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Experiencing Staging Value in Action

I recently visited a home in the Lone Star Ranch area here in Frisco Texas. Its specific neighborhood - Saddlebrook Village where most homes start in the low $200Ks for single-story 2,100 square feet up to over $350,000 for two-story 4,000 square foot homes.

This particular property caught my attention because of its beautiful floor to ceiling windows and the family room is majestic with its 2-story ceilings. The formal dining room had 8 tall windows accentuating the height of the property. This house is nothing short of magnificent if proper staging techniques were used to showcase its features. It had the top-of-the-line gourmet kitchen for a chef in the home that loves to cook. From beautiful custom-designed cabinetry to granite counter tops, lots of counter space to storage for wine and a butler's pantry, this is indeed a beautiful home. The 5 bedrooms plus study is definitely a plus in this 3,600 square foot home. Its asking price - $299K.

This house displays "life" in it. Tiny photo frames and silk greenery all over every possible ledge and window sills, gym equipments all over the house and bills all over the kitchen area gave away an unorganized and untidy first impression. This house is definitely lived in. A good buyer's agent would need to assist his/her buyers to stand back at every room to carefully describe where the potential lies in the property while the buyers could only see are "stuff" all in front of their faces.

This is a classic example how staging could make a difference in the Seller's pocket. This house could be so potentially worth $299K (the asking price) if it was staged better, added with some colors to accentuate the features of the home.

In its present "clutter" condition, buyers would not pay more than $285K. Hence, the initial offer price that the Sellers see may be lower than that. The Sellers would be surprised and almost offended by the offer. (Nope, my clients do not plan to purchase the property).

My clients and I agree about where it currently stands and how it could get closer to its asking price of $299K. I have never come closer to which staging could have a $15K value to a property.

So folks, whenever you list and sell a property, consider following advice of a professional home stager as well as a real estate agent that believes in the value of staging.

(No photos were taken of the property).

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Contact:

Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Posted by Loreena Yeo - Broker|Realtor(R) of www.Frisco-TX-Homes.com (214) 783-2210 on 09/27/2009 09:52 PM

Comments (37)

Witnessing Home Staging in Action in the Home Selling Channel

staging works, home selling in frisco

Originally posted at: faithfully frisco tx homes for sale: Experiencing Staging Value in Action

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37 Comments on Experiencing Staging Value in Action

SEP

great info and so very true. I wish all sellers would believe that staging makes that much of a difference when selling their home. Have a blessed week.

www.TeamLudlow.net

Loreena, you know how much we (professional stagers) love blog posts like this and particularly when they're from RE agents. Thanks so much for helping us fight the ongoing battle!

Lisa - We could only try. These are real issues we deal with everyday.

Ginger - I experience this everyday. Even though buyers know they will eventually buy an empty house when they move in, staging is like first impression for the house.

Loreena, you are so right. Clutter must go to maximize value...

Hi Loreena...If you've shared your impression with the listing agent perhaps it will help convince the sellers to consider having their home staged.

I'm getting ready to list a vacant house that I have suggested be staged. The owenrs think it will be too expensive. However, I really believe we can list it for more and sell it sooner if we get some furniture arranged in there.

Kate

Gary - The next time I share with a Seller, I'll let them know how much these clutter costs them!

Kate - I did just that. It was a pretty blunt yet constructive feedback. But I dont know if the listing agent and sellers would take it well. Also, the listing agent does not work in the area, she works mostly the "higher" end of town. So, that could also be part of the problem - I guess.

The criteria to list with me at an agreed asking price would typically mean sellers have to include staging. Otherwise, they wont like me when I mention the price un-stage. It makes such a huge difference.

Sometimes a vacant house is not a bad idea - assuming I could stand easels all over the house showcasing its potential. It's an idea!

SEP

Loreena... love your new pic. Thank you for such a great testament of your view of staging and the added value that it brings to a property.

Loreena,

I agree that the power of staging can really add value to the home.

Loreena - Great points on staging. The facts are that a staged home sells for not only more money but is the market for less time as well !

There is definately value in staging for those that have trouble with any kind of visualization.

I agree Loreena staging is well worth the effort. I think it does help sell those houses that need a little something extra to get them to sell.

