Home : Blogs : Sharon Tara New Hampshire Home Stager : Staging New Hampshire

Reducing The Price Should Not Be The Whole Marketing Plan

It is not all bad news out there. There are houses selling, there are buyers buying. Many of the Realtors that I know are very busy, the busiest they have been in a long while. Others, are finding it difficult to survive. I have a hard time accepting when a Realtor blames the market and suggests another price reduction as the only option for their clients.

Please don't misunderstand, many times price reductions are warranted.

real estate sign I'm certainly not saying all agents resort to this practice, but too many times cutting the price is suggested by agents who know no other way.

The key to their marketing plan is to reduce price rather than increase the perceived value of the property.

Many will reduce the price before a home staging consult is even considered. These realtors aren't familiar with what a staging consult involves. They may have a preconceived idea in their head, but no first hand experience with the process or it's value in today's market.

A Home Staging Consult is simply a walk-through of the property. Everything, in the professional opinion of the stager, that needs to be done is pointed out to the seller. The seller can take on the responsibility of preparing the home for sale based on the stagers advice or they can hire the stager to prepare the home for them. Either way, as long as the professional advice is followed, the house will stand a far better chance of finding a buyer without having to lower it's price.

Today's buyer wants move-in ready. A professional home staging consult will guarantee that your house shows well and is emotionally appealing to today's buyer.

Beware the Realtor whose only plan of action is to keep lowering the price!

______________________________________________________________________________

For More Information Visit My Website

Professional Home Staging services for the New Hampshire Seacoast

Portsmouth Rye Greenland Hampton North Hampton Exeter Dover Stratham

603.661.8524

Posted by Sharon Tara New Hampshire Home Stager on 07/18/2009 02:09 PM

Comments (20)

Home Staging Advice in the ActiveRain Channel

nh home stager, home staging in new hampshire, price reductions, advice for sellers, selling in nh

Generate short URL

This post has been included in New Hampshire Real Estate News Rockingham County, NH Real Estate News Portsmouth, NH Real Estate News
Post is included in group: Active Rain Newbies
Post is included in group: Advice for Sellers
Post is included in group: Posts to Localism
Post is included in group: REALTOR LIFE
Post is included in group: Stage It Forward...

20 Comments on Reducing The Price Should Not Be The Whole Marketing Plan

JUL

2009

Sharon, Agreed, 100%. When I hear cheers at our pre-caravan meeting for agents that get price reductions I want to yell out...AND YOUR PROUD of it????

Recently we had a top agent announce a $6,000,000 reduction. (YES 6 million) That's says a lot to me about many aspects of her business.

You make a good point about staging. Staging in many home owners's minds is quite expensive... but compared to the drops in pricing that I've seen over the past year... if it gets the home sold faster, then staging saves the seller money.

Bernice Dubon

Royal Lepage Solutions in Calgary Alberta

www.yourhomeincalgary.com

Very good point! I wonder how many sellers are told about staging before reducing their price.

Ginger: That has to be some kind of record...six million dollar reduction? What was it reduced to? That is crazy! It must be frustrating to hear the cheers, I would be biting my tongue for sure.

Bernice: It does not have to be expensive. A home staging consult is usually under $300 and will make a world of difference in the appearance and appeal of the home.

Irene: Thanks! I would bet not too many. It is sad to say.

JUL

2009

I know MANY realtors who's listing package includes a pre-signed price reduction for every 30 days that the house is on the market.

I'm hoping to take one of them out to lunch this week and explain the errorsof his ways.

Virginia: I wonder how willing sellers are to sign it? I can see where a realtor would need something like that for a seller who was insisting on a certain price (too high) to begin with and refusing to stage or do needed improvements. If the realtor knows that the seller is going to make it impossible to sell and the only way to get it sold is to give it away, then they need a contract saying the price is getting dropped or else they will be wasting their time with the house on the market for God knows how long.

But, just as a matter of routine...price drops like clockwork every 30 days? As a seller, I wouldn't go for that.

Hi Sharon!

This is one of our mission: to educate, educate, educate real estate agents and sometimes reminding them that they have a fiduciary responsibility to their clients to work on their best interest, the home seller's.

Unfortunately this is not an easy sell, as the math works for the home sellers, not much for the agents. What I want to say, hopefully not offending any real estate professional, is that having a property staged will sell the property faster, saving some time=money for the agent.

But in regards of the commission, an increase value let's say 10 K for a staged property is only 250 dollars gain in commision(at a 5 % commission which is split between buyer and listing agent), before the brokerage fee is paid.

The same math applies for a 10K price reduction, not much lost commission, I would say.

Now, what it is easier? Getting a listing, put it on the MLS in the next 48 hrs, wait and see few weeks and if nothing happens, do a price reduction? or

Get the staging consultant to do a consultation, wait for 1-2 weeks until the property is properly prepared to go on MLS, then listing it? Are those 250 minus some dollars worth the "hassle and waiting"?

