Renovation leads are worth quoting when the homeowner can say what they want built, owns the home, has some idea of budget and a time to start. Everything else, including a name and a phone number, tells you very little. This guide sets out the facts to get before you spend a day pricing.
Scope, drawings and approvals
Start with scope. Ask for it in one or two sentences. “A rear extension with a new kitchen and living area, about 30 square metres” is a project. “Thinking of doing the house up” is a daydream.
Then ask what exists. Drawings, a design from an architect or draftsperson, and any council or certifier approvals tell you how far along they are. A homeowner with approved drawings is close to a price. A homeowner with nothing on paper is not, and you will be guessing.
Approval rules differ by council and state, and what needs approval depends on the work. Do not tell the homeowner it is fine. Say you will check with the certifier or council as part of your price. The wider question list is in how to qualify building enquiries.
What a quotable renovation enquiry looks like
A made-up example of the notes worth having before you book a visit:
- Scope: single-storey rear extension, about 30 square metres, new kitchen and living area.
- Drawings: concept drawings from a draftsperson, not yet lodged.
- Budget: a range given, and they have spoken to their bank about borrowing against the house.
- Ownership: owner-occupiers, and both owners will be at the visit.
- Start: after approval, hoping for spring.
Every line there came from a question on the first call. If three of the five lines are blank, it is a phone call, not a site visit.
Budget range and finance
Ask for a range. If the number sounds low for the work, say so politely and early. It is kinder than quoting a figure that surprises them in week three. Then ask how they will pay: savings, a loan against the house, a construction loan. Someone who has spoken to a lender is further along than someone who has not.
A budget you cannot get a straight answer on, from someone who also has no drawings and no start date, is a polite way of saying not yet.
Owner, renter or investor
Before you go further, find out who is paying and who is deciding.
Ownership matters more in renovations than almost anywhere. A renter cannot approve structural work. An investor may be thinking about resale value rather than living there, which changes what they will pay for and how fast they decide. Co-owners and partners need to agree, so ask who else will be at the site visit.
The same fact often decides whether a quote goes quiet later.
Where renovation leads come from
- Referrals and past clients. Often the best jobs. A past kitchen client is a likely extension client.
- Designers, architects and draftspeople. They meet people who already have drawings.
- Your own site and local search. Photos of past projects with a plain description of scope and area.
- Your own ads. You control who sees them and can ask scope questions on the form.
- Shared lead sources. Volume, often with several builders on the same enquiry.
- Exclusive enquiries. One builder per homeowner. You carry the cost of those that go nowhere.
Whichever you use, count what you spend per signed contract, not per enquiry. The worksheet is in builder leads: judge them by signed contracts.
When to start
Ask for a start window, then ask what it depends on. A homeowner who wants to start after Easter and is waiting on council or a certifier has a real constraint. One who says “whenever” may not have a date because the project is not firm yet.
The start date also tells you how much time you have. Builders are booked ahead, and a project that cannot start for a year is worth keeping warm, but not worth a day of pricing today. Write the date down, set a reminder and ring them then.
If they are waiting on council or a certifier, ask what stage it is at and who is handling it. “Drawings lodged last month” and “we have not found a designer yet” are a year apart.
A short call on these points, before any site visit, saves both of you a morning. If the answers do not add up, say what you need and ring back when they have it.
Rules that apply when you take the job
Each state sets the price above which you need a written contract, and the figures differ between NSW, Victoria and Queensland. They are listed, with a link to each regulator, in construction leads for residential builders. In New Zealand, the building regulator’s prescribed checklist must be given to the homeowner before a contract is signed when the work will cost $30,000 or more including GST. Check your regulator, because this is not legal advice.
Questions for providers
- How many builders get each enquiry?
- Does a person ring the homeowner and ask about scope, drawings and ownership?
- What counts as a bad enquiry, and what happens then?
- Is there a lock-in?
PreBuild Systems finds homeowners for renovation and extension builders, rings each one, and checks six things before it sends them to a single business. See the renovations and extensions page and the homeowners page.
Common questions
What are renovation leads?
A renovation lead is a homeowner who has asked a builder for a price on a renovation or extension. A real one says what they want done, owns the home and can give a budget range.
How do I tell a real renovation project from a window shopper?
Ask for the scope in a sentence, whether drawings or approvals exist, who owns the home, a budget range and a start window. Vague answers across all five mean the project is early.
Should I quote for renovation enquiries without drawings?
You can give a rough range, but a firm price needs drawings or a clear scope. A paid preliminary agreement is one way to cover early work.
Do renovation contracts need to be in writing?
Rules depend on your state and the price, and NSW, Victoria and Queensland each set a dollar threshold. Check your state regulator.