Home staging helps home sellers cash in with higher profits and quicker sales.

Last year, 5,250,000 existing homes sold in the U.S according to the National Association of Realtors. There were 510,000 newly constructed homes sold as well, which means that every single day an average of 15,780 home sales closed in the U.S.

If you're trying to sell your home, that means you have some SERIOUS competition, all wanting to sell their listing quickly and for top dollar. So how can you stand out?

Of course, it’s important to have a great Realtor on your team that specializes in home sales like Anthony Alfano and the Alfano Group team. But homeowners also have a secret weapon that will help them separate their listing from the competition, attract more qualified buyers, sell faster, and for higher prices: home staging.

In this blog we’ll cover some of the hard facts, statistics and data on just how effect home staging is for selling homes quickly and netting sellers higher profits.

What’s the average cost to stage a home for sale?

Last year, home staging cost a median of $675 for home sellers.

Of course, it will cost more to properly stage a high-end or luxury home, but it’s important to remember that the ROI will be the same or even better, netting far more for the seller.

How much extra money are buyers willing to offer for a staged home?

According to national surveys:

4% Of staged homes see an increase of 16-20% of the home’s value

8% See an increase of 11-15% of the home’s value

22% See an increase of 6-10% of the home’s value

37% See an increase of 1-5% of the home’s value

10% Of the time, home staging has no impact on the dollar value

0% Of the time, staging a home has a negative impact on price

19% Of the time, the effect of home staging on prices in not determined

Data reveals that homes that are staged also sell for an average of 6% above the asking price!

What’s the effect of home staging on Days on Market?

An independent survey showed that staged homes spend only half as many days on market as non-staged homes.

Time is money when it comes to selling a home – and staging saves time:

A National Association of Realtors (NAR) study seconded that when it found that the longer a home stays on market, the further the price drops and the less it will ultimately sell for.

Since 90% of homebuyers first start their search online these days, your listing photos will really stand out and attract more buyers when your home is staged.

The same NAR survey found that the average staged home has an ROI of about 8-10%.

A comprehensive study found that homes that were staged AFTER they were already listed sold in an average of 198 days.

However, when homeowners had their homes staged BEFORE they listed them for sale, these properties sold in only 42 days!

That means homes staged pre-listing sold 79% percent faster than those staged post-listing.

What do Realtors think about home staging?

32% of real estate agents report that staging a home increases the dollar value that buyers are willing to offer by a substantial 1-5%, particularly on medium to high priced listings.

To put that dollar increase due to staging in perspective, that means the sellers would see $3,500 to $17,500 more on a $350,000 home sale!

That’s just a start to the financial benefits of staging, as 16% of real estate agents believe staging actually will increase the price their buyers offer by 6-10% which would be up to $35,000 on that same $350,000 home.

How do home buyers feel about staged homes?

Of course, realtors have a great perspective on home staging, but what if we asked those same buyers we're trying to attract?

In fact, 81% of buyers say it’s easier to visualize themselves living in the home when it’s staged, and 28% overlook the home’s faults when it’s staged.

46% of buyers are more willing to go view and walk through a listing they saw online when it’s staged.

What do buyer’s agents think about the effects of home staging? 49% of agents representing the buyer feel that home staging helps influence most buyers, while 47% feel at least some buyers are affected by staging.

How many sellers’ agents recommend staging?

34% of listing agents stage all of their homes for sale

13% Only stage homes that are difficult to sell

4% Stage only high priced listings

44% De-clutter and fix the property only without staging.

Which rooms are most likely to be staged?

            1          Living room

            2          Kitchen

            3          Master Bedroom

            4          Dining Room

            5          Bathroom

            6          Children’s Room

            7          Guest Bedroom

Who pays for home staging?

62% Of seller’s agent offer home staging services to sellers as part of a full-price commission package.

39% Of homeowners pay to have their home staged before the home is listed.

10% Of homeowners pay the stager after the home is sold.

3% of the time, the real estate agent’s firm pays for home staging services.

***

Contact us for more information about staging your home or selling for top dollar!

The 15 principles of selling a luxury home.

Selling a luxury home is a finely nuanced endeavor, requiring expert representation that is knowledgeable, experienced, well networked, and holds impeccable professional standards. So it’s crucial you work with the right real estate broker who specializes in selling homes in your area and has plenty of experience and a great reputation in the luxury market. Here are some proven principles to help you make the best decisions when selling your luxury home:

1. Pricing your luxury listing correctly.

Selling a luxury home presents certain inherent challenges because you have a much smaller pool of buyers who are interested and qualified. There are also far fewer true comparables because luxury homes are custom and unique properties. Of course you deserve to get top dollar for your home, but it’s important to adhere to the data and market research and price it correctly, with minor pricing adjustments with time if necessary.

