Are you planning on building in the near future? Have you been thinking about where to get a design and what it’ll cost you? Are you concerned about the cost of designing your new home?
Well, I can appreciate respecting your budget, but what most people don’t understand is that by hiring an architect, you’re actually investing in your new home in a way that can add significant returns.
The real estate industry readily acknowledges that having your home designed by an architect results in up to a 50% higher value than similar homes with designs by builders, draftsmen, or catalogue home plans.
Yep, 50% more value.
Architects’ fees are typically anywhere from 8 – 15% of construction costs, depending on the level of service provided. The value added to your project that exceeds the architect’s fee is a financial benefit to you, the homeowner.
But, remember, value is not measured only in money. Long-term enjoyment of a home, high functionality, greater beauty, durability, and comfort is also considered value.
Most people don’t think twice about the commission the pay on the sale of a property. Three percent commission is typical for both selling and buyer agents. That equals a 6% sales commission. What does this have to do with hiring an architect?
Think about it this way, if you’re selling your home, you’ll easily hand over 6% for whatever the house sells. That sales commission adds no real value to the property. None. It’s purely a transaction fee.
On the other hand, how much you invest in planning and designing has a tremendous impact on adding real value, both financial and experiential, to your new home.
Too many people think that cutting corners on the design will mean significant savings. Actually the reverse is true. You run the risk of not exploring all your options, running into project delays and budget overruns, and ending up with an asset that could have be worth up to 50% more!
Recently, I designed a 3,500 SF spec home for a developer. At the end of the project, the home sold for more than 60% of what they spent building it. Not bad.
Real estate agents, without a doubt, provide a valuable service, and so too does working with an architect. You can actually increase the value of your home, and that’s something your real estate agent will also thank you for should you decide to sell one day.
By the time you factor in all the other costs including the cost to build, landscaping and paving, closing costs, interest on a 30-year mortgage, annual taxes and insurance premiums, the architect’s fee may account for as little as 3% of the costs. If you include the offset in the added value of the home, you’re looking at an even lesser percentage.
So, how does this added value translate in your experience working with an architect? There’s basically 4 areas where an architect can add value to your project: Providing Options, Developing the Solution, Documenting the Project, and Administering the Construction Contract.
An architect will provide you with options you might not have considered. This means you get a solution that is tailored to your specific needs, both now and into the future.
Developing the Solution
The solution to your design project involves many complex elements. Your architect’s role in developing your project is one of simplifying and coordinating these elements into an elegant solution.
Documenting the Project
If there is missing information and details, your builder will have to do a lot of guessing, which could have significant implications on the quality of your project. By carefully documenting the project, your architect ensures that things are not missed or left out.
Administering the Construction Contract
Architects provides an important service after all the design work has been done, namely ensuring that the project is built according to the construction documents. This is done by helping you find a qualified builder, visiting the site, responding to your builder’s questions, rejecting unacceptable work, and reviewing and approving pay requests.
Being cost wise at the risk of value foolish can have a tremendous impact on the outcome of your project. The added value of working with an architect far exceeds the cost of doing so, so why wouldn’t you?
You can call me right now (843-276-2074) for an initial conversation about your project. I’d be happy to give you feedback and guidance. So what are you waiting for? Adding value to my clients’ projects is one of my primary goals, so give me a call today.