There are several myths that homeowners may believe contribute to their new home or renovation project going over budget. These misconceptions can lead to unrealistic expectations and poor decision-making.

So let’s debunk some of the most common myths of new home and renovation projects.

READ THE TRANSCRIPT AND ADDITIONAL NOTES BELOW

Myth #1 : To save money, you don’t need a lot of information on the plans. It’s really just for permits anyways. Ask if there’s anything you can remove.

/Plan/: a decision about what one is going to do. (Ie. pre-planning, not planning as you go)

Sure, you could have your contractor figure things out on site. He doesn’t have anything else to do. You know, besides building the house, arranging all the sub-trades, trying to keep you on budget, etc. All joking aside they have shit to do, and putting your plan together is not one of them.

And that has a trickle effect. If there is information missing on the plan, all the sub-trades have to figure it out as well. That’s an extra (what wasn’t included in the budget) and it usually takes longer to figure it out than it would have you has your architect/ural designer draw it. 

And what happens if they don’t figure it out in time? “Oops, I missed that - because it wasn’t on the plans.” Or  they make the decision for you? “Oh you didn’t want the fireplace buildout to go up to the ceiling? How was I supposed to know, it wasn’t specified on the plans.” Or  what I see most of the time, “We need to stop construction because X is missing from the plans and we need an answer before moving forward.”

The extras are piling up because they had to take time to figure it out, time to do the work and, if done wrong, time to dissemble and reassemble.

Poor plans lead to miscommunication and confusion on site. Now you wonder why projects exceed their budget and timeline. This is just one of the many reasons why hiring the right design team has a big impact on your project. The more information on the plans, the more methodical and accurate the build, budget and timeline. 

Myth #2 : I got 3 estimates and 2 are really high. They must be wrong and think I have expensive taste. 

There’s a million ways to write a million dollar estimate. If one is off, there’s usually a reason.

99% of the time homeowners expectations exceed their budget. How many times do you buy something and are happy with what it costs. Rarely. Most of the time we grudgingly accept or are down-right shocked and find another way. Have you seen the cost of grapes lately? I refuse.

But if you get 3 estimates and one is different, albeit lower and a price you’d prefer, there’s usually something wrong… 

You can choose to move forward with the lower priced estimate without question. During the build you start to notice little price increases and the mention of things that weren’t listed in the estimate. Next thing you know you’re struggling to keep up with payments, upset with the contractor because they weren’t upfront, honest or knowledgable with pricing. You feel taken advantage of and hate the overall experience of your build. 

And where did they end up? Right where the other 2 estimates said they would. Choosing the lowest estimate doesn’t always mean it’s going to stay the lowest. 

I tell this story because it’s true. Many times over.

Not all estimates are created equal so you don’t want to find yourself comparing apples to grapes just because they’re fruit. Instead of assuming, ask questions. Why is the lowest price so low? Are they missing something that the other estimates have included? Were they able to stay on budget with their past clients or did it spiral out of control like it did in my story? These are some of the questions that should be asked.

Estimates are exactly that, an estimation. It can change. And typically, if one is so far off from the others, it usually will.

Myth #3: You have to get 3 Contractor estimates. 

The reason for this is because homeowners generally don't do their research on their Contractor. Last minute they google contractors and bet them against each other based solely on the estimates. 

That’s not how you build trust on the person that you’re going to have a close relationship with, especially the person that will be managing your grossly large investment. 

Projects cost what they cost, the only difference is the level of finish/products and the quality (and cost) of the trades. Other than that, it’s the scope that requires changing. 

Comparing estimates only gets you to wish for the lowest price. An idea that may or may not come to fruition. Instead get to know your Contractor and their past projects/clients. If the estimate is higher than expected, talk to them. Get a better understanding of market rates and where you can reduce the price.

Do you need 3 Contractor estimates for that? No. You can succeed with just one really good one. 

Myth #4 : The price per square foot is an easy way to figure out the cost of my home.

The biggest myth of them all and the most inaccurate calculation out there.

Since you’re all about calculations, let’s do one right here: 

2 homes of the exact same square footage, let’s even say the same plan, were built the same year. One cost approx. 800K while the other cost 1.2M to build. Although this is a 100% hypothetical story, how can they be that different? I’ve seen it happen before. Let me break down what the majority of what make the cost per square foot complete BS*.

👉🏼  The appliance package in house 1 was purchased through a big box store during a blowout sale for $10k, while house 2 included a high-end $50k+ custom package with all the bells and whistles

👉🏼  House 1 went with a vinyl flooring and carpet, while house 2 went with wide-plank hardwood flooring throughout.

👉🏼  House 1 standard $300 toilet, house 2 $900 and wall-mounted. It's a 3 bathroom house…

You get the picture.

Or how about these? Two homes the same size, but one is craftsman with simple construction, while the other is a modern, structural marvel with complex cantilevered living. 

Or one is a single storey and the other is 2 stories. One is on a flat lot and the other on a steep lot.

Both cases have grossly different prices because they are grossly different.The price per square foot is just a tool used to give you an idea if you're way out in left field or not. The architectural and structural plans, and a skilled Licensed Builder is what gets you an accurate price.