You don’t need to spend a lot of money to stage successfully. On average, you should expect to spend about 1% of the value of your home on staging. For example, if your home is worth $200,000, you will probably not spend more than $2000. If your home is in good shape, you could spend considerably less. After staging, you will easily be able to add that much to the asking price, and often 2-3 times that amount.
When clients are hesitant about the cost, I often tell them this. The cost of staging is usually significantly less than the cost of the first price reduction. Think about it. It’s not common for a home on the market to never have any price reductions. How much is a typical price reduction? Often, it’s at least $5,000, but usually $10,000, and sometimes more. And don’t forget that many homes go through more than one price reduction before being sold.
· Most buyers form an opinion about a home within the first 7-10 seconds of arriving.
· Over 90% of buyers look at homes they’ve found on the Internet. It is critical that your home makes a strong first impression online. Staging will help you do just that.
· Sellers who spent $500 on staging recovered over 343% of the cost when they sold their home. (Homegain.com)
· In controlled tests selling identical homes, professionally staged vs. those not staged, the non-staged houses sold in 102 days, while the staged houses sold in 45 days. (Real Estate Staging Association)
· It is estimated that only 10% of home buyers can visualize the potential of a home. That means 90% are not going to be able to look past dirt, clutter, and imperfections.
· According to the National Association of Realtors (NAR), the average staging investment is between 1 and 3% of the home’s asking price, which generates a return of 8 to 10%. That’s a pretty good investment.
· In a 2009 Home Gain Survey of over 2,000 Realtors, it was discovered that home staging typically provides a 586% return on investment.
· According to a 2011 study by HomeGain.com, these are some top updates you can make to prepare your home for sale that will result in the greatest return on your investment:
· Clean and declutter: 872%
· Lighten & brighten: 572%
· Landscaping (both front and back): 473%
· Paint interior: 250%
· Update kitchen: 237%
· Update bathroom: 172%
· Staged homes spent 83% less time on the market than non-staged homes. (HomeGain.com)
· A Coldwell Banker survey of 2,800 properties revealed staged homes sell in 1/2 the time of non-staged homes
· Jennie Norris, a professional home stager who frequently appears in the media, has tracked statistics of her own business. This is a quote taken directly from her site, “So far in 2012, 95% of the houses Jennie has staged have gone into contract in 28 days or less.”
· Also, “In 2011, 93% of the houses staged by Jennie sold in 31 days or less.” (Sensational Home Staging)
· Duke University conducted a survey to determine the importance people place on certain staging principles. In other words, they stated how important they felt these principles were when staging a home. The participants rated the principles on a scale of 1-7.
These are just a few:
· Remove personal items: 6.5
· Use rooms for intended purposes: 6.49
· Remove evidence of pets: 6.48
· Turn on all the lights during showings: 6.39
· Show homes furnished (as opposed to empty): 6.39
· Remove personal photographs: 6.02
· Surprisingly, these items rated very low on the survey:
· Have cookies baking in the oven: 2.60
· Use scented candles, potpourri, etc.: 3.63
· Why such low numbers for these two? I think that baking cookies seems too cliché, while strong scented candles and potpourri scare buyers into thinking the owners are trying to hide something. Battery-powered candles offer a subtle scent and are a safer alternative than regular candles.
The ultimate goal is to make sure there is a sense of continuity in your home from room-to-room.
Here are ten minimum improvements to make before selling your home:
· Patch all holes and cracks in walls and ceilings.
· Fix all broken appliances and HVAC systems.
· Repair leaky faucets.
· Replace worn carpeting.
· Repaint dark or marred walls with neutral paint (not white).
· Replace broken windows.
· Repair the roof.
· Change outdated light fixtures/ceiling fans.
· Replace old linens/window coverings.
· Fix code violations.
Is It Better To Try Selling First, Without Staging?
This is a huge mistake, with big consequences. Even worse, the damage can’t be undone. Once your home is listed in less than ideal condition, or at a price that is not reflective of what the home is truly worth, it becomes stigmatized.
I’ve seen real estate agents show these homes to clients to illustrate what not to do, or to use as a comparison with another home to convince buyers why they are getting a better deal with that other property.
You can stage, re-list, and market all you want, but it will still be considered that “overpriced house that needs work.” And even if you can convince someone to take a second look, they are not going to trust you. They’ll think, how do I know this home is truly worth this new price? And you can’t raise the price after staging — that never goes over well in the market!
Statistics support the fact that staged homes sell quicker and for more money:
· Sellers who spent $500 on staging recovered over 343% of the cost when they sold their home. (Homegain.com)
· According to the National Association of Realtors (NAR), the average staging investment is between 1 and 3% of the home’s asking price, which generates a return of 8 to 10%!
· In controlled tests selling identical homes professionally staged vs. those not staged, the unstaged houses sold in 102 days, while the staged houses sold in 45 days. (RealEstateStagingAssociation.com)
Is Home Staging The Same As Decorating?
While there are some similarities, for the most part, these two things are vastly different. When we decorate a home, we add our personality and create a space that appeals to us. Our homes tell our family’s story to friends and relatives who visit.
When we stage, we are taking the personality out of the space. We don’t want potential buyers to walk in and be able to learn everything they can about our family’s lives. Your home should be inviting and welcoming, but the majority of visitors should feel like they could live there.
Overly personal spaces make buyers feel like they are intruding into your lives and space, which makes them very uncomfortable and less likely to give the home a careful look.
Is It Better To Let Buyers Imagine What The Home Will Look Like Once They Move In?
This is a common justification for not staging a home. Sellers assume buyers realize they aren’t purchasing this family’s belongings, style, or clutter. Why can’t they just paint and change fixtures? In reality, only 10% of buyers can envision a home’s true potential.
Even if they can envision the potential, most buyers don’t want to spend the time or the money to do the work. Give buyers exactly what they want, and you will be rewarded with a quick sale and a strong selling price.
Staging A Vacant Home
Believe it or not, a vacant room looks smaller. There is nothing for the eye to use for comparison to assess the actual size.
There are other downsides as well. Empty spaces feel cold and uninviting. Buyers don’t have anything to focus on, so they will notice everything you don’t want them to see, such as that small scratch on the floor.
Most buyers can’t envision how they would use each space and arrange their furniture. As a side note, when a home is vacant, buyers think that maybe since the sellers have already moved out, they are desperate to sell and would take a lower price. In summary, nothing positive comes out of not staging a vacant home.
