Asking a home seller to fork out a few thousand more dollars right before they list their home is never enjoyable. It is not something most Realtors jump at the chance to do, unless they know they will get their client’s return on investment.
They are already paying you, the Realtor, a percentage of the sale on top of the closing costs and the “must do” repairs. YIKES it all starts to add up. Yes, the cost of selling a home in Florida today can cost between 10-17% of the home’s price.
Selling a home is no different than any business deal. You need to buy right, present the highest value to the prospect pool, limit the time on the market, and get the highest price for the best ROI.
The last two items, limit the time on the market and getting the highest ROI, can be positively impacted by properly preparing the home for sale. This means home staging and doing critical improvements to best showcase the home.
In the post Coronavirus times we live in, staging a home is no longer an option. Having worked with hundreds of Realtors and home sellers, here are our recommendations on how to get seller to invest in home staging. And why this is a WIN/WIN for the seller and you, the Realtor.
Steps to get your listing show ready and sold.
1) Start the “why” home prep conversation early When you are courting a lead listing, talk with your prospect about what it takes to get a home sold quickly and for the highest price. Let them know that your biggest past successes and those of all of the other top producers, boils down to these 3 factors:
The price of the listing.
Do your homework and be real. If they want to get the top price, then the home’s presentation has to be consistent with the asking price. Taking on a listing with an unrealistic price from a home seller in dream land is a bad path. Be honest and focus on taking the next sales success impact factor.
The home presentation. Nearly 50% of home sales start online. This means the home is competing with the thousands of other listings, many of which are beautiful, new construction, so the imagery and photos must look the best they can.
The marketing. Yes marketing is the magic that puts all the pieces together to make a sale, but not even a magician can make this happen without a worthy product that looks great in video, in the MLS listing, on social media, online and at showings.
Yes, marketing is the magic that puts all the pieces together to make a sale, but not even a magician can make this happen without a worthy product that looks great on video, the MLS listing, social media, and at showings.
2) Share the research that backs this wise investment. The National Association of Realtors conducts annual studies on selling trends and what influences home buyers. Year after year statistics demonstrate staged homes spend half the time on the market than non-staged homes and staged homes command 1-15% higher prices than non-staged homes.
3) Show your client staged to sold examples. Before and after pictures noting days on market and sale prices are powerful tools. Combine these with examples of similar homes that were not staged and that are still on the market. Or better yet, show them a home that was listed by another agent and sat on the market (mounting monthly carrying costs) for over a year and when you got the listing, you staged it and now that sold.
4) Walk through the high cost risk of not staging and prepping the home. If a home listing is not appealing, and does not stand out online, the home will not get showings and will have a lower chance of getting an offer.
Every day this happens, the listing is like a piece of fruit. It will have a less fresh profile and soon it will need to be marked down to move. In home sale’s talk this means: a painful price reduction.Buyers will start wondering what is wrong with the home.
Every day the home does not sell, the home seller still has those dreadful carrying costs like insurance, landscaping, taxes, security and mortgage. One month of carrying costs can be more expensive than home staging.
Every day a listing is on the market, it costs you, the Realtor, not only time and marketing expenses, but it will end the client honeymoon phase and frustration will begin.
Plus, every extra day the listing is on the market, you have less time to secure a new listing, count your sales commissions or get a massage.
Staging a home is a WIN/WIN. Your client is happy. You are the hero. The new home owner is thrilled about their purchase.
If you need staging presentation materials to help communicate “why staging pays off” to present to your client, Home Frosting is here to help. We’ve created 3 home seller-friendly tools that you can download here.
Karen Post is an award-winning, Tampa-based interior designer home decorator stylist. Catch her on Daytime TV, a nationally syndicated lifestyle show, FOX and on HGTV sharing design tips and decorating ideas. She's also a regular contributor to the National Association of Realtors publications, providing design and home improvement advice to 1.3M realtors.
Home Frosting is a Tampa-based interior design studio providing home interiors, home decorating, remodeling, and custom furnishings. We service Tampa, South Tampa, St Petersburg, Clearwater, Belleair, Apollo Beach, and the surrounding areas.