Stage first - Pay later?

Becky,

If you stage a house and it doesn't sell, how would you be paid for your time and inventory?  I would demand at the very least a 50% deposit before I started staging, if you consider taking the balance at escrow.  Sometimes market conditions require us to be creative, but it's just as important to protect yourself from losses too.

What about if the house doesn't sell or if the sellers change agents? 

I guess if you write a good enough contract you van protect yourself......

Becky,

This topic has come up before here on AR.  Broker Bryant was one of the first realtors to bring up the concept and he met a lot of resistance and criticism as a result.

To you, I say that if you can wait for the money, you would stand apart from other stagers if you offer that service.  Since you are in California, where it all began and where there also seems to be a 'stager on every corner', you could certainly cause quite a stir by offering something most others don't!

Much success to you!

VAL

Hi Becky, I think waiting for the money is too risky, unless it is a huge amount of money for a seller to fork out before the home sells.  As previous commentors mentioned, what if the house doesn't sell?  If you are willing to take the chance and don't mind waiting to get paid then it is an option.  I for one want payment for services rendered upon completion.  The same way I pay my vendors. 

Terry Haugen - STAGE it RIGHT!

It might get you some jobs quickly, but I've tried offering free 'go sees' with no interest.

To actually do stagings with deferred payments, you could be out of a lot of money till you get paid. I'd insist the clients pay for any accessories before you source and purchase them, or it could get very expensive to do.

It takes time to build the business, I understand your looking to find a way to get going...this just seems to be a potentially expensive route to go. Then you'd have to chase for the money...if you don't have the new address it could get tricky.

Hey neighbor :)  I feel your pain. I did this once and will not do it again. First of all, you are the one carrying the balance for months possibly on one, two, maybe three homes and what if they do not sell? What if you need to buy or rent furniture? YOU are the one that will need to pay and wait. Do not put yourself on the line just to get a job.... jobs will come, believe me :)

Have them use a credit card to pay you up front.  If the clients don't want to pay for the Staging, then tell the Realtor to use their CC and they can write it into the Escrow as added marketing/prep for Sale. You are a professional, offering a service right now... I don't know who else waits till Escrow except the Realtor and many times they work hard and at times, loose a listing.

If you have any other questions.... just let me know.  If you want to drive up to my neck of the woods... I will need some help in the next couple of weeks ;0)

Becky, Realtors get paid at closing because at that point their job is complete!  Can I tell you our horror story!  We staged the house - the Realtors told us they would pay us at closing- guess what - the owners took the house off the market! Here we sit, investing our time and inventory, with no payment!  We have sent numerous invoices to the Realtors and we are still waiting for a payment! 

From every experience you learn something- we learned that we want payment when services are rendered-

I agree with Marci! Absolutely! It is my policy to have payment for the consultation at the end of the recommendations (which I stipulate over the phone).  In addition, I ensure I have a signed contract BEFORE I start the staging...with payment due immediately.(as stated in contract).

I think it is too risky to bill through escrow, as stated from the others. I added VISA to my payment system so the homeowner, realtor or builder has another option of payment. This has worked well for me.