Putting a home on the market is the prime time to showcase the property, attract buyers, and earn top dollar on the listing. Whether you want list quickly or you plan to wait for a particular time of year (typically the spring market), you need to decide how you want to present the home. This is the point where home staging may or may not come into the picture. The question becomes: what is the value of home staging and should you consider it?
Let’s start by defining home staging. Very simply, it is preparing the home for a potential buyer. You are “setting the stage” by redecorating, arranging furniture, decluttering, and making aesthetic changes. The overall strategy is to present the home in the best way possible which will increase profitability and reduce time on market. A staging consult is often offered to sellers by their real estate agent. The consult typically includes a walk-through of the house with a staging professional who will make recommendations on aesthetic changes. You’ll likely be given a checklist of to-do’s that may include decor items to purchase, paint colors to change, carpets to clean and so on. Sellers – take the advice of professionals and know that their recommendations are not a negative reflection of you or your style. They are there to help you!
Not all approaches to staging are the same and there are levels of readiness by which you can sell. The return on investment and profit margins vary considerably depending on which path you choose. Those options range from low stress, lower profit up to mid-high stress, higher profit.
As-Is
Quite obviously, this means not lifting a finger and making no changes to the home. This low-stress option is ideal for the seller who just wants to be rid of the property and doesn’t care about making money on the sale. You are guaranteed to get a significantly lower offer and I do not recommend this method of selling. It is important to remember that 81% of buyers find it easier to visualize a staged property as their future home.Empty
Maybe the seller had to move out quickly for a new job or some other significant life event. Either way, this option is not ideal because it is harder for the buyer to envision the layout of rooms when furniture is absent. Flaws in the home also stand out more such as wear, stains and cracks. Staging prompts 25% of buyers to overlook property faults. Leaving a home empty reduces profit because it impacts the way a buyer sees the property.
Empty with Soft Staging
Soft staging is placing artwork on empty walls and adding decor to surfaces to an unfurnished home. This option is for a property that has been sitting on the market and the homeowner needs to move out or the deal falls through after the home was vacated. While adding color and some interest is helpful, this option is only slightly better than an empty home. Non-staged homes sat on the market 143 days on average.
Homeowner Staged
This typically happens when the homeowner is given a generic staging checklist or a staging consult is not offered. This type of staging is quite stressful for homeowners with a lower return on investment depending on how things turnout. Remember a stager sees the house through the eyes of the potential buyer, not as someone who has been living in that space for a period of time. Additionally, professional stagers can save money in the long run by advising against unnecessary updates that will not have a return on investment.
Professionally Staged and Updated (with Homeowner Residing in the House)
The majority of sellers cannot move out of their home when selling so the home needs to be prepared using current furnishings and leaving some daily living items in place. This is the most common staging scenario and requires working alongside a professional stager. Top recommended updates include painting, recarpeting, updating light fixtures, removing dated features and repairing anything broken. The stager will likely provide additional decor, bedding, pillows, faux plants and artwork to add to the aesthetic. About 80% of Zestful Design’s staging projects fit this category.
Updated and Fully Furnished by Staging Company
This is potentially the most costly type of home staging depending on the size of the home and if the homeowner can afford to manage a double mortgage or mortgage/rental. A strategy used in this scenario is to stage the home for the photos using the rented furniture, keeping it in place for an open house and then moving it all out and leaving the home empty. While that may save some money, I suggest that if you are going to stage a home that it remains in place through at least the inspection.
Virtual Staging
Another staging option when a home is vacant is virtual staging. In this case, a photographer takes photos of the home and then uses software to “virtually” add furniture, decor, and all the things a professional stager would add with actual physical staging. The cost of virtual staging ranges from $19 to $80 per photo, which in some cases is less expensive than a fully-staged home using rental furniture and decor. While this method can showcase the home’s potential, the biggest drawback is that it is misleading and buyers will be disappointed when they see the home in person.
In 2021-2022, we saw one of the craziest housing markets on record. Most homes sold in hours, above asking price, and without staging or updates. Could sellers have earned even more money if they staged? In my opinion, yes! I believe that a home should be staged no matter the market. If you are a real estate agent, the home you are listing represents you, your brand, and your reputation. The online experience of shopping for homes makes the importance of staging even more crucial. It could make the difference between someone deciding to see a home and passing it by entirely.
To ensure that sellers get the most out of the home’s value, professionally staging and updating the home is the best option. Staged homes sell for 20% more than comps and 88% faster than non-staged. Further, the return on investment for staging ranges between 50% to an astonishing 500%. Working with a professional stager will ensure you present the home in the best way possible, no matter the market.
