Staging
Whether you choose to work with a professional or go it alone, staging is an essential sales strategy.
- What is staging?
- Why staging is an essential sales strategy
- Real estate industry statistics on home staging
- A cost vs. benefit analysis
- The home staging process
What is home staging?
Staging is the act - and art - of preparing a home for sale. The goal of staging is to have the home appear in the best possible light, appeal to the broadest possible base of potential buyers and bring the best possible price in the shortest possible time.
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Why staging is an essential sales strategy.
For many homeowners and real estate agents, the idea of professional home staging has shed welcome new light on how to promote a home for sale. Home staging has gone from a "nice-to-have" to a "must-have" strategy in the selling process. In the past - apart from some general advice from their real estate agent - sellers were mostly on their own in preparing for home showings. And, while agents usually know exactly what factors can help sell a home, many are not design savvy or knowledgeable or experienced in working out the details. Sometimes, getting a home into top-notch selling condition in a timely manner means bringing in an experienced professional.
Selling a home requires you to think about it very differently than you are used to and most sellers have difficulty viewing their home with the necessary objectivity. Stagers understand your emotional attachment to your belongings and that you may have spent years creating memories in your home, but they also recognize the need to market it just like any other product and the need for it to appeal to a broad base of potential buyers. Since most buyers need to be able to picture themselves in your home before they will make an offer - but only 10% of buyers can visualize the potential of a home - staging a property to maximize its advantages is critical.
Like interior design, staging is about making a house look great, but the two should not be confused. Though both involve furniture placement, color selection and just the right accessories, that's where the similarities end. The goal of interior design is to create an environment that is distinctive and perfectly reflects the style and taste of the home's owner. The focus of staging is to make the home more marketable by creating a space this is neutral yet appealing to the greatest number of prospective buyers. Far from reflecting a unique style or point of view, a staged home should avoid infringing on a buyer's own sense of style.
Like any other product, a home has features and benefits as well as pluses and minuses, but most importantly it has competition. To beat the competition in any market, a product/home must be priced right and look better than the other products/homes...first time...every time. Well executed staging leads the eye to the attractive features of a home while minimizing its flaws. Understanding that it's often a purchaser's heart not their head that makes the decision whether or not to buy, stagers use their skills and artistry to create settings and moods that will have positive, compelling, emotional impact. In the current challenging real estate market where homeowners are competing with foreclosure prices, home staging helps homes stand out and sell faster. If you're trying to sell a vacant home, home staging is vital because vacant homes often seem forlorn and unappealing to buyers. If you're selling a dated home, staging can help to showcase the rooms and highlight the features, while showing a buyer see how to live in a dated house with updated decor. If you're an investor who's purchased a foreclosure, consider home staging to ready your property for resale.
Buyers form a lasting impression of a home within 90 seconds of entering it. Although pricing correctly is still crucial to selling quickly, staging can help your home make a notable first impression on potential buyers. Selling your home "as is" or without staging can actually cost you money. The longer it's on the market, the more you will have to reduce its price. Staging your home first will help you avoid that. You only get one chance to make a good first impression so make sure every person who walks through your door sees your home in its best light.
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Real estate industry statistics on home staging
- Studies have found that staged homes, on average, sell in half the time that non-staged homes do.
- Staged homes sell for 6.9% more, on average than their list price, with some homeowners reaping 10-30% more than their asking price. Sellers with non-staged homes only sold for 1.6% more than the asking price.
- Homes that sold after four weeks on the market sold for 6% less than the ones that sold within the first four weeks.
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A cost vs. benefit analysis
While the idea of spending money to fix up a home you are selling may not be appealing, consider this: Can you afford NOT to invest in selling quickly and for top dollar? Keep in mind that the investment you make in staging your home will - in most cases - always be considerably less than your first price reduction if the house doesn't sell when you need it to. And think about the potential financial gain of staging your home so that multiple buyers get into a bidding war over it. It can and does happen. In a 2007 Home Gain Survey of over 2000 realtors, it was discovered that sellers who spent $500, on average, on staging services for their home recovered over 343% of the cost in the sale.
Fortunately, staging a home doesn't have to be expensive to be effective. Staging is really about using your things and your space in the most creative way possible without spending a lot of money. Relative to the potential return on investment, staging is incredibly inexpensive and is probably the smartest investment an owner can make to maximize the value of their home at the time of sale. While there are no guarantees, homes that are staged sell faster in slow markets and for higher prices in stronger markets. If you're skeptical, spend a weekend going to open houses. Notice how appealing you find the homes that show beautifully and how unappealing you find the ones that don't.
So, instead of focusing on what you have to spend on staging, think of it as a very short-term investment and focus on how much it could make you!
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The home staging process
CLEAN-UP - Staging begins by eliminating all clutter, a quick and inexpensive way to transform the look and feel of a space. Homes look bigger and more stylish without any clutter.
Take all of the pictures off of the refrigerator; remove any stacks of paper on your desk, etc. Even if it's beautiful clutter, it needs to go. Most buyers won't be able to see past it and you don't want them spending a disproportionate amount of their viewing time looking at your personal items instead of your home's assets.
