Loan activity went into a deep freeze following the onset of the pandemic, but lenders seem to be loosening their purse strings again…A bit.
Hiring A Stager? Here’s What To Ask
It helps to do your staging homework so a Seller can ask the appropriate questions…
+Can I see before-and-after photos of jobs you’ve handled? Can you explain what you did and why?
+Do you usually stage all the rooms in a house or condo, or just a few key rooms? Which ones?
+Do you recommend taking down artwork and curtains and removing most accessories?
+Do you have access to a staging inventory that you own or rent? If the furnishings will be rented, how long is the rental period?
+Can any of my furnishings be used for staging, and if so, which ones?
+Do you recommend other improvements, such as painting, polishing floors, or resurfacing kitchen cabinets if you believe it’s required?
+Do you offer expertise concerning the property’s exterior?
+How will I, the Seller, be charged? Is it by the number of rooms, hours on the clock, or a flat fee for the entire project?
+What’s your average return on investment? How much would my ROI be if the home is staged versus not staged?
+Can I get the specifics of your staging proposal in writing?
There’s a growing list of courses as well, such as the three-day program offered by stager and designer Kristie Barnett of The Decorologist in Nashville. Other accreditation programs and industry designations—such as the Accredited Staging Professional or the Designer Society of America’s Certified Home Staging Professional—give a stager the chance to tout their expertise.
Companies that offer staging resources have also become more plentiful in the form of attractive rental furnishings, artwork, and accessories. Some stagers and real estate pros prefer to buy merchandise.
After Emma Weiss staged a two-bedroom condominium in Seattle, the owners received four offers at an open house that sparked a bidding war. The property sold for 25% more than the listing price.
Sellers who don’t stage a home before it’s listed risk losing out to comparable staged homes, says Christopher Barrow, co-managing partner and broker with Foundation Homes Property Management in California’s Marin County. “Nobody wants a home with Venetian plaster from the ’80s,” he says.
Staging first emerged in the 1970s after real estate pro Barb Schwarz, who has a background in theater, developed the concept and trademarked the term to help show her listings. It originally involved simple decluttering, making basic repairs, and arranging furniture; nowadays, it’s used to completely transform rooms and sometimes entire homes, so they look new.
It can even go beyond adding furnishings; some use luxury towels, designer shoes, and handbags to suggest a lifestyle, says Lynn B. Telling, an agent and luxury specialist in Palm Beach, Fla.
The number of rooms staged in a listing typically depends on a home’s overall condition, market competition, and listing price. But usually staging a few main rooms will suffice. “You can always leave a few spaces to a buyer’s imagination rather than do the entire house,” says Marcie Barnes, director of strategic growth at a New York–based real estate company that focuses on buyers.
Buyers consider the living room the most important to stage, followed by the master bedroom and kitchen, according to NAR’s staging report. In each staged space, the goal is to create a universally appealing, updated, clean setting—what Dale Dogan calls “today’s staged aesthetic.” Common denominators include neutral colored walls and hardwood floors (a rug is OK as long some flooring shows), a few pieces of comfortable, modern furniture to hint at a room’s use (perhaps a laptop on a table), mostly empty countertops and bookshelves, good modern lighting, a few accessories, and some art or a bit of color to add a pop so the space isn’t devoid of personality.
Fresh greenery offers a bit of warmth, says Barnes. Often, the desire to show some creativity is reserved for a small space, such as a wallpapered powder room. Barnes also likes to include a seasonal reference—a beachy vibe come spring and summer or cozy feel in the fall and winter—and at least one hot trend, such as a smart-home tech device.
Sometimes, however, more work is required to make a listing showing-ready because of the home’s condition or the market it’s in. Agent Barb St. Amant with Atlanta Fine Homes recently had a listing in an Atlanta suburb that required interior and exterior paint, wood rot repair, kitchen and master bathroom renovations, and property landscaping to compete in that area. The home sold for 96% of its list price, went under contract within a month, and closed 30 days later. “There were nine to 11 months of inventory in that area, and typical days on market were from two to three months,” she says.
Although staging often calls for a spare look, in some areas complete household settings are making inroads—at least in trend-setting Los Angles. There, luxury staged homes are displaying more furnished interiors that are so complete, some buyers purchase what’s featured after they buy the house, says Meridith Baer. Her 30-year-old eponymous firm, Meridith Baer Home, is hired both by agents and developers to stage their listings. The firm routinely stages 30 properties a week. “We want buyers to fall in love, and we do a variety of looks, from more minimal to very layered,” she says.
The Cost Breakdown…
What a seller typically spends on staging is proportionate to the home size and condition, listing price, estimated return on investment, and competition. Sometimes sellers may not have to spend funds at all since some agents offer their time for decluttering, rearranging furnishings, and making suggestions. That’s the approach Kati Baker takes, a luxury home staging specialist with Downtown Realty Co. in Chicago. She rearranges furniture, bookshelves, and art and removes anything in the house that may cause an off-putting smell.
Dogan always works with sellers to determine the level of staging needed to best show off their home and within their budget. She covers the cost of a staging consultant to assess the home pre-listing. If the seller wants to use the stager, Dogan hires the person, but the seller pays for the services and any related costs. Dogan will also tap into her own inventory of items for some stagings. Typically, her sellers’ costs range from $2,000 to $5,000, which might involve a simple paint refresh or furniture rental, she says.
However, staging a large vacant house may cost significantly more, upwards of $30,000 for some of her listings. But Dogan says the return on investment can be $50,000 or greater in her New York market. On average, sellers see about a 5% return on investment nationwide, according to the 2019 NAR report.
St. Amant offers sellers a free two-hour consultation with a stager. Most stagers in her area charge $125 to $250 an hour. The goal, she says, is to spend the least amount of money and get the greatest return. And some sellers invest significantly. A client of St. Amant, who lived in a neighborhood with $1 million homes, recently spent more than $100,000 getting the house ready to list, half of which went toward deferred maintenance.
“With advice from the stager, we made necessary changes to the 30-year-old home and quickly got an offer that was nearly $200,000 over what we might have if it hadn’t been updated and staged,” she says.
Not all sellers can afford to do this, so it’s important that they work within a budget.
Mulry reminds sellers that the cost of staging is nominal compared to a possible price reduction they’d have to make if the home sits on the market, unstaged, with little interest from buyers.