How much does an architect cost? (And are they even worth it?)
A lot of people wonder, 'how much does an architect cost' or ask, 'are architects expensive?' Many assume an architect is out of their price range. Or that architects only work on larger projects like museums and skyscrapers.
Actually, many architects (like us) adore working on smaller projects like renovations and new homes!
Plus, we bring oodles of design and construction expertise, making the process of building or renovating much easier and stress-free for you.
But, how much does an architect cost?
Unfortunately, there’s no simple answer to the architect cost question. This is because all architects charge different fees and offer a range of services. You can expect an architect to cost somewhere between 12-20% of the cost of construction, depending on what services you’re employing them for.
Many architects structure their fees so that you pay a percentage of the cost of construction. But this creates problems. For one, this fee structure creates a perverse incentive: the architect could design a more expensive building so they can increase their own fee! Now, most architects are too ethical to do that, but it still creates a sense of distrust in the industry. The other problem is, you often don’t have a firm handle on the cost of construction until the design is more developed. You may end up having to play catch up and backpay the architect's additional fees if the cost of construction increases from the original estimates.
So, we work a little differently from most other architects.
We prefer to provide our clients with fixed fees. None of these fluid fees based on a percentage of the build cost. We do this because a fixed-fee approach provides financial certainty for all parties. Fixed fees are more transparent and allow our clients to plan their finances from the beginning.
There are several different stages of a new home or renovation project. It’s wise to engage an architect for the entire process to ensure the design intent carries through to the final product and to minimise problems on-site, but not every stage may be necessary depending on your needs and circumstances
How much does an architect cost for a consultation?
Again, there’s no straightforward answer (sorry) as every architect sets their own fees. We offer a free 30-minute chat to get to know you and your project. This gives us a chance to understand how we might be able to help you. Plus, it allows us to give you some early advice on the best way to move forward.
You can book your free 30-minute chat here!
Following your consultation, we prepare a fee proposal for the design diagnosis + design strategy stage. After your design diagnosis, we’ll have a clearer picture of what you want to achieve and the complexity of the project. Then, we can confidently prepare a fee proposal for the remaining stages.
Architect-designed kitchen in a Melbourne townhouse.
Are architects worth the cost?
It’s probably no shock to hear we believe architects are absolutely worth the cost! It’s not because we’re biased, though. Architects have a lot of value to add to your project. Our understanding of design, construction, and regulations means we’re able to create a beautiful and functional, custom-designed home, you and your family will adore and thrive in for many years to come.
Building is a complex industry with numerous moving parts; there's a lot to consider. So it pays to have an expert in your corner. We always say: you wouldn’t represent yourself in court; you wouldn’t attempt your own heart surgery; so why would you build or renovate your largest asset without all the expert help you can afford?
And it's not just us who think this way.
A recent study by ArchiTeam demonstrated the value an architect can add to a renovation in Melbourne. The study found that using an architect for your renovation leads to better resale values and higher capital gains over time. Houses renovated by an architect increase in value 1.2% per annum more quickly than those that are renovated without an architect. While 1.2% might not sound a lot, a house valued at $1.2 million would be worth $256,000 more over ten years. What’s more, for every dollar spent on engaging an architect, the property gained $11.40 in capital appreciation over a 10-year period. Wow.
An integrated fireplace within a wall of storage creates a cosy and practical living space in this architect-designed townhouse.
Running the numbers on the cost of an architect
So, let's run the numbers. Or, as the Industry Super Funds would have us do, 'compare the pair':
One sunny spring day, the hammer falls in Melbourne's suburbs and Family 1 is the proud winning bidder of a new home for the price $1.2 million. The following super Saturday, Family 2 puts their hand up for the neighboring property which is practically identical and also, coincidentally, sells for $1.2 million. Both families decide to renovate and, while they both get started at the same time and are planning very similar renos, Family 1 decides to work with an architect, while Family 2 works directly with a design/construct builder, instead.
The architect proposes a fee of $75,000 which covers all of the stages of design and construction. The design component of the design/construct option is substantially cheaper and Family 2 feels quite smug about their saving at the next neighbourhood BBQ. Ultimately, the two families end up with a very similar home: four bedrooms, two bathrooms, open-plan living area opening onto the garden. But there's no denying Family 1's home feels better. There's more and better natural light. The flow and proportion of spaces is more effortless and logical. It's more comfortable, year-round. And it's perfectly tailored to the family's lifestyle and needs.
In 10 years, when Family 1 and 2 decide to pack up and down-size, who is better off?
Well, their combined auction day draws a huge crowd and eager buyers are lined up around the corner to inspect the two sparkling properties. Family 2's home is the first to sell for an impressive $2.144 million. The happy couple and their now adult kids pop a bottle of bubbles and they're already talking about a European river cruise with the spoils of their sale.
Next door, the auctioneer shouts, 'all done, all silent?' and, after prodding the audience for a further four minutes, finally concedes and announces the property 'SOLD!'
Two. Point. Four. Million. Dollars!
The additional cost of working with the architect has paid off handsomely for Family 1. They've been able to enjoy living in a beautiful home for ten years and now they have walked away with substantially more at auction than their neighbours because buyers could appreciate the superior design quality of their home. If this were The Block, Family 1 has walked away with the big prize!
So, are architects worth the cost?
It doesn’t matter whether you’re focussing on the emotional and quality-of-living benefits of working with an architect. Or if you’re a numbers-based person. Either way, the answer is a resounding yes!