Don't Buy A Staged Home!

Hey guys!

Glad that headline caught your attention.

If you know me at all, you know that I am a huge fan of staging. You can see my blog: It's The Staging Stupid!!

But I, unlike NAR which can figure out a way to say "Now is the time to buy" in the same ad as "Now is the time to sell."

You can't have it both ways!!

I tell my buyers to NOT BUY STAGED HOMES!

Sorry, the seller was wicked smart for hiring a stager to make it look great, well my client will be advised to be wicked smart and AVOID that home and instead go after a more dumpy home and THEN hire the stager to fix it up to his liking. You can see the pilot for a tv show around this idea at http://youtube.franklyrealty.com/

Right now I got a call from a buyer that loved a $540k condo that was super upgraded. It was the EXACT same unit as $500k place. My advice is to bid aggresively on the $500k place and take that $50k (after getting $10k to $20k off) and make your own custom changes!

So do you agree or disagree? Smart buyers should AVOID staged homes!

Frank- Realtor/Broker FranklyRealty.com Virginia

Update: See Buyers! Photoless Listings= $15,000 "Sale"

Posted by FRANK LL0SA- Northern Virginia Broker .:. FranklyRealty.com on 04/17/2007 08:51 AM

Comments (30)

30 Comments on Don't Buy A Staged Home!

APR

2007

Hi Frank. I will be the first to disagree. The properties we stage are move in ready and in our target market (Downtown Vancouver) that is what most buyers are looking for. Often buyers cannot visualize effective or attractive furniture layout, wall color, or the functionality of some rooms. Wouldn't a "wicked smart" buyer hire a designer to "fix it up to his liking" and make "custom changes" instead of a stager. Staging is more for selling, design is for living. Seems to me that your clients will be looking at several properties until they find one they like if they are avoiding staged listings. Do you have time to spend additional time helping your clients with the search? I can however see your point if there is another listing with an identical floor plan but how often does that happen?

Agreed, the word "staging" is for selling.

And yes buyers are drawn to and LIKE staged homes because they are so perfect. It is our job as Realtors to show them this "trick." What I'm saying is they tend to overpay for these homes. They instead need to look past the prettiness and have an agent or a designer give them that vision with the dumps and thus save them $20,000

Again, if you are selling, you are an idiot if you don't stage, but as a buyer, you SHOULD buy that dump and hire a designer to bring it up to par for much less.

Are you saying that staged homes are a good deal and you would be better off getting a place that is fixed up, versus doing it yourself (with a designer) after you buy a dump?

If you had any idea the # of times that a buyer said "but the trim on the floor is coming loose" or "I don't like these old appliances" or " I hated that place, it had a horrible paint job."

I do a complete freak out on them and show them that 80% of buyers will be repelled for those exact reasons and that is why they should try and buy the ugly places (assuming everything else works like floorplan and location). Look past that stuff and see "wow, dumpy appliances are GREAT because now I can get the place for less and put in PERFECT appliances, and not appliances that might be the lowest priced stainless steel appliances that a stager might have put in."

And yes, people have been turned off to a house just because of the color.

I say BUY THAT house and save $10k to $50k! Then hire Jackson to turn your purchase around!

Point taken since you are promoting me. I am definitely open to flying down to Arlington to help your clients spend the $10k to 50k. I'll even throw in a free consultation for you Frank! Looking forward to reading the comments on this blog. I must admit I hate the title of it though lol!

I need to be honest - I fell in love with you this morning (oops, I meant your post) after having read "It's the Staging Stupid!" As I said in my response - it's a powerful post!

With this particular post, I'm confused. You mention $40K worth of super upgrades done to the condo selling for $540K. While you don't make mention of exactly what those "upgrades" consisted of, my guess is that they had nothing to do with having brought in a stager. Instead, these "upgrades" sound more like updating countertops, replacing flooring, etc... I could be wrong, so please correct me if I am.

I'm with Jackson, choosing NOT to show buyers "staged" properties perhaps means spending additional time with your clients helping them find a property they like.

Last but not least, you mention that you're a huge fan of staging. Have you used a stager for any of your listings? If yes, have you purposely avoided showing prospective buyers your own listings?

