Cost or Investment? Discover the 1% real estate solution!!

By
Home Stager with ReStaged 2 Sell

The cost of home staging is normally the first question, I or most other stagers receive on a regular basis.  In many ways it is a very logical question, on the other hand home owners and Realtors should focus on the BIG Picture.  What do I mean by BIG picture?  First, since I have seen true increased values in many property types from professional home staging, I look at the dollars spent as an INVESTMENT, not a cost because there is a growth in marketability and value as a result.

The other issues related to selling real estate are time and money.  ReStaged2Sell and its team know how to transform typical homes into must haves.  A potential buyer that has an emotional attachment to a property is typically less price conscious.  In addition to typically higher sales prices, home staging is proven to sell homes quicker than similar non-staged homes.  A quicker home sale affects time resulting in less insurance premiums spent, property taxes due, mortgage payments paid and most importatntly for most people the time you are not in the new property and / or location that motivated most to sell in the first place.

Here is the short answer to a long question, most staging jobs that I have knowledge of or been involved with is 1% - 1.5% or less of the listing price.  This 1% is in stark contrast to the typical cost of a reduction in a home's selling price.  From information provided to me and my colleagues, most price reductions are at least 2% to 5% of the listing price or more. 

As a trained Certified Staging Professional, I admit my perspective is different from homeowners, real estate sales people or real estate investors.  On the other hand, the bottom line is if an investment in home staging puts more money is an owners pocket, don't we all win??  

 

Comments (4)

Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent

in todays market you need that extra 1% to stand out

the good news not everyone has it and that sadly is also the bad news

Feb 04, 2008 03:32 PM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen
What a GREAT factoid. I've asked several stagers about pricing statistics and kept getting "Well, it depends..."
Feb 04, 2008 04:19 PM
Sharon Filbig
Prudential California Realty - Escondido, CA
San Diego County Real Estate
It makes sense to base it on the listing price.  Do you get paid out of COE?
Feb 04, 2008 04:52 PM
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA
Do you always use a percentage or do you sometimes use a flat fee?  1% does not sound like much in the scheme of things but if it only takes 4 hours of work, that could be a hefty hourly rate. How long does the "typical" house take to stage? I, too, was wondering if the stager can get paid at escrow...
Feb 04, 2008 05:20 PM