If you’re looking for the best way to talk yourself out of becoming a home stager, immediately get on the phone and call a dozen real estate agents in your market.
After a few “No one will ever pay for it around here” or “It will never work in this market” or “There’s no need for staging, if a house is priced right it will sell” responses you’ll be almost embarrassed with yourself for ever thinking up such a silly idea.
If I listened to everyone who told me home staging wouldn’t work in my city seven years ago, there would be no Staging Diva today.
Of course there are agents who understand that if they have a more attractive product to sell, that it will sell faster. There are also many real estate agents who insist that all their listings be staged, you just have to find them!
These agents who “get it” are the 20% of real estate agents who likely make 80% of real estate commissions.
In your hunt for real estate agents to discuss the potential of home staging with, more often you’ll run into the 80% who do the remaining 20% of the business.
Many of them only work part time or for their friends. But there are others (and sadly, you’ll have no trouble finding them) who are just plain ignorant, lazy or both. I realize I’ll get hate mail for saying this, but so be it.
The truly professional real estate agents who are always looking for ways to get the most for their clients know who they are and I’m sure they’re not fond of that “ignorant or lazy” group either because it reflects on them as part of the same industry.
Just last night I talked to the owner of a vacant condo that she’s about to put on the market for $895,000. It will be the most expensive unit in the building and one of four that’s for sale on her floor.
The agent recommended the listing price (likely too high) and suggested that she put tape on the hardwood floors to indicate where furniture might go to give prospective buyers a sense of how big the rooms are!
Imagine expecting home buyers to be inspired by tape on the floor and fall in love with an empty condo that’s priced well above anything else in the building.
Imagine also how lovely her real estate listing photos will be with all those white walls and boxy empty rooms!
Does this agent not realize that 90% of home buyers in her market search for a property online before ever even calling an agent to go see it?
Fortunately this home seller is smart enough not to take this bad advice and went online to search for a home stager.
While her agent made no mention of the possibility of staging her vacant property, she’s now prepared to invest at least $5,000 in having me stage it for her.
A lot of agents are shell-shocked because they got into real estate thinking they could make a quick, easy buck. All those years of only having to put a for sale on the lawn and wait for offers led to a ton of complacent agents who took their incomes for granted.
Whenever real estate markets slow down, they’re not making nearly as much money as they are in a buyer’s market. They don’t want to spend money on their listings because they don’t make their money until the home sells and that can take a long time (especially when the house isn’t staged).
Before the last market crash, many Realtors got in way over their own heads. Taking draws against future commissions, not to mention easy credit for homes they couldn’t afford once the market slowed and those commissions stopped rolling in.
This puts real estate agents in a scarcity mindset and I’m not surprised that they’re telling you home staging won’t work. But when they’re saying, “Oh, nobody will ever pay for that here,” what they really mean is they won’t pay for it. They haven’t talked to all of their clients about whether or not they would pay for staging, they just know they don’t want to.
Plus, if they’re sitting with an inventory of non-selling listings that show badly, it’s mighty awkward for them to go back to their clients now to say that the problem is they don’t show well. Any client would rightly ask, “Why didn’t you tell me that 12 months ago when you took the listing?”
Talking to real estate agents will be very discouraging. It’s not just you.
With home sellers, it’s a whole other story and that’s why I teach in the Staging Diva Home Staging Training Program that real estate agents are only one of the four major target markets for a home stager.
Instead of focusing all of your energy on what real estate agents think, put some energy into educating the home sellers about the benefits of home staging and you’ll be much better off.
Home stagers, what’s your favorite real estate agent story? If an agent tried to discourage you and you went ahead and found success anyway, we’d love to hear it. You might give someone the boost of confidence they need to follow their dream. Please leave a comment below.
You can read part 2 of this post at: Home Stagers Realize Your Own Power in Real Estate.
This is the sad thruth. My partner and myself are interior decorators who have added home staging services thinking that 9 out of 10 sellers need it. The problem is the real estate agents. They are the brick wall that can’t be knocked down. I just don’t underdstand why they don’t want to help themselves get higher commmisions by just suggesting home staging.
