Home Staging Cost Savings
November 2, 2011
There are two scenarios when contemplating the cost savings to consumers in using a home stager. The first involves homes that were staged after the property had been on the market.
The second, more preferable, scenario is for homes to be staged prior to going on the market. Here are seven case studies from actual Home Staging by Amie clients presenting both scenarios.
SCENARIO ONE: STAGED AFTER GOING ON MARKET
Following are four case studies involving consumer savings that could have occurred had the home been staged prior to going on the market.
Case Study 1: Renovated Condominium
This condo was immaculate and had been completely renovated. It was listed for sale by owner for six months with absolutely no activity. It was then listed with an agent/stager team. The agent advised the seller that the average time on the market for comparable properties was 12 months. The home was then staged and sold within the first 3 months of being listed.
Monthly carrying costs per month X 18 = $18,900.00
Monthly carrying costs X 3 = $2,300.00
TOTAL CONSUMER SAVINGS = $16,600.00
Case Study 2: Great House, No “Wow”
This home had a great floor plan, was priced right and was in a great location. Yet, it had no “WOW” factor. It was on the market for 18 months prior to staging and was purchased by the first person to look at it after staging (two weeks). Had the home been staged from the outset the total consumer savings would have been $29,750.00.
Monthly carrying costs per month X 18 = $30,600.00
Monthly carrying costs X 2 weeks = $850.00
TOTAL CONSUMER SAVINGS = $29,750.00
Case Study 3: Carrying Costs Cut in Half
This home had a very small living area and was fronted by a very busy street. It was on the market for four months with no offers. After staging, it sold in 2 months.
Monthly carrying costs per month X 4 = $5,600.00
Monthly carrying costs X 2 months = $2,800.00
TOTAL CONSUMER SAVINGS = $2,800.00
Case Study 4: College Town Bungalow
This adorable bungalow had been completely updated and was very near a major college campus. It was on the market for seven months prior to staging with lots of activity but no offer. It sold within the first month after staging.
Monthly carrying costs per month X 7 = $12,600.00
Monthly carrying costs X 1 month = $1,800.00
TOTAL CONSUMER SAVINGS = $10,800.00
SCENARIO TWO: STAGED PRIOR TO GOING ON THE MARKET
The following three case studies reflect consumer savings when homes were staged prior to going on the market.
Case Study 1: Seller Faced Competition from New Home Construction
This house was a first time home buyer’s dream; however, the seller had competition from new homes still being built in the area. The real estate agent warned the home owner it could possibly take three months to sell his home. After being staged, it sold within 8 days of going on the market.
Monthly carrying costs per month X 3 = $3,075.00
Carrying costs – 8 days = $273.00
TOTAL CONSUMER SAVINGS = $2,802.00
Case Study 2: Dated Garden Home
This garden home was somewhat dated. Other units in the development had not been selling. The real estate agent informed the home owner it could take up to one year to sell the property. Although the owner paid cash for his home, there were still monthly carrying costs totaling $275.00. The home was staged prior to going on the market and sold in the first month after listing.
Monthly carrying costs per month X 7 = $3,300.00
Monthly carrying costs X 1 month = $275.00
TOTAL CONSUMER SAVINGS = $3,025.00
Case Study 3: Horse Lover’s Dream
This rural classic Victorian home could have been on the market 12 months, according to the Realtor, but sold within the first month following listing. The monthly carrying costs were $1,750.00.
Monthly carrying costs per month X 12 = $21,000.00
Monthly carrying costs X 1 month = $1,312.50
TOTAL CONSUMER SAVINGS = $19,687.50
How Much Does Home Staging Cost?
December 1, 2009
Inevitably, the first question I am asked by Realtors and home owners is “What does staging cost?” I know the answer they are looking for is the dollars and cents amount of my staging services. But the answer they really need to hear has nothing to do with that amount. They really need to hear what it will cost not to stage. Staging is not about spending money, but making money.
If homes are not staged it can cost much more than the actual dollars and cents of staging. Here’s how:
- A prospective buyer will drive by and not want to go inside because the home lacks curb appeal;
- A prospective buyer will not see more than the first room of the home because it feels dark, cluttered and not large enough;
- A prospective buyer will see the home as dated and brand it a fixer upper to justify making a low offer;
- A prospective buyer will not make an offer at all;
- The homeowner will then make the first price reduction.
This is the true cost to the homeowner when deciding not to stage because they did not want to spend the dollars and cents.
