Home : Blogs : Sue Argue - NH Home Stager : Home Staging New Hampshire>>NH Professional Home Stager

Who Pays for Home Staging, the Agent or the Seller?

Who pays for home staging, the seller or the agent? Home sellers, you are going to benefit from the home staging, and should be the one to pay for the investment. You can't expect your agent to spend their portion of the commission on staging your home!

It's true that some agents pay for staging consultations or full staging. But this can be hurtful if the home's sale never goes through, and the agent doesn't ever get a commission.

Home Staging has been talked about on CNN, Newsweek, Good Morning America, HGTV, NY Times, NBC, countless local newspaper articles, and blogs...if you have not heard about home staging, you haven't been listening!

nh home staging

Homeowner's:

It's your job to take care of your nest. Keep it clean, re-fresh the paint every few years, fix leaky faucets, maintain your lawn, create an attractive front yard...
If you take care of your house, you will reap the rewards.
Take responsibility for the good care of your home while living in it, and while selling it.

nh home staging

Staged First Impressions, New Hampshire's home staging company. We'd like to answer your questions so that you feel more comfortable hiring a home stager.

If you have a question about home staging and you can't find the answer here, please contact me, and I'd be happy to help you in any way I can.

Can I stage my own home?
I don't think my house needs staging, it's just right for me!
Who pays for home staging, the seller or the agent?
Can you teach me to stage my own home?
How come Realtors don't pay for home staging?
What if my home staging budget is small?
Why are the listing pictures so important?
Do you have experience staging commercial spaces?
I'm moving; what should I do with my household hazardous waste?
When it comes to fixing up my house for sale, what is most important?
My house is vacant and I can't afford to stage it.
How do I get started staging my home?
What is a home staging consultation?
Do you know any green LEED builders?
Tell me how to interview a home stager.
Tell me who to contact to join Active Rain blogging community.
Where can I find info on home staging statistics?
I can't find a home stager in my area, can you help me?
My house needs curb appeal, can you do that?

Posted by Sue Argue - NH Home Stager on 04/28/2007 08:47 PM

Comments (44)

home staging, staged first impressions, new hampshire, nh, active rain, who pays for home staging

This post has been included in New Hampshire Information
Post is included in group: Realtors®
Post is included in group: Live Free or Die
Post is included in group: Stage It Forward...
Post is included in group: New England Professionals
Post is included in group: New Hampshire - Real Estate and Life in The Granite State!

44 Comments on Who Pays for Home Staging, the Agent or the Seller?

APR

2007

Very nice pictures Sue. Of course the owner pays for the staging. But I would think, the realtor who stands to make a good commission on the sale, might foot the bill for the consultation, in order to convince the owner staging is a necessity. Around here it doesn't seem like the real estate agents want to make sales. They list and forget. That drives me nuts. I just did a consultation and will be doing the staging for a homeowner and they said I had given them more information in one hour than their agent had given them in four months. All of it was no brainer stuff, like changing out light fixtures and having the carpets cleaned. Those are a couple of things that make houses sell.

Terry Haugen - STAGE it RIGHT!

To all of the agents that do and have paid for their client's home staging: you are conscientious and the staging industry salutes your commitment to excellence.

Terry, I think that agents have to pay a lot for advertising and marketing a sale. I don't think they should be required to pay for staging.

I pay for the initial staging consultation. It is up to the seller to do what the stager recommends. My stagers can always help out, manage contractors and buy accessories. The payment for those services is between the seller and the stager. Sherry

Great post my friend..."Stand up for the Realtor!" LOL P.S. there is a photo or some other insert that shows up as a red X on your post my friend.

Sherry, thanks much for sharing what you're doing in Wheaton. Sounds like you take good care of your sellers.

thanks for stopping by from Idaho, George!

It is my pleasure

I am in a very small market that has not started using staging yet. How do staging consultants get paid. Is your fee taken out of closing proceeds? Thanks

APR

2007

Sue: I am always impressed by your talent. What a difference in the home above. I was just wondering -- I know that sellers can get some tax breaks for preparing their homes for sale (e.g. paint) can they get a tax break for the cost of stagging as well?