I am currently looking for a new home for my family and I walk into these homes and walk right out. Majority of agents are not communicating what sellers should do to better show their properties and definitley not suggesting home staging. So, what happens….these properties just sit and sit and sit on the market.
It is very discouraging speaking to agents. They just don’t want to hear it. It’s like stagers are their rival when really shoulkd be their wing man!
Thanks for the post,
Lisa
You’re so right! It makes me sick to my stomach when I see these ugly properties on the MLS…shame on those agents for doing such disservice to their clients. Now those poor owners runs the risk of their listing staling because of that 1st negative lasting impression they made to potential buyers they can’t take back.
Juliet, Agree with you! What’s really odd is when a seller tells me they’ve never bothered to see what their listing looks like on MLS. Talk about blind faith!
My home is going on the market next week. Contracts has been signed. Now, my home is very Victorian both outside and in. Furniture is new (in that style) and in most parts has never even been sat on. The first thing this realtor wants to do is have us stage the home. Excuse me? This is the same person who came in and told us what a beautiful home we had. She is expecting us to hire movers and rent storage space, so someone will come in and make the place more modern. This is not a new modern cookie cutter home. To jazz it up would take away from the outside Victorian feel. I feel this is a great deal to ask. Then she added, “if the dollars you expect don’t come across the table , then you’ll know why”.. I will know why,,,,she didn’t try hard enough…
I can see that you’re very proud of your home and that you’ve taken great care of it, even mentioning that much of the furniture has never been sat on.
It’s difficult to comment Rachelle without any information about where your home is located and what buyers in your market are interested in. I also have no idea what price range you’re in and the likely age of a buyer.
In some markets a Victorian era home that looks like you’ve stepped back in time when you walk in, might be appealing. In other markets, not so much.
I suggest you have your agent show you the comparable homes to yours that are on the market at the same time in your price range and try and take an objective look at how yours compares. Also let your agent pull listings of Victorian homes that have sold in your area and at what prices. Take a look at the interior shots to compare with your own approach.
Hi Debra,
Oh she pulled her “comps” out, but she failed to realize that I know the area better than herself, as she has never been to my town and I do know the market and homes quite well.. The comps she pulled were in the “1 mile radius” something which I don’t believe in. The 5 homes that she pulled were bank owned and the others foreclosures, so I don’t believe that is a way, to honestly compare anything. I am on a very quiet street with Federal type homes. The area is well kept and homes show a great deal of pride. I use the 25 mile radius. In doing so, I have found many small capes and ranches that are in the mid 200’s, needing work and have carports, if that, some with none. She is used to dealing in a more affluent town and again. I sat with her and as she went quickly through the prices , I asked to please see the interior pictures. I , as well as yourself could pick out all the flips, as well as those the bank just wanted to be rid of. Also, there was only one home, craftsman style, that has the owners furnishings and I can’t tell you how welcoming it looked. My home is in Ct, nestled between, Berlin and Waterbury. I didn’t mean to suggest that when you walk into our home, you are having flashbacks to another century, not a Clifton Webb movie, however I did enjoy that home as well… 🙂 All I am saying is I think that realtors have to expand and be honest about this 1 miles radius trickery, what is bank owned and foreclosed.
Rachelle, I’m glad you elaborated on the “comps” or comparables. I’ve seen many real estate agents do a really bad job of that. Basically, they can pull whatever they like to support whatever point of view they have.
When I was interviewing listing agents for one of my own homes several years ago, they all presented “comps” to support whatever list price they wanted to recommend. Their estimates varied by about 30%! So for example, one said my home was worth $210,000 and another said $300,000!
Yes,, one has to watch their every move….
How do you find home owners who are ready to sell instead of reaching out to an agent?
Hi Cassie, Thanks for commenting. That’s a short question with a very long answer. It comes down to the right marketing! I spend more than 2 hours on this inside the Staging Diva Home Staging Business Training Program. It’s part of a complete business model that I’ve refined over the 20 years I’ve been in home staging.
You can read more about the Staging Diva Program here.
