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I’ve been considering staging a few of my rehabbed properties but I’m worried that it could be a complete waste of money.  I’ve seen a few before and after photos of staged properties here on AR and have always been impressed but is it really worth it?   Earlier today I spoke to a local stager I found on AR and was informed that on average she charges $1,000 per month to stage a property.  Is it just me or does that seem a bit excessive?

The only reason I’m even considering staging is because a couple agents have shown a few of my listings and while the feedback was positive they felt that if the property would have been staged their clients would have put in an offer.

I’ve been to a few staged open houses and I admit the property does tend to feel more inviting with coffee tables, couches and such but I still wonder if its worth the cost.   Will staging really bring me an offer all that much quicker?  I’m not sure it will.  All of my properties have been fully remodled down to the smallest detail for most buyers isn’t that enough?

So my question to you is what do you think about home staging?  Is  it worth it?  Does it work?  What’s been your experince?

Kansas City Homes for Sale

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32 Comments on What Do You Think About Home Staging?

DEC
04
2008
425,577 Points 2 Featured Posts Outside Blog Called Shot Master

Justin~  Yes, Staging helpsyou sell quicker and for more money!  BUT, you do NOT have to spend a lot of money to stage. A good stager does not make you spend a lot of money! 

9:16am • #1

Justin-right now in todays market price is more important. Although, staging does have it's place.

9:38am • #2
962,252 Points 12 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Justin

If the home is priced correctly and the staging is done well, the home should sell faster and for a better price.

Good luck and success

Lou Ludwig

9:49am • #3
128,428 Points 5 Featured Posts Outside Blog Called Shot Master

Hi Justin,

I am a stager. I just spent 12 hours yesterday installing hardware and ironing draperies in a modest home in Lafayette, Louisiana, We cleaned light fixtures & windows, removed nails and patched holes, and touch-up nicked paint. There was another stager with me. It is a two year old vacant home.

People hire stagers because property preparation is hard work that is time-intensive. We also spent 12 hours with three people prepping the exterior of the same home for curb appeal last week, painting & adding shutters and landscaping.  That is 60 hours so far, just in prep...no furnishings or accessories.

But like yourself, we have marketing overhead, auto expenses, affililiation dues, etc, plus inventory storage and insurance for our company. So, as you can see, minimum wage is not going to cut it.

Not to mention we are seasoned professionals in the field of decorating & staging. It's not just some paint and some window treatments... it's carefully chosen items designed specifically to enhance the image and architectural features of one particular house, installed and applied correctly, using the proper professional tools and techniques.

Typically, staging requires design time, selecting and acquiring furniture and accessories, loading them with extreme care so as not to damage them, unloading them on-site, installing them, and then waiting to get them back, only to uninstall, re-pack and load them un-pack and unload AGAIN back into storage.

It's not easy. If it was, everyone's home would look snazzy all the time.

If you can get someone to do all that work for a grand, I'd go for it. Staging works. It's not nearly as risky to client's equity as traditional marketing and reduction strategies...

~Michelle

 

 

 

12:01pm • #5
129,092 Points 3 Featured Posts

Vickie -- Finding a stager that will work for my budget will be critical thanks for your input.

 

1:08pm • #6
129,092 Points 3 Featured Posts

Scott -- If staging means I get an offer on a house faster than I'm all for it.

 

1:09pm • #8
129,092 Points 3 Featured Posts

Lou -- Pricing is definetaly the most important thing.  All of my homes are vacant I feel that if they were staged they would feel a bit warmer.

 

1:12pm • #9
228,471 Points 10 Featured Posts Localism Sponsor

Justin, there is a good reason why developers pay big bucks to stage their new homes professionally.  The rooms look bigger, the houses look homey, and buyers can "see" themselves in that house with the beautiful furniture (as compared to their beat-up furniture at home). 

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com

5:43pm • #10
212,201 Points 5 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Justin - you might want to think about taking a staging course, like the Accredited Home Staging Specialist (google it) designation.  It won't replace what a professional stager can do, but it will give you some basics & help you to present your listings in a better manner without a whole lot of expense!  The course is cheap compared to several months of staging.