Kathy

Hey Jackson,

My sister might need staging soon, and she is in Seattle... so you never know.

Kathy,

The more expensive listing is $40,000 higher in price and I believe a designer could mimic those upgrades for $20,000. Thus not only saving $20,000 but another $10k to $20k in the amount off list since it isn't pretty.

I would never NOT show a home. But I will help the buyer see the light with what they could do to a place that hasn't been made pretty.

Yes I use staging for my listings. It is a company policy of mine. It is also a company policy to not do Dual Agency. I either represent the buyer or the seller. And to answer your questions, YES, if I had a buyer, I would tell them to think hard before buying a staged home... including mine!! If the buyer is my client, I'd rather help him get a good deal around the corner then buy my places that tend to get an extra $10k-$30k in purchase price. Imagine that!

So yes Realtors might say "Don't buy a FranklyRealty.com home because they are so gorgeous they end up going for $20k higher." I'm willing to take that risk. Just like there are sucky listing agent there will always be plenty of sucky buyer agents that just want to get a fast deal and don't mind a client falling in love and using emotion to buy and oftentimes overpaying.

You can't have it both ways. You can't say "staging will get the seller more money" and then say "buy a staged home and you'll get a great deal since everything is already done." If you did that you would start looking like NAR! You don't want that!

Once again Frank you stir the waters. It would be fun to meet you. I probably couldn't keep up. You know what others know. Staged homes sell because of what you mentioned -- emotion. It is how most of us buy just about anything. You don't like your clothes? You hate your car? I doubt it.

I believe that Staging in 2007 helps the seller get their asking price.

The question is: Does the average person want to go into a home that has to be remodeled and put up with the inconvenience. If they do then the choice would be the home that needs work. A staged home is no guarantee that the home doesn't need updating or walls knocked out. A staged home means that it is visually pleasing and presented at it's best in it's current condition with obvious repairs made.

Good post!

APR

2007

Frank, while I agree with the premise that buyers should seek non-staged homes and sellers should stage, I'm not in agreement with the idea of getting the cheaper house and staging for less. Here are examples of why:

1. Time. This is the most important thing - particularly in the US - and for some it is worth taking the home that's been staged. My first TH was a perfect example. I could have bought a near identical one for $11k less that had an unfinished basement. I know I could have put in a bathroom and carpet for less than $11k (it already had a rough-in) but I didn't want to bother. So I bought the one with the finished basement.

2. Your example makes the best sense when you have two identical places - kind of like in my example above. But often you are comparing two places that aren't at all similar. When you look at condos or planned communities like Reston, you do find similar places. But imagine 2 homes in Great Falls.

3. Lack of Experience. Someone who doesn't know anything might be scared to try.

Today I would go for the discount and get a stager but that's because I know a lot more than before.

- Tchaka

I agree with you on the hassle factor. That is why you need to NOT do it yourself and instead hire the stager to be the coordinator and have THEM do everything. Yes you have ot pay for it, but a) it gets done well and b) probably for far less than buying the perfectly done home.

As for 2 homes in Great Falls, of course. Or if there is no other house in that zip code that you remotely like, THEN and only THEN you might consider the overpriced staged house. But I would still prefer to first find a house that is not yet listed and get my buyer a better deal.

3) That is why you hire, hire hire those that know how to do this, including stagers and interior designers.

You have to consider the motivations of the buyer. There are those that are emotional buyers and there are the bargain hunters. It is especially difficult if the husband and the wife are opposites in this regaed.

I learned early on not to impose my value system on my buyers. I may be the bargain hunter as I assume Frank is. However I do not steer my clients to only the bargain properties. I can do a lot of home improvement projects myself and will consider fixer-uppers, but not everyone has those skills.

Some people for convienence want a home in move in condition where they do not have to do anything. How often have I heard complaints about paint colors and carpet. Carpet and paint are relatively cheap. These buyers just do not want the hassle of having to do this.

The old saying is Realtors do not sell homes, homes sell homes is true. Let the buyer make the choice. Our job is to motivate them to make a decision and choose rather than letting them sit on the fence waiting for some dream to come on the market.