This past Fall I had two experiences where the homeowner contacted me on their own for a vacant staging estimate because they believed in staging but their real estate agent didn’t. In one of the cases, I spoke to the agent myself who absolutely believed that there was no need to bring in furniture and decorative accessories to the point where she screamed “no furniture! no furniture!’ to me. When I went through point by point why vacant homes need to be staged, for example, buyers need to see where they can put their furniture, she said “I disagree!”. Upon telling this story to another stager, she pointed out that perhaps the agent felt threatened, and perhaps insulted, in that she should be able to sell the home without having to resort to staging.
I had an agent “doctor” up my staging with “OWLS” all over the house. I couldn’t believe she did it. I guess she thought was a selling omen to put them in a house. Looked ridiculous
Wow Liz, that’s so frustrating when they muck with our staging. Thanks for sharing!
I’ve also had a very disappointing reaction from a friend who is a realtor. She thinks that she can give homeowners advice on what they need to do and that she doesn’t need any help from a stager. This is especially surprising to me since we are friends and I’ve been a great “customer” for her and have referred her to others.
Well, that’s the problem. If they’re not experienced stagers, they don’t know exactly what needs to be done to show properties to the best of its ability. From what I see in my market, agents here are not getting it at all! They take a property on and just hope it sells the way it is if its price right, but not always the case.
My home is for sale and when they had the broker open house, these agents knew right away that either a interior decorator or home stager serviced my home. The feedback was fantastic. Hopefully, it was an eye opener as to how properties should show…
I remember 4 years ago prior to starting my business. I hosted a Holiday Party at my home and the guest list included several real estate agents. I approached one in particular who has been in the busniess for 20 + yrs. She felt the staging idea just was not going to go over. Months later, I convinced her to hire me for a vacant listing. Ok, success story here, it sold in record time. She is now a believer in staging. I do however feel agents are still difficult to persuade, and why ? Our services only make them look better. Of course we have those that feel they can stage themselves with a few items they carry around in the truck of their car. I have seen some sad attempts at staging. Now I have to admit the BLUE tape theory is a first for me. I am fortunate that I have several agents in my area who believe in staging and in me. My goal for 2010 is to accomplish getting more on board. Debra, thanks for the post.
Gary Baugher , An Eye 4 Change Home Staging Nashville, TN.
I have had mixed responses. I have had Realtors who ask their clients to hire me and actually have had more jobs through that avenue than directly with clients themselves. (I do work another full time job, and not having as much time to promote myself right now is probably part of that reason.) One of the biggest obstacles I see is Realtors who think they only need to hire me when they have a very expensive home that is vacant. It seems difficult to get across that ALL homes can benefit with an action plan for staging and that staging is more than rental furniture. Continuing to educate the prospective client about the benefits seems to be the key as well – seems most homeowners are still not sure what we actually do!
Thank you so much for your post! I’ve actually become very discouraged by the negative reaction I’ve gotten from real estate agents in my area. I was beginning to think that maybe I couldn’t make this business fly, even though I believe in it so strongly, and feel so passionate about it!! I’m going to shift my attention, starting today. I feel so much better. Thanks.
CarolAnn, I couldn’t agree with you more. Too many real estate agents think that staging is only about vacant homes. About 99% of the calls I receive from both homeowners and agents are for vacant stagings. They both need to be educated that it is also about the occupied homes that can benefit from decluttering, depersonalizing, painting, updating, etc.
Donna, I so agree with you. I see so many listings on line with poor photos. I ask myself, Why would you market a property in this condition. I conducted a presentation to about 50 agents a few years ago. I stressed to them you don’t just need a vacant home to stage. I also made a point that staging applies to all price points whether you are marketing a 100,000 or a million dollar listing. It’s all about that first impression. I feel there is stiil so much education to be taught .
Gary Baugher An Eye 4 Change Home Staging Nashville, TN.
I am just starting to feel for around for Home staging in my small town. Just the other day on the front page of Journal. I noticed a new realtor in our area but had been working out of Florida.
I quickly composed a letter to her a few days after the ad. I am waiting for a response but thought since she has been selling homes in a large city, had one on one coaching she might be one Realtor that would accept a homestager.
In the past they would say they only worked part-time. My sister said she thought they only use Home Stagers in high selling home. So I have had the same experience as everyone. I think that her article should help us all.