2. Your Realtor should know the area intimately.

Remember that a luxury buyer takes immense pride in their home, and sees it as a statement about who they are and their lifestyle. So knowing (and selling) nearby amenities like country clubs, golf courses, business parks, town centers, arts and cultural events, bike trails, lakes, boat clubs, etc. all goes a long way in persuading the high-end buyer.

A potential buyer will also want to make a good investment, so they’ll expect detailed neighborhood data like demographics, trends on home values, crime reports, information on school systems, and planned developments in the area.

3. And know the home exclusively.

Luxury buyers consider their home the biggest investment in their lives so they want to know every detail about the property they’re buying. That includes information about any high end brands like wine fridges, artwork, chandeliers, or custom features like outdoor living spaces, Green or tech amenities. It also helps to have architectural blue prints from when the home was built, maintenance records, and a bio on the builder and designer.

4. Consider moving out during the listing process.

Research shows that high-end homes attract more buyers and sell faster if they are vacant during the sales process. While this may not be convenient, it could result in a far greater return on investment with a higher sales price. But this is a personal decision that’s completely up to the homeowner.

5. Professional staging is essential.

It’s essential to have your luxury home professionally staged before listing, which will allow it to be de-cluttered, de-personalized, and make display adjustments like neutral wall colors, furniture that maximizes space, and art work and decorations that makes your home shine.

6. Teaming with a good lender can help.

In the past, most luxury homebuyers paid cash when they purchased. But these days, there’s an increasing trend of buyers utilizing a mortgage loan for high-end purchases. Your Realtor should have a qualified mortgage broker who can provide information on loan options and specialize in jumbo loans to aid and encourage the buyer’s financial decision.

7. Decisions about showing and availability.

If the home is not being lived in during the sale, it’s much easier for other agents and buyers to see. But even if you’re living there, there are some important decisions to make: do you put on a lockbox so agents can come and go freely? Do you set up showings only by appointment so your Realtor can monitor who is coming and going? Or do you keep the listing information even more discreet for security and privacy concerns? A good luxury Realtor can advise you on all your options and help you come to the best decision.

8. Understand liability.

Safety is always a concern when listing a home, as is theft, privacy, and the liability of having people come onto your property. A great luxury broker will understand the risks and help protect you.

9. Consult with your trusted financial advisors.

It’s essential to consult with your financial team before, during, and after your home sale. That includes your financial planner, insurance broker, and especially your tax planner.

10. Networking.

Many luxury homes aren’t sold to strangers via the MLS, but through the local community and other people who are in the same economic grouping. So your Realtor should reach out to local businesses, like arts centers, galleries, wineries, etc., as well as promote your home through their extensive contacts in the luxury market. Even knowing how to get in touch with international buyers and relocation services for local businesses can help sell a listing.

11. Ongoing maintenance and cleaning.

It’s not enough to stage your home and let it be; you’ll want to hire a regular cleaning crew and do extensive yard maintenance so your home and grounds look pristine for any potential buyer.

12. Professional real estate photographs and virtual tours.

People who buy luxury homes are very discerning and expect the highest quality presentation to catch their eye. So make sure your Realtor can recommend the best real estate photographer who specializes in luxury homes.

You also may want to think about a professional videographer to record a virtual tour of your home, which are extremely effective in attracting luxury buyers. They can even work with your professional photographer and often use drones for stunning aerial shots.

13. Multi channel marketing, including technology.

The truth is that a luxury listing should be aggressively marketed through traditional channels: like networking with other luxury real estate agents, the MLS, print advertisement, press, community interaction, and also through the most cutting edge new technology.

These days, 95% of your potential market for high-end buyers are active and engaged on social media, and 90% of luxury buyers start their search for homes extensively via the internet or their mobile devices. So a luxury listing should have a strong social media presence, be featured on the Realtor’s web site and blog.

14. Consider community events for PR.

Open houses for luxury homes are a bit of a different animal than for a more humble home, because you won’t get (nor do you want) drive-by traffic and interested buyers shopping around. So you may want to consider working with your Realtor to opening up the house to community events instead, like wine tastings in coordination with your favorite local winery, allowing it to be used to host charity dinners or fundraisers, art gallery showings, or other events that will bring in plenty of distinguished people.

15. Patience is a virtue!

Selling a luxury home often takes more time and patience than a normal track home in the average price range because there are far fewer buyers and it’s harder to match them to a custom home. So patience and clear, business-first thinking is critical, as is great communication with your sales team.

***

The Alfano Group Real Estate Agency is the premier real estate concierge for high-end and luxury home buyers and sellers in the Sacramento, Placer County area. Please contact us if you'd like any more information or an analysis of your home's value.