Staging does feed on emotion and that is good since a lot of buyers choose on emotion and prestige. Would a car salesman steer a new car buyer to the used car lot to buy a fixer when the buyer is in love with that sparkling new car in the front showroom? Why buy a Mercedes when the Toyota is just as good and lower in price?

Know your buyers personality, needs, and wants. If they want to buy that staged home that they love let them. Negotiate hard on their behalf, and let them decide when the price is right.

Frank, I probably wouldn't buy a staged home for most of your reasons - unless I was super busy and didn't feel like I could afford the time to fix it up, have the talent etc.., but then I like fixing things up which is why I am in this business. I have often wondered if buyers would look at the staged home but then go down the street and buy the unstaged one. You might have just answered that question. However, not every staged home is overpriced or creates a bidding war and I agree with what Sheron said. My thought is if your buyers are savvy/gifted in the fixer up department etc... they won't need you to point that out they will already know. If they don't know they should be moving into a turn key property.

You're entitled to give your clients whatever advice you deem helpful. However, I'm sure that (unless your client has already expressed a preference for dumpy, fixer uppers) you prefer to show clients houses that are clean, attractive and appealing. Somehow there is this notion that staged homes are misrepresenting themselves--that some sort of "let's fool the buyers" is going on. This simply isn't what staging is about.

It just makes sense for sellers to make their homes as appealing as possible before putting them on the market. It's human nature to be attracted to things that look good. It's your job as the real estate agent to make sure that buyers find what they want, protect themselves by getting the necessary inspections, and pay a fair market price. In my mind, it doesn't seem like such great advice to tell your buying clients to stay away from properties that look great!

Hey Lanita,

If you only knew the number of times that an client told me what they "wanted," and I took that information and showed them something else. I would say over 75% of the time they will start of saying "no townhouses" but then they describe the price range that they want, the amenities etc for their new detached house.

I then ask them to do me a favor of going into ONE townhouse. They reluctantly agree and then there is no looking back... they ONLY want to see townhouses. They suddenly see "wow, this is what it means to buy something under 10 years old versus a 50 year old house in this area... thanks for opening my eyes."

A good Realtor's job is to go outside of what the client thinks that they want.

With staged homes, they THINK that they want something pretty. They are drawn to it like a mosquito is drawn to light. I instead show them that the walls, floorplan and location is what matters and I show them how much they can save buying a perfect home that needs a little work. And as for the hassle of the work, hire the designer to manage the entire process. Then tell them to use the $20,000 they save for a new car. That gets their attention, when you talk real numbers.

And yes of course, if after I try to show them the light, if they STILL want the staged place, I of course won't stop them and will help them to the best of my ability. But I won't let them get zapped without my input first.

Frank, the flaw in your argument is that you have used an example where you see a significant savings by buying the less expensive one and doing the staging. It's a flaw because you're using that same example to fit into every other one. That won't work. It's very possible to have a $25k difference with $20k cost. Will that person save $5k by getting a stager? Yes. Is it a better deal to do it that way? Depends. To some it is, to others it isn't. You say that it's simply a matter of gettinga designer, etc, etc. - that's too much work for some and they're more comfortable leaving things as is. To others (me included), it's worth it to save $5k. Everyone has a different price on time and that's not anything you or I can necesarily change.

- Tchaka

Yes at $5k it isn't worth it for major fixes.

In my experience, the difference is MUCH larger.

When I buy a home to flip I look for the ones with good bones and ugly skin - given my experience in the remodeling & design business I can visualize the end product and do most of the work myself. Then I stage it, then I sell it. It doesn't just look nice it is nice all the way thru.

You are wrong ,I can have it both ways!

Smart boy ,Frank make them mad * they will comment.

Hey Kathleen,

Exactly! Buy stuff with ugly skin and hire a designer if you dont have the vision!

You know what? Maybe I'll get into the fix and flip business!!

Frank, I am so confused...Are you not the agent who has a video with your stager? If you are, then who do you sell your listings to? Are you saying when you list a house, you have it staged, and when you have a buyer don't show them your staged listings unless they beg you??? This is so interesting to hear your point of view. I also want to ask you if you up the price of a listing because it is staged?

