Real Estate Blog - 2009 Home Gain Study Questions - Does this study reflect true costs of all Home Staging services as an average of $300?

Home : Blogs : Karen Otto, Home Stager, Plano, TX 469)964-0516 www.homestarstaging.com : North Texas Home Staging - Not Your PlanO Staging Blog!

2009 Home Gain Study Questions - Does this study reflect true costs of all Home Staging services as an average of $300?

Recent posts on the 2009 Home Gain Study have made me wonder where the averages of these home improvement costs are coming from and if this is helping the home staging industry reflect the true investment and value of the service we provide.

Please don't get me wrong, I am thrilled with any reports and statistics that reflect the positive return on investment that we in the industry know that home staging provides. My concern is that a potential client (and this includes Realtors) will see this and think home stagers can provide all their home staging needs for an "average" of $300 and that is simply not going to be true in many cases.

While the study is great in showing the ROI for these "under $5,000" home improvements, many of those listed in the study are actually areas that home stagers would already cover in a home staging consultation. From "lighten and brighten" to "cleaning and decluttering" these areas are what home stagers would make recommendations on in a home staging consultation and if the $300 average for home staging in the study means a "home staging consultation" then I whole heartedly agree with that.

From the study these were the Top 5 that Realtors recommend based on cost and return on investment (from highest to lowest ROI):

1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI)

Since the study was based on answers given by Realtors, I'm just curious to know what everyone (home stagers in particular) thinks about this average cost for home staging being $300 and if it is truly reflecting the investment and value of the service in it's proper light.

As one commenter & fellow Texas stager, Michael Fontana, The Stage Coach, made on Marianne Sweet's post on this new study:

"Home Staging covers a broad service area - REAs and Home Stagers define Staging differently."

I have to agree.

But my questions still remain;

Is the average cost of all home staging services truly being reflected properly in this study?
Is this specific to a certain level of service?
How is home staging being defined in this study?

Thoughts?

***********************************************************************

For expert advice on preparing a home for sale contact Home Star Staging, a Plano,TX based Real Estate Staging and Consulting company.

Home Star Staging is here for you North Texas!

By TwitterButtons.com

Posted by Karen Otto, Home Stager, Plano, TX 469)964-0516 www.homestarstaging.com on 11/06/2009 08:50 AM

Comments (15)

2009 home gain study, home staging, home improvement costs, roi, home star staging, preparing a home for sale

Originally posted at: North Texas Home Staging - Not Your PlanO Staging Blog!: 2009 Home Gain Study Questions - Does this study reflect true costs of all Home Staging services as an average of $300?

Post is included in group: Stage It Forward...
Post is included in group: Realtors®

15 Comments on 2009 Home Gain Study Questions - Does this study reflect true costs of all Home Staging services as an average of $300?

NOV

Karen: I thought the same thing, until I read the report. It is the cost of low cost do-it-yourself home improvement projects. I could easily see how some home owners would only spend $300 for a quick spruce up, if all they are doing is adding a couple of pots of flowers and a new doormat by the front door or buying a new bedspread for the master bedroom. I don't really consider that staging, but I didn't write the report :o) Also, the survey was sent out to Realtors only, not homeowners, so that may have skewed the results a bit.

For $300, maybe less in some parts of the country, the home seller can get a home staging consultation to pinpoint which repairs and updates they should take on.

That explains a lot of it then with the "do-it-yourself" part Michelle. Thank you for sharing that.

My feeling is that what will be happening though is that potential clients will be receiving this info in its stripped down chart form with no disclaimer and translate it as the average cost of home staging in general, whether they do it or we do it is not going to be thought about. We all need to be cognizant of making sure we clarify this was a "do-it-yourself" average.

Hey, Karen:

This Home Gain Study is not new by any means - it's at least the third report I have seen since throwing my hat into the Home Staging ring. And every year, right after it comes out, I have to explain to potential clients [REALTORS and Home Owners] that Home Gain does not define the services provided for that cost.

How does the Samuel Clemens quote go: "There's three kinds of liars: Liars, Damn Liars, and Statisticians..." Or some thing like that. While I concur that it is good news that Home Staging is being painted in a positive light, I do not like to toss around any numbers as to increase in sales price, or time on market. Because I do not trust Statistics if I have not gathered them myself.

