HOME STAGING: Are You Throwing Away a 299% ROI?

By
Home Stager with ProStaged Homes

                                                                                           
I've been thinking a lot about my job as a home stager and what my business does for people who are selling their homes. Investing (yes, home staging is an investment) in staging your home can bring you a return of nearly 300%! That is HUGE. Where else in this economy and market can you earn such a return?

Most of today's buyers don't want to buy a home that they have to make repairs and upgrades on. If such a buyer does submit an offer on your property, you can bet that they will subtract out how much they think it will cost to ready the home for their needs and send you an offer that you won't like.

Many of the homes on the market have been purchased by investors (flippers) who have rehabbed (remodeled) the property with granite, new flooring, fresh paint, new appliances and all the bells and whistles todays' buyers want. Does your home have all these upgrades? No? Then how will you compete with the house down the street that does?

 

Chino Hills Kitchen staged by Pro Staged Homes

 

If you're home isn't in the same condition as your competition you need to take a good hard look at what your selling goals and objectives are. Do you need a fast sale? Do you need to get as much money as you can? Is the lender breathing down your neck? If so, how much are you willing to invest in preparing and readying your property to obtain your objective? The old saying that you need to spend money in order to make money is so, so true and it especially applies to the real estate industry.

If your home doesn't have all the bells and whistles and isn't in the same condition as the competition, then you need to take advantage of every strategy available to you to make sure that your home presents in the best condition possible and stand out among the homes that you are competing with. Some preparations will be needed to just "list" the property, never mind getting top dollar or beating out the competition.

Take a look at the ROI (return on investment) these necessary home improvements will get you:

# Cleaning and de-cluttering ($290 cost / $1,990 price increase / 586% ROI / 99% of RE Agents surveyed recommended)*

# Lightening and brightening ($375 cost / $1,550 price increase / 313% ROI / 97% of RE Agents surveyed recommended)*

San Dimas Bungalo Living Room Before Staging

These are things every seller must do before they even contact an agent about selling their home. Buyers are not interested in properties that are cluttered (which makes them look smaller) and look like caves (too dark and depressing).

So now that you've cleared out all the clutter and cleaned the floors, windows, bathrooms and kitchen. You've had the carpets cleaned and every room in your house is pristine clean and sparkling. Remember that the house down the street with the granite, stainless and fresh paint? What do you do now to bring the buyers to your home with their offers?

I would never recommend that a seller invest in a huge costly remodeling jobs. But what I am advocating is that you take what you have and make it work to its best possible advantage. What does that mean? It means that you take that one final step to prepare your home by bringing in a professional home stager. Your home stager will go through every room in your house and advise you on where you need to invest in an upgrade, such as a new light fixture over the bathroom sink or a new faucet in the kitchen. Maybe you need a new porch light or a fresh coat of paint.

Pro Staged Homes Bathroom Before Staging             San Dimas Bungalo Living Room staged by Pro Staged Homes

Take a look at what your investment in your professional home stager gets you;

Home staging ($550 cost / $2,194 price increase / 299% ROI / 80% of RE Agents surveyed recommended)*

You can leave the tiled countertops and cabinets but if your stager advises you to clean the grout or paint the vanity or buy a new light fixture, these are minimal investments compared to the amount of money not heeding your professional stager's advice. Then when all the prework has been completed, your stager will go through your home and arrange the furniture so that it flows, looks inviting and isn't hiding any features or focal poiints. Your stager will arrange all of your furniture, artwork and accessories so that they do highlight all the features and focal points in your home.

La Verne Master Bedroom Before Staging
    

La Verne Master Bedroom staged by Pro Staged Homes
 

Just a note, this house sold at the first open house!

*The above statistics were taken form HomeGain's 2011 Home Improvement National Survey results. HomeGain recently surveyed nearly 600 real estate agents nationwide to determine the top 10 low cost*, do-it-yourself home improvements for people getting their home ready to sell. Results are estimated on a national average and may be higher or lower depending on what region you live in.

