Why Sellers Should Stage Their Home- Part 2

What makes a home more valuable?

Price – I labeled price as the most important aspect regarding a buyer’s perceived value of a home because for the right price anything will sell. The problem is that the right price for the seller may not be the right price for a buyer. Since many sellers either want or need a predetermined net return on their home and refuse to sell for anything less then their own perceived value, price is not always the most desirable option for sellers.

The Home’s Floor Plan, Structure, and Location – The second aspect crucial to a buyer’s perceived value is the floor plan, structure, and location. How many rooms, bedrooms, bathrooms, etc does the home have? What features does the home offer? Where is the home located? Is the floor plan a functional one? All of these questions are extremely pertinent to a buyer’s perception of the home and its value. If a buyer sees a home with two bedrooms located right next to high tension wires for the same price as a five bedroom home on a beautiful cul-de-sac; most buyers will choose the larger home in a better location.  Although we labeled the home’s floor plan, structure, and location a crucial aspect to value there are only a limited amount of things both Realtors and sellers can do to make these details more desirable. Most sellers are not willing to do major renovations to alter the floor plan as a means to sell. In fact in many situations making these renovations would not be cost effective.

As you can see both price and the overall structure of a home are difficult problems to fix regardless of how vital both aspects are to enticing a buyer to purchase the home. Many sellers feel that marketing is the answer and in some cases these sellers are correct. In real estate exposure is a key to getting buyers thus marketing for exposure a necessity. The problem with both exposure and marketing, however, is that once the buyers have come and gone without buying, the property will continue to sit. Therefore marketing a home priced too high and lacking the desired floor plan will still not sell the home.

Staging a Home to Sell 

Before I discuss tricks about staging a home I must first explain how staging works and why it can save any seller a considerable amount of money. For the purpose of example let’s say you go out to buy a used shirt from a second hand shop. You walk into the store and immediately come across the shirt of your dreams. You need to have this shirt in your wardrobe and you are willing to pay the $20 sticker price. Upon closer inspection you notice a slight tear on one of the sleeves. You still want the shirt, yet instead of paying $20 you bring the shirt to the register and point out the tear hoping to receive a discount. The owner says he/she will sell it for $15 and you accept. The point of this story is simple. You knew before entering the shop that everything inside was used and you were still willing to buy your dream shirt. The shirt’s tear was something you were willing to deal with for a better price.

This example is exactly what most buyers do when they walk into their dream home. They know they want the home and they are willing to pay the price, yet they find things wrong and expect a discount. Many sellers believe in the misconception that buyers can see past the clutter, cosmetic details, and other attention grabbing minute details of a home. To an extent these sellers are correct because many buyers do buy homes in need of cosmetic work, but remember the difference is always reflected in price.

Staging a home is when a seller decides to modify the home from functional for living to conducive to selling. In other words if decorating is for living, staging is for selling. Staging can and may include changes to the interior of a home, exterior of a home, or both. Staging may also be a simple fix or include a number of changes depending on the home in question. Unlike the house specific modifications the goal of staging never changes. Staging is meant to sell a home faster and for more money. Below I have listed a number of examples to help you begin to stage your home. I have also included a link to three charts which may be useful to your understanding of professional home staging and how much money can be saved if a home is staged correctly.

In "Why Sellers Should Stage Their Home- Part 3" I will take a look at some staging suggestions and advice to make a home more desirable.  

To learn more about selling a home please email me your questions at Michael-Pennisi@Burgdorff.com or visit my website at Summit, NJ Area Real Estate .

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