So it’s time to sell your home. Regardless of the reason– downsizing, relocation, divorce, or you just need more space for your growing family–I’m going to assume you want your home to sell quickly and for as much money as possible. Because of this, it seems pointless to spend money on a place you’re not going to stay in. Right? Wrong.
Assuming you want to make as much money as possible when selling your home, you need to put your best home forward. This means addressing any repairs, maintenance issues, and staging to make sure your home is appealing to as many potential buyers as possible. Addressing these items now will shorten the amount of time on the market, but also sell for more. Ignoring such tasks pretty much guarantees losing money. The longer your home is on the market, the less it will sell for.
What Does Home Staging Do for Your Listing?
Home staging the art of preparing a home for the real estate market. Essentially, it is a marketing strategy. It’s about turning a home into a product that appeals to the greatest amount of buyers.
Did you know that a staged home spends 70% less time on the market than its unstaged counterparts? Did you also know that a staged home will sell for more than one that has not been staged?
The primary benefits of home staging include reduced time on the market as well as a higher selling price. A higher selling price means more money in your pocket. And who doesn’t want more $$?
Calculating the Cost of Home Staging
The average DOM (days on market) in the Ottawa area is 44. A home that has been properly prepared for the market will easily spend less than half that time. This means staging your home. The more your home appeals to the masses the easier it will be to sell. If it’s easier to sell, then the likelihood it will sell for more is greater. This could mean bidding wars, selling at asking or for more than asking. If you choose to do the bare minimum, the more difficult it will be to sell. Usually after 30-60 days, the average price reduction will be 1-5%.
The “cost” doesn’t stop there. There is the emotional toll that amps the price significantly. There is no doubt that selling your home is stressful, but the longer the your home stays on the market, the greater the stress. More showings, means more prep, and means more disruption into your everyday life–which is busy enough already. Few are okay with the constant invasion into your home by strangers.
Let’s take a look at the opposite scenario. It all starts with a consultation. Consultation costs can vary from city to city, but for the sake of this blog we’ll say it’s $250. For $250, you can expect a complete checklist of all that you will need to do to adequately prepare your home for the market, inside and out, front to back, top to bottom. This includes what to prepack, furniture placement, colours, and what repairs to address as well as updates that will bring you the biggest bang for your buck. This investment will net you a higher asking price and reduced time on the market, by as much as 70% and significantly lower stress levels.
A $250 investment is most certainly lower than a $10,000 price reduction on a 400.000 home. Which would you prefer? That “cost” is a very effective tool that allows you to market your in the most attractive way possible.
The benefits are just financial either. A home that sells faster, at a higher selling price allows you peace of mind but also the ability to be able to move forward on to the next chapter in your life without the added stress.
The Cost of NOT Staging
You’ve read what I’ve written, but need more proof or still not convinced? Let’s consider the cost of not staging:
A RESA study showed 126 homeowners had their property on the market on average of 263 days before they decided to stage.
263 days = 9 months!!!
Those same homes were staged and sold in 60 days on average after staging.
This is 78% less time on the market. This is 7 months less time on the market.
We can break this down further by using this formula:
Monthly mortgage: $1,800.00 Utilities: $300.00
Total carrying cost per month: $2,100.00
Using the RESA study:
$2,100.00 X 9 months = $18,900.00 in expenses.
Had those homeowners staged first, their time on market would have been cut by 223 days on average (7 months).
$2,100.00 x 7 months= $14,700.00
Staging their homes first would have saved them $14,700.00.
These numbers are all relative to individual mortgage and expenses. Use this simple formula to determine how much you will save by staging your home or listing before putting it on the market:
Mortgage + expenses (utilities etc.)
= Monthly expenses
Monthly expenses X 9 months (avg. time un-staged)
= Cost to list house un-staged
Savings: Expenses x 7 months (average time on market reduced) – Staging Fee
= Savings if you stage your house first!
**This does not factor in an possible price reduction
With the added costs, not to mention the added stress. you quickly realize not staging is a risk most of us can’t afford to make.
I assure you, the added effort and initial investment make it all worth it!
Questions about staging or our process? Give us a call or ask us in the comments below!
Until next time,