9:41pm • #12
DEC
05
2008
1,546,393 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

"they felt that if the property would have been staged their clients would have put in an offer"

I don't believe that for one minute.  What are those agents selling, real property or pretty pictures???

In my opinion. . .     No, I don't need to go into it. 

Price is what sells real estate.  Anything else is just pure luck for being at the right place at the right time.  Or, promoting a property in the best light in the MLS to get showings. 

I've shown hundreds of properties that have been staged.  When we get to one, we have to look behind the staging to get to the house. 

You can fool some of the folks. . . . . . . .

 

7:04am • #13
1,546,393 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

What good does it do to have home prices return to some level when the owners still owe far more.   The home owners are held hostage by high mortgage balances, not high prices.

 

7:05am • #14
129,092 Points 3 Featured Posts

Michelle -- I realize that professional staging is a serious business and that like any business stagers have overhead.  $1,000 per month doesn't seem like an all out crazy price for the service but then again these houses just need some furniture.  Everything else such as paint and curb appeal has been taken care of during the remodel.

9:36am • #15
129,092 Points 3 Featured Posts

Allison -- I've seen several of these new home construction staged homes and I agree that they do look great but I'm not willing to go all out like that and pay the big bucks.  You do make a good point it makes the property feel more like a home. 

9:50am • #16
129,092 Points 3 Featured Posts

Lenn -- This is my concern.  Its hard to believe that a staged property is really going to make much of a difference over price.  My partners and I have been discussing staging for a few days now and we are all doubtful that having a house staged will bring us an offer any faster.  I think talking to all these stagers over the past few days may have mildly warped are perceptions.  Price is king. Thanks for stopping by.

9:58am • #17
129,092 Points 3 Featured Posts

Kent -- That sounds like someting I would be interested in. I would like to know a little bit about what stagers are looking at when they walk in one of my properites.  I will check into that. 

10:01am • #18
128,428 Points 5 Featured Posts Outside Blog Called Shot Master

Hi Justin,

I understand it seems high, however,please consider this very realistic scenario if you wanted to stage a house: Let's say you see that you have a simple staging and you do not want to pay those absurd staging fees. You actually happen to have a bunch of furniture and accessories, in storage, enough to complete a whole 3bdrm, 2 ba house, so you are just going to use that furniture. 

Just to move it from point A to point B is going to cost you $332.43,  to rent the U-Haul to get it there. That is just you a truck, and furniture pads and dollies, putting only 50 miles on the odometer.

Now, you know you need help, to load it in, and load it out. So you found one guy, super cheap, for $80 a day plus a burger for lunch, for both load in and load out at the site, is $90.

You originally paid $25,000 for your furniture and accessories. It's nice and new stuff, but not super-nice, and you have no definitive time when you will have it back. Could be two weeks, could be four months. And some of it may not come back in the shape it went in. So what is that worth to you to loan it out?  You are a nice guy,  so you intend to charge 2% of the cost of your stuff per month to rent. That's only $500 a month, a full 18% below the fees of a real furniture rental place.

You and you alone pack up all the bedding, art, vases, plants, pillows and decorative items the night before, carefully, so the cheap labor guy doesn't break them in transition. This takes you three hours to package and label. Remember, we are talking a full house 3bdrm 2 ba, so that's about 20 pieces of art, 100 decorative items (vases, plants, lamps, candles, etc), 30 pillows, 4 area rugs, AT LEAST.

At 7 am you go get the truck, and the guy meets you back at the house. You both load the truck. That takes another 2 hours.

You arrive on-site, and unload. That takes two more hours.

Then, you arrange the furniture and erect the beds. Two more hours down. Your helper has put in his 8 hours, and he goes home to his wife and kids.

Then, you hang the art and accessorize. That's three more hours.

Then you return the truck.

You personally have put in 14 hours of hard labor once the truck is finally returned.

And don't forget....you have to do it all again when the house sells. Your costs will be far, are over about $825 no gas, no tax.

