At the Real Estate Staging Convention this past week in Las Vegas, industry leader Melissa Marro of Staging & Redesign shared her formula for showcasing the true value of home staging to the real estate community.
We thought we would illustrate just how powerful a tool home staging is with current Real Estate Staging statistics.
Average Home Price in Kitchener-Waterloo as reported by the Kitchener Real Estate Board for 2010 was $329,797.
According to Zillow.com, properties which do not sell, typically have their list price reduced by 1% each month.
Trulia reports a 9% price reduction for homes under $2 Million dollars and a 14% reduction for homes over $2 Million dollars.
According to RESA’s 2009 statistics, Vacant & Occupied homes which were NOT staged sat on the market for 263 DOM (on average) without selling. Those same properties were taken off the market, staged, re-listed and all of them sold within 60 DOM. That is a 78% difference in selling time.
The same study shows that 284 homes (vacant & occupied) which were staged prior to being listed, sold on average, in 40.5 DOM. Approximately 7 months faster than the un-staged homes.
For a home owner who is putting his home on the market, this bears serious consideration. How many sellers can handle having their home being on the market for 7 months or longer? Especially if they have already purchased a home and are forced to worry about paying two mortgages. Regardless of the situation, the stress of having a home on the market too long is extremely stressful and can seriously impact a family’s quality of life.
To illustrate the true impact of real estate staging for a $329,000 home (and please feel free to substitute in your own specific values) we are going to do a simple equation. Additionally, RESA has made this formula available in an iphone application so if you are a realtor, you can show your clients the money they can save right on the spot!
Monthly Mortgage = $2,400.00 Average Monthly Carrying Costs: $500.00
Total Monthly Payments = $2,900.00 x 7 months = $20,300.00 in carrying costs
Next we factor in the monthly price reductions while the home is on the market:
1% of $329,000 home = 3,290.00 x 7 months = $23,030.00 in price reductions
Estimated Savings due to Staging $43,330.00
Typically, even when investing in staging a vacant property, the cost wouldn’t rise above $4,000.00 in Kitchener-Waterloo. In fact, by saving even one month of DOM, a seller will more than recover any investment they would put into home staging. The intrinsic value staging adds to a property is undeniable. According to the latest study by HomeGain, home staging got a return on investment of 299%!
Very simply, home staging offers sellers the ideal way to prepare their home so that it sells fast and for as much money as possible. This means less stress, better quality of life and a significantly better return on the sale of the family home.
If you are interested in selling your home, contact Rooms in Bloom Home Staging & Design Inc. to put our expertise to work for you. Honored with the North American Real Estate Staging Association’s 2011 Professional Stager of the Year Award for Canada, we have the talent and experience to take your property from staged to SOLD!