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I Can't Afford to Lose $50,000 - Can You?

Thanks to Activerain, I was referred for a vacant staging job (YAY!). The sellers had recently purchased a lovely vintage property for $1,800,000 million, but never moved in. They decided to put it back on the market at $1,950,000, then reduced it to $1,875,000.

Nestings was called in for a quote and the Realtor was very supportive of staging (YAY!). This is a wonderful property, but called for furniture to help with traffic flow, floor planning, and warmth. What a great opportunity! The ballpark for appropriate rentals, plus my fee, tax, delivery, etc. would work out to $4,500 - $5,000 per month. A three-month period would cost $13,500 - $15,000. This is a lot of money, but still far less than another price reduction.

The sellers called me to say they weren't going to stage the house, they'd "go another way". The property has since been reduced to $1,750,000. I'm stunned. At this point, they're $50,000 below what they recently paid for it. Who knows what it will actually sell for.

I know there must be other factors and nuances at work here; I don't know if there is a mortgage. (In this case, there may well not be!) I know the market is rocky...but I just don't get it. Of course, I can't afford to lose $50, let alone $50,000. While I wish them well, I'm on to the next challenge!

Well, here's a breath of Spring for all to enjoy!

Happy Staging All! Julie

Posted by Julia Maher, Staging Fairfield County Connecticut CT on 04/28/2008 02:24 PM

Comments (14)

nestings, homestaging, vacant staging

Post is included in group: Stage It Forward...
Post is included in group: VACANT HOUSE STAGING & NEW HOMES
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14 Comments on I Can't Afford to Lose $50,000 - Can You?

Sometime Sellers just don't understand what it will take to get their homes sold. They would rather trail down with the market instead of being pro-active with pricing or staging.

04/28/2008 02:35 PM

by Steve Glose, Keller Williams Central Florida (Keller Williams)

Julie ~ I hate math and even I can see that! Maybe because they are not physically parting with money with a price reduction and paying for staging is (a physical parting with their money)? I don't know, and I don't understand it either! Love the pic!

04/28/2008 03:03 PM

by Kathy Passarette, L.I. Staging/Decorating (Creative Home Expressions)

OMG, I just went through this same thing, and I just don't get it. If the owner of a $160,000 house gets it, why doesn't someone who owns a million dollar plus home? Especially when the buyer pool is so much smaller, the house has to be WOW!!! Another thing to think about: when I shop for a home, I don't want to see anything that's had price reductions. That just tells me the house isn't selling. Who wants to buy a house that someone else is struggling to sell? If a home is staged, I just figure the seller is smart. ;)

04/28/2008 04:17 PM

by Elaine Manes IRIS~Colorado Stager ~ A Wonderful Space, LLC (A Wonderful Space, LLC)

Many people new to the concept of staging don't get the importance and sometimes even agents recommend price reductions as opposed to encouraging their sellers to pay for staging. A price reduction is the easy way to go for an agent - if they recommend seller's spending that kind of money on staging and the sellers aren't comfortable with it, then if the house doesn't sell they may blame their agent for their out of pocket costs. I am sure you will get another great job soon!

04/28/2008 05:30 PM

by Tori Lynn Ross - Omaha's Premier Home Stager (Ross Designs, LLC)

Julia, It is always interesting to try to see how different people deal with their money matters; isn't it? Don't give up. They may come back to you yet.

04/28/2008 06:35 PM

by Yvonne Root Northern Arizona Home Stager (rooms b.y. root)

The time-worn adage "It takes money to make money" has never been so true in the real estate market. Very few sellers understand that this is crucial today. They don't seem to get it that not spending the money now IS going to cost them BIG TIME...because of time. It's such a difficult message to get across, but somehow we have to get it out there. Hearing everybody's frustrations here does help, just to know that no one is alone with this dilemma. THANKS AGAIN AR!

04/28/2008 06:43 PM

by Ginger Foust- Dream Interior Redesign & Staging (Dream Interior Redesign & Staging by Ginger Foust)

I went through this recently at a home in Toluka Lake, CA. The home was beautiful - and same thing as your scenario, they didn't want to spend just under $8,000 over the course of the next 3 months to stage it ~ and that wasn't staging every room in the house. I presented three (yes, three) different payment options and they still didn't bite.... oh well, their BIG loss!

04/28/2008 07:22 PM

by Connie Tebyani, Platinum Home Staging Serving Los Angeles and Ventura Counties (Platinum Home Staging, Inc.)

It seems to be a common thread. They would rather take a price reduction that make it nice to sell for more money.

Obviously they have more money than they know what to do with:

buy a house

reduce is that much

pay all the closing costs

What a loss

04/28/2008 07:26 PM

by Virginia Tatseos Stage-Show-Sell (Stage-Show-Sell)

Julie, it's REALLY frustrating when they just don't get it. They REALLY don't get it, or money means nothing? Hard to figure out the logic. One is out of pocket and the other is paper money...guessing that's what it is in their world. GEEZ...good post.

04/29/2008 02:39 AM

by Terrylynn Fisher StagersLIST.com Buy Stage Sell (Diablo Realty)

Thanks to ALL for your comments...

Yvonne: Thanks for your optimism - I will follow up with both the sellers and the Realtor - nothing to lose, everything to gain!

Terrylynn: I still owe you a call...I think of the price reduction as "invisible money" - they don't see it, and now they'll never see it!

Elaine: You're right on about the buyer pool - not that the house is so expensive, but it's unique vintage character really sets it apart. The sellers fell in love with it - and with the previous owner's furnishings - couldn't stop talking about them! That house really needs staging...

Onward! Julie

04/29/2008 06:55 AM

by Julia Maher, Staging Fairfield County Connecticut CT (Nestings)

Julia, unfortunately too many are familiar with ancient history, but not modern happenings. This simply continues to point out the need to educate people on what the modern world is all about.

04/29/2008 09:45 AM

by Gary Barnett Home Matters, Home Stagers, Indianapolis (Home Matters)

Julie - I just reciently checked on a property I did a bid for back in January...its still on the market...reduced $70K!!! amazing...

04/29/2008 04:44 PM

by Stephanie Stuber - Aesthetics Home Staging Fairfield County CT (Aesthetics Home Staging and Redesign)

People do seem to be used to the idea of price reductions but staging just throws them. It is the spend $ to make $ - most Realtors aren't even recommending staging where I live.

04/29/2008 10:16 PM

by Kathleen Lordbock (Re$ale Design) ~Minnesota Home Stager~ (Re$ale Design & Home Staging)

Julie - I'm at a loss for words...a $70K price drop below purchasing price and still no staging for a luxury property. Feedback from the Realtor(r) as to the reasons behind the decision?

Jackie

05/05/2008 05:39 PM

by Jackie Peraza, Home Stager - Framingham, Massachusetts (Perceptions AdverStaging(TM), LLC)