WHY DO STAGERS COMPARE THEIR SERVICES TO HOME SELLERS TO THE SERVICES OF REAL ESTATE AGENTS?
WHO DO STAGERS COMPARE THEIR FEES TO THOSE OF REAL ESTATE BROKERAGES? See: The point is Not can-t-we-all-just-get-along-stagers-vs-realtors-vs-sellers-
I cannot find a single basis for comparing the relative services of these two disparate businesses beyond the fact that both services are performed for home sellers. Of course, so are carpenters, painters, carpet companies, landscapers, HVAC servicing companies, etc., none of which even try to claim to be the cause of the sale of a property.
Recent posts by ActiveRain members representing staging companies and some real estate agent members about staging fees compared to real estate brokerage fees inspire me to ask the questions?
WHAT DOES THE FEES CHARGED BY ONE BUSINESS HAVE TO DO WITH ANOTHER??
WE ARE NOT COMPETITORS.
SHOULD STAGERS CHARGE CONTINGENT FEES? I see this debated from time to time. Real estate brokers are paid at settlement because we work on "contingency" fee arrangement. No sale, no fee owed. This is preferred by most because we understand that most sellers pay out of the proceeds of the sale of their home.
COLLECT UP FRONT AND ELIMINATE RISK. If staging companies worked on contingency, they could charge a higher fee but would have to accept the risk of "no sale, no fee". Staging companies would then also have to invest in their businesses without the seller fronting the money for rentals, movers, etc. Agents invest significant money in listing, promoting, advertising, showing, signage, open houses, networking, etc. the listings. However, these individual services to seller clients represent only a small part of our fee.
REAL ESTATE AGENTS AND BROKERS CREATED A NATIONAL ECONOMIC FORCE, THE HOUSING INDUSTRY. The real estate agent/broker services are pursuant to real estate license law and permit the orderly and legal transfer of real property from one owner to another in an orderly, organized and recorded manner. These services to the public, from search to settlement, recording and maintenance of land records can hardly be compared to staging a property for sale.
Real estate fees are far higher than staging fees. The real estate industry has, over 100 years built the MLS networks, contributed to the development of licensing laws, built networks of brokerages that facilitate the listings and sales of properties and a lot more.
FEE FOR SERVICE REAL ESTATE COMPANIES ARE AROUND. Comparing real estate fees to staging fees is not possible because the value of the services is not remotely comparable. A very small percentage of real estate brokers do engage in "fee for service" contracts and they are paid up front for specific real estate services. They have not made a dent in the contingency fee arrangements preferred by most brokerages.
WAS IT THE PRICE/LOCATION/CONDITION THAT CAUSED THE PROPERTY TO SELL? OR WAS IT THE STAGING? Staging companies often make the claim that staged properties sell faster and for more money. If that were true, it would seem that For Sale By Owner sellers would never need the services of a real estate broker/agent. The owner/seller could simply have the home staged, advertise it for sale and wait for buyers.
WHAT ARE WE, POTTED PLANTS?? When staging companies advertise that staged homes sell faster and for more money, they are demeaning an entire industry of licensed, regulated, organized agents and brokers.
OUR SERVICES ARE IN NO WAY RELATED AND NEITHER ARE OUR FEES.
- Why don't landscaping companies take credit for the successful sale of a property when they trim the hedges?
- Why don't carpenters take credit for the successful sale of a property when they have replaced the rotted wood on the front door sill?
- Why doesn't the paving company take credit for the successful sale of a property when they have recently repaved the driveway?
NO DOUBT THE DEBATE WILL CONTINUE.
"Honey, are we going to interview agents to list our home for sale this week?"
"No Dear. We're going to have our home staged and sell it ourselves."
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