10 Tips to stage your high-end listing.

Selling a high-end or luxury home is about so much more than a transaction, it’s a transference of lifestyle values, the marketing of an image of prosperity and taste as much as a roof and walls, and the presentation of your home should be treated accordingly.  Staging your home attracts buyers, creates bidding wars, differentiates your home from others for sale, and ultimately will put dollars in your pocket.  A recent study by the Real Estate Staging Association tracked 174 homes for sale in 2011.  Those that were staged sold in an average of 42 days, while those who were left unfurnished lingered on the market for 154 days!  We recommend enlisting the services of a staging specialist or designer, which we can help you find.  You may have to spend a little money to make money but if done correctly, the results always work in your favor. 

1. Clutter free.

The cardinal rule of staging your home to sell is to clear the space of as many of your personal effects and items as possible, leaving the area open and flowing when viewed.  Buyers who walk through will love this because they can instantly envision themselves living there and their own personal affects in the house.  Remove absolutely everything that isn’t essential to decorating the property or a highly personal nature (they don’t need to see framed photos of your family but they do need to see some artwork on the walls.) 

2. Paint in neutral colors.

One of the biggest mistakes sellers make is keeping bright or noticeable paint colors on the walls.  The aim is to keep everything as neutral as possible so no matter what the buyer’s tastes, they’ll feel at home.  Dark, brooding, colors or accent walls are a no-no, too.  Stick to an off white or light tan color and white moldings and you can’t go wrong.  Once you declutter and paint with neutral colors you’ll be amazed how much bigger and airy your home feels.

3. Don’t forget to stage outside.

Remember that people will drive onto your property, up the driveway, and walk to your front door first, so that’s when the first impression should start.  De-clutter the outside of your home, hire a professional landscaper to make everything look tip top, and consider a tasteful signature piece like outdoor sitting area, fountain, or other decoration.

 

4. Original artwork.

If you really want to convey the image that your high-end listing is unique and valuable, consider hanging original art as you stage.  Everyone’s seen prints by famous artists so decorating with those comes off as a little cheap and unsophisticated.  Instead, track down some original artwork that will add a dynamic visual detail and lead the buyer to take notice.  Your professional stager will probably have some great original artwork or you can contact nearby galleries and ask for a loan to help promote their work (the buyer might even want to buy it if they like it!)

5. Designs that tell stories.

When you walk into your favorite gourmet restaurant, you go to enjoy an experience, not just good food.  Same thing when you go to the nicest golf course or to a luxury hotel.  It’s the same thing with your listing; you want the buyer to have an experience as they walk through and the way you do that is by telling stories.  Incorporate local and historical items that have some history, antiques like old books, and other rare or interesting finds that are easy on the eyes but will spark conversation and contribute to the buyer’s perceived experience that your home is something special.

6. Mix it up. 

We’ve talked about your listing being neutral and free of clutter, but that doesn’t mean we want it institutional or lacking personality.  Now that we have the “canvas” ready, we’re going to bring in stimulating and diverse elements that will really pop and catch the buyer’s eye.  A well-orchestrated symphony of fabrics, curtains, finishes, area rugs, textures, pillows, candles, and flowers will turn your home into something special.   This is a good time to reassess your fixtures and lighting, too because it’s usually easy and not pricey to modernize, simplify, those elements.

7. Get it out of there.

To be clear, when we told you to declutter we didn’t mean to move everything from your house to your garage.  Buyers look for cues of quality as they’re walking through a listing – the little details that convey who you are or what the quality of the property.  One of the best ways to show how you live is to have the garage 100% clean and spotless.  I’m serious – boxes, bikes, skis, bins – it all needs to go and you should clean it exceedingly well.  People expect a dark, dusty, packed garage, so when they walk in and see it’s been as well treated as the rest of the property, that will make a statement.  This goes for all of your closets, too.  The best thing you can do is rent a storage unit and keep everything in there in boxes but DON’T fill up closets to the brim or pack your garage with the clutter.

8. Don’t match!

Good stagers and interior designers understand the elegance of utilizing cohesion without uniformity.  Rarely in a luxury home or high-end listing will you see furniture set that all matches.  Instead, you want elements - from the couch to the tables to the lamps – that complement each other but each have their own contribution to the je ne sais quoi, as the French say.

9. Culture sells.

One of the best ways to convey a feeling of class and quality in your home is to exhibit a few cultural or artistic items.  No one cares about your huge big screen TV, but having a baby grand piano, stand up bass, rare books, or telescope in your home shows an affinity for culture that is consistent with buyer’s perception of luxury. 

10.  Paint and plant.

If in doubt, or pressed for time or on a limited staging budget, the best thing you can do outside of decluttering is to focus on painting your interior walls a neutral color, your front door, (and shutters if you have them,) and plant colorful flowers, small trees, and soothing potted plants. 

***

I'f you'd like a complimentary analysis of your home's market value or some tips on staging before you list, feel free to contact the Alfano Group Real Estate.