Advice on Realtor Price

As an agent, I cannot imagine asking a stager or any other contractor to do work and wait to be paid until the home sold.  I would steer away from that agent.  I don't like their logic.  Stick to your guns girl.

I would ask him what his intentions are if it doesn't sell. You need to protect yourself better than he intends to.

Is he the one that is actually paying for your services or is it the seller that is paying?  I can understand why he would ask if in fact that it is coming out of his pocket.  Could you make an agreement to be paid within 60 days of service?  How about add a fee for delay in payment, and a interest fee on the monthly rental.  This is of course only if you are actually willing to wait to get paid.  I agree that he should realize that your business is ran differently than his.  You can't go into McDonalds and say I want the Big mac and I will pay you after my next settlement.  Most companies (outside of the real estate office) want to be paid at the time of service.  There are some real estate related companies that are willing to get paid at settlement ie. termite inspection.  However the property is already under contract when they are hired so they have a date in mind that they would be paid.  In your case there is no guarntee that the home will go to settlement, there are to many other varibles still in play.   Getting paid at the time of service is still the best option.

Regardless of who is paying.....you like any service provider/contractor should expect to be paid when services are rendered.  Just like the painter, gardener, etc.  If you agree to be paid at closing it should be at a premium price......+20%.  And I would put an end date....."At closing but not to exceed xx days".

For me....I always collect 50% in advance and the balance upon completion of staging set up.  

Good Luck!

As a Realtor I would not dare ask a stager(or anyone else that it is not customary of) to wait until closing to get paid. There may be reasons other than the staging issues that are keeping the house from selling. What if the current agent never sells the house, where does that leave you??? Good luck, but I would advise against entering into a contract as mentioned above.

As Tommy pointed out there are many reasons why a house doesn't sell and most of them are out of your control. There are so many gotchas to consider on this "deal" that I would walk away.

You would tie up your time and inventory on these properties and that doesn't make for good cash flow. It's also a red flag that someone you haven't worked with before is asking for these kinds of concessions. Keep us posted on how it works out and good luck!

Cecilia - You need to explain that the carrying costs of staging homes (most especially when renting furniture from other sources) is not something you are prepared to do. It's called extending credit and virtually all stagers are not in a position to do something like that. If those homes do not sell - for whatever reason - then what happens? Do you not get paid? What about all of your out of pocket expenses? I agree with Kathy Burke that if you do agree to that sort of arrangement that you are charging a premium once the homes do sell. Also ensure that you can financially handle covering those payments. I would rather see you put an end date which means you get paid by the end of the first month or until the house sells - whichever comes first. That way you're only deferring payment for a very short time.

I'm not sure that this realtor understands exactly what is involved in a staging project nor the costs we incur to stage properties. We are a service based industry - much the same as a plumber, electrician - and we would never ask those professionals to delay payment for parts/labour until a home sold.

Cecliia ~ Apparently this agent is not used to working with professional stagers.  I'd never accept those terms, mainly because too many aspects of the sale are out of our control ... i.e. price, location, condition of the home, market conditions, etc.

On a previous model home that was staged long-term, I obtained written permission from the owner to place a lien on the home if necessary  The seller paid 50% of all costs upfront but the balance was due in 90 days whether or not the home had sold.  Consult with your attorney to find the best way to handle liens in your state if you should go that route.  My advice is not to accept terms that don't work for YOUR business.  Good luck!

Cecilia, doesn't sound like a good deal for you and you need to explain to the agent why your costs are different from his. 

ONCE I took payment at closing but my deal was with the seller, not an agent AND I got a percentage of the listing price when she signed the contract.  I also knew that all aspects of the house would be updated and in good condition so that with my staging, this home would sell quickly...and it did. 

When agents ask me to do what this agent has asked you, I tell them I cannot do business that way and I move on to another that understands.  How dare he mess with your contract. 

I read the others comments and I agree with them, we are not in the postiion in extedning credits. As a business owner you are lucky that you can choose who you want to work with. Good luck!

Is this agent asking the plumber, the carpet layer, the painter to wait until the house sells to be paid? Likely not. Nor should he ask you. 

And I so agree with Maureen. There are too many variables outside of your control.

Kathy

Cecilia:  Do you accept credit cards?  If the agent has a cash  flow issue, that might help.  Keep us posted!  Julie