Real estate agents need home stagers to be more effective in their jobs.
Yet, home stagers are often frustrated in their home staging marketing efforts to real estate agents.
An Ottawa home stager summed it up with this comment on Facebook:
“Answer me this….why are real estate agents so cheap they don’t care about VALUE & RESULTS they only care about the cost?!”
The shortest answer to her question is that (contrary to what most people assume) most real estate agents don’t make very much money.
As a result, they’re not willing to spend any more than is absolutely necessary on a listing, especially when they don’t know if the house will sell at all.
Why real estate agents look at expenses differently than home stagers
Home stagers have almost no ongoing expenses to keep their businesses running, when they follow my home staging business model of not having their own inventory.
Plus, when they follow my formula for starting and growing a home staging business, home stagers get paid when they provide their services. They don’t have to wait to get paid like agents do.
Unlike Staging Diva Professional Home Stagers, real estate agents have considerable ongoing expenses with no money coming in until a real estate sale closes.
Without this positive cash flow, why would they want to spend money on your home staging services when they won’t get it back for many months, if at all?
This is one of the MANY reasons I advise against putting all your marketing efforts towards real estate agents. It’s a common mistake that is furthered by the teaching in most home staging courses.
I’ve proven over more than a decade that I’ve been a home stager, that this is totally the wrong approach. In Course 4 of the Staging Diva Home Staging Business Training Program, my students learn why they shouldn’t focus their marketing entirely on agents and what to do instead.
That said, real estate agents are one of our 4 key target markets. They can help build awareness for the importance of home staging in general and for a preferred home stager’s services in particular.
Home Stagers, Use These 5 Selling Points
To better your chances that a real estate agent will recommend your home staging business over your competition, here are 5 secrets real estate agents need to hear from you:
- Home staging will make it easier for you to market and sell your listings because your MLS photos will be 100% more enticing, and once visiting a property, home buyers are more likely to make an offer on a home that shows well.
- With 70% (US) to 90% (Canada) of home buyers searching online before ever calling a real estate agent, you will attract more leads with better photos, not only for the staged listing but from active buyers who will want you to show them other properties too.
- Home stagers can address problems head on and tell your clients the things you don’t want to say for fear of losing your listing. With so many people selling a home due to divorce, a home stager is an independent third party who will save you from having to get in between the different opinions of each spouse.
- Home staging is a service you can recommend to your clients as a faster way to sell their home for more money, but it’s not a service you personally have to pay for.
- Your clients don’t want to hear you recommend a $10,000, $20,000 or $50,000 price reduction because that’s money right out of their pockets. Home staging services can range anywhere from a few hundred dollars for a consultation up to several thousand dollars to fully furnish a large or very high-end home. In every case, the cost to your client will be significantly less than the price reduction. This makes for a much easier conversation with your clients and keeps you on the “same team.”
These are only some of the many marketing ideas, strategies and tips I share in the Staging Diva Training Program, Course 4 called “Staging Diva Sales & Marketing Secrets to Boost your Home Staging Business.” You’ll learn how to build your home staging business without spending any money on advertising. Plus, you’ll attract home sellers who are prepared to invest in staging their homes for the real estate market.
> Learn more about business training for home stagers here.
Would love to hear other advice from home stagers!
Home stagers, have you found any other phrases particularly helpful when explaining the benefits of what you do to real estate agents?
Please share your thoughts and experiences by commenting below.
What is the cost? Thanks for the information.
Marcia, I agree cost should be part of the discussion but more important is stressing the value. Staging is not a pure cost, it’s an investment in a higher return when selling the home. Agents are less concerned with price when they aren’t paying for the service because they don’t get as a high a payback as the homeowner does.
I absolutely enjoy your articles, Debra, and utilize them for all they’re worth.
This is an excellent article. I would love permission to add it to my Real Estate Education Seminars, which I sometimes host for local real estate agents right in my own home.
Real estate agents are looking at real estate from one angle and one angle only: “what’s in it for me?” Answer that question for them and they’re on board.
Thanks so much for your continued passion and enthusiasm for this profession and thank you for your wisdom, advice, great stories and educational information.
In my opinion, you are the ultimate authority on how to be successful as a business owner doing Home Staging.
Kathi Howland
Nicole Interiors Home Staging
Kathi, glad you found this information helpful and congratulations on your series of Real Estate Education Seminars. Yes you have my permission to use this material as long as you attribute it back to me and include StagingDiva.com
If you’d like more info on how you might do that, please email me. By the way, I’d love to write an article about what you’re doing. A great opportunity for you to get some free publicity. Simply submit your info at this link:
https://stagingdiva.com/homestagingbusiness/staging-success-stories/
You also have a chance to be part of my book, Life as Home Stager. The info on how to participate is here:
http://stagingdivadispatch.com/fave-client-story/
Thanks for your comments and feedback Kathi, most appreciated!