But the furniture rental will SAVE you, right? You didn't enforce the industry-wide three month minimum, and the house sold in two months. So it took you $25,000 in inventory 14 hours of your physical labor initially, and about 8 more hours to get the truck again and the guy, to retrieve and re-store your items, $825.00 in moving costs, to warrant $1824.86  in fees.

And that is if everything runs perfectly smooth, the furniture fits well, and you had no shopping to do for specific pieces, and absolutely not one second of design or planning time.

That seems like an awful lot of work, risk, capital, and waiting for your stuff to come back to you in good condition, for $1000. If you paid yourself a ultra-crummy $15 an hour, you get to pull yourself $330. That gives you a whopping $570 in profit. And if a piece or two shows up ruined, you are not a professional stager and have no insurance to cover the damages, no legal contract to seek a remedy, and it will cost you every cent you made to replace that dining room table.

So, like I said, if you have someone who is charging you $1000 per month flat fee to stage, jump on it.  They might not be in business much longer!!!!!

Thanks for bearing with me through all of that. But that is the reality of staging one house in one day, and de-staging on another day. 

And staging does sell houses faster, the statistics bear that out, or major markets wouldn't be using it. Click Here and scroll to the bottom of the page for the latest 2008 statistics.

Best of luck to you!
~Michelle

 

11:20am • #19
1,546,393 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

I looked at the statistics published by the "Real Estate Staging Association".  I believe that they are a fig newton of someone's imagination.  In fact they are so out of balance that they crossed the border into hyperbole land. 

Fundamental to pricing and selling real estate is value.  Value is added by good maintenance, condition, accessibility, style, construction, floorplan flow, etc.  All things that are going to remain with the property in which the buyer can see value. 

Staging adds not one penny of value to a listing.  Everything that catches and moves the eye and catches attention is going to be removed. 

Someone please stop me. 

 

 

5:15pm • #20
403,817 Points 2 Featured Posts Outside Blog Attended Rain Camp

What about foreclosure type homes-do we stage them?  Is it worth it?

5:51pm • #21

Okay guys, wading in here....I think that most people have NO imagination. If a home is staged, it just helps the person take that one mental step closer to feeling that they could "live" in the space. That's what staging does.

I have also seen staging where the seller just stages the main living areas, and leaves the bedrooms vacant. If this is done well (and I mean- it needs to knock your socks off) that can be another budget-minded choice.

In the best case scenario, what staging does is illicit an emotional response in your buyer. In my experience, every home I've ever staged has received a full-price, or close to full-price, offer. Is that worth a thousand bucks?

6:01pm • #22
128,428 Points 5 Featured Posts Outside Blog Called Shot Master

Hi Lenn,

Actually, it is pretty hard to remove the built-ins and upgrades I suggest as a stager.

When I tell someone they to replace an existing metal awning with something more in line with the price point of a house & neighborhood to increase curb appeal, I assure you the structure is not portable.

Or upgraded staircase railings on the interior.

Or Silestone counter tops.

It is a common misconception that all we do is paint things and add pillows and art. Staging is not all foof. A lot of it is bring a house out of the 70's or 80's. You can't do that without suggesting and choosing the PROPER upgrades, which comprises a fair portion of a stager's work.

Some stagers, I am sure, never venture into the land of upgrades, but not many. We have to have that knowledge of what buyers truly desire, and get the house up to snuff in that regard.

We most certainly do add actual value. As a stager, one of my clients recently added $45,000 worth of suggested upgrades, renovating a kitchen and 3 bathrooms, all in preparation for sale. I don't see any way that is not going to get them a better actual appraisal.

~Michelle

6:33pm • #23
128,428 Points 5 Featured Posts Outside Blog Called Shot Master

Whoops... almost forgot...

Regarding stats. I personally staged a house, previously on the market for 6 months, no offers, which sold to the first buyer who saw it after staging, at full asking price.

I call that a hole in one. The staging MAY POSSIBLY have had some influence there, I do believe.

Another custom home, on the market for TWO YEARS, sold within one week of simply staging the  the exterior only, again, full asking price.