PROVEN RESULTS IN PRICED RIGHT - STAGED HOMES SALES

 

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Pro Staged Homes      Home Staging & Redesign      San Dimas, CA 91773     909-714-1149      www.prostagedhomes.com      judy.colburn@prostagedhomes.com

   

 

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Ambassador
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Judy- did you ever go back to the slots?? Nice analogy about the investment in staging.  And when you look at how little it can be compared to a price reduction or for a vacant home and its carrying costs, investing in staging makes a lot of sense.   

Jan 28, 2011 08:20 AM #1
Rainer
73,047
Judy Colburn
ProStaged Homes - Los Angeles, CA
Los Angeles Glendora, San Dimas Covina, Home Staging

Hi Kathy, Yes, I did. Thankfully I broke even. :) Thank you for commenting. Were you at the conference?

Jan 28, 2011 08:28 AM #2
Rainmaker
566,260
Linda D. Pufford
Stage with Divine Style - Home Staging - Novato, CA
ASPM, Marin/Sonoma Home Stager

Judy,

Great tips and information on the benefits of Staging.  It is still a work in progress to help educate the public on the ROSI.  Great job and post!

Jan 28, 2011 12:33 PM #3
Rainer
135,556
Birgit Anich
Birgit Anich Staging & Interiors, 203.807.4040 - Norwalk, CT
CT Home Stager Fairfield & New Haven County

Judy, this is a great post.We still have to educate the public and real estate agents on such great benefits that more than too often are being thrown out before even condidering in investing. If working with a qualified stager and setting the price right home staging IS an investment with ROI, a big ROI.

Congratulations you have been featured on the Realtors and Home Stagers Information Exchange Group!

Jan 28, 2011 12:42 PM #4
Rainmaker
684,100
Janice Ankrett
Janice Ankrett Home Staging - Burlington, ON
Staging Professional

Great post Judy! Investing one more time in your home does pay off!

Jan 29, 2011 03:15 AM #5
Rainer
73,047
Judy Colburn
ProStaged Homes - Los Angeles, CA
Los Angeles Glendora, San Dimas Covina, Home Staging

Thanks Linda. We definitely need to continue to educate and enlighten sellers, asset managers and agents on just how beneficial staging is to the bottom line and just how valuable our services are. Thank you for taking time to read and post your thoughts. Appreciate it.

Jan 29, 2011 05:47 AM #6
Rainer
73,047
Judy Colburn
ProStaged Homes - Los Angeles, CA
Los Angeles Glendora, San Dimas Covina, Home Staging

Wow Birgit, thank you so much for the feature. I truly appreciate the support and exposure. Home staging really should be seen as an investment and with such huge returns it's a win for everyone. I appreciate you taking time out to read and post on my blog. And again, thank you for the feature!

Jan 29, 2011 05:50 AM #7
Rainer
73,047
Judy Colburn
ProStaged Homes - Los Angeles, CA
Los Angeles Glendora, San Dimas Covina, Home Staging

Hi Janice, You make a good point. Sellers should consider staging their homes as the final investment they will make on it and reap great benefits from it too. Thanks for posting. :)

Jan 29, 2011 05:52 AM #8
Rainmaker
433,582
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Judy- great statistics on ROI, your before/after pictures! Love it that this "aha" moment hit you at a Las Vegas casino. We never know where we will find inspiration!

Jan 29, 2011 06:24 AM #9
Rainer
73,047
Judy Colburn
ProStaged Homes - Los Angeles, CA
Los Angeles Glendora, San Dimas Covina, Home Staging

So true Kristin. Need to accept those moments wherever and whenever they occurr. :-) Thanks for stopping by. Appreciate it.

Feb 08, 2011 05:18 AM #10
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Rainer
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Judy Colburn

Los Angeles Glendora, San Dimas Covina, Home Staging
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