For most of us, our home is our biggest financial asset. When it’s time to sell and move on, we want to sell it for as much as possible and as quickly as possible. None of want to spend any more on the house we our selling…. None of us want to continue to pay a mortgage and taxes on a home sitting on the market or take a price reduction of thousands if it does not sell quickly.
So why home stage? What’s in it for you? A small investment can potentially reap an increased sale price up to 20% more and may help you sell 79% faster or more! Much of the staging costs may potentially be written off on your taxes as advertising fees on your home sale.
What is Home Staging?
Home staging is a real estate service and powerful marketing strategy that prepares your house for successful sale by highlighting your home’s best features and minimizing its flaws. It helps buyers see the home’s true potential so they can visualize themselves living there.
How does it affect Buyer Perception?
Buyer’s perception of the location, price and condition of your house affect their desire to buy it. Home staging can influence the price and condition. Staging helps gets your house in the best condition, focusing on things that give you a good return on your investment. Staging also helps set and maintain your price at the top end of the range for similar houses on the market by making your house outshine the competition.
Does Home Staging Really Work?
The National Association of Realtors 2015 Profile of Home Staging noted the following based on a study of 49,000 real estate agents nationwide:
- Up to 71% of Realtors think staging increases the dollar value buyers are willing to offer between 1-20%.
- 81% of Realtors think it helps buyers to visualize the property as a future home.
In the examples below, this house sold the first day on the market for full asking price after home staging. The way it looked before staging, I seriously doubt this would have happened.
Do staged homes really sell Faster?
In 2011, the Real Estate Staging Association conducted 2 studies.
- In study #1, 174 vacant and occupied homes (not staged) were put on the market. They were on the market an average of 156 days. These same homes were then staged and relisted and sold on an average of 42 days. The staged homes spent 114 days (4 months) less time on the market!
- In study #2, 126 vacant and occupied homes (not staged) were put on the market. They were on the market an average of 273 days. These same homes were then staged and relisted and sold on an average of 60 days. The staged homes spent 213 days (7 months) less time on the market!
- The study shows it does not benefit you to list the property first to see if it will sell ….then stage. In this study, the staged homes sold 79% faster.
Do Staged homes really sell for more?
- In the 2011 Home Sale Maximizer Survey of 600 real estate agents nationwide found that 80% recommend homeowners invest in staging prior to selling. The return on investment is nearly 300%.
- Up to 71% of Realtors think staging increases the dollar value buyers are willing to offer between 1-20%.
How Much Money are You Leaving on the Table?
Consider that you could be leaving up to 20% on the final sales price of your home on the table without staging, and the cost of staging is usually less than 1%. And if your house is on the market a while, your first price reduction will likely be $5000-$15000. Will you also be paying a mortgage and taxes too?
Home staging works in a buyers or seller’s market
Regardless of the market, you want to make the most money possible on your home sale. Your home is worth what a buyer is willing to pay. Home staging helps you get the most for your home in either a buyers’ or seller’s market.
Buyers’ Market- Lots of houses on the market
When there are lots of homes on the market, buyers are more choosy and they can take their time before deciding to buy. There is more competition. Staging helps make your house outshine the competition and helps you sell faster so you won’t lose money with a price reduction while potentially still paying mortgage costs and taxes for every month the house is on the market.
Seller’s Market- Few Houses on the market
When there are few houses on the market, sellers often think, why should I invest any money in staging, repairs etc. when I should be able to sell it quickly? Because you can make more money on your house if you do! Staging can offer a better starting price, multiple offers, and higher than list offers. There will always be a range of prices for similar houses on the market based on their condition and how well they show. The better your home shows, the more it will sell for. Staging can help put your house on the top end of the price range for similar houses. If your house is the most appealing and there are few houses on the market, you can generate a “bidding war” and get even more for your house.
Who pays for staging?
The National Association of Realtors 2015 Profile of Home Staging noted the following regarding staging costs nationwide:
- 62% of Seller’s agent offers the home staging service to sellers
- 39% of Sellers pay before listing the home
Personally, I think the seller should pay for the staging. They have the most to gain from their investment and it is a good idea for them to hire the best professional stager they can. If the cost of staging is left to the realtor, they may look for the cheapest, but not necessarily most effective stager.
Get a Professional Home Staging Consultation
Get a professional home staging consultation today and find out they key things you need to know to sell fast and for the very best price!
Color can help you sell for More- Or Less
Get a Professional Color Consultation Today.
Did you know that the right paint colors can help you make more money on your home sale? Or, reduce the price buyers are willing to pay?
Buy Now
Credits and Resources
- Alaska Premier Home Staging’s “You Can Sell Your Home in any Market” power point. www.alaskapremierhomestaging.com
- Debra Gould- The Staging Diva Training Program
- Real Estate Staging Association (RESA)
- 2011 Home Sale Maximizer Survey
- National Association of Realtors 2015 Profile of Home Staging
Love this–great info!
Thank you Doreen!!
I totally agree! It doesn’t make any sense NOT to stage, or to stage poorly. Homeowners are nearly GUARANTEED a healthy ROI with proper staging. There are very few places you can get that kind of return on your investment, and as you pointed out, there are the added carrying costs of a sale taking longer than necessary and the inevitable price reductions when it doesn’t sell.
All so true! It really is one of the few places you can get such a great return on your investment with so little risk.
Oh, you know how I feel about home staging! Great points, as always!
Thanks so much Sheri!
Staging your home well can mean putting dollars in your pockets! Great post Mary Ann!
Thank you Amy!, And they key is “well” I think!!!
Lovely transformations and great information to follow!
Thank you Suzi!