Sue, I was trying to figure out how to write this post. Thanks for giving me a repast. I believe the seller should be responsible for the cost of staging. Even the initial consultation or report. Why? It isn't only because they stand to make more off the gains received from the sale. It is also because they are more likely to be cooperative and to want to "work the process." Everyone knows how it works. When we give our kids their first car they are happy to have a car -- wow and all that. When our kids earn their first car it is a feat which will be an historical turning point for them as well as a WOW moment. Bet they take better care of it too. They know how difficult it was to get. When we allow the seller to OWN the staging process because they BOUGHT the staging process then everyone wins. I agree that the realtors who do purchase the consultation are on the cutting edge of the home staging process and I appreciate them. I think it does take teamwork with the real estate agents, the home owner and the stager. So I ask my real estate agents to please notify their clients of my services and let them know how very wonderful I am. Notify may be a puny word here. I ask my agents to Sell me, Not buy me.

I personally have worked with a handful of Realtors, who in my opinion, have "stepped up to the plate" in their marketing efforts for the seller, and have paid for the initial consultation, and a few hours of home staging, (any additional hours are the responsibility of the customer). These Realtors get it..and have marketing techniques that win customers over..that is why they are so successful.

Carol, thank you for visiting from Wenatchee, WA.

You bring out a huge point...How do staging consultants get paid. Is your fee taken out of closing proceeds?

Home stagers have different practice methods. Generally, I am not willing to wait until the closing table to get paid for my services. However, I would be more flexible with an agent I did consistent business with, where a relationship was established.

There are agents who are committed to excellence in their real estate practice who pay for home staging consultations (typically in the $250 to $400 range). What this means is that the home stager spends time with the homeowner outlining what needs to be done. The homeowner provides the muscle and purchases all the accessories needed to make the home pop.

I do believe that agents that pay for home staging consultations will develop a reputation for "fast sales". This is good.

Should agents feel that they have to pay for it as a general rule? No.

This is my humble opinion :)

Joan, Yes.

Another POSTIVE reason why home sellers can benifit from Home Staging is because the fees for a staging services can be considered an advertising fee (See IRS Publication 523) and influence a seller's capitol gain or loss on a property that has been sold.

This is an exerpt from a blog written on this subject by Craig Schiller.

Hope this helps Joan.

Sue, this was an excellent blog! I'm going to have to add you to the list for the new home stagers!

Lois, thanks for writing from St. Petersburg, FL :)

Yvonne, well said...I ask my agents to Sell me, Not buy me.

Marci, what have you got going? I'm going over and check you out!

There are quite a few realtors out there who are now looking at home staging as a marketing tool. They include it in their marketing budget. Realtors do not want to tell the family that their home has an odour or to put away pictures of grandma. A stager can assist the Realtor in building a reputation of being the agent to beat. I think we all agree getting both the home owners and Realtors to see the value is the test. But I have to tell you once they get it....THEY GET IT!

Homes Staged by Lil, staging your home with buyers in mind!

thanks for stopping by Lil. Would you like to join Active Rain?

Sue, Thanks for your reply. I want to get more involved with staging here, but we don't have any professional stagers. We have to go to the rental store and pick out our own stuff. I don't have a bad eye, but I'm not a professional designer or stager. Hopefully, soon, we'll have some help.

Most of the time agents pay for the consultation. Sellers pay for anything/everything else. I have had agents pay for the staging on a couple of occassions and while I do the work, of course, it makes me cringe each time. If the home doesn't sell - client changes their mind, doesn't receive an acceptable offer, etc - the agent is out the money. Since I specialize in vacant homes, this can be HUGE! I do have one agent who has the homeowner pay for the staging up front. When the home closes she reimburses some or all of the staging fee out of her commission. This entices the seller to provide staging and keeps the agent looking great for providing such a service while keeping herself out of risk at the same time!

