Reasons to ask an Architect to Design Your House

5. RE:Reasons to ask an Architect to Design Your House

Recommend

David Fleming

Posted 12-17-2010 08:05 AM

Eric, your argument regarding value and banks is admirable. To be fair, though, the builder's reputation should impact the value of the home as much as the designer's reputation. You seem to have enough experience to realize that a great design can be ruined by poor construction. Similarly, a top notch builder can make a simple design sing. Perhaps the banks should and municipalities and appraisers should be required to perform a more thorough analysis of each building. Listing the GC and Architect for the original structure, as well as any additions, would be a nice start. How about requiring as-built drawings for every sale of an existing building? At least the area shown on the real estate agents summary would be correct this way. How about listing the previous uses of the building for a commercial building. The purchaser of an existing building needs better information than is required by law. Architects can help here. You can bet that a large developer will send their best team of architects and engineers to evaluate an existing building before purchasing it. The typical homeowner or small businessman can't afford that. This is where some regulation could help.
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David Fleming AIA
Registered Architect
DRF Design
Buffalo NY
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Original Message

Original Message:
Sent: 12-16-2010 07:08
From: Eric Rawlings
Subject: Reasons to ask an Architect to Design Your House

Let's discuss the reasons people don't hire an Architect to custom design a residence and maybe we can back into the remedy. The bank's appraiser doesn't care if the house was designed on a napkin by a 5 year old child, if it was lifted from an internet plan book site, or if a State licensed, local professional with a liability insurance policy designed it. The appraised value is all important in obtaining a loan which is very difficult these days (hence the crisis). If a cheaply built builder box is appraised at the same value as a similar sized house with an Architect's fee applied then how is that an apples to apples comparison? How does the client pay our fee when the bank doesn't recognize a difference between the cheapest built house and an amazing custom home of the same size?

The owner has to pay our fee out of pocket because they are told by the bank that OUR fee has no value. WE HAVE NO VALUE! The bank says we're worthless and this is what people believe. If the bank recognized that a house designed by a local, licensed Architect with a liability insurance policy is most likely to be of better quality and value than a house designed by an unknown designer with unknown qualifications with an unknown understanding of local codes, climate, etc. with no possibility of site visits and no liability insurance policy to safe guard against design errors then MAYBE, just MAYBE people would see the point in hiring us as it would give their home more value than the cheap spec house next door. These are NOT apples to apples structures, but the bank tells the home owner that they are, so why waste more money on a fee for a house that they are being told is of the same value?

I have a seven year track record of houses that I've designed in my area that have consistently outsold all other houses during the same time period, same size, same place. The free market has repeatedly proven that MY houses are more valuable, but the bank refuses to believe the sales records. The bank ignores the will of the free market and continues to insist that cheap builder boxes are the same as my custom houses with awards, media attention, etc.

Value is our problem! If people were told our involvement will result in a more valuable commodity, then maybe people would pay the price, but as long as the bank refuses to acknowledge the difference between crackers and steak, rotten apples and ripe oranges, we will always be irrelevant in the eyes of the consumer.

I believe a local Architect's stamp on the drawings should instantly give more value to any home over a design of unknown origin with no attached liability. It is a greater risk for the bank to lend money to build a house that was NOT professionally designed by a qualified, insured professional. If you had to bet on an unknown Architect or an unknown amateur to design the better house, who would you put your money on? Our society currently says they'd bet on the unknown HACK!

-------------------------------------------
Eric Rawlings AIA
Owner
Rawlings Design, Inc.
Decatur GA
-------------------------------------------

Original Message:
Sent: 12-15-2010 08:35
From: Rand Soellner
Subject: Reasons to ask an Architect to Design Your House

Stephen makes an excellent point:
COMPETITIVE BIDDING (Resulting in Better Pricing for the Client): one of the main reasons to engage an architect to design your house. Contractors may not particularly enjoy this, because they would prefer to be the ones with the client's favor, however, if clients can be made to see the distinct advantages of bidding their project out on an apples to apples basis, particularly in today's economy, based on the architect's CDs, the client is bound to receive better pricing. We, as residential architects, are uniquely skilled to be client advocates in this role. We should prepare the actual bid forms so that each contractor bidding prices the job the same. Thank you Stephen.

Okay, how about some more reasons for clients to hire architects to design their homes.