Debra, great article! I am a REALTOR® who utilizes professional staging on every listing I put on the market. But it wasn’t always that way (and many of the reasons why are reasons you address in this article). I know the value staging provides and it far out ways any dollar amount a seller would invest in staging. My seller clients sell their homes 5 times faster than the average seller in our Wilmington NC market and sell their homes for a minimum of 3.5% more. Staging is a vital part of my listing plan and my business would not be as successful without it. I never leave for my office for a listing appointment without already setting up a pre-scheduled staging consultation with my professional staging group and the potential seller.
Angela, thanks so much for adding your comments! I know all my readers will really appreciate your point of view and experiences as a REALTOR®. I’m sure you know how rare you are in your total commitment to home staging, and I have no doubt your listings outshine your competitors!
If you’re ever in need of home staging related content for your website, please don’t hesitate to contact me directly.
As both a Realtor and as Sales and Marketing Director for The DarDesign Group I wanted to comment on a couple of assertions in the article. I can’t speak for other areas of the country, but in California it would not be typical for an agent to hire a home stager to prepare a listing for market. Stagers may be recommended and/or encouraged, but the cost is born solely by the seller as an investment in preparing their own property for resale. Any agent who incurs the cost of staging AND marketing the listing would be foolhardy. The seller has their job to do in order to prepare their property and the agent has their job to sell the property. To address your Ottawa reader – maybe that’s the way they do it in Canada, but I know of no agent that pays for the homeowner’s stager. That being said then, if cost is a prohibitive issue, it would be an issue of the homeowner, rather than the agent. And Kathi, I wanted to respond to your statement “real estate agents are looking at real estate from one angle and one angle only: “what’s in it for me?” Granted, there are agents who may not be service-oriented, and who only care for the bottom line. But professional, successful Realtors understand real estate is a business of relationships. An agent cannot build a solid, and successful business if they only care about themselves. An agent must have a win-win attitude as that is the way both sides of the deal get most of what they want. And that is the way an agent gets and maintains their client base. In that regard, reputable agents ask the question, “What’s in it for my client.” If the client wins, the agent wins. When staging is successful it can add up to 6% or more to the selling price, and that is a win for client AND agent.
Kevin, thanks for sharing your perspective as a real estate agent. I agree that the staging cost should be the responsibility of the home seller, though I have heard from many agents who fear their clients will expect them to pay for it. I also agree that agents who are only out for themselves will not have long term clients or a strong referral business.
Fantastic discussion! It appears there is no right answer – As a designer AND a stager, I rely on BOTH sides of my business to generate clients – I have even moved into staging for parties/holidays. I also donate services for local auctions & raffles, wrapped up in pretty packaging with my info. – these donations have produced a TON of interest, in addition to tax right-offs – Having multiple creative outlets keeps the work fresh and keeps my skills sharp, it also helps keep consistent work on the books throughout the year. It is interesting too, that business can be so different in different parts of the country – I hadn’t thought about it – Here in the Midwest, I work exclusively for 2 Realtors , I also Stage indepentently – I LOVE the relationship I have with them, and I KNOW they are relieved to defer the tough conversations to me (especially in those ugly divorce listings) – In EVERY instance, 110 homes and counting, our listings sold within 3 months, and within 5% of asking price! I am simply thrilled with these results – Now, while I do not believe that staging these properties is the sole reason for the success, when I take that burden off of the Realtor, they then have the time “beef up” marketing efforts (client/realtor open houses, conversations on social media, email blasts, etc.), they also have more time to take extra care of their client’s stress levels during the selling process – this approach has been incredibly successful – My Realtors pay me $75/hr/2 hr total, regardless of the size of the home. If I need to return, the seller pays me, but at this point clients have seen how rooms come together and LOVE the guidance with organizing/packing/etc. – on several occasions, my design services have been given as a closing gift, to help settle their client into their new home – Clients think these Realtors are Rock Stars and I get paid. Common sense when you think about it – but it REALLY works! You are the BEST Debra! Thought I would throw that in too 🙂 – Happy Staging!
Thanks for commenting Mary and sharing your experience. If you don’t mind me saying though, I think it’s time you considered raising your rates, you could be earning at least double that amount 🙂
Keven,
I applaud your attitude. Often when speaking to realtors they tell me, “the homeowner won’t pay for a consult and expect the realtor to do so”. My thought is,”why?” Shouldn’t the seller take responsibility for advice or upgrades because it directly benefits them? Some realtors need either more backbone or be more effective in telling sellers the value and benefits of them investing in home staging advice or staging.