~Melissa Marro, www.StagingAndRedesign.com - become a member today!

MAY

2007

Melissa,

Now I know what you are talking about in your above comment... I just witnessed this happening... An agent was nervous to pay my staging fee (as requested by seller), so she agreed to reimburse the fee at closing. And...for unforeseen reasons, the seller pulled it off the market. I'm sure she's relieved she didn't agree to pay my fee up front.

Even though this was no one's fault, I'm with you, I would have felt awful if she had lost all of that money.

MAY

2007

Thank You

You're welcome.

Sue: I have been paid by both the homeowner and the Listing Agent. I have a couple of Realtors that pay for the full staging themselves (on homes +$1 million) because they deal with investors that have serveral properties listed at any one time. The Realtors feel it is worth it to pay for the staging to get the investors' repeat business. I have other Realtor clients that pay for the Consultation as they offer that as part of their marketing package. It is then up to me to up-sell my services to their clients. And I also have Realtors that recommend me, but the client pays. I'm flexible. I also accept credit cards via PayPal so that whomever is paying is able to stretch out the payments on their credit card if they wish. I only accept payment up front, not at the close of escrow. There are too many variables outside my control in the real estate transaction process for me to assume the risk.

Michelle, fantastic comment, thank you for taking the time to write about your experience.

I have had experience with agents paying for my services too, but I'm unhappy with sellers that mistakenly believe that their agent is dripping with money and should pay. It becomes almost nasty sometimes with the seller feeling taken advantage of by the real estate commission.

Hopefully this blog will help my website readers (who are my blog audience) understand not to expect their agent to spend most of their commission on home staging.

Take responsibility for the good care of your home while LIVING in it, and while SELLING it.

Do you find your customers to be ok with using PayPal?

JUN

2007

Sue: Sorry it took so long to respond. PayPal doesn't seem to be a problem for anyone thus far. I send them and invoice and a link through Paypal so it is very easy.

Michelle, thanks for bringing this back to my attention. I had a customer just last week ask me about PayPal.

Sue, I have been away from AR for awhile, and did not see this blog. I posted a blog today about a Realtor wanting to pay for Staging. I applaud her efforts, but was having trouble with the concept, and how she would market it.

Your blog is very insight full, and the comments answer a lot of my questions. Thank you. I will use some of this info when I speak with her again.

Hello Joelle! Each circumstance is different, but an agent could get stuck with a staging bill and no commission, and that would stink for everyone concerned! I'm heading over to your blog...thanks for commenting here.

OK Sue I'm going to have to go against the majority and go out on a limb here. I think the realtor should pay for the staging and here's why. (I've been meaning to blog about this also but have not gotten around to it. So many blogs, so little time.)

Do you think an agent would gain even one listing per year by offering home staging consultations as part of the listing package? I think they would probably get even more than that but lets use one listing for argument sake. If the agent gets one extra listing because of their partnership with the local home stager they will have recouped the staging fees for the whole entire year. Here is the breakdown:

I'm making up some figures here to illustrate a point so bear with me.

The average home in my area is about $500,000. Assuming an agent gets even 1% of that as commission that is $5,000.

I charge $300 per consultation so the Realtor could afford to pay me for 16 staging consultations at no cost to them. The one extra listing paid for the staging of up to 16 homes. Now imagine if staging could get you two extra listings per year?

Now this is not even factoring in the 6.3% increase that staged homes will generate. What is 6.3 percent of 1% of a $500,000 home. I'm glad you asked - it is $315. So really the agent is not paying anything for the staging consult. It pays for itself. You see my logic here. Stay with me now.

Lets take it a step further. Staged homes spend 50% less time on the market. That is 50% less for their advertising budget, open houses, aggravated phone calls from the home owner wondering why the home is not selling etc.

My question is: Why aren't all realtors paying for home staging?

I just love to stir the pot! I'm really curious what you all think about this.

