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STAGING for FREE... how far should we go as a REALTOR?

By
Real Estate Agent with Century21 Towne Adams

My desire is to help people. Therefore, I offer FREE STAGING for my clients. Still I wonder at times if I should charge a small fee. Below are some of my reasons for feeling that way. What do you think?

Entering a home for a listing presentation gives you the best time to assess and see the home, as a prospective buyer will.

The first step a buyer takes into a house, before they look at the layout, can either sell or not sell the house. Does it seem dark, small, smelly, dirty, cluttered or have no room definition? This is what they will remember.

The rooms may be very large but have too much furniture or accessories, and that makes it feel smaller. Just pointing out the fact that it is a large room crowded, with too much furniture, will not change anything.

As a Commercial Artist and Realtor, I know that most people are unable to visualize what something can look like, only what it does look like. Only what they see with their own eyes at that moment.

IF I can stage a home so that it will sell faster, I help the owner and myself at the same time.

This brings up the question how much FREE STAGING, time, and money should we spend on a new listing.

Should I have an agreement for the seller to sign, that if they do not continue to list with me, or decided not to sell their home then there will be a fee for the staging due?

What has me wondering is the experiences below.

One client had a wonderful home with beautiful furnishings and accessories to the max, just too many. There were so many it was hard to walk around in the rooms. The owner was happy to let me advice her on the items to remove, and I moved what was left to the best locations to show off her home. This was free of charge for each room. All was fine, the pictures were great, the correspondence between us was three times a week. Even extra directional signs, individual websites for the home, extra photo signs outside, and brochures at the road. My partner, and I did it all at no extra cost because, we knew how soon they needed to sell. One directional sign was stole, the seller went ballistic, and we lost the listing. I did not lose any items since we used her accessories and furniture. Still, at that point, I wished that I had charged her a small fee for my staging services.

One other client whose home was to be listed, took my advice, and loved the changes so much, they decided to keep the home longer, and enjoy the changes. This turned out good for my pride but I lost the listing. I hope when they do decided to sell they will list with me. Again, I wonder if I should have charge a small fee.

Then there is the up side in staging free. One elderly lady allowed me to help her pack away the extra photos and accessories and stage her home. We sold it in one day and had thirty calls on it from the MLS the first week. I felt great in helping this sweet lady down size to a new home.

What is the verdict? What do you think?

Norma Freeman REALTOR@

Century21 Towne Adams

Lisa Ackerson
JP and Associates REALTORSĀ® - Keller, TX
CRS - Dallas Fort Worth Area Expert
I recently listed a property in my neighborhood that had been on the market for a year with another Realtor.  I decided that we needed to make some drastic changes in order to bring the Realtors who had seen the property previously back.  I decided to add staging to my listing presentation in order to get this house sold and sold fast.  The stager was fabulous and the house looks great.  Because this property is in my neighborhood I don't want it sitting there with my sign for too long so I'm hoping this will work.  I found a stager who will offer a consultation to the seller for $100 so I'm going to continue adding it to my listing presentation.  I figure if it works and sells the homes faster, it'll be the best $100 spent. 
Jul 04, 2007 11:17 AM
Tony D. Howell
The best place EVER! - Wilmington, NC

Well it seems that you should.  I mean we charge a application fee upfront before proceeding with a mortgage.  The reason why is that we HAVE to pay for an appraisal.  If the loan falls through or the buyers change their mind, I'm not paying for it out of my pocket.  Now on re-fi's, we can include it in the closing.  But I let the clients know up front that if we don't complete the transaction, they will be required to pay it.  I haven't had a problem so far.

I would think you could add a small clause in your listing contract to have the staging fee paid if they drop you or change their minds about selling.  But I'm no realtor...good luck and have a safe and happy fourth!

Jul 04, 2007 11:25 AM
Norma Freeman
Century21 Towne Adams - Waco, TX

Lisa,

Thank you for your comments. Lisa, who pays the $100 for the stagers consultation?  What is included in the consultation?

Norma

Jul 04, 2007 11:29 AM
Wendy Montoya, REALTORĀ® Broker Associate, 254-315-4906
Towne Adams REALTORS - Waco, TX

I work with Norma quite often and feel that she is a great when it comes to people helping stage a home. She takes complete charge and makes the home appealing where it was once not. I think as part of a listing presentation, initial consultation could be free, but major staging projects might be best as a paid service.

