Impulse Buy

THE PSYCHOLOGY OF THE BUDGET

Since the late 1980s Thompson Remodeling has been a design/build remodeling firm. It was a cultural shift we made because we believe an integrated approach to remodeling gives a better experience to our clients - saving them time and design costs. Most of the decisions we make in life have a psychological underpinning. To oversimplify, high dollar purchases [like remodeling] cause us all to have psychological struggles. Here are some of the psychological reasons why we chose Design/Build over doing bid work for architects.

Game #1 - The Pleaser
Many folks have heard of an architect designing a project well outside the budget. What good is a project no one can afford? Salespeople, Architects, and Designers have psychological pressure to give the client everything they want irrespective of price.

We use generations of construction experience and accurate & timely historical data to give our in-house designers instant feedback as to whether or not a design is within the budget range for a project.

Game #2 - Emotional "Bond-age"
Have you ever made an impulse buy? Maybe it was an I-pod, a new pair of shoes, a car, or maybe even a house? Kristin and I bought a house in October 2005. Before we had ever seen the upstairs she leaned over to me and said, "I want it." We closed on it in less than (3) weeks and absolutely love the house. Now that kind of bonding is what I mean by Emotional Bondage!

Remodeling can be the same. Design meetings are fun because you see your vision taking shape, our guided shopping trips to make product selections are convenient and exciting, but then reality sets in...the selections you made have enlarged your budget! But we don't want the last part to happen. In design-build we walk through that process together saying, "That looks beautiful but it's going to increase your budget," and then the choice is yours. We're accountable to you and help you keep control of your budget so you don't fall in love with a design that's beyond the budget.

Game #3 - General Affordability
Mobilizing dozens of people to rip apart and rebuild your home is expensive or is it? Here's a reminder for budgeting purposes. The monthly payment on a project will be approximately $600 - $700 for every $100,000 leveraged to improve a home (6-7% interest rate). Remodeling is relatively cheap to finance. Plus there are some natural forces in a client's favor. Generally, real estate appreciates and appreciation recoups the cost of remodeling and generates wealth automatically. All while you enjoy a home customized to your unique specifications. Real estate is great!

Prev: Remodel vs. Moving | Next: Local Housing