Maureen, if you are talking about consultations, then I'm in with you.... agents should pay for that. As far as the actual staging, particularly when talking about vacants, definately the homeowner should pay.

I second what Melissa said.

Maureen,

Sue left a really good comment on my blog today.

She mentioned that home owners who have not invested in the care of their home todate, and who then have the agent pay for the sale, are not "invested" enough to keep up the "look" of the home while it is listed.

That is is in a nut shell. I agree with her. The consultation, Yes, that is a good thing for the realtor. I am less and less inclined to think it is appropriate for the Realtor. After all, it is the homeowner who stands to make the most.

Maureen,

Your question is good, and I think when an experienced agent offers to expand their marketing services, this can work well for both parties, as you point out.

But a homeowner that has not spent any money on updates in style and colors, and has not kept up curb appeal, cannot then put their home on the market and expect their agent to pay for staging it. If you were out to "sell yourself" at a job interview, would you wear a 10 year old outfit or would you wear something updated and stylish? You would make an investment to get a return.

Realtors are very quiet on Active Rain about their real-life experiences with stagers. I'm not sure if that's because they don't have any experience with them, or they don't want to upset the apple cart with their sellers by suggesting changes.

Your comment was well taken and very brave.

Sue - This is one of those questions where you can argue both sides of the fence effectively. So far I've only had a realtor pay for the consultation once so really my idea is not hitting the main stream. I do agree that the homeowners will be more invested if they pay for it them selves. Also a consultation is not a staging. I was just throwing it out there to see where it would land.

Maureen, I think the misconception is that realtors are making tons of money, and can afford to pay for home staging services. Some agents are selling a lot, but I think many are part-time, green, changing careers...

I agree with you that an experienced agent that has a solid relationship with a stager could get an incredible reputation as one who gets the job done quickly. It's happening, slowly. The more aggressive agents are hooking up with stagers, and staging will become mainstream. Until then, let em know you're ready when they are :)

All the agents I work with have the homeowner pay for the consultation and the staging. If they cannot afford it, on occasion the agent has paid me and then written up a contract with the Sellers to pay at closing. If the home does not sell, then the contract states that Sellers must repay the money the agent spent on the Staging Services.

Darbi, thanks for this info. I think the agent is smart to cover himself just in case closing day never comes.

Sue, I have noticed the same thing you have about the AR real estate agents being somewhat quiet concerning home staging. In truth, there are a few who have made a stand saying staging works and they intend to help sellers understand that. Then there are a few who have said they are certain staging is a waste of time and money. Then there is another group which has asked -- how much? Many seem to be unwilling to talk about staging with their clients because they don't know the answer to two important questions:

Who pays?
How much?

It seems each of us must help our local agents with the answer to those two questions when and wherever we can. I love the way Maureen figures. I think the same type of logic could be applied to allowing the sellers (who often stand to gain much more than the agent) pay for the service. A friend once told me, "There ain't no such thing as a free lunch." Grammar aside, the statement is true. Someone pays, somehow.

APR

2008

Agents should pay for staging and take a flat fee.

The agents' gravy train needs to go away. Travel, stock brokerage, retail, - the list of busineses that have been transformed (often with great pain for its participants) is long. Why haven't real estate agents felt the pain?

Real estate agents already get paid too much. You want 6% for standing in my kitchen with a box of store bought cookies for two or three Sundays? Please.

You want 6% of my $2 million San Francisco house that took 8 years to renovate? Forget it. Here's your $10,000 flat fee. If you want me to pay the stager, that's what you get.

Oh - and buyer's agent - I want 1/2 of your contracted commission rebated.

Wake up, agents - you need to feel the pain every other broker in every other industry has been feeling.

San Fran,

This blog is by far my most well read, probably because of the strong sentiment that it provokes.

This is pointed at sellers who haven't put any time or money in to their home since they bought it, and yet they expect top dollar on resale. It sounds to me as though you have taken care of your home.

The internet and market forces are changing how we do business in this country. Real estate is no exception.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?