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Home Staging Realtor & Charging for services - help!

By Jessica Klein

Real Estate Agent with Houlihan Lawrence

August 04, 2008 02:22 PM

I'm a Home Staging Realtor. I took the Staged Homes course and earned the ASP designation. As a realtor I must consider staging part of my services and not charge a fee. If I act as a stager only and not as a listing agent, I can carge for my fees. This always becomes tricky, because if I get the listing down the road, I feel I need to reimburse for the services.

I've been working with a friend of mine (can you guess where this is going...) for over a year sending listings as a buyer agent and answering questions about the market, etc... They have decided to list their house and make a move to a different region of the state. I've been helping them get ready to list all summer (very emotional process for them) and spent many hours with them. I staged their home, brought in professionals to do work, did a listing presentation how my brokerage will market their home and we are ready to get the house on the market.Tonight they tell me they want to negotiate the real estate commission. I was always upfront about the commission and explained that staging is part of my services, what I charge if I don't have the listing, yada, yada yada. The upshot is, I was pretty clear and upfront the whole time. I'm pretty surprised about this last glitch and am taking a deep breath While venting to the AR world!

I'd love some adive on how to proceed in the future so this does not happen again. I just learned not to stage a house unless the listing agreement is signed. Is this the only way to protect my valuable time? As a stager, other realtors won't come near me and as a realtor I can't help but want to stage properties. When I cover open houses for other agents in my office I sometimes need to sit on my hands so not to move things around in the house!

Thanks!

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Sandra Hughes

Redesigned Spaces - Northern Virginia - Fairfax, VA

Redesigned Spaces - Fairfax County, Virginia

Why does working with friends have to be so sticky? Could you say something like based on the amount of time. the staging I have done for you, etc... I can't justify offering lowering my commission fee - maybe if you break it down for them and they know you are not getting all the commission they might realize they are asking for a lot. Personally, at this point if they can't see what all you have done and what they are asking for is unfair to you I am not sure I would want to remain friends with them.

Aug 04, 2008 02:45 PM

Teresa Meyer

Cincinnati Home Stager - Cincinnati, OH

Home Staging Cincinnati-OH.

Hi Jessica: I've talked with many agents that have taken the ASP course and afterward, fumble trying to figure out the best way to be a Realtor AND Stager and how to make that work. Staging is very time consuming as well as the investment you have if you are putting furnishings in the homes. Another problem is never getting paid for the staging part should the listing not sell. As a Staging Realtor, you have even MORE invested than others. I think there is no real black and white answer to it. If I were to market my services as a Staging Realtor, I would think you would need to explore charging more.

I'm curious to hear how other Staging Realtors are making it work because from what I hear, it's been hard for most.

Aug 05, 2008 01:27 AM

Rob Cerveny

NP Dodge - Omaha, NE

They might think you have thought it to be a "fun time" and not work. You always have to remind your clients of the time spent for them.--How will they know or care otherwise.

I would charge up front for your staging fees and if they list with you take off a % and give back.

Nobody thinks anything is worth it if you dont charge a fee for it.

Realtor Rob

NP Dodge Realtor Omaha NE

Aug 06, 2008 11:40 AM

Jessica Klein

Houlihan Lawrence - New Rochelle, NY

Thanks everyone for your thoughts and ideas. It certainly is a frustrating situation. I'm treating this as a learning experience and I've decided to call their bluff. My time is valuable and this will be a very difficult listing. It's clear they do not value my time and unless I stand firm, they will continue to disrespect me, my time and knowledge. I'm willing to take the loss and will sleep well tonight.

Aug 06, 2008 01:10 PM

A. J. Fischer

Keller Williams Ft Myers & The Islands - Fort Myers, FL

CDPE, CRS, ABR, GRI, ASP, CREA, SFR

Hi Jessica...I agree with everyone. You are providing 2 seperate services. It's kind of like when you list a seller's home and then help them with buying the new one. You know..."so if you help us find a new home will you discount your selling commission? My answer is "no" and let me tell you why.

I go on to explain it this way."So Mr seller let me ask you this, do work at a job and get a paycheck?

Answer, yes, well do you sometimes get asked to do overtime? answer well, yes and do you get paid for overtime, well of course. How would you feel after working a full week, doing hours of overtime, and when your boss hands you your paycheck , he/she says.. since you already are getting paid , I didn't think I should pay the you for the extra work. How would you feel Mr. Seller. They would usually answer by saying...they wouldn't like it. So Mr. Seller you can see that I too am offering to do 2 jobs for you and I too, charge for those services..

It's all about getting our fees outfront. I learned along time ago not to give away my selling secrets before the conttact is signed. You have the ability to offer sellers a wonderful selling tool. Good Luck....

Aug 06, 2008 01:47 PM

Maureen Bray Portland OR Home Stager ~ Room Solutions Staging

Room Solutions Staging, Portland OR - Portland, OR

"Staging Consultations that Sell Portland Homes"

One way to protect yourself is to have a written agreement BEFORE you do any staging work. Your ASP Realtor designation prevents you from charging for your staging services if the client is listing their property with you. In the future you can provide this service but you'd have an agreement that the staging service is provided only as part of your listing service. If it were me, I'd have my attorney check the wording to make sure it's legal in your state.

Aug 06, 2008 02:42 PM

I love all these comments and ideas.

In full disclosure - I am a rookie agent and there is some merit to the idea that I should take the business - esp in this market and economy - and learn from it - reduced commission and all. However, they need to respect and value my time as well. We all have bills to pay and we all want as much as we can get. I believe in paying for what your get. I worked hard and will continue to do my best for them and deserve to be compensated as such.

Jan, I love your question why are they listing with me? And my response is - probably b/c as a friend they think I will reduce the commission. She has already said the staging is the best service anyone can offer and is willing to cut other services to "qualify for the reduced commission." As we know most realtors don't offer this service. ANd of course houses with a higher commission show more and will sell faster.

Maureen- Great idea, I will never again move a piece of furniture without having an agreement signed.

AJ - you're hilarious. I'll centainly give that scenario. Btw, I am not getting their purchase side either! They are moving out of the region.

Aug 07, 2008 10:04 AM

Tori Lynn Wallitsch

Prudential Ambassador / Ross Designs, LLC - Omaha, NE

I agree with Rob's comments; I would charge upfront for Staging services and rebate or credit back if you get the listing, or something to that effect. People do tend to appreciate what they pay for more than what they receive free.

Aug 07, 2008 02:40 PM

Home Staging Realtor & Charging for services - help!

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