Are Real Estate Agents Valued More Than Architects?
Before my real estate friends take offense—this isn’t about diminishing your success. You’ve earned your rewards. Instead, this highlights an issue within my own field and how architectural services are perceived by the public.
Rarely does anyone blink at the commission a real estate agent charges, the tailored suits they wear, or the luxury vehicles they drive. These are part of the image we associate with success. Architects, however, are met with an entirely different narrative—one where we’re reminded that “architecture isn’t the path to wealth.”
Lawyers have mastered the art of billing, often stretching a brief conversation into a cleverly itemized invoice. In contrast, architects are ingrained with a belief that the design’s importance supersedes the time spent creating it.
Let’s break this down with a simple example that even an architect can calculate.
A Comparison of Percentages
In Sydney, real estate agents typically earn a 2% commission. Now, imagine an architect charging the same percentage. It sounds fair until you realize where these percentages are applied:
Agents: Their fee is calculated based on the property’s sale price.
Architects: Our fee is tied to the construction cost.
Here’s how it plays out:
For an apartment building with a construction cost of $15 million and a sale price of $30 million:
The agent’s commission totals $600,000 for selling the units.
The architect’s fee is $300,000 for designing and documenting the entire project.
Why the difference? The answer lies in three key areas:
Value Perception: People place higher value on profits made than on the creative work that makes those profits possible.
Timing of Payment: Architects are paid early in the process, while agents are compensated when the money is in hand.
Misconceptions About Effort: The complexity and skill required for architectural work are often underestimated.
The Architect’s Path
a friend who became a carpenter after completing a three-year apprenticeship was already a homeowner. By the time I bought my first house, he had completely paid off his waterfront property.
This illustrates the challenge of perception:
The real estate agent delivers immediate financial results by securing a sale.
The carpenter produces something tangible that clients can see and use.
The architect, by contrast, provides plans—documents that are often misunderstood in terms of their significance and value.
But consider this: without those plans, the building wouldn’t exist, and without the building, there would be nothing to sell. The design is the foundation of the entire process, unlocking opportunities and potential profits.
Recognizing the Value of Design
A well-thought-out design is critical to achieving a successful project. The combination of a skilled architect, a competent builder, and a savvy real estate agent can transform an initial vision into a highly profitable reality.
Both architects and agents play essential roles. It’s time architects were properly recognized—and compensated—for the expertise, creativity, and responsibility they bring to each project.