| Investment |
What is your investment? Example: A home is listed for $300,000.(NOT STAGED) The home has been on the market for 60+ days and still it has not sold. During the first two weeks after the home was listed it had more people through the home, since then there has not been much activity. It may be suggested that the asking price(due to market or overpricing for the area) be lowered. So the price is lowered by $10,000 and list at $290,000. This is a $10,000 deduction right off the top(not everyone agrees to a price reduction). In our market the typical buyer doesn't offer the asking price, they offer 2-10% less than the asking price. Now the buyers agent has explained to the buyers that the home has been on the market for more than 60 days and the buyers think; What is wrong with the house? How cheap can we get the home for? What is the lowest amount they will accept? The buyer basis their offer on this information.(Wouldn't you?). The potential buyers now offer $280,000, the sellers come back at $289,000 the buyer then ups their offer to $285,000 and because the home has been on the market so long and it needs to sell, the home sells for $285,000. The sellers have lost not only time, but they have lost a total of 5% on their investment or $15,000. Example: A home is listed for 310,000 (STAGED) The same home is staged and the listing agent lists the home for $310,000, buyers come in and "Love it". During the open house there is a lot of interest from both Buyers and Real Estate Agents. People that are looking to buy remember the home and the offers are typically higher for a staged home. Let's say the home sells in 18 days for a final price of $300,000. $2500 paid for staging. The final return on the investment is $300,000 minus $2500.00 for staging for a total return of $297,500. That is still an increase of $12,500 on the investment over the previous scenario. That seems worth the small cost of staging compared to what could be lost by not staging. A fully staged home usually lists higher initially than the other or similar homes. So with a home staged an agent may list your home at 1-10% higher than they would had it not been staged. This investment may cost you anywhere from $195.00 to $5000.00+ depending on the home, what needs to be done and who does it. It is always best to consult with a Staging Professional before the Realtor lists your home. You want the Listing Realtor to see the home at its best when they list it and before pictures are taken. |
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