-------------------------------------------
Rand Soellner AIA
Architect/Owner/Principal
Rand Soellner Architect
Cashiers NC
-------------------------------------------

6. RE:Reasons to ask an Architect to Design Your House

Recommend

Gregory Walker, AIA

Posted 12-17-2010 09:21 AM

Eric -

You're points are very well articulated and could easily be extended to the fact that the appraisal system can't even distinguish between more 'concrete' differences such as a well built, 50k custom kitchen and a big-box 10k kitchen. Or quality windows, doors, hardware, etc. that will all provide a solid 50 years of use vs. cheap hollow core drivel that will wear out in 5.

Personally, we've tried to solve the latter questions with the banks first, pointing out why the material features in our houses will last longer, require less ongoing maintenance, reduce energy consumption, etc. It's an easier approach to articulate to an appraiser and the bank since the end result is you're trying to convince them that the asset they're backing will not deteriorate to worthlessness before the loan term expires. In that approach, I'd try to put in reasonable design fees into the equation as part of the 'backing' behind the more 'durable' claims. I'd also argue that there are some design/builders who do a great job with their homes - they're our allies, not our enemies. Higher quality is and should be our common goal. As you note, that's what the market itself rewards. And I think some of the community banks here understand that - at least we've educated the one we work with. Their SVP came to us to do a small addition to his house - after they had approached a much less qualified builder initially. He now gets it. Banks have their own challenges right now, though, that doesn't allow for as much flexibility in the loan process as anyone would like. Unfortunately, it's going to take time and patience to claw out some new way forward for everyone.

-------------------------------------------
Gregory Walker
Houser Walker Architecture
Atlanta GA
-------------------------------------------

Original Message

Original Message:
Sent: 12-16-2010 07:08
From: Eric Rawlings
Subject: Reasons to ask an Architect to Design Your House

Let's discuss the reasons people don't hire an Architect to custom design a residence and maybe we can back into the remedy. The bank's appraiser doesn't care if the house was designed on a napkin by a 5 year old child, if it was lifted from an internet plan book site, or if a State licensed, local professional with a liability insurance policy designed it. The appraised value is all important in obtaining a loan which is very difficult these days (hence the crisis). If a cheaply built builder box is appraised at the same value as a similar sized house with an Architect's fee applied then how is that an apples to apples comparison? How does the client pay our fee when the bank doesn't recognize a difference between the cheapest built house and an amazing custom home of the same size?

The owner has to pay our fee out of pocket because they are told by the bank that OUR fee has no value. WE HAVE NO VALUE! The bank says we're worthless and this is what people believe. If the bank recognized that a house designed by a local, licensed Architect with a liability insurance policy is most likely to be of better quality and value than a house designed by an unknown designer with unknown qualifications with an unknown understanding of local codes, climate, etc. with no possibility of site visits and no liability insurance policy to safe guard against design errors then MAYBE, just MAYBE people would see the point in hiring us as it would give their home more value than the cheap spec house next door. These are NOT apples to apples structures, but the bank tells the home owner that they are, so why waste more money on a fee for a house that they are being told is of the same value?

I have a seven year track record of houses that I've designed in my area that have consistently outsold all other houses during the same time period, same size, same place. The free market has repeatedly proven that MY houses are more valuable, but the bank refuses to believe the sales records. The bank ignores the will of the free market and continues to insist that cheap builder boxes are the same as my custom houses with awards, media attention, etc.

Value is our problem! If people were told our involvement will result in a more valuable commodity, then maybe people would pay the price, but as long as the bank refuses to acknowledge the difference between crackers and steak, rotten apples and ripe oranges, we will always be irrelevant in the eyes of the consumer.

I believe a local Architect's stamp on the drawings should instantly give more value to any home over a design of unknown origin with no attached liability. It is a greater risk for the bank to lend money to build a house that was NOT professionally designed by a qualified, insured professional. If you had to bet on an unknown Architect or an unknown amateur to design the better house, who would you put your money on? Our society currently says they'd bet on the unknown HACK!

