Interested in learning about who pays for home staging from a home stager's perspective? This is a great post by Oregon home stager Margaret Oscilla with some facts and statistics about home staging and how to address the cost with your clients.
As a professional home stager in Los Angeles I feel the homeowner should pay for staging, however we have been seeing more and more listing agents offer to pay for staging in order to get the listing and make sure the home sells quickly and at a higher price. I always recommend that the listing agent structure the deal so that the home seller pays all up front home staging costs and the listing agent reimburses the home seller at the close of escrow. The home seller will be more invested in getting the home sold (keeping it clean, orderly and in good shape) and the listing agent is protected if the seller is unreasonable or the listing is cancelled for any reason.
With many homes on the market and fewer home buyers, home staging has become more in demand than ever before. Several agents and home sellers have asked us lately – who should pay for home staging?
Home staging makes houses easier to market — they look and “feel” better in person and in the listing photos. A quick sale of course benefits the real estate agent. Should they pay for staging?
One example to consider: If a home seller had carpets that needed cleaning, would the real estate agent advise them to do so? Of course. But they normally wouldn’t consider paying for the cleaning. Likewise, home staging is an important part of home selling, and home sellers should pay for home staging.
Occasionally, sellers can’t afford to pay for home staging until after the home has sold. What then? We’ve brainstormed with agents and sellers and find affordable and win-win solutions to this situation. Real estate agents are cautious (and reasonably so) before investing in staging listings that may not sell quickly and need to develop their marketing plan prior to committing to paying for staging.
We’ve worked with many different scenarios, and find frequently when sellers pay for staging, we obtain the best results. Why? When sellers are invested financially, they usually value and implement the recommendations we give them.
While I do think it is the sellers responsibility to pay or share in the cost of home staging, I do believe it is the real estate agent’s responsibility to educate the seller on the value of home staging. I continue to be surprised at how unprepared many sellers are when entering the Oregon real estate market. Home sellers need to be informed of the statistics revealing:
- Staged homes sell quicker than unstaged homes
- Over 90% of home buyers look on the internet for homes
- Homes that look great online get more showings
- A 2009 study reveals staging is a necessary improvement that yields a high rate of return – over 500%
- Homes that linger on the market are targets for lowball offers and price reductions.
- Staging always costs less than a price reduction!
Also home sellers benefit greatly from:
- Understanding what buyers are looking for when visiting their home
- Knowing that sellers form a STRONG impression from the curb and within the first ten seconds of entering their home.
- How important lighting, room function and flow is to impressing buyers
- Learning how to declutter, clean and prep their homes for sale effectively.
Once sellers understand the competitive nature of home selling in 2010 they are more likely to be willing to invest their money in a staging consultation or to pay for vacant home staging. We work with a variety of payment situations, depending on the seller and agent. For example:
- Home Seller contact us directly for a consultation or staging services and pays for all staging expenses.
- Agent refers clients to a professional home stager and educates seller on the value of home staging
- Agent provides a staging consultation for their listings,
- Agent agrees to reimburse home seller for a staging consultation at closing
- Some agents pay for consultations and have a written agreement that if the listing is terminated, they will receive reimbursement for their expenses.
- We work with a few agents who refuse to list properties when home sellers are not willing to work with a home stager. They won’t spend their time, energy and marketing budget on homes that aren’t ready to compete.
- On existing listings that linger on the market, use a portion of a price reduction to invest into staging – improving the appearance and price at the same time.
Each listing and situation is different, but finding a way to obtain the competitive advantage home staging provides is important to both the real estate agent and home seller.
Need more ideas on how to incorporate staging into a new listing? Contact a professional home stager for other creative ideas and enter the 2010 real estate market knowing your home is making the best first impression possible.
Moving or improving? Creative Concepts and Contracting has the expertise to showcase your home's full potential, stretch your budget, and maximize your time.
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2010 RESA Professional Stager of the Year
Michelle has staged hundreds of Los Angeles homes, many of which have sold with multiple offers, above listing price.
She works with home sellers, listing agents and asset managers to prepare homes for sale throughout Los Angeles.
Moving Mountains Design provides vacant home staging, occupied home staging, color consultations, corporate and executive relocations, move organization, redesign, and interior design. We also stage model homes, REOs,foreclosures and auction properties for real estate investors and asset managers.
For more information about our Los Angeles home staging services, contact Michelle at (626)385-8852 or by email.
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Michelle,
Yes, a seller should pay for staging a home. However, given different circumstances, I have seen agents pay for the staging as part of their services. It all depends on the deal and agreements made. All the best to you.
I agree with Ron. I think it's an expense to the seller. I do think it's important as an agent to educate the seller on home staging and the benefits. Provide them with referrals, then let them make a decision...
I agree with everyone here. The sellers should pay, unless it is included in the agent's marketing plan normally.
I think the seller should at least pay up front and maybe get a little discount from the realtor at closing. But if that's what it took to get a good listing, I would consider paying.
The Seller usually pays in my market, but I have had agents pay the consultation fee to get the staging off the ground. Great idea about having the client pay up front and then have it taken out of the agents commission at closing.
Wendy Neugent
www.SoldHomeStaging.com
www.ChesterfieldDreamHomes.com
www.MidlothianHomes4Sale.com
Michelle - I have seen where the seller pays and recognizes the value of home staging. I know of some who get paid at close of escrow as well.
I never think its a good idea to be rigid and say "I will never do this or that". While I think it is the homeowner's responsibility to pay for staging, if it means getting a great listing, flexibility and creativity is key.
Thanks for all your great responses!
Michelle, it's always good to hear about other ways of doing things. Reimbursing the seller at closing is yet another option. Thanks.
I agree that if the agent decides to sponsor the staging, it should be done at a sucsessful COE (especially High End). It keeps the seller committed to the process once they've got some skin in the game. Nice post!
Maria: As I said before, I think the home owner should pay for staging, but it doesn't always work out that way.
Stephen: I love the expression (having some skin in the game) and use it often. More often than not people have no idea what I'm talking about. I'm glad to see someone else using it:o))