In today’s market, buyers are more educated than ever because of the internet. They are also busier than ever, meaning they are more interested in turn-key houses (or move-in-ready).
And if they are interested in a property that needs some work, they expect a discount for their trouble.
A general rule of thumb for “as-is” sales is to expect to discount your property two dollars for every one dollar of needed updates or repairs. It can be more or less, depending on many factors, but that gives you a general starting place.
There are three basic ways to increase the selling price of your property.
I. The Appearance. These are steps that make the home show better and or make it more visually and emotionally appealing to buyers.
II. The Improvements. What upgrades or changes to your property will cause the average buyer to be willing to pay extra? It's important to know that not all physical improvements will give a positive return on investment (ROI). Some improvements simply bring the property up to the marketing standard.
III. The Market Strategies. How the property, price, and terms are positioned and presented to buyers in the market.
Today, we’ll discuss Phase I: The Appearance.
I have Sveta Melchuk as a guest blogger today and she will help us with this phase.
For the last 13 years, Sveta has run a successful Home Staging Company in Montreal, Canada.
Courtesy of Sveta Melchuk
The National Association of REALTORS® (NAR) has recently released the Profile of Home Staging 2019 report and the results are very clear.
- 44% of REALTORS® believe that staging increases the dollar value offered by between 1% and 10%
- 53% of agents report that staging decreases the amount of time a property spends on the market by as much as 50%
- 83% of agents report that staging helps buyers visualize the property as their future home!
So, let’s review the top advantages in more details:
The 9 benefits of staging your home
1 - Sell for more money $$$
If you are serious about getting the biggest return on your investment, you must ensure that the property’s best assets are put forward. Stage your house and you’ll see the difference in the way people (including REALTORS® ) will react to it.
2 - Sell faster
Statistics are not easy to come by, but it’s clear that the properties which are well presented sell much faster than un-staged ones. I regularly encounter situations where a property sells within days after home staging, while it sat on the market for several months before it was staged.
3 - Stand out from your competition!
In a slow market, you need every competitive advantage you can get. If your house looks and feels attractive, the potential buyers will notice the difference and will want YOUR house.
4 - Bring more potential buyers to visit
To stage a home for sale means maximizing your chances. It’s the numbers game – more people see and LIKE your house, better are your chances of success. By using staging techniques, such as depersonalizing, you will make your property appealing to more potential buyers.
5 - Get higher market price evaluation
The best time to stage a home for sale is BEFORE a realtor shows up to evaluate your property. Being ready will demonstrate to the realtor that you are a savvy home seller. The agent will put a higher price on your property, as a staged home will “showcase” better and will be easier for them to sell.
6 - Attract the best REALTORS®
A REALTOR® will evaluate the selling potential of your property against the risk he/she takes to list it. His/her reputation is at stake, as the costs of marketing your listing are substantial (in time and money). The best looking properties will get the best agents who will work harder to show them and will sell them faster.
7 - Enhance your property’s advertising appeal
Pictures are worth a thousand words. Especially these days, when most shoppers will pre-select the properties they are interested in through the Internet, you need to have the best pictures possible to move potential buyers to the next phase – a visit.
8 - Show the Love
Show your house with pride. Most buyers prefer a home in a move-in condition and a well maintained home inspires confidence. And you will avoid ridiculously low offers from bargain hunters!
9 - Avoid potential price reduction
A property is only HOT for the first few weeks it’s listed. If it doesn’t attract buyers within that time frame, chances are the realtor will try to convince you to reduce the price. When you stage a home for sale, the investment in staging is much smaller than reducing the asking price, you’ll get it back at the sale – so protect your equity.
Need more convincing?
Take the Quiz and see if your home needs to be staged before you put it on the market to sell.
These are our top picks so far.
If you are planning a home improvement project and want to know if it’s a good idea to invest in it, how much to invest or need a second opinion, please don’t hesitate to ask in the comment section. You can also read my blog post on my TOP 5 renovations HERE.
I’ll make sure to answer every comment here and help you as much as I can.
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