Most Realtors that I have spoken with agree that staging works. But,they are under the impression that they have to pay for the staging and that is why they have such a negative reaction to promoting staging. Most home sellers believe that since the agent is making for example, a 6% commission, that the agent should pay for the staging. However, what the sellers don’t realize is the amount of money that an agent invests in marketing: internet newspaper adds, brochures, brokers open house refreshments, etc. Also to pay for broker co-op or company split, and let’s not forget Uncle Sam. What the seller thinks will amount to a possible $21,000 commission, in reality ends up to be about $3,500. And if the house does not sell before their contract has expired, the seller gets to benefit from the upgrades and increased value that was added to his home. That is why the agents need to offer staging to their clients, and offer it before view their property. Home sellers need to be given the chance to decide for themselves if they want to invest in home staging to get the best return on investment that market conditions will allow. Agents need to offer home staging and then the burden is off your shoulders when feedback from showings come back with negative comments. You don’t look good when a house shows poorly. The sellers will only have themselves to blame if they dismiss your suggestion to have the house professionally staged. Try it. It works!
Few months ago, I was approached by a Realtor to stage a vacant home that she was hired to sell. It was previously listed by a different agent and had been taken off the market twice already because it wasn’t selling. She needed to do something different! The decision was made the very last minute as the owner wasn’t sure if staging will help him really sell this time? They agreed to hire me and the experience was an amazing one. The agent paid for the furniture rentals and the owner paid for the actual staging. This house was sold in one week and two days for above asking price. Both the agent and the owner were relieved and I was very happy too that my work proved that Staging Really Works!
First of all, why is this woman still using this agent? He sounds like a lazy, un-informed person who is out of touch! Does he believe in having home inspectors come in and give their opinion? Does he feel it’s wise to have an appraisal done? A well-informed agent will recognize the value of home staging just like any other para-service in real estate.
I’ve worked with plenty of agents who think a vacant home will sell better that way. But they’ve changed their minds when they see what home staging can do. And occupied homes need home staging even more! We’ve all seen the mess and clutter and utter disarray of some homes. Without home staging they don’t stand a chance of winning a good price or selling in a timely manner.
Home staging is the difference between sold now and maybe sell later – for a lot less!
Debbie Fiskum, The Home Decor Genie!
I live in an area that has the highest unemployment rate in the country. So, many homes lost to foreclouser and short sales and so many homeowners trying to sell their homes … I’m working with a small pool of realtors who have been relatively open to staging, although it’s a fairly new concept in our area, but it seems that they think I should be called in “only” when the house has been on the market for almost or over a year. (the hopeless cause) I’m working on educating them with: If a seller calls me before they list their house, we can make sure that the pictures the realtor needs to put in MLS are wonderful instead of sadly hopeless. But I do have realtors who have seen what I’ve done on a property and then have turned around and told other sellers how to de clutter, clean and arrange things…I guess you will always have those who think they can do it better than you. Although, I would never think of listing a house for sale!
Another type of call I get is to look at houses that realtors feel “really need a lot of work” instead of realtors calling me to come and look at ALL their new listings or listing potentials. In a perfect world I guess we’d like the realtors to call US to decide if a house would benefit from staging or not! .. Well, I guess that gives us something to work towards!
I am lucky enough to work with a wonderful Realtor who calls me to decide, instruct, sell each listing whether or not to stage. I’m the only stager he uses, and working as a team we were largely responsible for each other’s record 2009 income. But, boy, there are a zillion Realtors out there who are threatened, mis- or un-informed, or resistant to staging for some other reason. They are very difficult or impossible to convert. Leave them alone. They will not be Realtors for long. Go find yourself one of the great Realtors or two or three if you are lucky, and your business will flourish. Oh, and, up your web presence so homesellers can find you directly, another super revenue stream!
Well Debra your timing is perfect again. I just met with a real estate agent today and got the usual, they don’t need to stage a house because it will sell with out it. It’s good to hear that others are getting the same info and that we should ignore it.