“Home stagers have almost no ongoing expenses to keep their businesses running…” I was very surprised at this statement. In my home staging business, my ongoing expenses include payroll, insurance, warehouse rental, telephone, internet service, advertising, annual membership fees, etc, etc, etc.
Leona, thanks for commenting! You make excellent points, but it really depends what business model you follow.
Staging Diva Grads don’t have the overhead of their own inventory, insurance for that, or warehouse rental. In other words, we don’t invest in our own inventory because there are furniture rental companies who can provide all that.
I agree you need a phone and internet service but you’d want those with or without a staging business.
I’ve been staging homes since 2002 and I have no payroll. Neither do any of my graduates, to my knowledge.
As for paid advertising, in Course 4 of the Staging Diva Home Staging Business Training Program, I teach a whole plan to build your business without it.
The last item you mentioned, annual membership dues — unlike many home staging training companies, I don’t charge Staging Diva Graduates any annual fee. If there are business associations they want to pay to join, that’s totally up to them, but not a requirement for running a successful staging business.
I have been an entrepreneur for 25 years and I don’t pay any membership dues to anyone.
Leona, I appreciate you stopping by to comment! I’ve written several articles on this blog on most of the subjects you mentioned. You’ll find them by typing your keywords into the search box on the right of this page. You can also do a Google search on almost any home staging related topic followed by the phrase “staging diva” to find an article I’ve written. There are over a thousand of them on this site as well as all over the Interet.
Debra, you have a wealth of information on this site. I have been staging homes for 2 years, and I was considering downloading the course, but am concerned about one issue. I live in NE OK, I have searched extensively, and there are no options here for rental furniture other than 1 low budget franchise company that rents furniture, but does not have attractive inventory. Like others, I have acquired my own stylish inventory to be used when staging the unoccupied home. Fortunately, I have a 1500sq ft metal building at my residence for storage, but I do move the items to the home. Does your course focus primarily on the occupied home, or do you just have access to that vast of a rental inventory that you can go in and choose furniture, rugs and accessories from?
Susie, thanks for commenting. My graduates stage both vacant and occupied homes. I can’t offer you a business model that works for both and it’s not necessary to have your own furniture inventory. Perhaps you’d like to start with my FREE 12 tips Jumpstart Course.
I’ve been a stager in MN for 11 years and I would say that about 75% of my consultations are paid for by the Realtor. It’s part of their marketing and, I think, a big reason why they are some of the most successful Realtors in my area. If stagers have Realtors who are struggling with paying or not paying for it….suggest that they have the seller pay for the consultation up front to be reimbursed at closing by the Realtor. This keeps the Realtors up front costs down and guarantees they will be getting a commission check for any house they invest in staging for. (BTW, very few Realtors here pay for furniture/accessory rental….maybe 3%)
Thanks for sharing your experiences with this Sharon! Congrats on having a home staging business for 11 years, that’s such a milestone for any business owner, no matter what industry! I agree with your idea for having the home seller pay upfront for staging, and then the realtor can decide whether they want to offer to reimburse them on closing or not.
I’m not surprised that you’ve found few Realtors prepared to pay for rental fees. That’s where we really need to have the home seller on board, after all, they are the ones that stand to make the greatest profit from the investment in staging.
So nice to hear from you and I hope you’ve subscribed to my blog so you’ll be notified of future articles. Always nice to have feedback from an experienced home stager~!
When you are selling a car, you have it detailed or at the very least you make sure the inside and outside look it’s very best. So why then wouldn’t you do the same for what is mist people’s biggest investment?
Absolutely Dana!
Similarly, someone wouldn’t show up for a first date or a job interview without some planning in advance about how to show off their best features. People who don’t take this step rarely attract that job or partner they’re looking for. LOL!
Dana,
I also use the example of cleaning a car, when talking to home sellers. The home is their most expensive commodity, therefore they should make every effort to present their home in it’s best light.
Thanks for commenting Sandra, and sharing your experience. I know you’ll inspire others too!
Hi Debra, I have a question regarding real estate agents… I staged a vacant home a few weeks ago and the listing agent seems to not want to update the mls photos. The photos still show the home vacant and as we are entering the spring market, the exterior photos show snow on the ground. This agent has been against me since the day she met me, showing up to the property on Staging Day ordering me around and telling how to stage it her way… I was completely insulted and felt ambushed. I’ve contacted the sellers explaining the importance of updating the photos to no avail. How else can I handle this as I can’t seem to win with this agent? I’m livid over this!!!!
Thanks for sharing your experience Rachel and I can well understand your frustration. Clearly this agent is not operating in their client’s best interest. I’m curious, give what you said, who hired you? I’m guessing it must have been the home seller.