-------------------------------------------
Eric Rawlings AIA
Owner
Rawlings Design, Inc.
Decatur GA
-------------------------------------------

Original Message:
Sent: 12-15-2010 08:35
From: Rand Soellner
Subject: Reasons to ask an Architect to Design Your House

Stephen makes an excellent point:
COMPETITIVE BIDDING (Resulting in Better Pricing for the Client): one of the main reasons to engage an architect to design your house. Contractors may not particularly enjoy this, because they would prefer to be the ones with the client's favor, however, if clients can be made to see the distinct advantages of bidding their project out on an apples to apples basis, particularly in today's economy, based on the architect's CDs, the client is bound to receive better pricing. We, as residential architects, are uniquely skilled to be client advocates in this role. We should prepare the actual bid forms so that each contractor bidding prices the job the same. Thank you Stephen.

Okay, how about some more reasons for clients to hire architects to design their homes.

-------------------------------------------
Rand Soellner AIA
Architect/Owner/Principal
Rand Soellner Architect
Cashiers NC
-------------------------------------------

7. RE:Reasons to ask an Architect to Design Your House

Recommend

Eric Rawlings, AIA

Posted 12-19-2010 07:28 AM

Quality and durability are good arguments for value. Sustainability features like a geothermal system have also been given "extra value" by some banks. In fact, green certified projects are supposed to get recognized as more "valuable" by most major banks now. The problem is that my Architectural placement of windows and overhangs on the house with the geothermal system got no value, yet when the wife was 8 months pregnant and the geothermal broke down in an Atlanta August, those numerous well placed awning windows became very valuable to the home owner. How do we explain that to the bank?

I can't seem to sell my track record to the banks either. When you work hard, build a good reputation, and people start seeking you out from out of State, at what point should your work be recognized by the bank as a "hot commodity"? Consistent sales records, time spent on market, media attention, etc., what does it take for them to believe that the next one will sell as fast and for as high as the last 32 have? What's the magic number for coincidence to be considered too coincidental?

I think the real problem is that so few houses are designed by local Architects, that it's a drop in the bucket compared to the status quo. We're a very small blip on the radar, so we get lumped in with the mass produced garbage. Most of our houses are designed for end users and may take decades before they hit the market as used, so where's the sales data?

I believe the banks would see an advantage in the local Architect's involvement as opposed to trusting an unknown design from an unknown designer if they seriously considered:

- An unknown plan book will never visit the site, but a local Architect would.

- An unknown plan book doesn't understand local codes or climate.

- An unknown plan book has no liability insurance policy to guard against errors.

- An unknown plan book is not qualified by the State to do anything.

- A local Architect with a strong reputation brings more value to their work, when people are consistently willing to pay more for it.

Why should my clients be penalized with a low appraisal because everyone else normally does a worse job? How can they judge my houses as being the same thing as a cheaply built, builder box? How do we end this practice of degrading everyone else's work because the majority of it is so bad? I refuse to accept the standard answers! What would happen if BMWs were valued the same as Hondas? What would happen if Gucci was valued the same Goochi? No one would produce these higher end goods, what's the point? Why go to the trouble of building a BMW when you know it will only sell as a Honda? That's where we are with buildings in this country. No one gets the difference in value for buildings, but they do for cars, purses, clothes, tvs, and everything else sold in this country. Why is it that only buildings get treated with such disrespect on the free market in such a consumer oriented society?

-------------------------------------------
Eric Rawlings AIA
Owner
Rawlings Design, Inc.
Decatur GA
-------------------------------------------

Original Message

Original Message:
Sent: 12-17-2010 09:20
From: Gregory Walker
Subject: Reasons to ask an Architect to Design Your House

Eric -

You're points are very well articulated and could easily be extended to the fact that the appraisal system can't even distinguish between more 'concrete' differences such as a well built, 50k custom kitchen and a big-box 10k kitchen. Or quality windows, doors, hardware, etc. that will all provide a solid 50 years of use vs. cheap hollow core drivel that will wear out in 5.

Personally, we've tried to solve the latter questions with the banks first, pointing out why the material features in our houses will last longer, require less ongoing maintenance, reduce energy consumption, etc. It's an easier approach to articulate to an appraiser and the bank since the end result is you're trying to convince them that the asset they're backing will not deteriorate to worthlessness before the loan term expires. In that approach, I'd try to put in reasonable design fees into the equation as part of the 'backing' behind the more 'durable' claims. I'd also argue that there are some design/builders who do a great job with their homes - they're our allies, not our enemies. Higher quality is and should be our common goal. As you note, that's what the market itself rewards. And I think some of the community banks here understand that - at least we've educated the one we work with. Their SVP came to us to do a small addition to his house - after they had approached a much less qualified builder initially. He now gets it. Banks have their own challenges right now, though, that doesn't allow for as much flexibility in the loan process as anyone would like. Unfortunately, it's going to take time and patience to claw out some new way forward for everyone.

