting services, even though generating a quote can actually take in some cases a week or more of the builders time. To have this time wasted because the potential client wont give you an idea of their budget, will see quotes with little or no detail, or inaccurate quoting, as the builder would find it difficult to see the investment in the time spent on an accurate quote. This creates problems right from the beginning, and most professional builders will not even consider quoting if you are not prepared to give them an idea of where your budget sits. Professional builders will spend time ‘qualifying’ their clients before the first meeting, to be sure that the client is actually ready to build, and reasonable about budget.

Unrealistic Expectations

Now that you understand the time a builder needs to invest in preparing a quote, you can understand that this would also be a wasted experience for potential clients who have unrealistic expectations surrounding the price. 99% of clients underestimate the costs involved in building and renovating, if that underestimate is significant, it is far more beneficial for client and builder alike not to go down the path of quoting.

Potential For Change

Having an understanding of the clients budget prior to expensive plans being drawn, allows the builder to contribute to the design process to find a way to achieve the desired result as close to the budget as possible. Time and time again we have clients who have spent many thousands of dollars on plans, that never get built, because their dreams outweighed the reality of their budget. Once you’ve drawn your dreams, it is nearly impossible to forget it, or let them go. Most clients at this point walk away from their project, but if you have a builder and architect or building designer that work collaboratively with your budget in mind, you are far more likely to create a plan for your home that works with your budget.

why does my builder want to know my budget

Achieving A Common Goal

At the end of the day, both builder and client want the house to be built or renovated, when the relationship is built on mutual trust and clear communication, you are far more likely to achieve this common goal. Giving your builder an accurate budget you are trying to build to, doesn’t mean that they are going to price things up to that price point. If you are concerned about sharing this number with your builder, perhaps that builder is not the right one for you?

As always we recommend that you take the time to research your builder before contacting them, use the initial contact as a screening point for yourselves, just as the builder will for you. Ensure you are comfortable before inviting them to quote for you, and then be prepared to be open and honest about your desires for the best outcome for you.

Would you be offended when asked your building budget? Why?

Nicole xxx

 

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12 Comments

  1. I’m actually kind of shocked that someone would be affronted by this? Reading through your post it’s just common sense really, but you know the saying – common sense, not so common….

    1. You have totally nailed it! Common sense is not real common at all 🙂

  2. I wouldn’t be shocked per se, but I would wonder if something is being inflated to match the budget as closely as possible. Having said that, I have no experience of residential building, so maybe I wouldn’t feel that way if I did my research and found out what common parts and costs were.

    1. I think it is a common concern, that can be dealt with head on. If someone is unsure if the person they are talking to may do that, I just don’t think that person is the right one for the job. Trust is everything. x

  3. I would have thought that sharing your budget would be a given!
    So good to see this from the builder’s perspective. I feel I need to share this post with the whiners of the world (which by the way is what I wrote about today … whiners).

    1. They’re everywhere, they’re everywhere! 🙂

  4. I can’t believe someone would be offended by this – you can’t expect the best from your builder if he doesn’t know what the budget is. You wouldn’t go to a real estate and keep your budget a secret, so why should it be any different with your builder. It’s like Hugzy said, common sense is really not that common anymore!

    1. You’ve nailed it Sammie. I find it difficult to understand but think both you and Hugzy are right about common sense. xx

  5. No, I definitely wouldn’t be offended. Your builder needs to know what they are working with and how they can achieve what you want. Dave spends an awful lot of time quoting and estimating. Very difficult if you don’t have a budget to work to. #teamIBOT

    1. Absolutely Renee, it is impossible to give excellent service without a figure being presented.

  6. This is really interesting as I would’ve thought giving a budget would be a given, especially to a builder, so the reality of the build would be in line with expectations…
    BUT… we are planning on renovating/extending an old cottage in Brisbane and engaged an architect (in Melbourne) to come up with some ideas. The first thing he asked us was “what is your budget?” So we told him. He then proceeded to design something that we were quite excited about…but we wanted some changes because we knew some of his design elements would be expensive and not fit in with the Queensland weather. he was reluctant to change and I expressed concern about the budget blowing out. His comment was “maybe we could spend even more money on a a professional to cost the project. Now, my understanding was we provided a budget so the design could (within reason) reflect that budget but no. It seems, to this architect anyway, it was simply to determine how much he would charge us and how much time he would spend on the project.
    Ahh… we no longer have this architect.

  7. We have been renovating and building many projects over the last 20 years and have had this question many times and funny enough when we have told them our budget the quote always comes in at exactly our budget or over by 5 percent. Me personally I would love to tell them and feel confident that it will not effect the end price and you say if you dont trust them then why us them but really you would have only just met them and trust is earned not just given. When we have used a builder before and been happy we are more than happy to talk about our budget.

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