Thanks
Diana Zinck
http://www.thestagecoachredesigner.com
In my area, many real estate companies are sending 2 or 3 agents for Staging Training and offering the service on their websites as “staging specialists”. In one case, they attended one of those 3 day hands on training courses. As we all know, if a home is staged correctly it takes time, energy and creative vision. I surely would not want my agent to be using his/her time and energy in staging instead of marketing and selling. I also had one agent tell me they rather have the seller use the money for a price reduction later if needed instead of staging. YIKES! I ended up staging- and the client hired me for another property later. I hope not to depend on Realtors and I am thankful that Debra’s training course did not make this a priority. My best Realtor relationships have come from attending open houses- thanks again to Debra stressing the importance of this.
Most Agents today think they know what home staging consist of just to avoid contracting out to a professional Home Stager. I was told by a Agent that he staged a Bedroom using cardboard and just simply put a sign on the bed “Do Not Sit on Bed”. I’m sure that sign fit right with the decor of the home (lol). Also, I find that Agents are devaluing our services by charging almost nothing to stage a property as they’re double dipping. Agents need to leave staging to the professionals and focus on what they do best..selling real estate!
Juliet, thanks for writing! I’ve heard of staging using cardboard furniture and I have to say I find it really odd.
Thanks everyone for contributing to this discussion, I know it will help both established and aspiring home stagers.
We spend far too much time and energy courting real estate agents who don’t get it and never will. Any time you spend on one thing means you’re not spending it on something else that may get you better results.
Please keep this discussion going, great input from all of you!
Thank you so much for this valuable information. Some time could you write something about partial staging verses full staging on vacant homes? I recently staged a brand new vacant home that the builder only wanted it partially staged. I”m wishing now that I didn’t give him that option. The rooms I did look great but I think it leaves buyers wondering what happened to the rest of the house! I”m trying to accomodate sellers budgets, but I think I may have made a mistake on this one. What do you think?
PS. The real estate agent told him to go for a partial staging because only a few rooms really mattered anyway!
I am just commenting on sometimes Real estate Agents do hire Home-staggers’ even in my “small” town. I recently wrote a letter to a new Realtor, She had a write up on front page of my newspaper. To make things short “SHE ANSWERED BACK AND BEFORE SHE MOVED BACK TO CORRY HAD HIRED HOME-STAGGERS”..She would like to speak to me sometime. So I answered her right back. So don’t give up their is one out there!!
My community has a population of barely 40,000 (rural, conservative). The feeling here seems to be that the realtor should have all the answers, recommendations, etc. After all, the seller is paying the realtor’s commission, so he/she should work for it, and the commission should cover everything(!). Agents are extremely reluctant to make even a consultation part of their services package because it costs them $$ upfront. The community has been hard hit by job cutbacks, etc.; sellers are very reluctant to invest in selling their home (a.k.a. the realtor’s job). I have given dog-and-pony shows to a few realtor offices and left or raffled off a gift certificate for a free initial consultation in hopes of generating business. One office has yet to use the certificate, has a prime seller/big home to use it on. The seller feels everything is fine as-is and doesn’t want to spend/contribute to improve the home’s chances of being sold. The mindset seems to be that if the buyer wants the house badly enough, they’ll deal with anything/everything.
Laurelanne, I always raffle off a free consultation when I make presentations at real estate offices, but only about 20% of the winners take advantage of it. It totally baffles me! The only good thing is that I get business cards so I can add the email addresses to my monthly newsletters and other emails I send out.
Realtors don’t want to share the wealth. It’s very simple. They don’t know how to stage a home – act like they do – and the only answer they often provide for a home not selling is the price is too high and we need to drop it. Real Estate agents caused the inflation of homes and are continuing to cause home values to drop. Giving them 6% commission is outlandish. Why do we have to pay 6% to list a home on MLS? I know from personal experience that staging a home will sell a home.
An Agent we personally know is in the process of Flipping homes at a very low price. We introduced our new staging business to him. He told me “staging is good under certain circumstances but wouldn’t be necessary for this situation because investors will buy it up the first day.” I negotiated a one time discount to give us an opportunity to “prove’ to him that it will make him even more money. “GREAT NEWS” Not only did He sell the home for 5k more than asking price, he had multiple offers. He loved what we did so much, that two weeks later we redesigned his personal family homes main bathroom and living room.,”IT GET’S BETTER”… while we were there designing, a customer of this agent came by to sign papers and saw what we were doing and hired us to do his home.