Like Home Simpson says, "Oh, people can come up with statistics to prove anything, Kent. 14% of people know that."

Thanks for the Props! Happy Friday!

The Stage Coach Austin Home Stager

Hi Coach =) yup, I know this study but it's the first time I've made a sound about it in a blog about the statistics. This year I felt it necessary to comment as the home staging industry has grown in exposure on TV, media and in many local markets and while reports like this are great on many levels - it needs to be clear on where the stats are coming from. I like your quotes!

Karen ~ your post brings up some excellent points. I too think the Home Gain report may be misinterpreted by Realtors and passed on to Homeowners....and they may think that it means that you can get your home "Staged" for about $300. A good home staging consultation can provide many DIY home sellers great suggestions on cost-effective ways to make their home more appealing and inviting...but many homes need multiple improvements including painting, light fixture replacements, landscaping work, repair of many small things that all add up. Most of the clients that I've seen end up spending more than $300 even if they do the work themselves. Too bad the Home Gain report doesn't come with a more detailed description of what's involved in each category. This is the reason I've never handed it out with my marketing materials. I personally don't think it helps us that much!

NOV

Hi Maureen, yes to know what's involved in each catagory would be very helpful! We all know that staging returns the investment and in most cases the ROI is much much more than the initial investment so whether they spend $300 or $3000 on home staging it's always worth the investment!

When I read that stat, I felt that it was way too low. Yes, that would cover a consultation but not much hands-on staging. I agree that they need to define the different areas of staging to represent the industry accurately.

NOV

Follwing the links in the report ......it clearly states these are DIY

♠The report sounds the quotes given on HGTV for staging a home. They forget about the labor involved.

$700 to paint the interior walls of the house sounds right if the home owner does it himself.

Hi Karen,

It is so hard to quantify the benefits of staging. First of all, there's staging and then there's staging. We know the difference but a lot of people, including Realtors, don't.

You can stage your brains out but if the property is overpriced it's not going to sell.
A house can be beautifullystaged and if the exterior features a weed infested yard and broken down cars, it's probably not going to sell as quickly or for as much as a comparable, tidy, well maintained but un-staged house.
Since most Realtors will only pay for a consultation, that's probably what they are thinking of when it comes to a staging budget.

I can only speak for myself, but I stage all of my listings and, even in this depressed market, all of my listings have sold within 30 days. Staging is product development and without it you are going to leave money on the table. How much? A lot more than the cost of well executed staging.

Since the report does define it as "do it yourself", I think it can work to our benefit. We can reinforce the value that staging gives, offer the consult as a great tool for do-it-yourselfers (in many cases our consults are even less than $300) and they can feel good about getting a great value for their money!

Hi Kelly thanks for your added comment on defining the areas represented.

Thank you for including the charts Virginia. This chart does reflect the DIY explaination however many of the other reports don't have the "diy" clearly explained nor what they mean by "staging". It is a gray area and I just don't want prospective clients misunderstanding. And no labor costs would be incurred by a home owner doing it themselves - just sweat equity and time.

Great points Susan and love the part about staging being "product development". Haven't heard it put that way but it's perfect!

I agree Kim, in many cases a consult are even less than the $300 average mentioned in the report and many times we save the client more money by helping them focus their dollars and time on where the best improvements can be made.

NOV

Karen, this is the first time that "DIY" has been included in the header of their charts. Their last survey in 2007 that I have been using did not say Do It Yourself in the header, nor do I recall seeing that explained anywhere.

I am so glad they have done so because I always thought those 2007 numbers were way too low.

It is a shame that they don't define the activities going into Home Staging, so one can only guess that it could include the cost of the consultation or it could include what the homeowner spent as a result of the recommendations excluding lightening and brightening, decluttering, etc - all of the categories above. Maybe it's just what they spent on decorative accessories like bedding and towels.

You're right Donna, this is the first time they've included the "DIY" in the header of the chart & when I started reading posts about this new study the charts weren't included but the data was and that's where I think some mis interpretation will come if we're not careful.

When you mention the cost of decorative accessories I can easily see $300 going into a nice master bedroom/bathroom linen set alone.

I wish they would define staging too, it's open for interpretation. If paints not included, just what are they buying or getting, if not just a consultation?

NOV

Good question Cindy! I'd like to know the answers too.

This blog does not allow anonymous comments