Hey Sheron,

In Virginia there are 2 agents in each deal. So the the agent that does the selling, doesn't SELL directly to buyers.

There is the listing agent that puts the house up for sale and makes it all pretty. Then there is the Buyer agent that brings the buyer to the house (oftentimes releaved that it isn't yet another crappy listing).

So when I list, I hire Patricia to make the place look like a million bucks.

But when I help a BUYER, usually there is not an overlap (ie they want my listing). Too many homes, too many price ranges, too many counties for that to happen often.

So my houses get sold through other agents (via other firms).

If I had a buyer, and he liked my listing, I would have to pick one client. I don't do DUAL AGENCY where you try to represent BOTH sides. And yes, if that buyer was my client, I would probably help them find a dumpier place and then help them fix it up and save $20,000 and NOT buy my pretty place (unless he wanted it of course).

FRANK FRANK FRANK... I LOVE YOU MAN!

A GREAT STAGER stages a house in a way that it looks AMAZING... but does not look contrived.

This separates the amatures for the kiddies!

STEALTH STAGING.

THIS ONE POST helps me articuate who we are and what we do in a way I never say, but knew we were doing.

THANKS,

Sheron,

You're mixing up Frank with Bizarro Frank....two totally opposite guys. ;-)

- Tchaka

I just love Frank....always thinking, always making you think.

Stealth Staging? That is SPECTACULAR thanks Craig!

Stealth Staging..... I see another blog coming Craig.

Frank, I getcha and I agree to a point. As a buyers agent your job is to serve your client.

Only thing I would say is that buying a 490,000 property over a 540,000 one doesn't usually actually mean a buyer has 50,000 more cash in hand to fix the cheaper one up.

APR

2007

Frank - I all cleared up and I really do get it. It is not like that here in California...the stories I hear are nightmares because we don't have the separation. Now I can move on...how many comments did I have, 3?

Tchaka - cool name! Kind of like gotcha! Anyway...F vs BF? Who do you like better?

Frank -

I totally get where you are coming from. As a buyer, I would never look for a staged home, even though I am a stager myself. But I can look past all of the negative and see the positives underneath. Only about 10% of the population can do that. That's why they need stagers.

I am also a huge believer in sweat equity. It is smarter to underbuy and make the investment work for you. Is everyone smart enough to do that? Obviously not, or I wouldn't have a job. That's why they need stagers.

When our house sold 2 years ago, we made a killing and partially because the house was staged. Would I ever sell a house without staging it first? Never. Can everyone effectively stage a home? No. That is why they need stagers.

Like Kathleen said - I can have it both ways!

Hey Kimberly,

I'd like to touch on one point, you wrote:

"Can everyone effectively stage a home? No. That is why they need stagers."

I'd like to add:

"Can everyone effectively stage a home? No. That is why they need GOOD stagers."

Not all stagers are created equal. Just because you went to a 3 day seminar, doesn't mean you have the interior design skill sets. You can only be taught so much. The rest is experience AND more importantly just have the "it" factor.

Excellent point. I totally agree. You either have it, or you don't!

NOV

2007

An update to the general idea of not overlooking poorly marketed homes:

Buyers! Photoless Listings= $15,000 "Sale"

Frank - I'm not even going to read the comments and I know I'll take a ton of flack for this, but I agree with you. Some buyers will only want to view the home that is staged because they don't want to be bothered, they just want to unpack and settle in. Other buyers however do have the luxury of a little and sometimes more time to have someone come in that has vision and is a creative problem solver. Whether the property is purchased for a flip or for a personal residence this is a great idea and I just on Saturday had a conversation with a general contractor about this very topic about a nearby predicted to be high end residential area.

There are tremendous opportunities to be had in thinking outside the proverbial box of real estate sales and staging. Thank you, thank you!

Jackie

Very thought provoking post. Reminds me that I was going to do a post on being AWARE (not beware) of staging! A savvy buyer should be aware, but that doesn't mean they should steer clear of a staged home. Make the comparisons and choose the best deal for you!

Kim Dillon, Creative Eye Home Staging

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