There are good agents out there, but there are bad ones too, the ones who think only with their big fat commission cheque in mind.

I guess we all have to find the good ones that work for their client's interest in mind, and usually these are the ones who are the most successful anyway.

My 2 cents...

I attempt to get all my sellers to use a local stager before the listing goes active, Sharon. I view it as part of my fiduciary responsibility to suggest every avenue to maximize their return on the home.

Those first few weeks on the market are so important. If the home doesn't look good on the Internet, many potential buyers will never call, never visit. Photo omission is just as telling, if not worse - if I don't upload a picture of a major room, browsers know I'm hiding it!

Even if my sellers initially resist the modest cost of staging, they usually come around when we have had no productive activity. Faced with a hefty price reduction, I find they're more inclined to listen to suggestions!

Great post to help other real estate agents expand their marketing toolbox!

Monica: I hadn't thought about the math aspect before, good point. I'm sure there are many out there who just want to list it and get it done, by reducing, asap. I'm lucky to know many Realtors who do put their clients first and genuinely want what's best for them. You know you have written a post here...why don't you title it and post it!

Irene: I am not surprised you suggest staging to your clients. It is very obvious that you "get it" and that your clients are very lucky to have you on their side. Photo omission is a big problem. If you don't have photos you just raise a red flag. I'm sure that when you suggest a price reduction it is because it is the right thing to do and the right time to do it.

Thanks Sharon!. I wrote about this some time ago. it is a very controversial issue, I don't want to offend anybody.

Monica: I know what you mean. As long as they understand we aren't talking about all realtors in general.

I have long said that our job as stagers is to shore up the value, both in terms of perception and in tersm of actual value - demonstrating all of the usuable square footage and presenting a clean, well maintained home.

In a recent consult, I recommended removing a large piece of furniture. The home owner panciked and all but refused. OK, I said to both her and the realtor,

"Leave it for now, but know that if you don't get an offer right away, the value perception is unclear. Remove that big thing before you drop the price. "

"Exactly!" said the realtor, "and we'll do it before the honeymoon 30 days is over!"

Okay, mumbled the homeowner as her husband winked a thank you at me.

I dunno. Why waste time waiting for the market to tell you what you already know?

I am always stunned at how many folks would rather get less money when they sell their home rather than make a little effort to reap a much bigger reward.

Juliet: It's funny, I usually have the wife in the background giving me the thumbs up! It really does take a stranger to come in to get the spouse on board sometimes! I do believe we are making progress, we will get there some day!

Sharon, the 6 million dollar reduction was on a home that was originally listed for 21.9 million. NO WAY is ANY property here worth that kind of money. It is lakefront BUT this isn't Lake Como or Lake Tahoe and with only 1 acre of land...it's preposterous. I do plan on going on the next caravan to see this solid-gold gem. It's probably all a scam, divorce or something else bizarre...I don't even care to ask about the ridiculous details. Just nonsense!

Ginger: Well it's getting attention, I'm just not sure it's the right kind of attention. After the caravan, you will have to let us know what you found.

JUL

2009

Too many times, sellers want an unrealistic price to start .... with the idea they can lower it later.

The ideal timeline to getting the best result when selling your home is:

1. Find a realtor who knows your local market and is willing to actively market your home with online exposure, staging and great photos

2. Hire a professional stager for a pre-listing consultation and get your home ready before you list it

3. Set a realistic price based on actual comparable SOLDS in your area - if you need a quick sale you may need to price more aggresively

4. List your home

5. Help your agent sell your home by keeping it ready and looking great for showings!

Lowering the price over a period of time creates the perception the home was over-priced to begin with. Not a good strategy for getting your home sold.

Thanks Sharon - this is what sellers need to hear!

Tessa: Thanks for the timeline! It is a valuable addition to the post! This would be the ideal steps to follow for the best results.

JUL

2009

Sharon -- just today, I rec'd an email from a Realtor about a vacant listing that's been on the market for almost 2 years. It's very dated wth lots of oak and brass, 1980's paint colors, etc. However after receiving a staging proposal that was very reasonable, the seller decided instead to "take a chance and just lower the price" -- AGAIN. Where is the logic? The price reduction they took was 4 times the cost of staging!!

Maureen: That is really a shame. Now that they have had multiple reductions, it is all down hill from here. It's kind of tough to recover now. Really too bad.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?

Sharon Tara New Hampshire Home Stager

Portsmouth, NH

More about me…

Sharon Tara Transformations

Address: 10 Regina Road, Portsmouth, NH, 03801

Cell Phone: (603) 661-8524

Email Me

Subscribe in a reader

Listings

Links

Archives

Find NH real estate agents and Portsmouth real estate on ActiveRain.

Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.