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 on your home up to 20% or more and may help you sell 79% faster or more! And, much of the staging costs may potentially be written off on your taxes as advertising fees on the sale of your home.
What is Home Staging?
Home staging is a real estate service and powerful marketing strategy that prepares your house for successful sale on the market. Staging highlights your home’s best features and minimizes its flaws. It helps buyers see the home’s true potential and sets the “stage” so they can visualize themselves living there and “fall in love” with your house.
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.
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
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 proves 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 %.
- As mentioned above, up to 71% of Realtors think staging increases the dollar value buyers are willing to offer between 1-20%.
Let’s Do the Math
The median home price in Seward AK is $216,371
- 1% increase is $2164
- 5% increase is $10,819
- 10% increase is $21,637
- 15% increase is $32,455
- 20% increase is $43,274
According to the National Association of Realtors 2015 Profile of Home Staging report, the median dollar value to stage a home is $675. Much of the cost (consulting fees) can likely be written off on your taxes as advertising fees on the sale of the home.
Pretty good investment!
And remember, 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?
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.
Buyers’ Market- Lots of houses on the market
When there are lots of homes on the market, buyers are more choosey 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
Home staging is a great short term investment that can reap big rewards for you.
If you would like to find out more about how the process works, feel free to call or email me at Northern Lights Home Staging and Design at 907-362-0065, firstname.lastname@example.org. Or stop by and visit our website.
Credits and Resources
Thanks to Stacy Goade- President- Alaska Premier Home Staging- Anchorage Alaska for some of the content in this article. From Alaska Premier Home Staging’s “You Can Sell Your Home in any Market” power point.
Debra Gould- The Staging Diva
Real Estate Staging Association (RESA)
2011 Home Sale Maximizer Survey
National Association of Realtors 2015 Profile of Home Staging