Loreena, as you must know, most people can't visualize something as it can be, only the way it is. As stagers, we loving hearing that Realtors support staging. And this being a featured blog is even more proof that staging is becoming mainstream! Thanks for giving us an extra boost!

Beyond the fact that I agree with you whole-heartedly: I'm actually surprised that you mentioned that "bills" or other personal items were left in plain sight. One of the FIRST things ANY Agent should tell their Sellers is to put away personal information (or prescription drugs).....

I'm sure the listing agent greatly APPRECIATES your feedback. He or she has probably been telling them what they SHOULD do to get the most money for their home (in the shortest amt. of time). Sometimes good advice falls on deaf ears...but if several agents mention it...maybe the sellers will make some much-needed changes!! :)

Staging is huge but if a seller won't go for that, a gentle reminder to declutter and depersonalize can help quite a bit as well.

I see your point and agree with it. But I find your clients' response odd. They agreed that if the home was dressed up, it would be magnificent, and yet they won't make an offer? It seems the biggest challenge is getting buyers to see past the clutter and these were able to envision it, but weren't interested? Hmmm ... they must have found something nicer, or already staged.

Loreena, I totally agree. Staging a home while utilizing a great stager is the best tool any agent can have. I am always amazed with the before and after pictures.

There is a staging saying - 'clutter eats equity' and that's exactly what you're saying here - if all it takes is to remove that visual clutter from the house - the return on that sweat equity investment is huge! thanks for always being a staging advocate Loreena!

Great post and comments Loreena!

My experience, with both Sellers and their agents, leads me to agree with Sonja about the challenge a good listing agent has in getting their sellers onboard. Most view the kind of feedback you mentioned as the validation they need in order to do that.

I would only add that the Seller you listing agents see, is not the same person I deal with--it's like Jeckyl and Hyde. When referring a seller client, Realtors usually caution me about the "limitations" that client has. As the client leads me around the home, I listen. They are their own worst critics! Granted, HGTV... When I recommend their ideal staging strategy, they are relieved/amazed and ready. Rarely do I experience a different scenerio.

Realtors, your sellers may be willing to do more than they would like you to believe...

Thanks for bring it up!

Joetta - My clients are already in contract when we view this home that was recently reduced from $340K to $299K. With its $299K, it's more in-line with the neighborhood. My clients purchased an even better deal because they are purchasing a REO although they may like this floorplan better. Just having to "educate" the Seller about its current condition and the prices my buyers think its worth will be a daunting task considering the Seller was originally way over-priced at $340K.

In their mind, they think that the $300K is a steal.

No discussion took place but I've worked enough of both sides of the fences to know it will be a long and drawn out process which my clients do not want to undertake. They are ready to move on and getting into their new home.

I have a client who really needs to do some staging. Perhpas I will share your post with him so he can see the value.

Many stagers are worth their weight in gold. My buyers always respond better to a well staged home.

Nice post Loreena! What still amazes me today is that I receive more calls from Homeowners about staging than I ever do from REAs. 95% of my business comes from the seller directly....with the majority stating that the REA never mentioned the idea to professionally Home Stage. Thanks for sharing your thoughts with the AR community.

Home staging definately rocks but too many clients don't get the value! Good post!

I agree with Kathleen. I don't think sellers understand what staging entails, at the very least every home should have a consultation. Sometimes that is all it takes!

The people that always mention 'well I have to live here ya know' are the biggest clutter offenders. People don't want to see how the sellers live in the house, buyers want to see the potential on how they will live in it. With alot less stuff and gym equipment in the dining room!

SEP

Loreena, I love your post. How I wish more sellers had this realization and vision. What the sellers don't understand is that staging isn't costly and it certainly takes away that temptation of "reduction offers" that buyers make when they can't see through the clutter or dated furnishings. Staging brings that "I want to live here" response. What a difference in listing pics that bring in more potential buyers when a home is staged before it is listed.

www.itsahootie.com

Staging South Metro Atlanta

Loeena:

People just simply cannot see past clutter. That is a fact. That seller is losing money by not doing the very basic things when selling a home. It annoys me when I show a house like that because sometimes I can see potential but it is real turn-off to the buyers. You only get one chance to make a good first impression.

