Short Sales and Foreclosures--How Does Home Staging Fit In?

By
Home Stager with RE:STYLE LLC

Realtors and Stagers--How have you successfully used staging in these situations?

Of course, as a home staging professional, I believe that every house will benefit from home staging. But I know that money is tight in a short sale situation, and probably nonexistent in a foreclosure. So:

1. Will banks pay to have a house staged?

2 If so, is there a preferred method for getting this to happen?

3. What about adding staging into the upfront administration fee that some Realtors are requiring in order to take on a short sale?

4. Who to approach, as far as the banks are concerned, in order to have a discussion take place about this?

5. Are Realtors willing to pay to have the house staged (and thus help the house sell for more and more quickly)?

I did stage a vacant short-sale house, and it just closed. The Realtor absolutely supports the positive effect the staging has on the sale. Here are a some after photos:

Living Room Master

Master Bath  Master too

I look forward to your comments and suggestions!

 

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Tags:
foreclosures
home staging
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vacant home staging
short sales

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Rainmaker
3,246,908
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Kathi

All listing are in competition for a buyer, foreclosures and short sales are no different, staging can being a home to life. The home will sell quicker with a higher sales price. Staging works. . . .

Good luck and success

Lou Ludwig

Aug 20, 2008 02:50 AM #1
Rainer
23,013
Suzanne Champion
N.J. Realty - Westerville Ohio - Columbus, OH

I'll go out on a limb here and say...that a Realtor may well opt to buy staging to sell one of these homes...if that payment is contingent on a closing just as -our- pay is.  Home warranty companies work that same way.  Would that make sense?

Aug 20, 2008 02:53 AM #2
Rainmaker
360,125
Ginger Foust
Certified Staging Professional - Oakhurst, CA
Home Stager Oakhurst CA, Dream Interior Redesign & Staging

In my area, one agent handles almost all of the REO's and since he cleans everything OUT of the house (pool tables and spas too) and says staging is not an option, because the lenders want the house empty.  He mainly deals with Countrywide and Wells Fargo.  Now perhaps he is just saying that because he would have to front the staging costs, but NO is the answer here.  Wish it were different!

Aug 20, 2008 03:09 AM #3
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Lou:

Thanks for the vote of confidence toward staging.

Suzanne:

This may be an option, or some version of it. For example, if the house is empty, pay the staging fee upfront and the accumulated rental fees at closing...

Ginger:

I spoke with a few different Realtors today, and in my area, they all said 50% of the houses on the market are short sales or foreclosures. I guess we need to find a way to convince them to stage, or 50% of our potential work is going away!

 

 

Aug 20, 2008 08:19 AM #4
Rainer
288,578
Cindy Lin
Staged4more Home Staging & Designs // EcoJoe - South San Francisco, CA

I think banks here are catching on that staging is needed to help them sell but I think most are concerned with the upfront costs. It's not an area that I have ventured into myself.

Cheers,

Cindy

Aug 21, 2008 05:52 AM #5
Rainer
52,993
Abby Roselli
ALR Home Staging and Showcasing, LLC - Staten Island, NY
Staten Island Home Stager

I'm extremely interested in seeing what someone in the foreclosure/short sale field might know/think about this...It's certainly a HUGE opportunity these days.

Great post and love your pictures.

Aug 21, 2008 12:07 PM #6
Rainer
17,576
Debbie Wheeler
Real Estate Staging/Rooms Rearranged, LLC - Chandler, AZ
Chandler, AZ Rooms Rearranged RESA, IRIS

Great Pictures and nice job.  We have many a short sales here in AZ.  My opinion....if they show well you can get a higher price and shorter time on the market - if not, give them away for rock bottom prices.

Aug 21, 2008 12:39 PM #7
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Cindy:

I hope banks are catching on. Thanks for the visit!

Abby:

Me, too. I hope someone notices this blog post. Glad you like the photos--I love what I do!

Aug 21, 2008 12:40 PM #8
Rainer
24,681
Patti Glover
Stage It In A Day! - Moorpark, CA
CISS,RESA, Home Staging, Ventura County CA, Conejo Valley, LA

Kathi,

Beautiful staging job! 

Maybe someone on A/R can direct this post where we stagers could get some suggestions on how/where to market this.  This to me is a no-brainer - these vacant homes, overgrown and ugly, sitting on the market for months.  Yes, they have already taken a loss, but the longer it sits there, the more they lose and the more aggravation for everyone.  Get rid of the headache!  Stage it and sell it!  Did you put this on any realtor blogs on A/R?  Maybe they could point us in the right direction.

