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Should She Stage or Lower Her Price?

By Gabriele Campbell

Home Stager with D F Campbell Ventures Group Inc.

May 07, 2008 01:42 AM

I received a call from a new friend - we have known each other only 4 months but are fast becoming good friends - about the house she currently has on the market. She and her husband (they are now separated) are selling the house through a local Realtor who has a very well known name in my area. Her Realtor wants to drop the price on the house... again.

They listed the property 80 days ago at $429,000 but after a few showings and no offers they lowered the price to $419,000. In the last meeting with the Realtor he suggested lowering it again to $399,000.

She did not feel comfortable with this idea and wanted to know if I thought Staging would help. Well, of course I think Staging will help!

The problem as she describes it, now that she has moved out and has taken all the womanly things that make a house a home, "the house feels bare". I said to her if she thinks it feels bare when she goes in, chances are good that viewers see it as bare as well.

The market here in St. Albert is like most Alberta cities - the prices have leveled but selling in the spring months is definitely a better time than selling in the summer months. Things really slow down. Taking advantage of the days remaining in May are going to be the key to success.

I explained to her how I typically work when I do a Staging, and not having actually seen the interior of the house (I met her after she and her husband separated), it sounded like it needed a few accessories, possibly some furniture, some good curb appeal and some attention to the backyard. The house backs on to a road that will be twinned in 2-3 years so the house must look its best and create a very strong first impression with the viewers.

It's a house caught in a divorce, and right now it looks like it, too.

She is very keen to have the Staging done, but must first bring her (almost ex) husband on board. This particular house listed at $399,000 would be a steal for the buyer and an insult to the sellers. I'll let you know how things turn out.

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Maria Holland

RE/Max Homes & Estates, ABR,GRI, CDPE, SFR - Nashville, TN

Realtor, ABR, GRI, CDPE, SFR

Staging does make a difference, but could this house be overpriced as well since it has had very few showings????

May 07, 2008 01:49 AM

Don Stern

Realty Executives South Louisiana - Baton Rouge, LA

Greater Baton Rouge Real Estate

My wife is a stager so, naturally, I'm very supportive of staging. Price, however, is the ultimate incentive. So it comes down to the market where this home is. What is the absorption rate for homes like this?.... equivalent size, price range, etc. If similar homes just aren't moving then all the staging in the world won't change that. At some price point, however, someone will spot a bargain and jump on it.

May 07, 2008 01:57 AM

Michael Shankman

Award Realty - Las Vegas, NV

Selling Las Vegas 702-498-3383

Good post...however, the price is what the market is willing to pay...why would it be an insult? Do the sellers have a masterpiece of a house? How much did they originally pay for it? Why would the ex husband not want staging-he would get his money from the sale quicker. Your thinking is all wrong-sorry!!

May 07, 2008 02:02 AM

Gabriele Campbell

D F Campbell Ventures Group Inc. - Saint Albert, AB

ASP, CID

Thanks for the responses!

Other houses in the area which are at least 10 years older are priced at $399,000. The house is nicer - much nicer! And newer.

There are aspects about the separation that have made things difficult and it's playing out in the battle of control over how the house will be sold. Not everyone buys in to Staging - seems like a no brainer to me, but not to everyone.

May 07, 2008 02:10 AM

Tim Fennell

The Legends of Real Estate, REALTORS® - Jacksonville, FL

Jacksonville Real Estate

While staging may make the property more appealing, it will not add any value to it. It must still be priced at (or, in many markets, a little below) market value regardless of how 'nice' it is - even if it is 'nicer' than comparable homes.

Savvy buyers are not fooled into thinking a house is worth more because of how it is decorated and they know that 'nice' is subjective. Most buyers in that price range are likely to change much of the 'decor' anyway, including flooring, paint colors and many other 'nice' aspects of the property.

Far too often sellers deceive themselves into believing that their house is 'nicer' than the others on the market for any of a number of reasons. In my opinion, it is simply wrong for an agent to assist them in their self-deception by not revealing the reality of the current market.

If this house is priced $20,000 more than market value, it had better have $20,000 worth of features/amenities that a buyer WANTS and NEEDS or it is going to sit unsold for a long time... regardless of 'staging'.

NOTE that I did not say that it must have $20,000 worth more in features/amenities but that the BUYER must want and/or need those $20,000 worth of extras. An example: the house might have a chandelier that the seller paid $20,000 for but if the buyer thinks it is ugly, that chandelier has ZERO value to him.

May 07, 2008 02:32 AM

Jill Turgeon

One Percent Realty & Simply Irresistible Interiors - Edmonton, AB

The Staging Agent Jill Turgeon

Staging is of course so important, but I do agree with the comments above about pricing and of course, as a Home Stager it is NOT our place to discuss price with the client, lest we step on the Agent's toes. Being that this lady is your friend, your opinion is probably coveted, but I would be wary of what you say...this edmonton market has taken a real downturn and I see it as market correction because the inflated prices were OUTRAGEOUS. Greed was overtaking us and it is now time to get a wake up call.

Dec 18, 2008 03:50 PM

Michelle Finnamore

Toronto GTA, Alliston, Newmarket - Vaughan, ON

Preparing your property for sale

I have to agree with the Realtors opinions to a large extent. Staging will create interest in a property when viewed on listing photos, it can create desire to view the property, it can create an emotional response in a buyer that they must have "this house" and not the one down the street. But what it cannot do is make a house look like it is worth more than the market will bear. Staging can shorten the days on market ( very important in a divorce situation) . But if the homeowner has invested thousands in wallpaper, lighting etc. that the potetnial buyer does not care for, the house will not sell for more than the neighbourhood comaparables. Staging will always get you noticed and that is why it is an important part of a Realtors markeing approach.

Dec 19, 2008 07:21 AM

Michelle Molinari

FEATURE THIS... Real Estate Staging & Interior Decor - Lafayette, LA

Feature This Real, Estate Staging & Curb Appeal Concepts

Buyers are certainly looking for a bargain, but I also know that ultimately,they are looking for a move-in ready home. Home is subjective, but staging helps a property send that key message, that the buyer has found their move-in ready home.

Starkness does nothing to support the instinct to buy. Staging, however, does EVERYTHING to cue and support that instinct.

Stimulating and simulating the look and feel of a property as a gracious and well-appointed home incites buyers to envision their lives unfolding in that home, vs. other homes they might see. This is a huge difference that will aid in a timely sale.

I have no idea if it is overpriced or not. However, if an expedient sale is the goal, quality staging will most assuredly help the buyers to connect with the house in question.

Yes, staging on many levels does not aid in actual value. Sometimes it does, depening on the level of staging that is recommended and executed. But in a glut of homes to see, quality staging always engages the buyer's imagination, makes the property stand out far above the pack, and supports an instinctive decision about a home's viability as a proper dwelling that can meet the needs of the buyer.

If a potential property is on one end of the spectrum and the buyer on the other, staging bridges that gap.

I, of course, believe that gap can and should be bridged as often as possible.

~Michelle

Dec 19, 2008 07:50 AM

Gabriele Campbell

D F Campbell Ventures Group Inc. - Saint Albert, AB

ASP, CID

I appreciate everyone's responses - thank you. This blog was originally posted in May '08 and conditions have changed substantially since then. At the time prices were just beginning to fall and it was at the very beginning of the market downturn. I have learned alot since then. :) I would definitely say price plays the primary role in the sale of a house. Staging is just means to prepare the house for viewing, to prepare the owner for the sale process and for the change that is coming up, and to demonstrate to the buyer that the seller is serious about the sale.

Dec 19, 2008 08:38 AM