Wow, Christine! Way to go. Your story just goes to prove “seeing is believing.”
The craziest response I’ve received was from a top producing broker that said to me “we do our own staging”. I said to him, when you decide that your time is better spent finding buyers for your client, then please give me a call.
For Susan: You, as well as many others in the buying public are not informed as to how commission works for the majority of Realtors. Let me explain: If a listing indicates a 6% commission, by no means does the listing realtor receive that at closing. First the company that they are employed by typically takes a % off of the top for the cost of doing business. Then the balance is split between the listing & the selling companies, which split it again with the agents. So you see, for a $200k sale with a $12k commission, an agent could easily end up with around $3k. When you add in all the costs such as dues for MLS dues, lockbox keys, Regional dues, websites, virtual tours, costs of gas, liability insurance, IRS, etc….It takes quite a few of those to be in the black at the end of the year.
As for the statement that “Real Estate agents caused the inflation of homes and are continuing to cause home values to drop”….
Puhleeeze–we aren’t the ones that signed on the bottom line of those loan papers! A house will sell for whatever a buyer is willing to pay for it! Maybe they should have just said “no” to the mortgage companies!
I am a certified & professional home stager, as well as an active, licensed realtor. I know the value of home staging & continue to try and educate my customers, co-realtors & friends about this profession. Let’s all try to make 2011 a “positive” year!
Lori, I’m glad you piped in with a clarification of how real estate commissions work.
This is why I have often said it’s “easy” for an agent to suggest a price reduction of $10,000 because it doesn’t change his/her commission all that much, while to a client, a $10,000 price cut is significant. ‘
You have also presented a great example of why many agents are reluctant to recommend staging. They’re afraid of being asked to pay for it and with such slim margins, few agents want to invest any more money to sell their listings.
That’s why I feel it’s important that stagers, when presenting to agents, make it clear that while this is one of the “tools” they can recommend to clients to help their home sell faster and for more money, it doesn’t have to be something they pay for. In the same way that I doubt many agents would expect to pay for the painter, gardener, home inspector, etc. Staging is just one of a bundle of services required to show the home at its best to attract an offer.
As for what caused the current housing crisis, that’s a whole other topic with plenty of blame to go around. I agree though that if you’re old enough to sign a mortgage document or an offer to buy a property, you’re old enough to make sure you understand what you’re getting into.
I have worked twice now with a realtor, who purchased 2 homes for himself to flip. After I staged the first home, it sold to the very first buyer through the door! The realtor was thrilled. The second home sold in 3 weeks — during Christmas of all times! This realtor even bragged to his painter that after I staged his first house it sold immediatley. And yet, he waited almost a full year to contact me again for the second home. I asked him why the wait especially since he witnessed first hand the effectiveness of staging. He answered that he wasn’t able to find another home that he wanted to purchase for himself and flip. I was quite puzzeled as he has many, MANY client listings and yet has never told his clients about staging or moreover his first-hand experience with the power and success of home staging. Why would he not want to sell his client’s homes just as fast and make his commissions???
Peggy, that’s an excellent story and I really appreciate you sharing it with us! Congrats too on those staging success stories.
You’re right there isn’t any logic to why he’d want to only keep you as a secret weapon for his own fix/flip properties rather than also sharing you with his real estate clients. Sometimes people pigeonhole us and then don’t see that we can offer them other services (even when it should be obvious as in this case). That’s why I recommend staying in touch with clients and prospects regularly through a newsletter so that they can be reminded of all the services you offer. It could be as simple/dumb as “it never occurred to him”. If I were you, I’d certainly point out where you can help him in his real estate practice!
I’ve got another one … a realtor friend of mine had a cliet with a higher end home that was left looking very vacant and cold (despite his client still living there) after his wife took her cut in the divorce. Luckily my friend realized the home would not show well despite its architectural beauty, and gave me a call. The client was very hesitant and doubtful, after all, his home “in a good market would go for close to a mil, so even in this depressed economy, it’s worth way, way more than I’m asking.” But the realtor insisted and said he would pick up the cost of staging because he felt strongly it would get the house sold faster. Little did he realize just how fast that sale would be — when the realtor brought his wife back to see the house after I had staged it, they decided to buy it themselves! Now if that doesn’t speak volumes about the effectiveness of staging, then I don’t know what does! But here’s the other side of this coin, the realtor has yet to get me in contact with any of his client’s because as he points out, “Most of my listings right now are short sales so they don’t need to be staged.” WHAT??????
