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Staging: An Excellent Return on Investment

Have you ever walked into a beautifully decorated open house in San Francisco and been captivated by the visual feast before you? Did you find yourself dreaming of bathing in that spa-like bathroom, cooking meals in the gourmet kitchen or curling up with a book in that luxurious sunroom? If so, you most likely understand why buyers statistically pay more for that "staged" home, than one shown with the home's original carpet and the seller's personal furniture. 

"Staging" can be anything from de-cluttering to rearranging the existing furnishings, to completely repainting, remodeling and refurnishing the entire home.  Whatever degree of staging you do can make a significant difference in how quickly and for how much a home sells.

This year's REALTOR® Rally Keynote Speaker, Bill Barrett, suggests spending one-half to three-quarters of a percent of the asking price for staging. Depending on the stager, it can cost even less than that.  Instead of cutting into profits, staging dollars can actually have a high return on investment.  Conservative estimates show a $2 to $3 return for every dollar invested in staging, but in San Francisco, the return on investment can be as high as 10 times the investment in a hot market.

The psychology of homebuying
Buying a house is largely an emotional decision because people are not just purchasing a home; they are buying a dream...a lifestyle. If you can help them with their vision so they don't have to rely completely on their imagination, you positively impact how they feel in the home, which will be reflected in the sales price and number of offers you receive.

All human beings want comfort, excitement, prestige and love, and all these are at work in the psychology of the home purchase. Effective staging maximizes those feelings, creating an atmosphere that makes people want to linger and imagine themselves living in the space. Ultimately, staging creates a home the prospective buyer will not be able to live without.

Do not mistake staging as some underhanded way to unload property. It's simply taking advantage of the same principles of marketing used to sell any other commodity. People want to be inspired; they want to walk in and envision themselves entertaining in the dining room or enjoying a family night in the great room. Staging also benefits potential buyers because it gives them a good idea of how the home could look if they lived there and the scale and style of furniture necessary to achieve the look.

Higher selling prices
Statistics show that staged homes sell faster than those that aren't, and garner much higher offers.   According to the Feb. 8, 2004, Denver Post "National Association of REALTORS®, findings show that staged homes sell 50 percent faster than non-staged homes." The Wall Street Journal on April 30, 2003, reported that "staging speeds up sales in a sluggish market and can bump up prices from two percent to ten percent in a moderate market..." Savvy REALTORS® and home sellers understand that a feeling of spaciousness and hominess can add as much to the final selling price as a San Francisco view or a two car garage.