Staging . . . from a financial perspective
Staging for the sale of real estate property is a phenomenon that has blossomed in the last 10 - 15 years. It has caught fire with many real estate professionals insisting, "If you're going to sell, you must stage your property". So for the potential seller, this begs the obvious questions (especially when considering the financial aspects): Why stage, how to stage, and is it worth it?
Why stage? . . . Because the technology age has perfected the art of presentation and changed the playing field for the marketing of all products and services. As consumers, we are deluged with savvy professional marketing in stores, on television, the internet, cell phones, media, and in about every other aspect of our lives. As a result, today's consumers have become adept at rapidly filtering through the mass of information presented to them, instantaneously discarding unwanted and/or unappealing selections in their decision making process. Let's face it, everything is about presentation and packaging, and for sellers, capturing of consumers' allusive attention has become the supreme challenge.
Real estate professionals are now realizing that without effective presentation and "staging", even solid value homes that aren't well presented can suffer a distinct disadvantage from comparative properties on the market. The result is that non-staged properties are either discounted in value as compared to competitive properties, or bypassed altogether by consumers expecting to be wooed with appeal.
How to stage? . . . Carefully. When approaching staging, use the "Goldilocks" approach - not too much (no need for over-the-top lavish), not too little (avoid sparse or amateurish), but just right (perfected, as it helps your property show its best).
Effective staging focuses on presenting the property so that it shows its best and generates emotion, helping to sell it fast, at an optimum sale price, and all at a reasonable cost for the seller. However, staging offerings in the market can range from designers showcasing high-end furniture and accessories, to "do-it-yourselfers" randomly placing accessories here and there. Good staging specializes in the fine art of color, placement, size, depth, furniture and accessories, and visual appeal. It may look easy, but it is all about details, . . . and those aren't easy. The details make the difference between capturing the potential buyer's emotions ("I just love the feel here") and being just another house on the list.
Remember, buyers have choices, especially in today's market, and expecting them to use their imagination is a huge risk. The first impression is the most important impression.
Is it worth it? . . . Absolutely. Selected wisely, good staging provides a return on investment (ROI), both relative to net proceeds, and the timing. Staging can help maximize net proceeds by increasing the sale price and overall perceived value of the property through its market appeal. Timing is more intangible in that it includes carrying costs, monthly fees, interest/time value of money, inconveniences, opportunity costs, personal time and efforts, etc. These are amounts that can really add up in the long run, especially if the property sits on the market. By helping to market the property faster, staging can pay dividends with respect to these timing costs.
Staging is an investment in the marketing of the property designed to help the seller generate a higher overall rate of return on the sale. Staging of real estate is equivalent to detailing a car prior to selling it. There's a reason it is done - it makes financial sense and maximizes value on the sale.
Why stage? . . . Because the technology age has perfected the art of presentation and changed the playing field for the marketing of all products and services. As consumers, we are deluged with savvy professional marketing in stores, on television, the internet, cell phones, media, and in about every other aspect of our lives. As a result, today's consumers have become adept at rapidly filtering through the mass of information presented to them, instantaneously discarding unwanted and/or unappealing selections in their decision making process. Let's face it, everything is about presentation and packaging, and for sellers, capturing of consumers' allusive attention has become the supreme challenge.
Real estate professionals are now realizing that without effective presentation and "staging", even solid value homes that aren't well presented can suffer a distinct disadvantage from comparative properties on the market. The result is that non-staged properties are either discounted in value as compared to competitive properties, or bypassed altogether by consumers expecting to be wooed with appeal.
How to stage? . . . Carefully. When approaching staging, use the "Goldilocks" approach - not too much (no need for over-the-top lavish), not too little (avoid sparse or amateurish), but just right (perfected, as it helps your property show its best).
Effective staging focuses on presenting the property so that it shows its best and generates emotion, helping to sell it fast, at an optimum sale price, and all at a reasonable cost for the seller. However, staging offerings in the market can range from designers showcasing high-end furniture and accessories, to "do-it-yourselfers" randomly placing accessories here and there. Good staging specializes in the fine art of color, placement, size, depth, furniture and accessories, and visual appeal. It may look easy, but it is all about details, . . . and those aren't easy. The details make the difference between capturing the potential buyer's emotions ("I just love the feel here") and being just another house on the list.
Remember, buyers have choices, especially in today's market, and expecting them to use their imagination is a huge risk. The first impression is the most important impression.
Is it worth it? . . . Absolutely. Selected wisely, good staging provides a return on investment (ROI), both relative to net proceeds, and the timing. Staging can help maximize net proceeds by increasing the sale price and overall perceived value of the property through its market appeal. Timing is more intangible in that it includes carrying costs, monthly fees, interest/time value of money, inconveniences, opportunity costs, personal time and efforts, etc. These are amounts that can really add up in the long run, especially if the property sits on the market. By helping to market the property faster, staging can pay dividends with respect to these timing costs.
Staging is an investment in the marketing of the property designed to help the seller generate a higher overall rate of return on the sale. Staging of real estate is equivalent to detailing a car prior to selling it. There's a reason it is done - it makes financial sense and maximizes value on the sale.
Copyright 2011 Janistyle, Inc.