For real estate investors, home staging can be a game-changer in selling properties quickly and at a higher price point. Staged homes create an emotional connection with potential buyers, allowing them to visualize themselves living in the space. Investing a small percentage of the sale price into professional home staging services can result in significant returns, with staged homes selling faster and for up to 20% more than non-staged homes on average.
Through strategic use of furniture, decor, and staging techniques like decluttering and highlighting hardwood floors and curb appeal, home stagers help showcase a property’s strengths. This makes it easier for buyers to envision the real estate as their future home, increasing the likelihood of higher offers.
Statistical Evidence
Return on Investment
Home staging offers an impressive return on investment (ROI) for real estate investors. According to a 2009 Home Gain Survey of over 2,000 realtors, home staging typically provides a 586% ROI. The National Association of Realtors reports that the average staging investment is 1-3% of the home’s asking price, which generates a return of 8-10%. Investing 1.3% in staging results in an average of 7.1% over-list returns.
Faster Sales and Higher Prices
Staged homes spend significantly less time on the market compared to non-staged homes. A professionally staged home spends 73% less time on the market, with some sources citing that staged homes sell in an average of 35 days compared to 175 days for non-staged homes. Staged homes also command higher prices, selling for up to 17% more than non-staged homes, according to the U.S. Housing and Urban Development. Other studies indicate that staged homes sell for 25% more and can boost a home’s value by 6-10%.
Buyer Perceptions and Behavior
Staging plays a crucial role in influencing buyer perceptions and behavior. Nearly 50% of buyers are swayed by home staging, and 86% of potential buyers find it easier to visualize a property when it is staged. Staged homes are often perceived as ‘one-of-a-kind’ versus ‘one of many,’ which can lead to higher bids from buyers. Additionally, 40% of buyers who viewed a staged home online were more likely to go see it in person.
Staging Strategies
Bespoke Home Styling and Staging
Burbeck Interiors provides innovative bespoke home styling and staging services to increase the value and appeal of properties. They treat every property styling and home staging project as a bespoke installation, sourcing furniture, accessories, soft furnishings, and artwork from contacts across London, the UK, and internationally. Burbeck Interiors’ approach is to allow the property to impose on their style, rather than imposing their style on the property. Their property styling, home staging, and furniture rental and purchasing services across the UK and London help homes sell faster and for the best possible price.
The ‘FEEL HOME’ Process
HSR Certified Professional Home Stagers use an 8-step ‘FEEL HOME’ process to quickly transform the home and engage the home seller in the process. It starts with a conversation between the home stager and the listing agent to understand the seller’s needs and the optimal buyer. The home stager then tours the home, takes photographs and notes, and creates a comprehensive home staging plan.
Key Staging Strategies
- Focus on the most important rooms: the living room, primary bedroom, and kitchen.
- Arrange furniture to clearly define the purpose of each room, especially in open-concept spaces, helping buyers visualize how their own furniture can fit.
- Minimize clutter by clearing off surfaces, donating/selling/throwing away unnecessary items to make the home look more spacious.
- Apply a minimalist aesthetic by clearing clutter and keeping decor simple, creating a clean, open feel.
- Paint walls in neutral colors to appeal to the most buyers, and add an accent wall with paint, shiplap, wood slats, or wallpaper to create visual interest.
- Install floating shelves in bathrooms, kitchens, and living rooms to create an airy, open look.
- Purge and organize closets, pantries, and under-cabinet storage to show ample space.
- Strategically place mirrors to make rooms feel larger and brighter.
- Replace heavy drapes with light, airy curtains to let in natural light.
- Use lighting to make rooms look bigger, cleaner, and more spacious.
- Plant flowers and shrubs to improve curb appeal.
Cost-Benefit Analysis
Upfront Staging Costs
The median cost to stage a home using a professional staging service is $600, compared to $400 when the seller’s agent personally stages the home. Staging typically costs 1-3% of the home’s selling price. For a more comprehensive staging effort, the average cost of ‘full soup-to-nuts home staging for an occupied house’ is estimated to be between $3,000 to $5,000.
