Post by Daniel Morris | Date: 28-07-2022
Explore just how staging a home can bring a positive return on your seller’s investment.
As a realtor you already know that a staged home is going to show better than one with cluttered living spaces. So how do you convince your homeowners to do it? Take it from us, we photograph THOUSANDS of properties per year and process MILLIONS of images to go along with those properties. We have literally seen it all. Our team breaks down the six reasons why homeowners should stage their properties before they hit the market.
Attract more buyers to your property
Buyers are looking for listings online. They are looking at your marketing collateral and engaging with the photography, videos, and 3D virtual tours. A staged property will definitely photograph better than a home that is presented as “lived in”. When staging a home, the goal is to appeal to the masses and not to showcase your personal taste. Buyers are trying to visualize how they want to live in the your home. Staging a property to appeal to the masses will bring the masses to your property. The more interested buyers you have, the higher the offers you will receive.
It’s not your house anymore
Piggybacking off of our last point, appealing to the masses is important when listing a home for sale. That is why depersonalizing your home is so important in the selling process. You should remove most - if not all - family photos and items that are considered a “specific taste”. Purchasing a home is an emotional process for homebuyers. In order to get a strong offer, that buyer needs to feel a connection to your home. A staged listing will facilitate this process and encourage buyers to present a strong offer on your home.
In today’s market, buyers will visit an average of 10 homes during their purchasing process. That is a lot of listings to go through! This means that today’s buyer is more savvy and educated than ever. Realtors are coaching homebuyers to spot potential home inspection issues. If a home is not presented well then the buyers will start to think that the property has not been well-maintained - even if your home has no issues. Again, this is an emotional process for homebuyers and there is a psychological element to having a good showing.
Inspire your buyers
People often think of staging as a process of making your home look presentable and nice - and that is true - but there is a functionality element to staging as well. We had a property that had a Living Room that was long and narrow. The space was nicely set up but the homeowners utilized it as an area to watch TV. When it was time to list, the homeowners took the unused space (approximately 11’ x 8’) and divided it into two spaces: a desk area with a laptop and a chair with a standing lamp and end table with a book. The Living Room now had three functional areas that worked together and transformed the space.
Buyers walked through the listing and gave positive feedback on how well the space was utilized. Even though the home was a bit on the smaller side, buyers saw the homeowners vision and they were able to overlook the lack of square footage. This resulted in the home selling over the weekend with multiple offers.
Open up and let your space breath
There is a difference between functional living and presenting your home to potential buyers. We have our homes set up in a way that makes sense for our everyday lives - it works for us and our lifestyles. For instance, you may have doubled your Living Room space into a Living/Play Room for your kids. Or, you could have large reclining chairs in your Recreation Room because they are comfortable. While you need to LIVE in your own home, selling it can present a tricky situation. A stager will take a look at your space and see how to make it functional to the masses. Removing unwanted toys, large pieces of furniture, or simply repositioning them can make a lot of difference and unlock hidden value in your home.
Return on your investment
Staging a home requires time, money, and a disruption to your personal life routine. We need to know - is it truly worth it? Our team took a look at the numbers and we have broken it down for you to make an informed decision. These statistics are pulled from The National Associations of Realtors - Profile of Home Staging report. Take a look and let us know what you think:
Of realtors polled in this guide, 47% of them felt that staging a home added value to the property. Of those 47% of realtors, 23% of them said it added 1%-5% value to the home, while an additional 15% said it added 6%-10% value.
Let’s breakdown that stat into dollars and cents:
The median home price in the US for 2022 is approximately $430,000. If your staging efforts yield a 1%-10% return, you could reasonably expect a $4,300 to $43,000 increase value on your $430,000 listing.
Now, let’s delve into the cost and what your net proceeds would be:
The average cost to stage your home is between $1,500 and $10,000 - depending on the type of service you are using with a stager and if you are renting furniture. If you deduct the low/top end cost from the net proceeds then you will have a return of $2,800 - $33,000 . After you factor in realtor commissions, you are looking at a $2,320 - $31,014 “net/net” return on your investment!
Keep in mind, these figures are approximate and are intended for you to make an informed decision. While most of the realtors polled felt that staging added value to a home, approximately 23% of buyers agents stated that staging added “no value” to the property - and a minority (1%) said it added negative value to a home.
With these facts, we feel confident that staging a home will not only help your listing sell faster but it will add real dollar value to your home. Staging a property is an investment in your time and money, and sellers should always consult with a local expert realtor to see if it is the best option for them.
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