To Stage or Not to Stage

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You may have heard that it’s important to stage your home to increase the value, while reducing the time on the market, but is this true?  According to the following statistics provided by the Real Estate Staging Association (RESA) the answer is a simple – YES! Please keep in mind these figures are from the US market, which has been much slower than our local market.

All numbers as of February 10th.

For Vacant Homes Previously on the Market – 2009 Study 01-09 to 12-09

There were 87 vacant homes (not staged) previously on the market an average of 277 days unsold. Those homeowners had their properties staged. Those same homes sold in 63 days on average after staging. This is 78% less time on the market.

For Occupied Homes Previously on the Market – 2009 Study 01-09 to 12-09

There were 39 occupied homes (not staged) previously on the market an average of 233 days unsold. Those homeowners had their properties staged. Those same homes sold in 53 days on average after staging. This is 78% less time on the market.

For Vacant and Occupied Homes Previously on the Market – 2009 Study 01-09 to 12-09

There were 126 vacant and occupied homes (not staged) previously on the market an average of 263 days unsold. Those same homes were staged and sold in 60 days on average after staging. This is 78% less time on the market.

Staged First, Listed and SOLD – 2009 Study 01-09 to 12-09

There were 117 vacant homes that were staged before they went on the market. These homes sold in 42 days on average after staging and 167 occupied homes that were staged before they went on the market. These homes sold in 39 days on average after staging.

How much money could you save by staging your home before listing?

The study shows 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.

As an example, using this formula you can determine approximately how much money you will continue to spend while your home is on the market un-staged.

 

If your mortgage is : $1800.00

If your direct expenses are: $300.00

 

Total carrying cost per month: $2,100.00

This study shows home owners had their property on the market for an average of 9 months. $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!

If you have a price reduction you can also add that into the loss you are taking by listing a property un-staged.

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