The home staging concept is a relatively new concept in most real estate markets, not just here in Australia, but in all but a few international property markets as well.
Moreover, many agents have not yet even heard of the term and plenty who have are very skeptical of any value in the service, perceived or otherwise. Yet whether as an agent you believe in it or not, there is a select group of professional and savvy Australian agents, who are strong advocates of making professional staging services available to their clients.
Not convinced? Don't take my word for it. Australia's leading real estate website discusses at some length the benefits of staging a home to suit potential buyers, in addition to offering a few tips to home owners thinking of taking the plunge and listing in the Australian property market. CNN Money, an internationally recognized financial news service also advises home owners to pay special attention to their home's selling appeal especially in a flat property market.
Let me share with you some of the most common questions real estate agents ask when considering home staging.
What is Home Staging?
In a nutshell, home staging is the term used to describe the process of redecorating a property to be listed or indeed one that is already listed on the For Sale market.
Now sometimes it's just a matter of re-using what the homeowners already owns. Other times it can mean bringing in new furnishings to present a home that is more in keeping with a home's high end asking price. Most home staging projects are somewhere in between that though. It's very different to interior decorating or interior design. Home staging involves making simple and inexpensive, cosmetic changes to a home's decor. Interior design, involves making changes to a home's floor plan usually at considerable cost. Interior decorating involves decorating a space to suit the homeowner's personal lifestyle and taste.
What's the difference between Home staging and Property Styling?
Here in Australia Home Staging is often referred to as property Styling, property presentation or even house staging. All these terms mean exactly the same things.
Isn't home staging used exclusively for high end listings?
No. Actually, would you believe it's much more common with home owners with homes of average size? Why? Using a home staging service suits those home owners, who wouldn't hire an interior designer.
So, why should I consider recommending a home staging service clients?
Simply put, the real estate business is about listings. Specifically securing as many as you can. And there are a few ways home staging can help you do that.
Let me ask you this question. How could listings that sell faster be of help to you in your day to day business? There's a real cost involved in carrying weak listings to all real estate agencies. Just think in terms of your advertising dollar and the time agents must devote to repeated conversations with clients about their listed property. Clients want to hear from you why that is their property hasn't sold, and what if any further advertising is planned.
Listings that present well to prospective buyers have long been easier to sell than those that don't. They require less time and money to shift. Moreover, they usually sell at closer to asking price, resulting in a higher profit to you as agent.
The reality is that when people drive past your agency's sign in the front yard of a 'for sale' property, they will make a mental note on wether it sits for days, weeks, or months or end. Home owners - (with the help of a professional real estate agent), who sell their property faster and at close to asking price will offer you the best form of advertising for your services - a free testimonial. The homeowner across the street, who's in two minds about selling himself, will get some reassurance in seeing an agent whose listings actually sell - and sell well. This is a highly effective way to establish your expert selling status and that's going to go a very long way for you in a sinking or flat property market.
You might also be glad to know that a professional home stager will help your clients look at a property through the eyes of their prospective buyers. I know how difficult it can be for an agent to be able to address sensitive selling issues like clutter, pets, odour problems and so on, and not feel as though you're walking into a mine field that could end up costing you the listing. This is exactly the kind of things that home stagers take care of in a diplomatic way. Motivated homeowners genuinely want and need to hear what kinds of things could hold the sale of their home back.
I see, but won't my clients expect that I should pay for the service?
Some agents are happy to pay for an initial consultation with a professional stagger for the higher end properties they have listed or will be listing. This is a useful tool for agents, when a home's premium asking price offers more room to move in the advertising budget.
Overall though, I'm personally not a strong advocate for agents covering the cost of staging for their clients. Why do I say this? Because, it's been my experience that the information and advice the client receives from a service they themselves have invested in, is perceived as more valuable, and they are much more likely to follow up on.
I believe that simply referring a home staging service works well in the same way you might suggest or refer a conveyancing or pest inspection service. As the agent you're not expected to pay the fees for those services for your client, and home staging usually falls into the same category.
But I always make a point to tell my clients what sorts of things they should do to help me sell their house. Are you saying there's more?
Well think about it this way. When it comes to selling property, where exactly do you think your strengths lie in doing that? Is it in advising on furniture placement, suitable paint colors to brighten a dark looking kitchen, placing artwork that guides a buyer's eye to one of the property's best selling features? Or do you think you're expertise is more along the lines of pricing, marketing, selecting suitable buyers, negotiating and overseeing the legal side of the selling process?
Plenty of agents take the time to suggest basic repairs and cleaning, but it does take more than that to sell a property than just being clean. You'd be well aware of many clean and in good condition properties that have taken a long time to sell and/or had significant reductions in the asking price.
Offering decorating advice to help your clients present the kind of property that draws the attention of several kinds of buyers will eat into the time you have available to focus on other strategies you use to securing listings.
So, is home staging expensive?
No. An initial consultation starts at around $150 ranging up to a few thousand to furnish an entire home. The final cost of staging a home depends on a few things, such as;
" The size and condition of the property.
" How much work the client plans on doing themselves, once they've received the stagger's advice. This is a great way to keep expenses down.
" The home's asking price and target market.
Say for example a property with a million dollar+ asking price is very often larger in size, and the kinds of furnishings required do need to be of a particular standard to enhance buyer appeal in the home's target market.
You know what? Most homes are already furnished, and the owners often have what's needed to re-package their home for sale even if it means re-using items that are in storage. This means that investing $150 - $500 is all that's needed create the right buyer appeal for that property.
I'm a great believer in weighing up the cost of something against the value. Yes, it may mean investing a $200 - $1000 up front. But for both seller and agent the gains are far more valuable and the return on that investment can come within days, when the property presents well and is competitively priced.
What's the best way to locate a home stagger?
Often the best way is to use an internet search engine like Google or Yahoo. Just key in 'home staging' and the area you're in and you should get the result you need. From there take a tour of their websites to learn more about how they work.
Donna Ross in an Australian based Home Staging/property styling expert. Her home staging company Great Impressions helps home owners on the NSW, Central Coast, Lake Macquarie and Newcastle areas, enhance their home's best features to sell faster an at top dollar.
Along with running her Home Staging company, Donna is also studying a Diploma in Interior Design with the Interior Design Institute in Sydney, Australia.
If you'd like more information about Great Impressions Home Staging and a list of our top 10 home selling tips F/REE, visit our website greatimpressionshs.com.au greatimpressionshs.com.au
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