The 2010 RESA (Real Estate Staging Association) reports that houses that are marketed without staging, removed from the market and then reintroduced with staging spend a significantly lower amount of time on the market. However, the study makes no mention of whether the houses were put back on the market at the same price or a lower price. I would think that most houses that get reintroduced to the market have a lower price than earlier listed. Could that be a factor in the shorter market times?
Honestly, I believe under the right market conditions, staging is a
major benefit to selling a home quickly. People are visual and seeing a
cluttered house detracts from visualizing their new home. Maybe it even
reminds them of their old, cluttered home - the one they no longer want
to live in. And as for empty homes, they're lonely and uninviting.
However, when the bubble is getting hot there is more demand than
supply. Staging isn't as important during this period since buyers are
in a feeding frenzy. However, staging still helps drive those multiple
offers and the price. When the market is down, you just want to get feet
on the floor.
Last comment and I'll shut up finally! But this is the most important
piece to all this. If you are selling in 2010, you are marketing on the
Internet where 90% of buyers do their research. That means they are
looking at pictures and videos of all the houses that meet their
requirements. If a house looks shoddy, they simply click to the next
one!
Of course, I have a vested interest in those pictures and videos looking
good...that's my business. But I also have a vested interest in helping
my clients - agents and sellers - to move their homes quickly. To
accomplish that, I prefer a staged home.
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ITS Realty - Scottsdale, AZ
Eric, I think you are right, most likely the price is lowered. I do believe that cluttered homes make it more difficult for buyers to see the property and empty homes are uninviting. I have not priced home staging, but it does sound like a good idea - of course that depends on how cost effective it is.
Mar 19, 2010 08:12 AM
New Rulez Marketing, LLC - Orinda, CA
Iris, I've seen both sides of the argument. REOs today tend to be lower-priced so staging one of those can seem relatively expensive. And you are not alone in thinking this. However, I have seen agents sold on staging have extremely successful careers because their listings stay on the market for less time and they build a reputation as successful marketers. And lest we forget - agents who can prove their benefits are more able to defend their commission rates.
I think my argument is sound - if you are going to spend your money on staging, you can leverage your investment even further by shooting and distributing video and using this benefit in your listing presentations.
Mar 19, 2010 09:23 AM
TheHousingGuru.com - Waleska, GA
Housing Guru
Eric - As a former home builder I've seen the direct impact of staging. It works. That's why a furnished builder model often helps stimulate sales. Most buyers cannot visualize how to furnish an empty home--and they're just not as attractive.
Mar 19, 2010 09:53 AM
ITS Realty - Scottsdale, AZ
Eric - since I read your blog I actually looked at some advertising for staging companies. You are right to point out that staging reduces the time a house is listed which is a big factor for everyone involved.
Mar 20, 2010 04:33 AM
New Rulez Marketing, LLC - Orinda, CA
Ira - good for you! You might also want to talk to some of the top-producing agents in your office or market and see what they have to say about staging. Another tack you might take is to look up the fastest-moving comps in your area on the MLS and find out if they were staged or not (look at photos, video or call broker). If you decide staging is right for your business, you can now use this research in your listing presentations - powerful!
If you choose to accept this mission, share your findings in a blog post here on ActiveRain. I would also love it if you shared those results with members of my Mimicc Real Estate Marketing Lab. Kick some butt in 2010!
Mar 20, 2010 07:04 AM
Idabel, OK
Call for houses for rent or commercial space!
Eric,
A good article about staging. it's not always about getting a higher price... sometimes it's about getting a workable price and gettin git sooner.
Mar 21, 2010 11:22 AM
Beyond the Stage Homes - Kitchener, ON
Delivering beautifully staged spaces
Eric - we partner with many realtors in our area who understand the value of a staged home. In response to your question about stats - we keep track of ours and I can tell you that for the homes we staged after they had already been on the market, all of them went back on the market at the same price or higher and sold within weeks of staging.
Having said that, not all stagers are created equal so for any realtors who are considering partnering with a stager, do your home work. I strongly recommend you check the following:
Portfolio: Make sure the pictures are not stock photos (i.e these photos are mass produced and given out as materials for staging courses, they do not represent that stager's work). Ask questions about the photos and ensure that you are satisfied that the stager can explain the changes and convey the design concept.
References or Testimonials: We encourage the agents we meet with to call other agents we've worked with, or if they want, we offer contact numbers for happy clients. Not only does this help agents get a feel for how the stagers work, but they start to get a picture of how professional and experienced they are.
Experience & Talent: Staging is more than just adding props and moving furniture. Ensuring that the stager you're interested in has the design talent and experience to assist you with your listings is vital. Adding random props in a dated space and not addressing clutter or awkward furniture layout is doing both you and your clients a disservice.
Pricing & Packages: Does the stager offer realtors their own pricing structure? It makes sense as the realtor is offering repeat business. Rooms in Bloom offers realtors a significant discount on consultations so that it makes it easy for agents to incorporate home staging services into what they offer their clients.
Thanks for the post and lots of luck with your listings!
Mar 28, 2010 03:53 PM
Room Remedy Interiors, Sydney, Australia - Salton City, CA
Home Decorating, House Staging, Sydney
Thanks Eric for this post.
I think it raises some good points and has generated some interesting comments too. I'd like to share it with my staging friends. I'm going to re-blog.
Thanks again.
Donna
Apr 04, 2010 07:37 PM
New Rulez Marketing, LLC - Orinda, CA
Donna, no worries - reblog away. I hope I wasn't too harsh on RESA's staging report but it makes a weak argument for causation and lacks anything close to double blind. Of course, one could same the same for many of my experiments at the Mimicc Real Estate Marketing Lab but the difference is that I report results without making conclusions. You are invited to join my little clan of real estate professionals and home owners at Mimicc, if you like. I'm sure they would love to hear about your views on staging. Best, Eric
Apr 05, 2010 06:10 AM
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