Why You Should Stage Your Home
Staged homes sell for more...
Studies show that staged homes sell for up to 10% more than homes that do not choose to market their home to the target buyer.
Per the National Association of Realtors (NAR), Realtors® believe that buyers most often offer a 1 to 5 percent increase on the value of a staged home (37 percent from Realtors® representing sellers and 32 percent from Realtors® representing buyers). Additionally, 22 percent of Realtors® representing sellers and 16 percent of Realtors® representing buyers said the increase is closer to 6 to 10 percent (see source).
When you think about a percentage doesn't always mean as much as it does when you think about a dollar amount. Here's an illustration, let's go ahead and be conservative, calculating this down at the low end 3%. If you want to get imaginative, I've also included 10% (Formula: Using Home Value stated as HV, the formula is simply HV*1.03 for the full staged offer and HV*0.03 to find out the amount increased).
- Your home is worth $300,000. Staged home offer: $309,000 (+$9,000)
- (a 10% increase would be +$30,000)
- Your home is worth $450,000. Staged home offer: $463,500 (+$13,500)
- (a 10% increase would be $45,000)
- Your home is worth $600,000. Staged home offer: $618,000 (+$18,000)
- (a 10% increase would be +$60,000)
- Your home is worth $850,000. Staged home offer: $872,500 (+$22,500)
- (a 10% increase would be $85,000)
- And so on...
You start to get the picture. Why does home staging make a difference?
Essentially, home staging is preparing your home to showcase it for sale. Think of it this way: Think about when you shop for a new cell phone, the kind that cost as much as a laptop, especially. There's a certain amount of perfection, that you, the buyer, are looking for. You expect the screen not to have smudges or fingerprints, you expect that the phone isn't cluttered with a million apps, you expect all of the lights on the screen to be bright and the buttons to work. Think about your disappointment when you open up the box to find out that your brand new toy has had a face-full of makeup smeared right onto the screen. That's right, gross. You're either going to ask for a discount or you're going to move on to the other brands phone, the one that wasn't violated by oils and face-gunk.
All right, I get it. So what is home staging and how do I do it?
There are a few elements at play when it comes to staging your home. Firstly, a staged home is inviting. It begs for the buyer to come in and love all that it has to offer. Second, the buyer should be directed to the homes most salient features, the features of the home that really make it stand out. Third, your home should evoke an emotional response in the buyer so it needs to be selling them the lifestyle that they are looking for. Fourth, the buyer must not be distracted by what's in your home, so you must learn how to organize and declutter. Fifth, sixth, seventh, etc... add pops of color while keeping a style that appeals to all buyers, feng shui, balancing, limiting collections, etc.
There are professionals whose business it is to stage your home that can go as far as to bringing in the right furniture for the layout of your home, but this isn't always necessary. It all depends on the amount of time that you have and whether or not you feel the project is something that you can take on yourself. You will want to learn what to do, however. The selection of literature below are great materials to pick up to find out what you can do on your own to stage your home and get it "Show Home" ready so that you can pull that top dollar.
There are some methods which will resonate with you, some that will not. Keep in mind that you're trying to sell your home, however, so do what you can to disconnect your emotions from the collection of forty star wars figurines. They distract you, they'll distract your buyer too.
Ugh! It's just so much. Someone else needs to do it for me...
The costs of home staging are of great value due to the amount of return. There is no real average price for a home stager because each home is different and the amount of work needed varies for each home. Other variable factors on the price are if you are still living in your home or if the home is vacant. Each situation will call for a different approach.
Luckily, home stagers are probably in your area. Actually, there are probably a lot, so you'll want to look out for who has proven experience. One affiliation to look for is RESA, the Real Estate Staging Association (http://www.realestatestagingassociation.com) whose accredited members must take extensive courses in staging in order to become home stagers in their eyes.
And, of course, if you're in the Fort Collins area, give us a call and we can help you out!