Many design-oriented individuals decide to become home stagers without any kind of business training or marketing knowledge. While they mean well, they often stumble into some terrible marketing tactics that will likely put them out of business faster than you can say, “what were they thinking?”
In Monday’s post, I discussed why using sex appeal and inappropriate humor are awful ideas for home stagers trying to build their businesses and be taken seriously. Today I’ll tell you about another marketing tactic that will probably put your home staging business under: Offering a guaranteed sale.
I can’t believe how many ways home stagers are finding to bankrupt their businesses. The latest I’ve heard is that some home stagers are actually guaranteeing the sales of their clients’ homes.
In a tough economy and slow real estate market, one can guess why a home seller would want a guarantee when they’re investing in home staging services, and one can see why a home stager would be tempted to provide it, knowing how effective staging is in getting a quicker sale and wanting to do anything to attract new business.
But, if a stager is in business for the long run, they really have to explore the business rationale behind providing a sales guarantee.
I am against home stagers making any guarantee of a real estate sale from their staging because of the numerous factors involved that the stager has no control over. No matter how well a home is staged, there are several factors that will help determine whether a home sells or not.
For example:
- Is the house being listed in the right season? (Christmas and Spring Break are known for being poor times for real estate sales)
- Is the house priced correctly for its location, size and market conditions?
- Does the house have the features buyers are looking for in that area? If it’s a one bedroom home in a family neighborhood, it’s going to be a tough sell no matter how well it’s staged.
- Will the agent do an effective job of marketing the property?
- Will the home seller maintain the home in showing-ready condition 100% of the time?
- Is the home seller going to make it easy to show by not requiring lengthy notice, preventing showings during certain times, etc.?
- Will the home seller keep the house sparking clean and odor free during all showings?
- How are the agent and home seller going to handle offers they receive? Negotiations break down all the time for different reasons.
- Will the home seller accept any offer? More goes into an offer than the price.
- Will the home pass inspections?
- What if the buyer doesn’t get financing and the deal doesn’t close?
- What if there’s a natural disaster, political or economic event that interferes with the real estate market when the house is listed?
A home stager can guarantee that a house will show better when it’s staged, but they can’t guarantee a sale unless they’re prepared to buy the property themselves! It’s a much better business practice to gather statistics from past clients about the average amount of time properties remain on the market after you stage them and how that compares to similar properties in that price range at the time.
Collect testimonials and be prepared to share your track record and show off your knowledge of the local real estate market, but don’t guarantee a home sale.
Do you disagree with the point I’ve made here? Do you see a way that offering a guaranteed sale could work? Or do you agree that this is a quick way to bankrupt a home staging business? Please comment below and add to the discussion!
Check back on Friday for the final installment in this series of blog posts. “See” you then!
Debra Gould, The Staging Diva®
President, Six Elements Inc. Home Staging
Internationally recognized home staging expert Debra Gould is President of Six Elements and creator of the Staging Diva Home Staging Business Training Program. Debra has staged millions of dollars worth of real estate and uses her expertise to train others worldwide.
[tags] Debra Gould, Staging Diva, Six Elements, home staging marketing, marketing strategy, marketing strategies, home staging marketing gimmick, guaranteed sale[/tags]
Hi Debra – what you say is very true. It’s so important to remember those points from a self-encouragement point of view too. I’m an interior designer that also does home staging and I finished a client’s house last May after it had been on the market a year. By August they had a buyer, but both that and a subsequent one fell through for financial reasons. They now have a third buyer that looks pretty set. There were times when I could have let myself feel bad about taking their money when the house hadn’t sold! I’m going to print off your points so I don’t risk feeling that way again. I stayed in touch with my client, and offered ongoing support, and now they’ve asked me to help them with their new place. I’m also going to ask them if, when they move out, I can leave a welcome pack for the new owner asking if they liked my work, and if they would like me to help design their new home. Thanks very much again for your wise words!
Hi Debra,
I agree with all the points you have made. A home stager creates the presentation but marketing the property is not our responsibility. Properties can be overpriced because sellers do not agree with their agents and can insist on a higher listing price. I staged a home that is an income property with three units and it was marketed by the agent to be restored to a grand manor, but that doesn’t work with the rest of the street and the property has not sold.
Testamonials and track record are our best tools to help sell a home.
Sellers expect stagers to perform miracles while other factors influence the sale of their home such as the realtor who is reluctant to invest in marketing; “the best home on the block” syndrome where prospective buyers love the house but not the neighbourhood and the most unfortunate when the house being being sold is located next to the neighbour from hell. It may be wise for a stager to discreetly bring up these issues with a client rather than ignore the obvious and receive negative feedback.
Yes Debra, I agree with you we should not make any guarantees. We as home stagers do what we do best. When I meet with clients I always address the three key factors of a successful sale , Price- Location – Condition . Believe me I have staged some properties is some not so desirable areas. Obvious that staging is what sold. I always present testimonals similar to their situation. Just no guarantee policy.
Gary Baugher Nashville, TN.
I am glad you have addressed the”guarantee”, as I have seen it on some websites and wondered how they could make that promise considering all other realistic and potential factors.
Thank you for answering another question.
Hi Debra,
I love your article could you tell me if you think my tagline on my marketing materials is mis-leading?
Decorating Homes that Standout and Sell
Debra –
I absolutely DO NOT ever make any guarantees to my clients (for all the reasons you mentioned and then some), but I am wondering what repercussions a stager has had who does. Do they guarantee IN WRITING? Has a stager you’re aware of had to face the music for guaranteeing a sale? It is beyond my comprehension that any one would guarantee a sale – even agents don’t do that around here unless a builder has a promo to buy your house if you buy their condo, etc.
I agree with you Debra especially now considering the way the market is. I presently have a client who has not sold after almost 3 months. I don’t think his realtor has done her best in marketing this property. He is now going to have the furniture removed as he says he cannot afford renting it anymore. I don’t think that will help his sale but feel like my hands are tied and am feeling bad for him that it hasn’t sold. I feel the property was staged very nicely and have been told so by the realtor but I certainly would not guarantee a sale from it. I feel as a home stager we are a piece of the puzzle but it also has to be marketed properly. It’s not going to sell if it is not shown.
Debra:
That was Best article about Homeataging that you wrote yet. I am going to save it. thanks for all your help you have given us.
Debra thank you for putting this into words, it has been in my thinking and wondering if it was doubtful thoughts, but seeing that you recognize these uncertainties makes me feel better. So the solution is to have comparisons with similar properties and testimonials to share that would express the positive outcome of Home Staging.
Absolutely Katie! You might also enjoy this article Decorating and Home Staging are Easy, Right?