Why Stage A Home in a Seller's Market?
COVID brought on a myriad of shortages for 2021. The shortage of homes for sale has caused the real estate market to just go a little crazy, to say the least. It’s definitely a sellers’ market with little inventory and over the top bidding wars. Many are scoffing at the idea of home staging in this market because they think buyers are desperate to find homes. While this is true, we have many examples and statistics as to why you may want to consider the small investment in home staging before listing your home in today’s market. There may be money left on the table if you don’t…
The shortage of inventory is causing record multiple offers above asking price on homes. But just because it’s a seller’s market, does that mean any home will sell for multiple offers above asking price? The short answer - no. If a home has not been updated in over a decade, do not expect it to compete in today’s “crazy over listing price” market. Yes, it may sell but it won’t bring in top dollar due to the sheer fact the buyer will calculate in all those updates that need to be done.
In today’s market, your first step toward curb appeal is your online presence.
Pictures say a thousand words and in the real estate world it is the buyers’ first impression of any home. If your pictures don’t “wow” the client, it’s unlikely they will schedule a showing. If your pictures show years of neglect on updates, then you won’t see that high offer on day one. The buyer will simply move on to another home online.
Home sold in 2 days after staging!
Home staging allows the buyer to visualize themselves in the home.
According to the new 2021 survey from the National Association of Realtors®, eighty-two percent (82%) of buyer’s agents said staging a home made it easier for a buyer to visualize the property as a future home. If the buyer feels like it’s home, their desire for the house will drive their offer. This report also revealed that staging increased the sum buyers were willing to spend for a property. Twenty-three percent (23%) of buyers' agents said that home staging raised the dollar value offered between 1% and 5%, compared to similar homes on the market that hadn't been staged. Coincidentally, the same percentage of seller’s agents (23%) stated they received between 1% and 5% higher offers on home that had been staged. Let’s do the math on that, shall we:
Amounts are approximate depending on area you reside, size of home, and value of home. Home consultations are a service that provides you with a list of needed updates/repairs that the homeowner should consider. Full service staging is bringing in furniture for a vacant home. Both avenues give a nice return on investment.
So based on the math, you don’t lose money. You make back your investment plus gain an extra profit - the amount depends on your list price, and whether the home has been properly prepared.
Real estate agents have good reason to stage too
Don’t sacrifice your proven, repeatable systems even in this strong sellers’ market. That includes professional photography AND staging. This sellers’ market will not last forever, and it’s important to show how you differentiate yourself and your listings from other Real Estate Agents.
Don’t forget that a home that sells for more also increases YOUR commission, in addition to adding to the equity in your sellers’ home.
If you are a homeowner and/or realtor in the Northern Virginia area, take a look at this video that Owner, Leigh Newport, made in February. She makes great points to support the reasons behind staging in a sellers’ market.
It stands to say that the small investment in home staging can bring in a nice return on investment (ROI). In the past we’ve always referred to home staging being less than your first price reduction. In today’s market, you’ve got to consider the amount of money you are leaving at the table by NOT staging. Go ahead - be the best house on the block!
Interested in more tips and advice about home staging? Porch.com has a great Q&A article from home stagers around the country (including our very own Leigh Newport!). Check it out here: Real Estate Photography, Home & Virtual Staging Q & A: Tips & Advice
If you need help being the best, book an online appointment with us and allow us to shine a spotlight on your home!