"Why stage if homes selling fast and may not even appraise?" Overcoming objections.

So this forum has helped Realtors overcome typical objections from homeowners and sometimes Realtor objections.

I just got one, and I'd like to get your thoughts on a fair response.

My email: "No staging?"

Reply: "I'm already selling houses higher than appraisers will go for without staging. Why spend more? So we can be further above appraised value? I've also had the worst time in general with the staging. A lot of hassle for very little return is what I've experienced."

So obviously there are two issues there, but lets focus on the first one.

How would you reply to that?

Frank

Posted by FRANK LL0SA- Northern Virginia Broker .:. FranklyRealty.com on 10/05/2009 12:15 AM

Comments (6)

6 Comments on "Why stage if homes selling fast and may not even appraise?" Overcoming objections.

OCT

Frank,

I am sorry to hear about the hard time you have had with staging. Are you staging vacant homes or occupied homes? From your email it sounds like you are selling occupied homes since you mention homeowners.

If your homes are selling higher than their appraised value, it sounds like your homes are standing out already. Do you give your clients hints on how to prepare their homes?

I think your question is what is the derived value of the staging versus the hassle? Perhaps you could do a test with two comparable homes and have one staged and leave one un-staged and see if the staged home sells faster and if there is any difference in the selling price. You may be in a great area where everything is currently selling. It is a tough call.

As a home stager, I usually start with a home staging consultation which consists on a full home evaluation, digital pictures, measurements, etc. Included in this consultation is an Action Report of all items that need to be repaired, similiar to a home inspection report. I return to the home a second time and go over the report with the home owner to ensure they understand what needs to be done, packed away, repaired, cleaned, etc. I even include one paint color selection in this consultation. My reports are rather long and are very detailed and most homeowners are very happy to received these reports and grateful for the help. I will recommend a house cleaner, get estimates for construction work that needs to be done, provide the homeowner with discount coupons for storage (if required).

My job is to help alleviate the burdon of preparing this home for sale from the homeowner or Realtor. Most Realtors will not be able to spend 5 hours working on a Home Staging Action Report for every home they are trying to sell. I also offer a service to come back a stage the home prior to the Open House once the Action Report items have been implemented.

Have you tried more than one stager? I have been called in on multiple bid projects. The Realtor was up front with me and told me he was calling in more than one stager for pricing. This way you can get a feel for how each stager works. You could be a better fit with another stager.

-Kate

Hi Frank, since I know that you are pro-staging this is an interesting question. I DO NOT and have never told people that they can get more $$ for their house if it's staged. That would put my behind on the line and in this market it doesn't always ring true. Professional staging makes a home more appealing to a broader range of potential buyers...period, that's my spiel. I think that your reponder needs more educating on staging and their expectations and that's not surprising. There are MANY misconceptions floating around about this business. Claims of more money and in less time are tricky and IMO misleading.

Frank - Could you elaborate more on your defintion of "the worst time in general with staging". Are you having trouble with the stagers in general or the value for the service they provide?

I've staged more than 100 homes in the DC area - we've had recent projects where we worked with the homeowners for almost a year to get their homes market-ready. I'm finding most of the objections regarding staging come from Realtors - not the homeowners.

If you want I can give you some names of stagers in your area who have solid, full-time businesses and excellent references.

Frank, I don't think that people are reading and understanding your blog post correctly AND YOUR point of view regarding staging.

OCT

Frank: We recently destaged a pricey home. The listing agent (who is a home staging fan) requested that we destage after the appraisal as he felt the home would appraise higher with the staging than without. If a home is getting offers above what it may appraise for, why not use one of the best tools available for raising perceived value - home staging? The logic in the reply email you quoted doesn't make sense: Don't make the house look better so it appraises higher.

Appraisers follow hard and fast rules when appraising homes, but the process is still somewhat subjective when considering condition and resale-ability. Of course a home that looks nicer, smells nicer and feels nicer is going to be valued more highly. Its human nature.

Here is the logic in numbers no staging: list price $400,000 contract price $410,000 appraisal price 400,000 closed price $400,000 (90% of homes get knocked down to appraised price) with staging list $400k contract $415,000 appraise $400k close $400k staging $2000 in the end, the client is worse off. That is the argument against it frank . with staging list price $405,000 contract price

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?