Furniture Rental and Additional Expenses
For homes that require furniture rentals, the costs can add up quickly. The average cost to stage a home is $1,776, with a range of $784 to $2,812. Full furniture rentals can cost at least $2,000 per month. Additionally, there may be expenses for accessories, artwork, and other decor items to complete the staged look.
Return on Investment
Despite the upfront costs, home staging often provides a significant return on investment for real estate investors. As mentioned earlier, staged homes typically sell faster and for higher prices compared to non-staged homes. The National Association of Realtors reports that the average staging investment of 1-3% of the home’s asking price generates a return of 8-10%. With such impressive ROI figures, the costs associated with home staging can be easily justified for real estate investors looking to maximize their profits.
Collaboration with Professionals
Case Study: Partnering with a Home Stager
The case study focuses on a client of Seattle realtor Chad Dierickx who was initially skeptical about investing in home staging, but ultimately saw great results. The client’s home was staged by Seattle Staged to Sell and sold in just 5 days with 10 offers, despite a market shift towards favoring buyers.
Benefits of Collaborating with Home Stagers
Partnering with a professional home stager adds credibility to a real estate agent’s business, provides tremendous value to the listing package, and results in faster and more profitable home sales. Real estate photographers can enhance their marketing efforts by collaborating with home stagers and interior designers. Home stagers create a warm, welcoming atmosphere and highlight a property’s best features, while interior designers help create a personalized look that fits the homeowner’s lifestyle and preferences. Photographers get access to beautifully staged and designed properties, and home stagers and interior designers get their work showcased in high-quality photos.
Building Partnerships
Tips for finding and building partnerships include networking, showcasing your work, reaching out directly, and being open to negotiation. Partnering with a home staging company expands the realtor’s professional network and creates mutually beneficial connections. Staged Ryte is a woman-owned boutique home staging and design firm with a 5,000 square foot warehouse in Ashley Falls, MA with over 10,000 pieces of furniture and decor.
Case Studies
Virtual Staging Success Stories
The content provides 5 case studies of realtors who were able to sell their properties in just 3 days or less using virtual staging:
- Bob Hucker (Austin, TX) – [Sold in 3 days, $5,000 over asking price](https://www.virtualstaging.com/case-study)
- Barb Kutz (Fox Point, WI) – Sold in 2 days with 4 offers
- Farhad Ettehad (Fremont, CA) – Sold in 3 days
- Srini Anumolu (Chantilly, VA) – Sold in 1 day
- David O’Dell (Boise, ID) – Sold in 3 days with multiple offers
These case studies highlight the effectiveness of virtual staging in helping properties sell quickly and at desirable prices. By showcasing the homes in their best light through digital staging, realtors were able to create a compelling vision for potential buyers, leading to rapid sales and competitive offers.
Conclusion
Home staging has proven to be a potent strategy for real estate investors aiming to maximize their returns. By presenting properties in their best light and allowing potential buyers to envision themselves in the space, staged homes consistently sell faster and at higher prices than their non-staged counterparts. The statistics and case studies presented in this article clearly demonstrate the significant return on investment that home staging offers, often generating impressive profits that far outweigh the upfront costs.
While the specific approach may vary, collaborating with professional home stagers or leveraging virtual staging techniques can provide real estate investors with a competitive edge in the market. By partnering with experienced professionals and leveraging their expertise, investors can create warm, welcoming spaces that appeal to a broader range of buyers, ultimately leading to more successful transactions and higher profit margins.
FAQs
Staging is essential because it enhances the property’s appeal to prospective buyers, creating a positive first impression that can lead to a quicker sale at an attractive price.
Home staging has been proven to be a beneficial investment. By allocating 1.3 percent of the home’s value to staging, about 73 percent of sellers experienced a return of more than 7.1 percent, as reported by the Real Estate Staging Association (RESA).
Approximately 75% of sellers who stage their homes professionally before listing see a return on investment ranging from 5% to 15% above the asking price. Specifically, an investment of 1.3% in staging typically yields a 7.1% return over the list price, according to a 2021 survey.
Yes, staging a home can significantly influence its appraisal value. By improving the overall presentation, highlighting the functionality of spaces, and boosting marketability, staging can lead to higher appraisal values.