Hi Peggy,
That is a great result! The reason the agent is now saying that he doesn’t need staging is because in a short sale it is to the seller’s benefit to make the property look like it’s worth much less than the mortgage. The less valuable the property looks, the more likely the appraiser will come back with a low price, making it easier for the seller to get an approval from the bank.
Depending on the agent’s neighborhood, he just might be telling the truth about the amount of short sales he’s doing.
All the best,
Jewell
Jewell, I’ll have to respectfully disagree on this one. Presentation always matters—even in a short sale! Every house can and should be staged to compete for buyer attention. Just because a seller is in a negative position doesn’t mean they should have to lose even more money. Buyers compare short sale properties to traditional sales, other short sales, and even foreclosures. But when a buyer makes an emotional connection to a well-presented house, offers will come in much sooner than later. Therefore, short sale properties must stand apart from the rest of the pack on more than just price! And let’s not forget, “Short Sales” are anything but! They can, and usually do, drag out for what seems like an eternity. Even more reason to have a product that attracts and then holds buyer attention until the deal is actually sealed. Given the choice between a comparably, or perhaps even higher-priced traditional sale and a short sale, buyers will oftentimes choose the former and back out of the short sale because it can just take so darn long. This makes it even more challenging and an absolute necessity to stage the house to keep buyer interest and to lessen the continued financial risk of the property for the seller.
Peggy, I know it seems hard to believe, but I’m speaking from experience. I’m also a real estate investor, who has done short sales. In a short sale, the owner of the property isn’t getting any cash at the closing (sometimes you have to come to the table with cash to close), as they are proposing to the bank that the property is worth less than the mortgage they currently have on it. We all know that staging increases the perceived value of the property.
It can be a catch 22 depending on who the buyer is. Maybe after the bank has come out for its appraisal, might a seller want to do some staging if they’re trying to attract a homeowner vs an investor. The only consideration is that you’re asking the seller to invest in staging, when they’re facing a negative equity situation.
Jewell, all great points and I’m glad you and Peggy are going back and forth on this important topic.
I hear ya. We sold our house on a short sale. We waited until the property was approved FIRST as a short sale and THEN I staged it. Which is precisely why I have been trying to get this Realtor with his already approved short sale homes to get them staged to compete with all the other short sales, traditional sales, etc.,that are currently on the market. Theses properties have already been approved as short sales so staging will not affect their status, but rather hasten the sale, so that the he can move these houses and collect his $$.
Back to our house, we had 4 offers within 1 day! One of the perspective buyers, 3rd in line, parked outside our house, almost stalking it LOL! He came back several times over the course of 3 days both by himself and with friends to stare at the house from the street. Kinda creepy, but really drove home the point that a staged home, even a short sale will sell faster. We did not get anything at closing nor did we bring anything to the table. We did however, get out from under the financial burden and as such were able to move on with our lives very quickly, and to us, that was priceless! I just feel that others in the same boat as we were, would also appreciate the benefit of getting their short sale home sold while keeping the attention of the buyer and then afterward, putting it all behind them and moving on.
Peggy, Thanks for sharing that awesome story!! Really great for others to read and learn from this.
Thanks for sharing that story Peggy and for bringing a different perspective to the table. Debra, thank you for posting articles that allow us to have these kind of productive back and forth discussions.
I love that we’re discussing so many topics and sharing points of view here! Keep those comments coming and ideas for any topics you’d like to see me cover.
I really enjoyed reading this article. I DID think perhaps it was just me, or just my area. It’s so true that these agents feel foolish going back to the seller and telling them staging would be a good idea after their property has sat on the market for a long time.
