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Should Real Estate Agents Pay for Home Staging?

By
Home Stager with Staging Diva / Six Elements Inc.

home staging makes a home stand outWhile it's true that home staging will help a real estate listing stand out from all the other homes for sale, and while home staging will also increase the probability that the house will sell more quickly and for more money-- all of which are of considerable benefit to the real estate agent trying to earn an income from commissions-- I don't believe that agents should pay for staging.

I'm sure there are plenty of home stagers and home sellers who will disagree with me, but here's my reasoning:

If the home seller is prepared to invest in the advice of a home stager, they are far more likely to act on the recommendations they receive.

There is no point getting professional recommendations and then ignoring them. It's human nature that we place more value on something we've paid for. So if the advice is free to the seller (because the agent is paying), they just aren't as committed to the process. Or worse, they don't even believe staging is important. These are not the sellers who will do their part to ensure the home is always showing-ready and they're not the ones who will willingly invest in things like minor repairs or painting.

Some agents include an initial consultation with a home stager on their high end listings. Others will reimburse the homeowner for a portion of the fees after they've collected their commission. Obviously, the higher the price point of the listing, the more room you have to maneuver in terms of what you invest to sell the property.

I've seen top agents who include a staging consultation for all of their listings and others who bring in furniture and artwork at their cost. I have also heard of agents who say they won't take a listing unless it's staged because they don't want the carrying costs and hassle of a listing that doesn't show well.

Personally, I feel it's best to make sure the seller has "some skin in the game" by at least getting them to pay part of the staging costs. This also signals you as the agent that they're serious about selling before you spend too much money on flyers, photography, virtual tours, ads, etc.

Many real estate agents just refer their clients to home stagers, in much the same way as you would recommend a home inspector or real estate lawyer. You aren't expected to pay those fees so why would home staging be any different?

Agents, home stagers, please leave a comment below and let me know what you think or what policies you have in place!

Debra Gould, The Staging Diva®
President, Six Elements Inc. Home Staging

Internationally recognized home staging expert Debra Gould is President of Six Elements Inc. and creator of the Staging Diva Home Staging Business Training Program. An entrepreneur for 20 years and author of several guides, Debra has staged millions of dollars worth of real estate and uses her expertise to train others worldwide. 

Comments (5)

Lisa Walston
Atlas Property Group and Abbey Church Properties - Greenwood, IN

As with any relatively new profession, it takes awhile before this service becomes best practice in all areas. It has been tough in this economy to convince a homeowner to pay for that service, no matter how value added it is, when the margin for the seller is so slim.

Jun 02, 2010 09:34 AM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

The debate on this is endless in our office. I ALWAYS pay the initial consultation, mostly because I want to influence (control) who is selected. Everyone knows someone who thinks they can stage. I use Craig Schiller and, um, pretty much only Craig Schiller and one of two of his folks. My sellers have skin in the game -- they're trying to sell their home! A 2 hour consultation on a $200,000 TH can make a heck of a bigger difference than in a $750,000 home that was professionally decorated. To me it's just a cost of doing business.

Jun 02, 2010 04:02 PM
Michelle King
Home Harmony - Kirkland, QC

Debra, I am not sure if you are taking this position to provoke discussion or because you really believe this.

We work with agents who make it a point of hiring us for every home they list and getting us to do a redesign/staging exercise - hands on.

Montreal may be a funny market. People are not as concerned about making money as in other regions. We come across people all the time who bought their house for 30K and are so thrilled they can now get 200K they don't even care that with a couple of thousand investment they could easily make 250K. This is just one type of example.

The agents who hire us for every home they list get the house on the market quickly, showing its best. The homeowner is relieved because they don't have to do any work. The agent is relieved because the house shows well and potential buyers well they like the homes better.

These agents prefer to pay for our services and just get it done. They are telling us it is saving them time and money.  Guess what... after we are done homeowners are more likely to be willing to paint or do other larger fixes we recommend because they now see and believe AND they feel better because the worst of the work is done.

All this being said when there is more than redesign to do we always recommend the homeowner pay for rentals, repairs and more complicated transition related services.

Why shouldn't an agent pay if they want to control things...the pace, the selection (like Leslie above) and especially if they know they are saving money and making happier clients - as they sell faster?

Jun 08, 2010 05:32 PM
Debra Gould
Staging Diva / Six Elements Inc. - Toronto, ON
The Staging Diva

Thanks Leslie, it's great to hear from a real estate agent who beleives so much in staging and is prepared to invest in it.  You are right, having the "right" home stager is key, there are plenty of people out there claiming to be stagers who have no natural eye or decorating talent. No course or so called "certification" or "accreditation" will make up for that.

Michelle, It's great if you have found agents willing to pay for home staging. My point was that they don't necessarily "have to" because there are plenty of home sellers who are prepared to invest in ensuring their home shows well. Many of my clients hire me before they've even hired an agent and make sure the home looks its best before the agent recommends a pricing strategy.

Some agents are reluctant to pay for staging because not all home sellers will actually sell. Many people list their home to test the market, or they change their mind for some other reason. Leslie, that's why I refered to the client having "some skin in the game."

I've also had clients who decided not to move at all once I staged their property because they realized their staged home suited them better than anything else they'd seen in their price range. That would be a mighty tricky situation indeed if it was the agent who hired me to stage their client's home!

 

 

Jul 12, 2010 01:24 PM