Some custom builders who run design/build businesses give design services away, hoping that will induce a prospect to sign the construction contract; others charge a nominal fee. Howard Satovsky, however, gets a fair price. “We want to cover the cost of the architect and our overhead, so that if there’s no contract, we are compensated for our time,” he says.
Satovsky calculates design fees based on the size of the house, charging about $2 a square foot spread out over three phases of design. His total architectural package costs between $12,000 and $15,000, but clients pay in more palatable chunks of $4,000 to $5,000 at the end of each phase. He sweetens the deal by applying the design fee to the clients’ down payment if the contract comes through.
Working with his assistant, Nancy Meininger, Satovsky starts the design process by showing the client stock plans from the 30 or so in his library. While their house will be custom designed by a consulting architect, the plans let clients point out what they like. “People need a starting point,” he says. Custom plans are developed in three stages—rough ?-inch-scale drawings, more refined ¼-inch drawings that include elevations, and finally working drawings. At the second stage, clients are required to meet with one of the builder’s cooperating lenders to assure that they can qualify for the house they want. By that time, the job is usually his. “If a customer antes up for the first and second phases,” Satovsky says, “it’s rare to lose a job.”
