What’s Home Staging Actually Worth?
Professional home staging definitely feels like a costly endeavor, especially when the whole idea is to move out of the property. If money is not an issue, well, then, it makes sense to pack your bags and wipe off a counter before leaving.
But money is always the issue.
The idea is to leave the property with gain. The more effort you put into the sale, the greater the perceived value of the property. The greater the perceived (and of course, actual) value, the higher the selling price.
There’s your gain. As with all things in life, we get out what we put in. And that’s where we begin this article. We discuss the actual value of professional home staging and what it is worth to you.
The Numbers Don’t Lie
US Housing and Urban Development states that on average a staged home will sell 17% higher than a comparable home that is not stage. While numbers per home can vary greatly, on average staged homes do sell 88% faster as well. Per industry reports, most professional home stagers will not give direct quotes without seeing the property, the average initial consultation for a home stager is around $600. After specific room consultation, materials, other possible upgrading necessities, staging prices vary greatly from $2000 to $15,000 for contract time on market and services. This is not a direct quote from The Stagency. *Contact The Stagency for pricing. In the example of a $5,000 staging project on a $1,000,000 listing, a 20% increase in a sale price equals a $189,000 Staging ROI (return on investment) after 3% agent commission. These statistics make staging your home an easy decision.
Time is Money
Most professional home stagers require a minimum contract time. It is usually three months long and is something that is secure even if your property (if all goes according to savvy home staging strategic planning and design) is sold within a day or two. This is a good thing for you but it also keeps the value of the professional home stager’s work secure.
And while the idea of investing more money into your home via home staging seems like overkill, consider the cost of keeping the home on the market longer. Even if the home is vacant, you are essentially paying for an empty space that potential homebuyers are walking through but not having any emotional connection to. Not enough to make an offer, at least. With that logic, you might as well fork over the cost of professional home staging to secure a professional strategy that pushes buyers to connect with the space. With the record of success that home staging brings, this is money that feels well spent the moment you agent tells you that you have multiple offers on the table.
Staging Costs
When you look at the professional home staging sticker price (and shock), it’s easy to think that you could make it a DIY project. This is where you need to be realistic about your capabilities and strengths. Professional home stagers who come with a strong successful track record and good reputation could mean you closer to that guarantee of making money back. Can you guarantee that if you do it yourself? Probably not. And that’s okay. This is why professional home staging is a go-to for sellers and homeowners. Staging is not a splurge but an investment and any investment is going to have an element of healthy risk.
The cost is based usually on the size, type of home staging project, number of rooms, and upgrades required. Be aware that a home stager charging too little is more of a risk than a home stager that seems to charge higher. The numbers are usually directly related to the success rate, experience, reputation, and professionalism.
You can always compare and contrast the cost of a professional home stager at the national average cost on websites like fixr.com but know that each stager has their own methodology, and your property should be treated with specificity.
Let’s say, for example, you have a luxury home on the market. Home staging for this type of property will probably cost you around 1 to 1.25 percent of the listing price. But if 83% of homebuyers say that seeing a professionally home staged property gives them the ability to visualize themselves there, why, this is an investment that promises returns. Not to generalize, but owning a luxury property is indicative that you understand the property market potential when it comes to home staging for optimal value selling price.
What to Expect with Your Home Stager
Will you be getting value for what you pay? Have a look at the running list of what most professional home stagers offer in their services:
• Open discussion with the seller on how to furnish your space. They will recommend the type of furniture that should be removed or added, along with accessories, art and styling items.
• Point out any noticeable repairs or maintenance issues. *The Stagency offers minor repair and upgrades. We would never just point out problems without offering solutions!
• Recommend the best rooms to stage for optimal results. While not every room needs to be staged or restaged, it is a great idea to let the expert analysis of successful home staging get to work here. Your patio with the dog house is cute, but the kitchen takes priority, for example.
• Check that your professional home stager is confident enough to properly advise you or the homeowner on defining ambiguous spaces and how to stage them. This is useful when there is a budgetary concern and for certain rooms that will not be addressed in the staging process, any room can be easily and quickly DIY staged by owner. There are some homes with non traditional or linear design foundation that could use some design “magic” for quick fixes. For example, catty corner a piece of furniture for an optical illusion of a larger space.
• If your space is “heavy” or dark, a real home stager will work with you in bringing much more light to the space. While this may seem pretty obvious, there a surprising number of sellers and homeowners who think there is “enough” light. Pro tip: there’s never enough light.
Summary
In at least 3 quarters of experiences, there are 5% - 15% ROI over the list price when using a professional and experienced home stager.
So, we’ll keep the summary brief and just say this: It is an investment. There is always a return. The amount of the return on your investment depends greatly on the market and interest. The greater the interest, the greater the bidding war and sale.
Find a professional home stager that has a successful track record of creating that great interest in a buyer. You will win.