Can't Sell It, If You Don't Know It!

karen,

Thanks for the post. It is all about the education. There are still too many people who don't understand the potential for benefits.

I think one of the reasons the price is asked up front by realtors is because that is what their sellers want to know- this comes out of pocket up front.  We have to sell it to them, it would be good to know a range of price to tell them plus show them the stats on the benefits.

I am going on a listing appointment this week. I haven't seen the house but I am sure it could benefit from staging. Here is the problem. The sellers are now 3 months behind on their mortgage payments. This will be a short sale if not ending in deed in lieu or a foreclosure. Do I think the sellers have any money for staging?

Karen, since I'm a realtor I like to know the price because A)I might be the one paying for it and remember, I don't get paid until that house sells.  If it doesn't,  I lose money because I don't get paid, and now I have to come up with the money to pay the stager.  Or B) That is the main concern with seller.... they are only thinking of making money off of their home and I have to work them up to staging.  I am a big  pro-stager but when you are dealing with someone who doesn't have the money to pay upfront or just sees dollar signs this has to be the first question.

As a realtor, we don't go over compensation until the end, because sellers have an idea of a percentage range of what compensation is.  Yes the percentage may be different from realtor to realtor, but they know just from talking with other sellers who have worked with that particular agency in the past.   And they don't pay us unless it sells.  So they can wait to pay when they have money from the closing instead of trying to worry about it up front. 

You make a good point, but I would do the same thing. If I'm paying for it, I have to know if I can afford it. and since I hate being on the phone, I want to get to the bottom line ASAP. If my client's paying for it, I guess the same reasons would still apply. Both agents and sellers don't have the money for that transaction until the property is sold. So we need to know if we can afford the staging.

I wil say that I can understand your frustration though. Sellers do the same thing to REALTORS. But I won't discuss commission on the phone. I schedule an appointment first. And I tell the seller that I can't give them a commission quote until I meet with them and see the house. I need to know if I can work with them, based on personality, and on what they expect from me. And I want to make sure that the asking price is feasible. So there's no point in discussing commission/price on the phone. Maybe you should start taking that approach.

You nailed it! It's education education education.

The success stories such as Karen's above speak volumes! It's not always the price that matters - its the quality - the same idea applies to the listing itself selling for more because it was staged vs a vacant having multiple price drops. It's only through the hard work and dedication of all of us here on AR and afar that will continue to educate and help Staging 'make sense' to the status quo. 

I personally feel if a Realtor doesn't even introduce the benefit of a properly prepared home and the immediate affect it has on the success of a sale - they are doing their clients a disservice. Price reduction some how seems to be an 'easier' conversation but I believe that will change again with time and education. 

Great post!

Dawna

I love those statistics. I do understand where realtors come from with the idea that we should get paid after the sale. I think we should really think about this. If so, we should ask for 1% of of the sale price. Of coarse, furniture/accessory rental would be paid month to month. That would make it worth while waiting...

$250,000 home would bring $2500 per staging. Not bad for a few days work....

Let's start thinking a little different. Put your thinking caps on....

Karen -

Price seems to be the top priority, at least in my area. I've only lost bids to stagers who were priced lower, never because my work didn't show well. It is a bit frustrating but what can you do? Hopefully these realtors are calling you because they have seen your work already.

My husband had the idea to offer one price for staging getting payment up front and then a higher price if we waited for payment at closing. It's not a bad idea, but there are so many things that are out of our control (how well the realtor markets the property, whether it is priced right, whether the client is willing to make necessary improvements) that I just haven't wanted to go there.

Karen -

Price seems to be the top priority, at least in my area. I've only lost bids to stagers who were priced lower, never because my work didn't show well. It is a bit frustrating but what can you do? Hopefully these realtors are calling you because they have seen your work already.

My husband had the idea to offer one price for staging getting payment up front and then a higher price if we waited for payment at closing. It's not a bad idea, but there are so many things that are out of our control (how well the realtor markets the property, whether it is priced right, whether the client is willing to make necessary improvements) that I just haven't wanted to go there.

Karen - Good Post!  Yes sometime for some people it just comes down to price!  I always tell them that we have to see the property, and discuss the scope of the job, because every job is different but we can nomarlly work within most budgets.

Rich - Your sellers may not have money for full staging, but this is where a consultation could be very beneficial.  Check out Dawna Graham's blog -- Almost Perfect and They Did It Themselves!! and you'll see what I mean. Consultations are very cost effective and some realtors even pay for them themselves. 

Kelly - We have had that issue too where we lost bids just on price.  It will always happen but if you keep up your service and quality you will always get business.

I understand how many people who have never used Staging before have NO CLUE about pricing and that is the most pertinent question on their minds.  But as with any professional, it is only fair to ask a little info about the service and what may be required for the project in order to get to the price question.

Good post Karen, If I had a dime!  I have even been called by the same Realtors more than once a few months apart, guess they forgot they already asked.

Lisa said "But I won't discuss commission on the phone. I schedule an appointment first. And I tell the seller that I can't give them a commission quote until I meet with them and see the house. I need to know if I can work with them, based on personality, and on what they expect from me. And I want to make sure that the asking price is feasible. So there's no point in discussing"

What they expect from me

I have used this similar wording until I am blue in the face with many Realtor calls.  Why are we expected to price ourselves without benefit of seeing a property and what is required.  Most homeowners I have dealt with understand this simple fact.  It could be a less or it could be more, no two properties are the same. 

I should think Realtors would understand this given that it benefits their client.  If I charged the same for each home or a standard fee, what does that say about the services I offer? 

I can and do ballpark sometimes if I can get enough questions answered but that seems to be irritating to some Realtors and too time consuming.  Those are the ones I quote a high hourly and end the conversation.  They probably would be a nightmare to work with anyway.

Just my 2 pennies

This is an excellent post and great to see it featured.  Clutter eats equity!  Realtors should not pay for staging if their clients can't aford it.  They should offer to pay for a comprehensive consultation report with a professional stager who can guide them properly.   Vacant homes are not selling! Their homeowners should invest in staging so they are motivated to present the home in prestine condition.  The Realtors should not be paying for staging to get the listing.  Realtors don't give CMA's on the phone.  Stagings don't give quotes on the phone.  We all need to give presentations and see the property and its unique character.   This is my 2 cents.      

Karen:  Great discussion!  I especially like your suggestion of looking at DOM for occupied vs. vacant--though in my market so few occupieds are staged and so many show poorly, i'm not sure if the statistic would prove the point!  But i'm going to check into it!

If we had a nickel for everytime the agent's first question has been about pricing, well, we wouldn't have to worry about pricing!  As to Michelle's point, it seems that she, like so many realtors I run into, is not comfortable referring to staging in general...afraid to upset the delicate applecart of seller's feelings and loyalty.  i think the bottom line here for all of us is to do what's best for the client....whether stager or agent, we need to educate ourselves in how to simply (or delicately) present the best options for them.  if staging is called for, and we're confident it will help, then it needs to be confidently presented that way, rather than (sheepishly/apologetically?) 'worked up' to.....

agents and stagers need to work on relationship building to enhance this confidence...so the agent will be more likely to shell out their hard-earned cash for the consultation, confident they'll see the results with the stager they've come to know and trust.

maybe the question from the agent should be:  'if i refer you to this seller, and pay for the consultation, can you see what you can do to work within their budget to implement the changes you suggest?'  in my experience, that's only a question agents need to ask once--the first time they work with the stager. 

come on agents, try it once!  you've got one consultation fee to lose, and LOADS more to gain!

Great post! Thank you!