"The way your clients live in their home and the way you market and sell their house are two different things." Statistics show that homes that are ASP® Staged in today's market sell much faster than those that are not Staged. So, how much can your sellers save by staging their house? Here is an example of the return and the rate of return on home staging investment.
16. Homeowner’s Carrying Costs
Every month the house stays on the market, the homeowner pays:
◦ Mortgage principal and interest, taxes, and property insurance (PITI) as well
as Private Mortgage Insurance (PMI)
◦ Utility bills (oil, gas, electric, water, internet, cable, phone)
◦ Homeowner’s Association (HOA) Dues
◦ Maintenance and Upkeep
17. Real Estate Agent’s “Carrying Costs”
The longer the house stays on the market, the more likely the real
estate agent:
◦ Gets hounded by the sellers about the lack of buyer traffic
◦ Gets demands for more open houses and more print marketing
◦ Suffers frustration and anxiety attacks because of low-ball offers or lack of
offers
◦ Will fear the potential wrath from sellers facing a price reduction
◦ Eventually avoids phone calls and emails from his or her clients
18. Seller’s Market
A situation in which demand exceeds the available housing supply, and
homeowners have an advantage over homebuyers in price negotiations.
Properties are in high demand and likely to sell even if they are
overpriced or not in the best condition.
In many cases, home sellers would receive multiple offers and the price
would be bid up above the seller's initial asking price.
19. Buyer’s Market
A situation in which the housing supply exceeds demand, giving
homebuyers an advantage over sellers in price negotiations.
Sellers and their real estate agent have to work much harder to
generate interest in the property.
Buyers expect homes to be in excellent condition or priced at a discount,
and could often secure a purchase agreement for less than the seller's
asking price for the property.
20. What Are Buyers Looking for Today?
Regardless of the state of the real estate market,
They are looking for the best value for their money,
and
They want something that is move-in ready!
21. What Are Buyers Looking for Today?
Just like the product on the shelf at the store,
the purchaser of today buys the best available
product, in the best wrapper, at the best price,
that best meet his or her needs.
22. ASP® Home Staging Calculator
So, how much can your sellers save
by staging their house?
Let’s find out …
23. Price Reductions Compared to the Investment
of Staging a Home
Each Staging investment varies according to the property:
◦ Is the property vacant or occupied?
◦ Is the property new construction or resale?
◦ How many rooms does the property have (size of the property)?
◦ Range can be $500 - $5000 – and more!
The national Staging investment average in Home Staging is $2,100 vs. a
$25,000 - $200,000 reduction in list price.
24. ASP® Home Staging Calculator
EXAMPLE:
Expected List Price
Percentage of Sales Price to List Price
Average Price Reduction in Market Area
Mortgage Payment per Month (PITI + PMI)
Monthly Utilities, HOA Dues, and Maintenance
$350,000
92.9%
$ 25,000
$ 2,100
$ 750
25. ASP® Home Staging Calculator
EXAMPLE (Continued):
Avg # of Months on Market ASP® Staged Before Sale
Avg # of Months on Market Not Staged Before Sale
Staging Investment (National Average)
Staged List Price for Your Market
Unstaged Selling Price for Your Market
0.367
3.0
$ 2,100
$350,000
$325,000
26. ASP® Home Staging Calculator
Cost to Sellers to Sell House Un-staged
Total Investment to Sell House Staged
Staged Sales Price (Sales Price at List Price)
Un-staged Sales Price ($25,000 Price Reduction)
Return on Staging Investment (ROSI)
Rate of Return on Staging Investment (RROSI)
$ 7,800
$ 3,054
$350,000
$325,000
$ 29,746
1,416%
27. Return on Staging Investment
The investment in the staging of a house will be less than
the first price reduction.
Total Investment to Sell the House Staged
vs.
Average Price Reduction in Market Area
If you were selling a home, which would you prefer?
$ 3,054
$ 25,000
28. Return on Staging Investment
The sellers will be earning themselves money with the time and
energy they invest in getting their house ready for sale.
And by preparing their house for sale, the sellers will be much
further ahead of the competition.
29. Recipe for a Sale
There are 7 main ingredients that will make up the sale of your
listing:
• Price of the Property,
• Location of the Property,
• Condition of the Property,
• Terms of the Transaction,
• The Real Estate Market,
• Home Staging, and
• Photography
30. Recipe for a Sale
A correct listing price that is based on the other 6 ingredients is the
most influential factor …
… while professional Home Staging and photography are the 2nd
most influential factors …
… in getting your listing sold for top dollar and in the shortest
amount of time possible!
31. Recipe for a Sale
A correct listing price will bring in interest from potential buyers …
… but professional Home Staging and photography will bring in buyer
traffic …
… and offers!
32. Home Staging is a Powerful Marketing Tool
Remember: home buyers, real estate agents, appraisers, and home
inspectors know only what they see, not the way it’s going to be!
Professional Home Staging and photography will make all the
difference in helping you get top dollar for your listing in the shortest
amount of time possible!
33. Marketing Your Listings
You owe it to your clients to make a strong first impression by
helping them make their house look the best it can ...
… because you won't get a second chance to make a great first
impression.
34. If your listing is not ready
for a photo shoot, then it’s
not ready for the market either.
Lew Corcoran
ASP®, IAHSP®, IAHSP-LHS®, IAHSP-CB®, RESA
Accredited Staging Professional
Luxury Home Staging
Color Basics Consultant
Professional Real Estate Photographer
Scena Home Staging
Phone: (508) 443-1332
Website: www.ScenaHomeStaging.com
Serving the Boston South Shore, Southeastern Massachusetts, Cape Cod, and Rhode Island
Editor's Notes
Data has shown that houses prepared by professional home stagers sell for more. If you’re serious about listing and selling houses, then you need to enlist an objective professional’s help so you can sell your listings for more money and in the shortest time possible.
As I said earlier, Home Staging pays for itself – and then some.