The stats may be astounding, but we specialize in astounding people with faster sales resulting in more equity, than the "It will sell when it the price gets low enough" plan. The way sellers present the home is a HUGE factor.

Investors may love ugly houses, but buyers prefer to buy move-in ready property.

~Michelle

 

 

 

 

 

6:49pm • #24
Outside Blog Attended Rain Camp

Len, Your comment here is contradictory...You mention price..."Or, promoting a property in the best light in the MLS to get showings" sells.  A blank wall, an empty house is NOT mesmerizing, and don't they honestly pretty much all look alike online?  How may I ask is that meant to be inviting traffic to the property?  Staging, though I agree with you not cutsy overdone staging, is VERY successful in increasing the level of traffic to a property.  

8:34pm • #25
Outside Blog Attended Rain Camp

Justin,

I posted my first response somewhere else than Active Rain, but I see it didn't show up on AR.  So, I am placing it here as well.  You hit the nail on the head. The professionally staged properties FELT better to you. They feel better to buyers as well. Keep in mind buyers buy emotionally, not intellectually. That’s why staging is worth it. I even go so far as to shoot and produce a complimentary virtual tour of properties I stage so I’m sure the romance gets online intact. Look at some on my AR profile. One of my repeat Realtors calls them my Romantic Tours, and she’s right. That’s exactly my intention, and it works, big time. Worth every dime. Check ‘em out!

In addition, to support what Michelle Molinari put forth, several of my tours are of homes that were in dreadfully ugly, worn out, outdated shape when I was brought in on the scene.  My advice taken to improve them as cost effectively as possible, hundreds OR thousands of dollars spent on changes, and then Staged, they SOLD.  Some had sat on the market in disrepair for months.  Others would have if not addressed.  We stagers  can be very valuable indeed.

9:03pm • #26
DEC
07
2008
129,092 Points 3 Featured Posts

Michelle -- Thanks for your detailed description of the staging business you did an excelent job of explainig how beneficial it would be for me to hire a stager from a time to dollars standpoint.  I met with a stager on Friday after taking all the comments on this post into consideration.  She was great.  I probably will never have the enitre house staged just a few key rooms.  It sounds like she is an expert when it comes to colors so I'm also going to hire her too consult with us on each of our remodels regarding colors for certian rooms and also exterior colors.  This is something I've been having to choose myself and I find it very stressful choosing colors for walls, shutters, countertops etc.  She loves this kind of stuff and I only have to pay her a few grand for the total package I think its worth it.   Thanks for your input.

3:19pm • #28
129,092 Points 3 Featured Posts

Lenn -- What your saying about value is totally valid.  The furniture and other decorations added to the house are not going to increase the value of the home.  I think if I do some mild staging and price the homes competitively that will be a perfect combination to get some offers coming in.  After all people aren't always logical. Many home purchases are emotional and having a home staged might help pull on those heart strings.

3:28pm • #29
129,092 Points 3 Featured Posts

Patricia -- Your other comment showed up on my other blog I guess you clicked over from the menu in the side bar.  I will just copy my comment over from the other blog.  

"You make a good point people do purchase emotionally and that’s actually how this whole debate over staging started. Our properties are already very attractive but they feel kind of cold. Hopefully the stager I just met with will be able to warm them up a bit."

3:31pm • #30
129,092 Points 3 Featured Posts

Hey Cindy I don't think staging a foreclosure is neccesary.  Like Michelle said investors like me love ugly houses.

3:32pm • #31
129,092 Points 3 Featured Posts

Michael -- This is part of the reason I've been considering staging.  I'm going to try it out on a few houses and see how it goes.

3:34pm • #32
JUN
09
2009

I may need some staging.  Who quoted you $1000/month?

Miranda
10:26pm • #33
JUN
18
2009
129,092 Points 3 Featured Posts

I'm using an even cheaper stager now.  Give me a call and I can pass on her info.

1:23pm • #34

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Justin Ukaoma : Kansas City Real Estate Investments

Kansas City, MO

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