| HOME STAGING: A MODERN TOOL FOR SALES
|
 |
By David Kopec
How many times have you walked onto a property that a
client has just enlisted you to sell only to find the
yard riddled with children's toys, old bicycles, and/or
a hibachi sitting on the front stoop? Then, when you walked
into the home you are greeted with sights of chaos, grime,
and decorating styles reminiscent of early yard sale specials.
While this example may seem extreme, the reality is that
properties that look rough command 10-15 percent lower
sales value then comparable properties that have had some
cosmetic work to make them more appealing.
The problem for the real estate agent who is listing the
disheveled property is how to tell the client that they
need to put some work into the property if they hope to
attain the highest value possible. After all, the clients
probably do not see the chaos of their property and in
fact probably see what others may deem as a dump as being
a gold mine.
Because a Realtor relies so heavily on referrals, and
could quite conceivably have these clients for much longer
than the average client, offending the owner at such an
early stage might not be the best approach. However, there
is a profession that deals specifically with this part
of a real estate - they are professionals who stage homes.
In the past, these professionals tended to be limited
to wealthy individuals who could afford these services
as well as reside some place else while their property
was listed. However, today's average citizen is savvier
to the real estate market and has higher aspirations to
make money from the transaction. The unfortunate truth
with many average citizens is that while they understand
the concept of making a profit, most individuals lack
the "decorating gene." These people know what appeals
to them, but do not know how to go about achieving that
look. This is where a professional in home staging becomes
appealing.
Home staging is a psychological art. A good stager will
be savvy to the psychological desires of humans, will
understand the cultural preferences of the likely buyer,
and can transform an undesirable piece of real-estate
into one that is more desirable. What I mean by psychological
desires for example, is that most humans have innate desires
for open spaces, lot's of light, and not too much stimulus
in a home. But, some of these psychological norms are
influenced by culture.
For example, many Asian cultures prize concrete with very
little greenery in the form of trees or grass. To many
Asians with strong cultural beliefs, concrete is considered
cleaner. Thus, a good home stager will not only look to
the interior of a home, but will also analyze the neighborhood
to identify any cultural norms, review the exterior since
this is what a prospective buyer will see first, and will
assess the interior for modifications. As an active participant
in the transformation, a good stager will work with the
owners and may be even sub contractors to ensure the best
outcome.
It is more than likely that a client will not want to
enlist the services of one who stages homes. The most
likely reason will be because of the initial sticker shock
of the service. With costs ranging from a few hundred
dollars up to several thousand, the thought of a stranger
coming in and transforming a home that one may have prided
oneself on assembling can be belittling and possibly offensive.
This is why the listing agent must use caution and preface
the recommendation with a statement like, "It's amazing
how much of you I see in your home, you have truly been
successful in incorporating your personality in the overall
feel of your home. However, I must be honest and tell
you that most people do not like to buy homes that appear
to be someone else's. Houses that sell the quickest and
for the highest price are those homes that do not look
as though they are someone else, instead they almost look
like a store display."
This is when you can tell the client that you work with
someone who will help make their home more appealing to
prospective buyers. The key is not to insult the client!
For some sellers, the concept of paying a professional
for these services seems incomprehensible. After all,
they have never enlisted the services of home staging
before, and they have been able to sell their homes without
any trouble. While this maybe true, unless it was a seller's
market they probably accepted much less then would have
been able to command had the home been staged. There is
an old adage which goes, "money begets money." This means
that if you spend $100 you can anticipate getting $150-$200
in return. Property that sells for a higher price is quite
appealing because the salesperson's commission is higher,
the seller leaves thinking that they got the best deal,
and the property values in the area all increase which
makes the buyer feel confident in their purchase.
Home staging has been traditionally a privilege of the
wealthy, but today more and more of the average population
is enlisting the services of home staging because they
can see the intrinsic value of not only increasing the
value of property, but also reducing the time a property
stays on the market.
However, while I recommend that Realtors work with a good
home stager, when working with the average population
the Realtor must be careful to ensure that the professional
that they choose to work with has much more knowledge
then simply decorating a home. They should screen any
home staging professional that they refer business to
for interpersonal decorum so that the seller is not insulted,
cultural norms so that the property appeals to the desired
buying population, and psychological knowledge to know
what has mass appeal versus secular appeal. If a real
estate agent is successful in their screening of professionals
and successful in convincing their client to enlist the
services of these professionals then one can be pretty
much assured of getting a higher price for the property
and having the property on the market for a shorter period
of time.
Reproduced with permission of the copyright
owner. |
|
| Next
Article > |
|
|
|