Aug 21, 2008 01:16 PM #9
Rainmaker
489,750
Kathy Nielsen
http://atlantahomestaging.net - Marietta, GA
Atlanta Georgia Home Stager

Kathi - First and foremost, I love what you did in the bathroom!  Well, for that matter, I love what you did in the other rooms as well.

Patti said it best.  There's "more" loss when a home continues to sit.  It sure would be a wonderful opportunity and an absolutely win-win for everyone should they elect to stage.  Great post.

Kathy

 

Aug 22, 2008 12:23 AM #10
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Patti:

Maybe you could reblog it on some other site? I did put this on Michigan Realtors, Michigan Real Estate and Woman's Council of Realors on Active Rain...still waiting! Thanks.

Debbie: 

I'm with you! I guess a large part of the problem is: who pays? and how to ensure that the homeowner (who has stopped caring) keeps the house in staged order? Thanks!

Aug 22, 2008 12:25 AM #11
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Thanks Kathy! Would you reblog this to some Realtors so that we might get their responses? Not sure if I can do it since I posted the blog...

Aug 22, 2008 12:28 AM #12
Rainer
66,883
Marianne Sweet
Home Sweet Home Staging - Rochester Hills, MI
Home Sweet Home Staging, LLC Rochester Hills, MI

Kathi, I do work with a couple of forward-thinking Realtors who pay me to stage bank-owned properties.  One Realtor deals solely with REO's, and she pays me herself for "Staging Lite" (to go back to your previous blog!).  The other Realtor insists on a budget from the bank for fix-ups, and then hires me with that.  It can be done.  It just depends on if the listing agent is a believer in staging or not. 

The house looks stunning by the way....great job!  Love the "headboard"!  Where is that house located?

Aug 22, 2008 10:47 PM #13
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Marianne:

You do have some enlightened Realtors--congratulations! We should talk. Maybe I can get some info that I can share with Realtors that will motivate them to use us more for these kind of listings. Do you give your  REO Realtor special pricing?

Thanks for the compliments--this is in South Lyon. The headboard was a great "find"--a screen at Big Lots for $29! Never have seen one there since...

Aug 23, 2008 12:20 AM #14
Rainer
66,883
Marianne Sweet
Home Sweet Home Staging - Rochester Hills, MI
Home Sweet Home Staging, LLC Rochester Hills, MI

Yes, I give my REO Realtor super-special pricing since I appreciate her loyalty and her dedication to getting these houses sold by paying for the staging herself.  She was one of the first Realtors to "get it" 3+ years ago, and become a repeat customer.

Here's a couple of success stories you can pass on (all foreclosures):

Small Clawson ranch.......4 offers, sold in 1 month

South Lyon condo.......sold in 2 weeks to 2nd "looker"

Rochester Hills contemporary......sold in 2 months (was a high-end house, with no staging per se--I did only curb appeal, chose paint colors, updated cabinet hardware and painted the fireplace surround which were more important uses for the budget)

Orchard Lake colonial......sold in 6 wks, and again, only curb appeal and landscaping

Southfield ranch......sold in 2 months after landscaping and painting the front door and mailbox

Each house for her is different--I use the budget where it's needed most, and sometimes that's just the exterior.  If I had been able to bring in accessories maybe they would have sold faster, but we all know how important curb appeal is!

Aug 24, 2008 12:52 AM #15
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Marianne:

Thanks for the examples! I work with one investor and we just decided to do only curb appeal for his most recent house, so I agree--money goes where it's most needed! But i still wish we could have staged the inside...

Aug 25, 2008 01:45 PM #16
Rainmaker
152,435
Virginia Tatseos
Stage-Show-Sell - Bloomfield Township, MI

I've tried rebloging post and can't find a way to add it to another group.

The way I've done it is to edit the blog, delete one of the groups that I posted to and then add another.   AFTER that I respond to some of the comments so it will pop up in the new group.

 

BTW, great job staging.

Sep 15, 2008 11:07 PM #17
Rainmaker
33,016
Kathi Presutti
RE:STYLE LLC - Brighton, MI
Re:Style, LLC

Thanks Virginia! I'll try that! Glad you liked the staging!

Sep 16, 2008 09:51 AM #18
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Kathi Presutti

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