Selling a home can be a complex and emotional journey, with numerous decisions to make along the way. One of the most impactful decisions a seller can make is whether to stage their home. Home staging involves arranging furniture and decor in a way that highlights the property’s best features, making it more appealing to potential buyers. This article explores the primary benefits of home staging for sellers and provides data on the return on investment (ROI) from hiring a staging company.
Faster Sale
One of the most compelling benefits of home staging is the potential for a faster sale. Buyers want to feel an immediate connection to the homes they consider purchasing. Staging a house to highlight and emphasize its most attractive features can create a charming and inviting atmosphere. This significantly reduces the time the property spends on the market compared to a non-staged home. According to the National Association of Realtors (NAR), homes that are staged spend significantly less time on the market than those that are not. By presenting a home in its best possible light, staging helps create a strong first impression, which is crucial in the competitive real estate market.
Higher Sale Price
Staging a home can also lead to a higher sale price. When a home is presented as attractive and luxurious, its perceived value increases. Homes that look old, cluttered, and uncared for will sell for much less than those that appear fresh, spacious, and well-maintained. Professional stagers have the expertise to make a property look desirable, which can result in higher offers from potential buyers. Data from the NAR’s 2021 Profile of Home Staging indicates that 23% of sellers’ agents reported an increase of 1-5% in the dollar value offered by buyers, while 18% saw an increase of 6-10%. This demonstrates that staging can significantly enhance the financial outcome for sellers.
Improved First Impression
In today’s digital age, most homebuyers start their search online and this is where the first impression will be made. Therefore, it is crucial for a property to stand out in online listings. High-quality photos of a well-staged home can attract more viewers and increase the likelihood of receiving offers. A strong online presence, facilitated by appealing and professional photos, can drive more traffic to the property and enhance its visibility in the market. Staging can make rooms look more spacious and inviting in photos, enticing potential buyers to schedule a viewing.
Help Buyers Visualize the Home
Another key benefit of staging is that it helps buyers visualize themselves living in the home. Whether the target market is large families, young adults, singles, or luxury buyers, stagers can design the home to attract the desired audience. By creating a neutral yet stylish environment, staging allows buyers to see the potential of the space and imagine their everyday lives unfolding there. This emotional connection can be a powerful motivator in the decision-making process, leading to quicker and more favorable offers:
- Creates a Neutral Space: Staging removes personal items and clutter, making the space feel more neutral. This allows buyers to imagine their own belongings in the home rather than being distracted by the seller’s style and preferences. This is important because too much personalization can hinder a buyer’s ability to connect with the space emotionally.
- Maximizes Space and Flow: Professional staging arranges furniture and decor in a way that optimizes the flow of each room. It can make small spaces appear larger and awkward spaces more functional. Buyers get a better sense of how each room could be used and feel comfortable visualizing daily life in the space.
- Highlights the Home’s Best Features: Staging draws attention to a home’s best architectural elements like large windows, fireplaces, or high ceilings. Proper placement of furniture and decor enhances these features, helping buyers focus on what makes the home special.
- Creates an Emotional Connection: Staging uses colors, textures, and furniture styles that evoke positive feelings. Buyers are more likely to make an emotional connection to a home that feels warm, welcoming, and ready to live in.
- Helps Buyers See Potential: Empty rooms or poorly furnished spaces can make it difficult for buyers to understand how they can use the space. Staging helps them see how to arrange furniture and use the space effectively, which can be especially important for open floor plans or unique room layouts.
ROI of Home Staging
The financial benefits of home staging are supported by compelling data. A HomeGain survey found that staging typically provides a 586% return on investment. This means that for every $100 spent on staging, there is a potential $586 return. Additionally, the NAR’s 2021 Profile of Home Staging reported that 31% of sellers’ agents stated that staging greatly decreased the amount of time the home was on the market. These statistics highlight the significant ROI that can be achieved through professional staging.
Staging Costs in the Bay Area
Staging costs can vary widely, particularly in regions like the Bay Area. The prices range from a few thousand dollars to over $20,000, depending on factors such as the size of the home, the extent of staging needed, the duration of the rental, and the staging company used. There are two main types of staging that can create the largest variation in pricing:
● Partial Staging: This option, which highlights only the main areas and rooms of a house, tends to cost between $1,500 and $4,000. I do not recommend this level of staging as it does not generally provide the return on investment of a more comprehensive solution. I often get questions from clients if they can partially stage their own home. Professional stagers have contemporary furniture and associated accessories that are design to create a cohesive vision of the home. This integrated design look is nearly impossible to achieve using piecemeal furniture from home sellers, so avoid staging your own home and lean on professionals to drive the highest value for your property sale.
● Full Staging: A rule of thumb tells us that staging often costs between 0.5% to 1% of the home’s listing price. For a $1,000,000 home, this would mean a cost of $5,000 to $10,000. Like nearly everything in life, you get what you pay for when it comes to staging. Less expensive stagers have outdated styles, furniture with nicks and dings, and a typically less sophisticated design approach. High end stagers bring the most contemporary looks and high-end inventory to make your home truly shine. You will more than make up the modest cost different of high end staging when it comes time to sell your home, so go for the best in this critical marketing category!
Home Staging on Your Own: Why I Don’t Recommend It
While it might seem cost-effective to stage your home using your own furniture, this approach is nearly always ineffective. Using personal furniture and decor can detract from the home’s appeal and reduce its market value for several reasons:
● Wear and Tear: Personal furniture may show signs of wear and tear, which can make the home look less appealing.
● Mismatched Styles: Your furniture might not match the home’s architectural style or desired aesthetic, leading to a disjointed look.
● Buyer Visualization: Buyers might struggle to visualize themselves in the space if it is filled with someone else’s personal items.
The main advantage of hiring professional stagers is their ability to create a harmonious and appealing appearance that enhances the home’s design. Professional stagers strategically select items that highlight the home’s best features, increasing the chances of attracting buyers and receiving higher offers. By enhancing the beauty of your home through professional staging, you create a story that resonates with buyers, leading to quicker sales at higher prices.
Conclusion
Staging a home offers numerous benefits for sellers, including faster sales, higher sale prices, improved online visuals, and better buyer visualization. The data supporting the ROI of home staging is compelling, with significant returns reported by various studies. While staging costs can be substantial, especially in areas like the Bay Area, the investment nearly walways often pays off through quicker and more profitable sales. Although it might seem cost-effective to use personal furniture for staging, professional staging provides a polished and cohesive look that can greatly enhance the property’s appeal and market value.
By understanding and leveraging the benefits of home staging, sellers can significantly improve their chances of a successful and lucrative home sale. If you’re looking for staging recommendations or just want to browse the variety of styles and inventory options of various vendors, reach out and I’m happy to share my list of trusted vendors!
