Looking to Sell? The ROI on Staging

Garnering top dollar for a home is always a seller’s -- and broker's -- goal. However, many sellers fail to look at their home in the eyes of the buyer. If you’re looking to list or still waiting to sell, staging can be the difference between a timely and top dollar offer vs. a wait and see consideration.

Amy Pates, a top-performing broker with Coldwell Banker Distinctive Properties in Vail, Colorado, says the goal is to have potential buyers visualize themselves and their family in your home.

"Barriers for buyers, or what I call 'negative triggers,' include clutter, too many personal items and photographs, colorful walls that may may add to your overall design, and furnishings that detract from anyone else seeing their home in yours," said Pates. "We all carry emotional connections and memories in our homes, but when you get ready to sell, it's important to shift from the seller mindset to the buyer mindset."

When working with sellers, Pates asks them, "If you were the buyer walking into your home as is, how would you feel? Assuming you have looked at other properties, what attracted you to the ones you liked and deterred you from the ones you passed on?" Outside of price, how a home shows can be a primary reason an offer is made -- or not.

The ROI on Staging

Pates notes that professional staging draws more brokers to show your home to potential buyers due to its appeal (a good broker will do open houses before or at the time the house goes on market). Most importantly, proper staging also provides an opportunity for your broker to list and sell your home for more money. Properly staged homes in Eagle County and the Vail Valley typically get 5%-10% more on average, even factoring in the cost of staging.

Pricing It Right

While neighborhood comps are a good place to start, assessing a home’s value and the appropriate list price is based on many other considerations. These include views, both from inside and outside the home, property size, additional features such as wine coolers and cellars, high end appliances and design features, spa and hot tub areas, flex space, garage and storage areas, and access to neighborhood/club amenities and services.

"The majority of buyers are looking for updated, move-in properties," said Pates. "Although buyers can be initially drawn to the appeal of owning a mountain property, most of these buyers want clean lines, contemporary finishes, and clutter free spaces that work for their family dynamics. Open air rooms as well as indoor/outdoor living spaces are commanding top dollar."

If your home does not have these features, Pates says white paint, new flooring, updated lighting and decluttering can go a long way to create more openness with a high ROI. Other considerations include updated bedding, accent pillows, reducing artwork, removing personal photos, renting more contemporary furniture and area rugs, and clearing countertops.

Even dated homes can be updated to achieve this – at a fraction of the cost relative to ROI.

A case in point is a client's home in Eagle Ranch, about 30 minutes west of Vail, that Pates listed. The seller was older and did not see the value in having his home being staged. The home had a great foundation, and floor-to-ceiling windows that framed the surrounding landscape. However, the home was 20 years old and dated, with rustic furniture, a bumper pool table in the great room, and a bathroom with dark green toilet and matching sinks, among other out-of-style features. Virtually every potential buyer commented that the home needed a total interior makeover or gut.

Pates said the offers they received were much lower than the owner chose to accept. Once he decided to stage the home, it received rave reviews. Buyers commented on the big, beautiful windows instead of being stuck on the flooring material. To address the dark green bathroom features, Pates made a poster board with a picture of an updated bathroom and anticipated budget that helped buyers envision the space for themselves. The home sold for $350,000 more than the previous offers they had received with a total staging investment of $9,000 for the main floor area.

UPSIDE TO STAGING

· Creates more inviting space

· Ties the home together

· Neutralizes distracting features

· Provides a fresh new look

· Shows well in pictures and open houses

· ROI – will typically sell up to $200K or more when staged

· Turnkey process – your broker should take care of the logistics

· Inquire about broker programs that provide and arrange staging and get reimbursed at closing

· Potential to re-sell if purchased as a furniture package for the home

DOWNSIDE TO STAGING

· Cost can add an extra $3,500-$7,000/ month, which typically includes:

· Furniture

· Moving furniture in and out

· Designer

Most importantly, Pates says do not try to do this on your own, unless you’re a professional designer. An experienced broker with vision, experience, and knowledge will be able to identify what the market is looking for and how to efficiently transform your spaces to appeal to these buyers.