I sent marketing material to a local agent in my area who has a listing that’s been on the market for in excess of 4 YEARS! It sits empty (it’s an estate sale). It would make such a sweet home for first time home buyers. The agent didn’t even bother to acknowledge she had received my email or my marketing package. Her loss is what I say. I intercept these agents now and go to the town assessor’s office for the owner’s contact info. I send the seller my marketing material. I let them know ( in a nice way of course) that many realtors haven’t yet caught onto the concept of home staging. Anyone who doesn’t believe it works has either not tried it or hasn’t done it right. It works and that is undeniable.
Love your articles!
A year ago when I was unable to connect personally with a very successful agent due to her busy schedule, I dropped off promotional material and spoke with her office receptionist instead. It wasn’t the most positive experience, so I was discouraged and didn’t pursue other local realtors in a similar manner. However, I recently was hired to stage a condo for a client who got my name from that initial receptionist. I staged the condo and it sold within three weeks, in a very slow market! Needless to say, the client was thrilled and I am now resolving to connect with the other realty offices in town …. and leave promotional material with their receptionists, if the realtors are unable or unwilling to see me.
Michelle, Thanks for sharing your story and congratulations on staging that condo to sell so fast! I hope you took tons of pictures!
One of the perks of being a Staging Diva student or graduate is I write articles to help promote their staging businesses and your condo story would be a great example. You can see other stories proving home staging works at this link:
https://stagingdiva.com/homestagingbusiness/category/proof-home-staging-works-staging-statistics/
Michelle, here’s where you can submit your info:
https://stagingdiva.com/homestagingbusiness/staging-success-stories/
Thanks again for sharing your comments!
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Would you propose starting with a free platform like WordPress
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Thanks for commenting. If you search “wordpress” on this blog, you’ll find plenty of advice to answer your questions.
I absolutely love your blog and find nearly all of your post’s to be precisely what I’m looking for.
Would you offer guest writers to write content for yourself?
I wouldn’t mind producing a post or elaborating on most of the subjects you write about here. Again, awesome blog!
If you’re interested in a particular topic, please email and let me know.
Imagine the realtor asking you to guarantee in writing that if that client’s home does not sell for XYZ, that you will reimburse them for all of your time and materials……This is a HUGE agent in DC who is not convinced staging is the key to selling his houses. Huge agent, yet poor photographs and no current stager he works with.
Isn’t it amazing Christina?! Thanks for sharing!
Christina,
I wonder if we were both working woth the same realtor…as I too was working with a top producer in DC, who also had a terrible photographer and no stager as well. This realtor made certain his name was found on every advertising component you could think of including his vehicle which was driven in 3 states by his full-time driver. This realtor wanted me to give him the same guarantee as he requested from you for my staging services. I am a realtor and home stager and I have found it very interesting how this realtor and other top producing realtors in NOVA claim to be an expert in multiple markets in various states; yet most
of the time all I would see was overpriced and stale listings. When the homes do not sell, which is not uncommon, or when the homes had gone thru a series of price reductions; then he and other agents would call me in to save the listing. What a nightmare it was working with agents like that. Sadly, after being a transplant to NOVA from a very busy and progressive agent amd team in the Midwest, I have found that many of the top producers in this market will not make their client’s best interest thier top priority. most of
realtors do offer professional photography nor the assistance of a stager to each of their clients. I have never seen anything so
discouraging!!
Well Debra, you quoted my close friend who is a real estate agent. When she said, “no one will pay for staging around here,” I immediately answered, “those aren’t the people I want to help. I’m looking for the ones who need and want my help.” I then went to my first staging. After a solid 3 hours, the house was transformed and the seller and her husband were ecstatic. They asked me to stay for wine and proceeded to tell me their life stories. I was surprised at how comfortable they were with me after doing the staging. These are people I’ve known at church for several years. Then their real estate agent loved the staging and offered to put a sign “staging by…”. So I now have one agent who has seen my work and liked it.
Elizabeth, I LOVE LOVE LOVE that you shared this story. Thanks so much for commenting! And bravo to you for standing up to that attitude and not letting it end your dream!
We really do form a strong bond with our home staging clients. That’s one of the things I also love about it. By the way, this is also why we can be an excellent lead source for agents. Our clients know, like and trust us and if they don’t have an agent yet, they are happy for us to recommend one.