| ALL DRESSED UP AND READY TO GO |
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| Statistics show benefits to staging
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By Joy Valentine - Coldwell Banker
Realty
When Cinderella went to the ball, she probably would not
have won the prince if she had gone dressed as a maid.
Cinderella would have lost out, and so would the prince.
There is a fine line between enhancement and camouflage,
and staging houses for sale -- like dressing up people
-- lies somewhere in between. In good staging, the best
features of the house are maximized, and the worst are
minimized. Staging a house is presenting the dream, showing
it the way it could be. That's what dreams are
made of, and the relatively recent phenomenon of staging
homes for sale has proven that actualizing that dream
has merit, both for buyers and sellers. The following
statistics indicate how much.
In discussions with colleagues and based on my own experiences
with staging, I suspected that staged homes sell faster
and for a higher price than those that are not staged.
Wanting to test that theory, I analyzed 2,772 properties
sold between March 1 and September 30, 1999, in eight
cities: Atherton, Los Altos, Los Altos Hills, Menlo Park,
Mountain View, Palo Alto, Portola Valley and Sunnyvale.
Out of that group, I took a sample of 129 properties that
had been staged, or 4.7 percent of the total. This sample
represented condominiums, townhouses and single-family
residences. They ranged in list price from $229,000 to
$4.8 million.
The following results show marked differences between
the sample of staged homes and the total group, which
consisted of both staged and unstaged properties.
For the group of 2,772 properties, the average number
of days on the market was 30.9, and the average difference
in sales price over list price was 1.6 percent.
For the sample of staged homes, the average number of
days on the market was 13.9 -- about half of the time
for houses in the general sample. The average difference
in selling price over list price was 6.3 percent, nearly
four times as much as for the other group of homes.
Please note that the staged sample was not skewed
by one or two outstanding properties. The homes in the
sample were fairly similar in terms of days on the market
and net sales difference.
It would appear from the above that buyers, like
Cinderella's prince, want to see the house "dressed up."
Judging from the net sales difference, they are willing
to pay for it, too. In addition, this phenomenon is occurring
in an extremely strong sellers' market that would not
appear to need any help.
I believe that the above findings have significant implications
for Realtors, interior designers, prospective sellers
and buyers and anyone else who stands to benefit from
the marketing and sale of residences. And this information
is pertinent not just to the Bay Area, but could be instructive
throughout the country as well.
By contacting Realtors in numerous major metropolitan
areas in the United States, I found that, for the most
part, staging is hardly being done, if at all. As usual,
California seems to be the leader in this area. Thus,
our experience here may well be helpful down the line
in other real estate markets, even where sales are so
strong that some feel there is no need for an additional
boost.
Concerning the actual staging of houses for sale, there
are a number of stagers in the area who charge a range
of fees and use a variety of approaches. Some focus on
rearranging the existing furnishings with only minimal
additions; others create an entirely new "look" by bringing
in their own furnishings and accessories. Some will implement
major remodels; others will coordinate painters, landscapers
and other service providers. Many will combine both approaches,
depending upon the seller's needs and pocketbook.
Whatever the approach, staging houses for market appears
to make a difference to buyers. And based on the results
of my analysis, the practice also carries with it implications
for sellers who wish to get the most value from their
properties.
The data for the above analysis were provided
by RE Infolink and the following staging firms: A Fresh
Look, Redwood City; JAG Staging, Palo Alto; and One Two
Six Design, Palo Alto.
Joy Valentine is a Broker Associate with Coldwell Banker
in Los Altos and can be contacted at (650) 917-4206.
Reproduced with permission of the copyright owner.
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