Perhaps your home seller is afraid of a confrontation with their agent? What they don’t seem to realize is that the agent works FOR THEM. And the sale is being sabotaged by the awful listing photos. Remind them that 90% of people look online before ever deciding whether they want to see a property.
The other thing to keep in mind is that all you can do is make your best recommendations. You need to personally detach yourself from the outcome of this as both the client and agent will live with the ramifications of their choices.
You might relate to this article 5 Real Estate Agent Warning Signs
I’m sorry you’re going through this, it really is frustrating watching someone shoot themselves in the foot, when it’s so avoidable!
So sorry you are dealing with this! As a seasoned Realtor myself, I can assure you that the Realtor is not changing the photos ON PURPOSE. She is threatened by you and is trying to “prove” that she doesn’t need you to sell the home. This mindset is self-sabotaging and incredibly unprofessional bordering on unethical. I would never disrespect a stager like that! I would thank her! The best thing to do is to reach out to the homeowners and politely and casually ask them to remind the realtor to update the photos. Even if you have already done that, I would remind them again. It sounds like this: “Hello Mary! It was an absolute pleasure to work with you on this project! I’m so excited to see how fast we get offers now, it looks just great! Oh, hey, would you mind reaching out to your realtor about how to get the updated photos online on the MLS? I noticed the other day it hadn’t been done as of yet. I’m sure she’s planning on doing that, but it would be great to have it updated by Thursday so the new staging can be seen and attract new buyers to your home.” No homeowners would say no to this kind request, and it will put the agent in a position to oblige because it’s the clients, not you who is reminding the agent. Hopefully, that agent will learn to appreciate staging or find a different career. Good luck!
Great comment Susan! Sadly, this situation happens more often than you’d think. I agree it’s unprofessional and bordering on unethical.
Thanks for sharing this information. Very Helpful!
Happy to help Richard!
I am a professional home stager and redesigner. Just want to thank you, Debra, for such a great article!
I really appreciate you commenting Roberta!
“Home stagers have almost no ongoing expenses to keep their businesses running.”
That’s categorically incorrect and you’re doing a disservice to our industry to state that as a universal truth, particularly in an article geared towards real estate agents. You’re discounting the experiences of every single home stager out there who doesn’t follow your specific business model…and that’s most of us. Some of us carry inventory, have staff, have offices, pursue continuing education, pay for licensing and insurance, pay for utilities, etc.
Implying that ALL stagers have low ongoing expenses only gives real estate agents and homeowners a reason to balk at our proposals, thinking that we are gouging them for a few thousand for a vacant staging when we have “no expenses.”
I’d simply ask that you be more precise and elaborate that it’s stagers that follow your advice that have lower ongoing expenses. Easy fix. 🙂
Thanks for commenting Christine and I have amended that sentence to say:
Home stagers have almost no ongoing expenses to keep their businesses running, when they follow my home staging business model of not having their own inventory.
Now, as far as doing a “disservice to the industry” and suggesting home staging should be cheap, I’m guessing you just stumbled on this article and haven’t read much of what I’ve written over my 17 years as a leader in this field.
From day one, I have advocated for much higher rates being charged by home stagers (Staging Diva Professional Home Stagers charge higher rates than the average home stager, don’t carry their own inventory, and are frequently more profitable as a result).
As a home stager, I’ve never written free reports for clients, nor offered free home staging estimates (a common practice which is a quick road to burn out and not necessary when you follow the Staging Diva business model).
Since 2005 (because of the hundreds of emails I received from struggling home stagers who found my staging business and asked how I was so successful), my mission has been helping home stagers earn what they should. We provide an extremely valuable service, and deserve to be well compensated.
It’s also been my mission to minimize the complexity of running a home staging business. Most creative people don’t want to be bogged down in paperwork or take on the risk of employees, inventory, commercial space, etc. I’ve never believed those things were necessary and I’ve proven over all these years (and in 24 countries) that they’re not.
It’s just a different way to run a home staging business.
Your comment seems to assume that because you have higher costs for running your business (because you have your own inventory and staff), you should be able to charge more.
Really you should be able to charge more because of your expertise and the value you bring to your clients– and equally important, your ability to make them understand that value– irrespective of your costs. Your clients don’t care about (or need to know) your costs, all they care about is how effectively you can solve their problem.
This article was written for home stagers so they can better understand the mindset of real estate agents and how they can more effectively market their services to them. I am in no way suggesting lowering anyone’s staging fees and I apologize if you got that impression.
I’m really happy you commented Christine, thanks for visiting and I hope you enjoy some of my other articles. There are over 1,000 of them 🙂