tchomes

Pricing for houses in a development-help

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Until now, I've only done one-off custom homes and variations for individuals and builders. I have a standard fee I use for those jobs.

I was recently contacted about doing 10 new plans for a 350 home planned neighborhood. I need some advice on pricing strategy. I presume I charge full rate for the initial 10 designs and then their would be a royalty/re-use fee for each time they build an additional home. What do you all charge for the re-use? Is it a percentage of the original price or a set amount?

I don't want to price myself out of the job, but also don't want to give them away for free either.

These homes are in the 1,700-2,000 sqft starter homes, single story. Build price in the $150k's

I appreciate your guidance.

Thank you,

Roy

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There should be a royalty fee + additional fees for reversed plans, site plans, revisions (if they are offered). I charge a pretty basic fee, usually $500, but only on the understanding that I do any additional work at my hourly rate or a predetermined fee for service. My contractors appreciate me dealing directly with the customers as it saves them one step and in the end gives them happy clients.

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Thank you for the reply. I appreciate your opinion and that sounds fair.

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Very similar to Sherry-

Once I have created the plan for a builder they can pay a re-issue fee of 500.00 and an hourly rate for revisions such as siding or roof changes- mirrored plans- site plan prep - etc...

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