Home Staging sells homes faster and for more money proven by the following simple calculation.
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Statistically speaking home staging is cheaper than the first price reduction that people make on a listing that isn't selling. Staging should be considered the final investment into your home that will have a profitable return of investment.
A seller should budget 3-5% of the asking price towards home staging and deferred maintenance on average. A well maintained home would require less, but a home that needs updating, maintenance and staging could be more.
In a national study by the Real Estate Staging Association, published recently, it showed 126 homeowners that had their property on the market and average of 263 days (9 months!) before they decided to have thier home staged. It also showed 284 homes that were staged prior to being listed and they sold in 40.5 days. This is approximately 223 days less time on the market, that's SEVEN months less time on the market. As an example, using this formula you can determine approximately how much money you will continue to spend while your home is on the market un-staged.
If your mortgage is : $1800.00 If your direct expenses (utilities, etc.) are: $300.00 Total carrying cost per month: $2,100.00
Based on the study the home owners had their property on the market for an average of 9 months. $2,100.00 X 9 months = $18,900.00 in expenses. Had those homeowners staged first, their time on market would have been cut by 7 months on average $2,100.00 x 7 months= $14,700.00 Staging their homes first would have saved them $14,700.00.*
*The numbers, of course, are all relative to individual mortgage and expenses.
Use this simple formula to determine how much home staging can cut your expenses before putting it on the market:
Mortgage + expenses (utilities etc.) = Monthly expenses Monthly expenses X 9 months (avg. time un-staged) = Cost to list house un-staged Savings: Expenses x 7 months (average time on market reduced) -staging fee =Savings if you stage your house first!
** If you have a price reduction you can also add that into the loss you are taking by listing a property un-staged.
Having been in the home staging market for many years I can personally attest and give examples of how home staging a listing can increase market value and return on investment. Contact me at kerry@decorstaging.com or 650-619-9052 and I can share more information with you!
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