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NH Home Staging FAQ - Should I Make Improvements Or Offer An Allowance?

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Home Stager with Sharon Tara Transformations

NH Home Staging FAQ - Should I Make Improvements Or Offer An Allowance?

 

before and after carpet replaced

 

Today's buyer wants a move-in ready home.  

They don't have the time or interest in making improvements.

 

When given a choice:  

1.  moving right in with colors that are warm and neutral

 2.  being able to choose the paint colors themselves after moving in

 

Buyers choose #1 ...they don't want to pick colors, find a painter, be delayed moving in waiting for the painter to finish, or worse - live with the painter coming and going.

 

Being able to choose the type and the color carpet after moving in isn't such a great thing when you consider having to take the time to select the carpet (comparing price and quality), wait for installation, and then make sure someone is home to meet the installers.

Buyers will choose "appealing" over the hassle of "needs work" hands down.

  The vast majority of people can't visualize.  If they don't like something about your house, having a $2000 allowance to change it, won't make a difference.  They are incapable of imagining it changed!

Walls that need painting and carpets that need replacing suggest a lack of maintenance.  A buyer's perceived value of your house drops considerably when there's an allowance because they are wondering what other areas have been neglected.

 

Should you offer an allowance?  My answer is make the improvement, whenever possible.

 

The cost of improvement is always going to be less if you take care of it prior to listing your house.

 

Comments(20)

Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Sharon,

I think that you have the right answer.  We are a time starved society, and if we had to another thing---it becomes painful just thinking about it.  I enjoyed this post.  A

Jun 05, 2012 06:30 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Sharon,

I'm with you 100%!! Many who are moving have enough hazzles with the actual move without updating as they first get in a home! Buyers will always choose the house with less hassle!!

Jun 05, 2012 06:48 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Alexandra:  "Time starved" is a great way to describe it.  I've been feeling exactly that lately!  Looking forward to some simpler times in the very near future!

Dorie:  Well said!  The move in of itself is enough to deal with.  Knowing you have to paint the new house after having just painted the old one to sell it is not the position most would choose.

Jun 05, 2012 07:22 AM
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

Absolutely agree!! Maybe the home improvement shows are making it look to complicated. The buzz word around here is 'turn key home'.  

Jun 05, 2012 07:59 AM
Joanna Cohlan
Fresh Eyes For Your Home - Chappaqua, NY
Designing, Decorating & Staging Westchester Homes

No question about it-they will choose move in ready because who needs the hassle of all the issues associated with painting.

Jun 05, 2012 09:50 AM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

You're giving sound advice to home sellers, Sharon.  You're wise beyond your years.  Out here we say: 'correctomundo' Neena. 

Jun 05, 2012 09:54 AM
Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Sharon, good advice...my buyers are moving into a new construction my husband is building, I will be listing and selling their home, I told them to paint their house fresh so the new buyers will feel lke they do moving in.

Jun 05, 2012 10:44 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Sharon- right on target with this one.  Besides not being able to get beyond worn carpet or paint, many don't want to have to deal with moving furniture after they've moved in, or waiting to hang their pictures until they decide what color to paint. 

Jun 05, 2012 12:56 PM
Kim Gaston
RE/MAX Advantage Realty - Colorado Springs, CO
Colorado Springs REALTOR®, CNE (719)661-6987

After 4 years of a recession one has to wonder what the motivation is to sell. If you need to sell, then please listen to your Realtor and Stager. Price it to sell, improve the condition, and lets hope your location is sound because if those 3 things are in sync with each other then, your home will sell. If you can't afford to improve the condition, then your price (forget the allowance) needs to reflect it.

Good advice, Sharon.

Jun 05, 2012 12:57 PM
Karen Otto
Home Star Staging - Plano, TX
Plano Home Staging, Dallas Home Staging, www.homes

Anything a seller can do to remove objections is key - the hassle & expense a seller thinks it will be is only doubled in the mind a buyer. Great blog Sharon!

Jun 05, 2012 10:33 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Al & Peggy:  "Turn key" is a great way to describe it.  I think the tv shows make it look more involved than it has to be and they also don't give a fair representation of the cost.

Joanna:  Having just painted almost every room in my house....I wouldn't want to paint another one anytime soon!

Lloyd:  LOL!  I LOVE it!  I had no idea that I was so well known out there!

Ellen:  That's a great way to convey the concept to your sellers!

Kathy:  Exactly!  Scheduling the move around the closing is difficult enough, they certainly don't want to have to try and schudule time for improvements too.

Kim:  Pricing must reflect condition.  I agree!  What you "need" to get doesn't matter...it's what buyers are willing to pay that matters.  

Valerie:  They will most likely still want a lower price, even with an allowance....it's less costly to just do them prior to listing.

Karen:  I actually use that reasoning when I have a seller who says it's too much trouble or too inconvenient, or too costly.  I ask them why they think the buyers will feel any differently???

 

Jun 06, 2012 01:42 AM
Janice Ankrett
Burlington, ON
Staging Professional

Well said Sharon. Why give the buyer that bargaining chip.

Jun 06, 2012 03:23 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Janice:  Just something more for them to use to chisel away at the price!

Jun 06, 2012 11:00 AM
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging Consultations that Sell Portland Homes"

Sharon .... why give buyers an opportunity to cross a home off their list, simply because it needs some paint and a few easy updates?  Smart sellers and their listing agents understand this, and recommend taking care of these issues before placing that For Sale sign in the front yard.

Jun 06, 2012 02:06 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Maureen:  I'm seeing more and more sellers who are realizing this and don't want to take any chances.  

Jun 06, 2012 08:16 PM
Anna Dovger
Add Value Home Staging LLC, 281-704-6607 - The Woodlands, TX
Home Staging -The Woodlands, TX

Sharon, we are always saying that more than 90% can not envision themselves in the house. Same people are not capable or not comfortable making choices of paint colors or materials for upgrades. They would be more happy if someone will do it for them so buyers can move into the perfect house.

Jun 10, 2012 08:36 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Anna:   Most people cannot visualize.  Showing them a stained and worn carpet only makes the house less valuable in their eyes.  Why should they believe the house was well maintained when the visual evidence tells them otherwise?

 

Jun 10, 2012 09:09 PM
Peg Barcelo
Fluff My House! Home Staging Inc. 250.486.6369 - Summerland, BC
The FlufftasticStager from Summerland, BC

Sharon, so true! Move in ready is more desirable to every home buyer! Lack of imagination or being overwhelmed at the thought of choosing colours can be a problem...

Jun 13, 2012 05:00 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Peg:  It's obvious when you think about it...who wants to go through the headache of improving if they don't have to???  

Jun 13, 2012 08:57 AM