After the de-cluttering process is complete, clean each room from floor to ceiling. If necessary, have a professional house cleaning service come in and clean thoroughly. It’s a wise investment that will pay you dividends. Don't forget the windows; make certain they sparkle. Be sure to clean or replace curtains or blinds. FYI: In many parts of the country homes are shown with no window coverings at all, which creates an open and airy feeling.
Kitchens should be immaculate and bathrooms should be inviting and spa-like. Clean or replace anything else besides curtains or blinds that looks tired or worn: carpets, bedspreads, towels, shower curtains etc. Strong food, pet or smoking odors are instant turn-offs to buyers, as are dampness and mustiness. These problems should all be resolved before putting your home on the market. If you have hardwood floors that are not in good shape, having them refinished can often return many times the cost of the refinishing and help sell your home much faster.
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EDIT - The smallest changes can make all the difference in the world. Strategically staging a home can easily make or break the decision of a prospective buyer. Keep in mind that what you're selling is space, not furniture, personal photographs, accessories or knickknacks. Display only a few of each of these and pack the rest away. Move excess furniture into mini-storage, give it away or donate it. Use size-appropriate furniture. If you have a small bedroom, don't put a king-sized bed in there. Conversely, if you have a huge master suite, putting a single bed in there would look strange.
Rooms are much more appealing when they flow well, are clutter-free and feel spacious. A well-staged room invites buyers in, helps them see past the seller's possessions and draws their eyes to the layout, square footage and best features of the space.
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REPAIR - All those repair jobs - minor and major - that you've been putting off need to be attended to. Unless it’s reflected in your asking price, potential buyers are turned off by major renovations and a lot of small nuisance items that need repairing.
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PAINT - Research by The Color Institute indicates that people start forming impressions in the first 90 seconds of entering a home and up to 60% of that impression can be based on color alone.
Aside from de-cluttering and making repairs, nothing lifts the energy and mood of a space as quickly and dramatically - and there's no better short-term investment - than a fresh coat of paint. You may prefer something bolder or brighter for yourself, but when selling a home, neutral-colored interior paints work best since they appeal to the greatest number of people. Assuming that potential buyers will be able to visualize what a neutral color will look like in your space is a serious mistake you should avoid.
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STAGE - After you've edited your furniture and accessories, rearrange them so they look cohesive and pleasing. Re-hang artwork, if necessary, but remember not to clutter the walls. It's the space potential buyers should be interested in, not your personal possessions. For visual impact, add color with attractive throw pillows and other accent pieces, bowls of fresh fruit, green plants and fresh or high quality silk flowers. If necessary, add lighting - up-lights, track lights and lamps - to brighten up the space. Leave the lights on even during the day to make your home as bright as possible.
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THE IMPORTANCE OF FLORAL DESIGN - Staging isn’t about decorating a home; it’s about marketing it. Look in any magazine showcasing interiors and you’ll see floral accents in virtually every room. Flowers are inviting, welcoming. They add instant color and energy and draw the buyer's eye to strengths and away from weaknesses. Many hotels and restaurants and most special events invest in flower arrangements because of their significant impact.
Studies have shown that flowers have a positive effect on emotional health and overall mood. Since people start forming impressions in the first 90 seconds of entering a home and up to 60% of that impression can be based on color alone, well-placed flowers in the right color palette can help you reach your goal of creating favorable emotional responses from potential buyers in subtle yet very effective ways. Make no mistake about it; flowers and plants help sell real estate and professional floral design should be included in your staging plan. However, uninteresting floral design, dying/dead plants and flowers and dusty dried flower arrangements/wreaths will create a negative response and should be removed. High-end silk flowers and artificial plants have come a long way and now look remarkably authentic. Consider using them if it is impractical to use fresh flowers or plants.
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CURB APPEAL - Don’t overlook the outside of your home, provided there is one. Many potential buyers make a decision about a home without ever even getting out of their car. The feeling they get about a home from the street is called “curb appeal”. This is the first impression a buyer gets about a home and it’s a crucial one.
- Eliminate all outside clutter. Trim back overgrown bushes and do a thorough clean-up. Beautiful grounds speak volumes. Fresh sod and/or landscaping can make a real difference, showing a buyer this is a well-maintained, well-loved home.
- Eliminate any eyesores like oil stains on the driveway, an old T.V. antenna on the roof, etc.
- A fresh coat of paint does wonders for a house both inside and out, but be careful not to pick too strong a color. The goal is to appeal to the greatest number of people possible.
- Create a warm, welcoming feeling with a new doormat and some simple flowers in a pot on the front porch or steps.
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CHECKLIST - Walk through your home like a potential buyer would. Does it make a good impression in the first 90 seconds? Do the rooms feel light, fresh and welcoming? Is everything in good working order? Are its best assets showcased? If you answer "Yes", your home is ready to go on the market and you will have the satisfaction of knowing you have done absolutely everything you could to affect a quick sale for top dollar. Good luck!
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