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Can't we all just get along? Stagers vs. Realtors® vs. Sellers.

Reblogger Georgie Hunter R(S) 58089
Real Estate Agent with Hawai'i Life Real Estate Brokers HRE# 58089 - RS

I like the idea of staging a home for sale, especially with homes that are vacant.   I like this idea of staging it forward!

Maui home sellers - make your home look like a model home, and it will sell faster.

Georgina M. Hunter R(S) e-Pro will help you to sell your Maui home  ~  808 283-0635  ~  EMAIL

Original content by Matt Stigliano

After shot of a staged home.

photo courtesy of REAL ESTAGING

A stager's blog starts the conversation.

In light of the recent post by Cathy Dick on her blog titled, "Remove my home staging signs from the home? Why?," I got to thinking about the relationships between sellers, stagers, and Realtors®.  So far, I've never seen a particularly warm-fuzzy friendship between the three.  That's not to say that it doesn't exist, but one scroll through the comments section of Cathy's post and you'll see what I mean.

Why do we seem to be at odds?  (Realtors® and stagers)

The first thing I notice about staging and the discussion between agents and stagers, is always the same - there is split of opinion on the usefulness of staging.  For the record, I think staging is a good thing and we have some great stagers right here in San Antonio, but I do have some concerns and thoughts (which I'll explain later).  Much like any real estate related product or service out there, there are those that will love it and those that will despise it.  I'm not surprised by this really as there is an opinion out there for just about every agent.  We are a varied bunch and we don't always agree amongst ourselves on techniques, products, and services.

I don't know a ton of stagers, so I can't really comment for them.  I do know that for them, they are providing a service which they believe in.  From my position as an agent, I'd say they're a passionate bunch and truly believe in the potential of their services.  A conversation back in February on Nicole Hurst's blog, "Cole House Design Asks "Do You Offer a Guarantee" on your Home Staging Work?," had a great comment thread that shows just how passionate they can be.  Most of the stagers there seemed open to listening to agents and had a lot to say in terms of feedback, so I thought it was a good constructive conversation.

The idea that was passed in that comment thread was an interesting one to me, as in my dealings with sellers, I have found a reluctance to employ the services (on their end) of a stager.  I think the biggest obstacle is cost up front with no guarantee of return.  Although stagers have some great statistics for their services, agents have a hard time convincing their sellers that the cost is going to yield a sale.  There is no guarantee of a sale with staging (much like there is no guarantee of a sale with a Realtor®) and because of that initial outlay of cash, there seems to be a disconnect between stagers and sellers.

What puts you at odds?  (Stagers and sellers)

Sellers are surrounded by shows announcing the usefulness of staging, but they are also surrounded by DIY shows telling them how to go about it for less.  Much like the eternal battle between FSBO and Realtor®, we need people to see the value in our services.  How we go about it is once again, up for debate.  Sellers that I have met aren't against the idea of staging, but they are against the idea of tightening budgets (this discussion would probably be different with a different economy).  By the time they're done paying everyone, they fear there will be nothing left.  Unfortunately, that's out of your control.

Your control of the situation is often out of your hands once you've staged the house and one of the complaints I seem to hear from stagers is that they can't offer any sort of "guarantee" as the sellers aren't guaranteed to keep the house the way it is or perform the list of chores the stager has suggested.  Much like an agent, you're stuck with a seller who wants to sell their house, but won't work to get it sold.  We as agents know the problems associated with this as well.  In our case, there often comes a time when we must say goodbye in these situations and take our losses.  I think you may have the upper hand in this situation though, as your "product" is tangible, ours is not (until the final sale).  We also invest into the sale of a property, but some of that is not directly seen by the seller (some marketing isn't quite as tangible), whereas your "product" is right there in their home.

Where's the solution?

One of the thoughts I had in Nicole Hurst's blog was the possibility of a shift in business model.  What if an agent and stager joined forces and charged a commission rate for their services combined.  The stager would present at the listing presentation and give the sellers their opinion of what to do.  We would give our presentation on how much to sell it for and how to go about marketing the home.  The commission being higher than expected might throw some sellers off, but by having a "no money down" type option with a team of professionals, I can imagine it being a little easier to swallow for the seller.  The initial outlay of cash seems to be one of the biggest sticking points I've come across.  By getting a percentage commission (or even a flat fee - at closing), the stager becomes part of the way we sell the home, not just a side note in the eyes of the sellers.

Instead of arguing that things were out of our control (stager or Realtor®) we could both take a more proactive role in each other's business.  I won't tell you which towels to hang of course, that's not my job - but we could feed off of each other, much like I do with a good lender.  Teamwork.  And a mutually beneficial service to the seller that would seem much more seamless in their eyes and take some of the sting out of the initial moments of selling their home.  Very few people want to layout a few hundred to a few thousand dollars before they even know if someone will come look at their house.  However, I'm willing to bet that if we could work as a team in getting the home sold, take our commissions as a team, and sell the homes quicker and for more money (which I believe can be done with staging), we could build a strong unit with the seller, who would turn around and recommend us as a team.  It would take trust and teamwork between Realtor®, stager, and seller, but I think the return in stronger in the end.

Comments(3)

Dennis Swartz
Full Circle Property Management - Columbus, OH
MBA, GRI...experience counts!

That's a great idea! I wonder why some ambitious stager hasn't done this already? I would be interested in the services of a stager when I list homes if they worked on a commission basis. Maybe your idea is just too logical?

Aug 26, 2009 09:32 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Dennis, it's not my idea, but I like it.  This was reblogged from Matt Stigliano.

Aug 28, 2009 08:27 AM
Heather Cook
Beyond the Stage Homes - Kitchener, ON
Delivering beautifully staged spaces

As I mentioned in other conversations, this business model wouldn't work for most stagers. The reason why is that many of the projects we get involved in have rentals of some kind and most stagers source out larger furnishings instead of keeping them in stock (that's a whole other discussion). As these rentals are due on a monthly basis, I would say that most stagers are not in a position to cover these costs while waiting for houses to sell. And when the house finally sells, what if the final commission is less than what the stager has paid out for rentals in addition to their hourly staging fees? Now try thinking about doing that for multiple houses at a time. Most stagers don't start off with a lot of capital so this business model is not something they could consider and still stay in business for long.

I love the idea of working together but I think realtors need to have a better idea of the costs stagers incur just to get those "wow" designs put together and into a home. As staging covers so much in the way of getting a house ready for sale, the costs can be quite diversified and it just isn't reasonable to expect the stager to foot all the bills until the house sells.

Having said that, when its just about staging hours, we have agreed to defer our staging fees only until the house is sold in certain situations. We do want to work with realtors and sellers so that staging is both accessible and affordable.

Mar 28, 2010 04:27 PM