-------------------------------------------
Gregory Walker
Houser Walker Architecture
Atlanta GA
-------------------------------------------

Original Message:
Sent: 12-16-2010 07:08
From: Eric Rawlings
Subject: Reasons to ask an Architect to Design Your House

Let's discuss the reasons people don't hire an Architect to custom design a residence and maybe we can back into the remedy. The bank's appraiser doesn't care if the house was designed on a napkin by a 5 year old child, if it was lifted from an internet plan book site, or if a State licensed, local professional with a liability insurance policy designed it. The appraised value is all important in obtaining a loan which is very difficult these days (hence the crisis). If a cheaply built builder box is appraised at the same value as a similar sized house with an Architect's fee applied then how is that an apples to apples comparison? How does the client pay our fee when the bank doesn't recognize a difference between the cheapest built house and an amazing custom home of the same size?

The owner has to pay our fee out of pocket because they are told by the bank that OUR fee has no value. WE HAVE NO VALUE! The bank says we're worthless and this is what people believe. If the bank recognized that a house designed by a local, licensed Architect with a liability insurance policy is most likely to be of better quality and value than a house designed by an unknown designer with unknown qualifications with an unknown understanding of local codes, climate, etc. with no possibility of site visits and no liability insurance policy to safe guard against design errors then MAYBE, just MAYBE people would see the point in hiring us as it would give their home more value than the cheap spec house next door. These are NOT apples to apples structures, but the bank tells the home owner that they are, so why waste more money on a fee for a house that they are being told is of the same value?

I have a seven year track record of houses that I've designed in my area that have consistently outsold all other houses during the same time period, same size, same place. The free market has repeatedly proven that MY houses are more valuable, but the bank refuses to believe the sales records. The bank ignores the will of the free market and continues to insist that cheap builder boxes are the same as my custom houses with awards, media attention, etc.

Value is our problem! If people were told our involvement will result in a more valuable commodity, then maybe people would pay the price, but as long as the bank refuses to acknowledge the difference between crackers and steak, rotten apples and ripe oranges, we will always be irrelevant in the eyes of the consumer.

I believe a local Architect's stamp on the drawings should instantly give more value to any home over a design of unknown origin with no attached liability. It is a greater risk for the bank to lend money to build a house that was NOT professionally designed by a qualified, insured professional. If you had to bet on an unknown Architect or an unknown amateur to design the better house, who would you put your money on? Our society currently says they'd bet on the unknown HACK!

-------------------------------------------
Eric Rawlings AIA
Owner
Rawlings Design, Inc.
Decatur GA
-------------------------------------------

8. RE:Reasons to ask an Architect to Design Your House

Recommend

Ken Brogno, AIA

Posted 12-20-2010 03:51 PM

Eric,

You have stated reasons for an additional step beyond the traditional fee structure. It is my belief that architects should get yearly royalties much the same way that musicians get royalties. As built works become appraised higher each year, architects should receive royalties from the owner based on the added value. After all, it was the architect's design that was at least one component that contributed to the added value. This is similar to the concept of property tax increases. The architect would get no royalties when the appraised value drops. If someone stops playing a song on the radio, the artist doesn't pay back the record company, they just stop getting their royalty checks.

Simple concept - impossible to implement.

-------------------------------------------
Ken Brogno AIA
Architect
AIA, LEED AP
San Francisco CA
-------------------------------------------

Original Message

Original Message:
Sent: 12-19-2010 07:27
From: Eric Rawlings
Subject: Reasons to ask an Architect to Design Your House

Quality and durability are good arguments for value. Sustainability features like a geothermal system have also been given "extra value" by some banks. In fact, green certified projects are supposed to get recognized as more "valuable" by most major banks now. The problem is that my Architectural placement of windows and overhangs on the house with the geothermal system got no value, yet when the wife was 8 months pregnant and the geothermal broke down in an Atlanta August, those numerous well placed awning windows became very valuable to the home owner. How do we explain that to the bank?