Norma, I like what Lisa said and think that is a great idea, so you could perhaps follow this route to help us Waco agents and our sellers out a bit.  I don't know who else locally would provide this service, so it is best to research that a bit as well to see who you would be competing with for business.

Wendy

Jul 04, 2007 11:29 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty
I pay a professional stager to do a consultation, report and then come back for fine tuning.  It's part of our package.
Jul 04, 2007 11:39 AM
Norma Freeman
Century21 Towne Adams - Waco, TX

Wow! Thank you each, for your fast response to my questions. What each of you have suggested makes great sense. As you said Tony, buyers have to pay application fees up front to apply for a mortgage. My other concern iss that if I charged for staging it would turn off sellers and they would just list with someone else. Your answers are a help. Thank you Wendy for your kind words.

Norma

Jul 04, 2007 11:41 AM
Ibi Sofillas
MyRealtyTeam Real Estate, LLC - Clarksburg, MD
Broker

I have just put a plan in place to do the same thing. It will be in my listing presentation, as a must have in today's market.  And they, the sellers, will pay for it.  There are many stagers in our area, I am sure you have them too.  Make sure you find someone who fits with you, that way they can support you and what you do!

Jul 04, 2007 11:41 AM
No Longer Available
White Rock, BC

Norma, as professional home stager, it is great to see a Realtor, who values staging!

What you are doing is Phase II staging, and is generally charged by the hour for a stager to do.

Many Realtors will offer a staging consultation at a discount to the Realtor.  The stager will go through the home, and do either a verbal or written report.  The fees vary for this service.

You should consider some sort of fee for this "additional" service that you offer.  Or refer it to a stager in your area.

I wrote a blog about this subject not to long ago, as I was asked by a Realtor to assist her in providing free staging to her clients.

http://activerain.com/blogsview/120884/Free-Staging-What-to

There were some very good comments, especially about the client needing to be invested in home staging.  It is difficult to keep a home staged, if they have not paid for it, they may not be motivated to keep it staged.

I would invite you to join the group "Stage it forward"  it is a great group and you would learn alot about staging, the services, the success, and probably meet a few stagers in your area.  I know there are some from Texas!

Hope this helps. 

I do not mean to hijack your blog with mine.  I just see you are fairly new, and may not know your way around just yet.

If you are bothered in anyway, I will remove it.  :-)))))

 

Jul 04, 2007 12:01 PM
MAUREEN STACCATO
Springfield, MA
This is the first I've heard about a consultation fee- Hmmm. Well I guess it is the right way to go after all you are devoting a lot of time into a plan of action for the client.
Jul 04, 2007 12:06 PM
No Longer Available
White Rock, BC

Maurreen,

Some stagers will just do a proposal.  Especially if the home is vacant. 

A proposal is were you come in, take pics, then prepare a bid for actually doing the staging.  Stagers don't typically, charge if they are only preparing a bid.

A consultation is a little more in depth.  Involves, a min. of a couple hours, and results in a Full Marketability Report. For the client to follow, and/or includes a proposal for staging services.

 

 

Jul 04, 2007 12:36 PM
Norma Freeman
Century21 Towne Adams - Waco, TX

Joelle: I went out to your blog.. great one. Also joined the  "Stage it Forward" group as you suggested. Both are wonderful. I have considered taking a beginners class in staging, so that if I decide to charge a fee, I will know how to charge for each step of work. At this time I only offer free staging for homes that are already furnished. The ideal of staging an empty home is a new thought for me. I can see where using the wording "complimentary staging consultation" would be better than saying free staging.

Norma

Jul 04, 2007 12:54 PM
No Longer Available
White Rock, BC

Norma,

That is great if you joined, Stage it forward!  We will welcome your input.  If you spend enough time there, you won't need a course.  There is alot of info there. 

In all honesty fees vary from city to city, and within each city.  Some charge a $100 for a consult some $800! 

It all comes down to what the market will bare, the stagers experience,  marketing strategies and success rates, etc.

 

Jul 04, 2007 01:06 PM
Norma Freeman
Century21 Towne Adams - Waco, TX

Lisa, Tony D., Wendy, Tony Marriott, Ibi, and Joelle:

Well, it seems that the vote is 100% for charging a fee for staging the homes of my client's. Starting at once, it will be included in the listing presentation. From your suggestion, the fee will be $100, paid at the time of listing by the seller.

Thank you each for your encouragement and advice.

Jul 05, 2007 03:07 AM