Loreena,

I appreciate your view but I must disagree completely with the post and the commentors. I believe through logic and I know through experience, staging may show better but does not add ANY value to the sales price.

If a home price is valued and priced through what sells, what expires and the actives (competition), it will sell for it asking price. This includes home condition. It includes vacant, staged and cluttered homes. I have sold homes in all those categories to extremes. Homes that other agents would not touch, and they sold. I tell my clients "some agents have you waste money to make their job eaasier or to keep negative comments from other agents so they will not be embarassed. We will only get bad comments from the agent. Serious buyers will look past the clutter..." unless steered by a agent who lives for staging!

For agents, who consult a lower offer on a home well worth the asking price, you are doing your buyer and yourself a huge dis-service. Remember, you are not buying the clutter or staging props from the home.

My opinion, show the homes that meet the buyers criteria, show the disclosures and priceing tools for each home, compare the homes one for one and get them the best home to their needs... not the prettiest one.

PS: I do stage if it is low/no cost and stage the curb to see the home. Trim back landscaping to the max. I do appreciate the forum.

I hope that helps.

Tony

Great post. WE stage the homes that we fix and flip. We have bought furniture from garage sales over the years to fill four homes. We purchase a home at the court house steps. Then, we fix the home up with tile, fresh paint, new appliances etc. Stage the home. We get a contract in 30 days or less because it is the best looking home on the block just below market value. I agree with you.

Loreena you are great!!! Thanks for helping "preach" the benefits of staging - it is money in the sellers pocket - and time in everyones hand. I also appreciate you using the word, "professional" because it does distinguish.

Crazy wierd attitude about staging. It's called dress it for the best.

SEP

Very true Loreena. Some properties would benefit greatly from a little staging.

Loreena, thank you for commenting on the value of staging.

In my area of Florida where prices really crashed, my phone was pretty quiet for many months, but now finally, it is ringing again. I think that in the beginning people didn't want to spend more money on top of the money they felt they were already losing in lower property values, but now, after months and months of sitting on the market with no offers, sellers are realizing they need to do something more.

It is always encouraging to learn of realtors in support of hiring professional stagers. Thank you for your post.

Tony - I see where you are coming from with your discussion about staging sees no value. Ultimately, the house has to be priced correctly for it to sell.

It seems very clear to me that there is A VALUE to staging and I only wished I could prove that with experiment. Thus far, I cannot compare apples to apples and that includes location, price, etc.

If Staging has no value, then model homes would then just be empty with a desk for the sales person. They would not go all out to showcase the property, accentuate the features with colors and styling. A plain jane house would sell for plain jane price.

Thus far, none of my seller clients would let me experiment it.

OCT

Coming from an Agent, I really appreciate your VOICE on STAGING!

Stagers are constantly trying to convince Real Estate Agents that we are a necessary marketing tool to help prepare your listing for the market.

Staging transforms homes to their fullest potential which helps buyers envision themselves living in the space. It captivates buyers wanting that property. This is a benefit to both the seller and the Real Estate Agent.

Not to mention, although heard of many many times...but I will say it again:

Staging creates impressive listing photos - Agents do you not want to grab your audience?

Staging helps your listings move faster - Agents do you not want to make more money, or would you rather spend the money marketing month after month on a weak listing?

Staging takes care of your clients mess, clutter, awful choice of decor, odor issues - Agents wouldn't you rather have a Stager bring up the sensitive issues? Or do you take the chance on the matter and jeopardize your relationship?

Stagers take care of getting the house "show home" ready for Open House - Agents would you rather take the time and energy away from your real duties and go fluff up the pillows and make sure the pets are dealt with?

Staging shouldn't be about the money or whether who pays. If the Client (seller) needs the service, then they should pay. As it is no different then all the other costs associated with selling a home ie, home inspector, lawyer...

But what is nice is when a Real Estate Agent can suggest the use of a Stager because it shows that you believe in the benefit it has for not only your client but for your business.

Carrie - Bliss reDesigns, Vernon, BC Canada

OCT

I value stagers Loreena and I love to see before and after photos.

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