Home Staging - A Danger to Buyers? Part 2

Please read Part 1 of this Blog before continuing.

First and foremost I find it absolutely ridiculous that NAEBA could caution buyers that many staging professionals, agents, and sellers would use staging to conceal structural defects. Sellers are obligated to list any known structural issues within their seller’s disclosure. This document is then given to buyers before any offers are made. I realize that certain sellers choose not to fill out a seller’s disclosure, yet these homes should be red flagged regardless of home staging.

Using the NAEBA example, which included a structural issue, disclosed by the neighbor, the seller must have had past knowledge. This means that had the staged home been purchased under false pretenses the buyer could have sued the seller for falsifying the seller’s disclosure. In the example the buyer attempted to offer a lower offer due to this defect and the seller declined. This is not illegal or even rare. In fact many homes which are not even staged become renegotiated contracts due to home inspection problems.  

The next point that needs to be made regarding NAEBA’s inability to correctly portray home staging is again focused on the comments regarding staging as a way of hiding problems. Since NAEBA’s creation in 1995 did any of there real estate agents ever hear about home inspections? As real estate agents, who specifically focus on buyers only, NAEBA should know that buyers are given the right to hire a home inspector as one of the contingencies to buying the home. I have never met a home inspector that walks into a staged home and misses more problems then he/she would in a non-staged home. This means that every buyer no matter how emotionally blinded by staging tactics should receive a report about all of the problems found within a home. Once this is received the buyer has the right to negotiate further, accept the home as it is, or walk away from the contract. If a buyer decides to forgo this home inspection contingency he/she is already taking a chance on the home no matter how well staged the property is. In fact it is either this buyer’s decision making or the buyer’s agent’s advice that is the danger in this situation.

I personally love the quote, within the NAEBA article, that warns buyers of the dangers of staging by explaining that staging will make a home appear nicer without adding value to the home. Maybe the most obvious statement of all time this quote sums up marketing any product. When BMW releases a new line of cars the emotionally driven commercials do not add any value to the cars. What they do is help BMW sell the cars at a quicker pace. If NAEBA had real estate agents that worked on both sides of the real estate transaction they would realize that a seller staging a home is no different than a seller selecting a competitive price or offering buyer incentives. Each is just another way of promoting and marketing a home to attract as many buyers as possible.

What NAEBA fails to capture is that staging is not something that buyers should feel is a danger. Remember staging may not make a home more valuable over time, yet it does help buyers imagine a better use of space. In fact staging can help buyers realize how ideal a floor plan may be for their needs. A perfect example of this is in homes that are vacant. Many times empty rooms can cause a buyer to have trouble picturing the home with their own furniture. Staging helps buyers understand how useful a particular space can be.

The article suggests that stagers attempt to promote positives and diminish negatives, yet everything in sales is based on this principle. As a listing broker it is your job to promote each and every appealing aspect of a home and if buyers get emotionally attached it is not a negative thing. In fact buyers want to fall in love with a home. Buying a home is an emotional process. If a home fails to excite a buyer many times a buyer will not consider the purchase whether the home is staged or not. It is this emotion and love for a home this makes buyers bite. Warning these buyers that this feeling can be harmful is the opposite of what real estate is about. I love to see my buyers get excited about a home because it means I’ve done my job in finding them what they were looking for. These are the happy clients and the people that become repeat business time and time again.

In response to NAEBA’s quote, “in real estate there are an abundance of stories of buyers seeing a staged home, becoming emotionally attached, and paying over the market value for these homes” I also take exception. There is only one way for someone to define market value and that is by putting a home on the market. Where the home finally sells is that home’s market value. A buyer would never pay over the asking price unless there was a chance that another buyer was interested in the home. If two or more buyers are interested in the home and one offers more then the list price this buyer was not fooled by staging. In fact this means that the home was desirable and a new market price was defined for the home.

Just to play devil’s advocate and give NAEBA the benefit of the doubt let’s consider a home that has been on the market for a long time without any offers being made. If these sellers decide to stage the home and it sells for full asking price does this mean that the buyer was fooled by staging?  Personally I do not think so. I feel that staging showed the home’s potential like never before. The buyer that NAEBA claims was fooled by staging still had the opportunity to compare this home with every other home on the market. Could it be that the buyer may have seen every other home and realized nothing could compare in his/her price range?

I also want to point out, one more paragraph that caused me, as a real estate professional, to wonder what NAEBA was thinking. The paragraph entitled, “Why the most sophisticated buyers often purchase homes that show poorly”, attempts to explain that smart buyers purchase homes in worse conditions because they realize that they are able to negotiate further. Statements like this make me wonder if the NAEBA would understand a buyer’s motivation if they tripped over it. Saving money is not the most important aspect to every buyer looking to buy a home. Certain buyers are driven by turn-key environments that allow them the ability to move right in without having to do any work. These buyers are willing to pay a little more money in order to save the hassle of doing work.

NAEBA fails to realize that we live in a world of people with different needs. This is why some shoppers buy clothes at Wal-Mart and some shop at Nieman Marcus or some people prefer Starbucks to Dunkin Donuts. Our society is built on the needs of different people and staging is just another way seller’s can appeal to the needs of these buyers. Labeling buyers as unsophisticated because of a difference in motivation is not only wrong, but ignorant. Any educated buyer representative would know that although homes in sub-par conditions can yield more flexibility at the negotiation table, many buyers are not interested in these homes. In real estate time is money and some buyers are willing to give up money to save time. It all depends on the needs of these buyers and until NAEBA begins to acknowledge this fact comments like this will continue to make real estate professionals look unprofessional.

Finally I want to conclude by acknowledging the NAEBA’s motive behind writing about the dangers of staging for buyers. I realize that the NAEBA was attempting to focus on the needs and defense of real estate buyers which is an honorable goal. They choose a topic as popular as staging because as the NAEBA put it “staging helps sellers gain more money from the sale of their home”. Although I agree with both NAEBA’s motive for the article and their theory about staging helping sellers; I do not agree with NAEBA’s assertion that by helping sellers staging is damaging buyers. As both a full-time Realtor and Accredited Staging Professional I can attest that a home will not sell unless priced correctly. This accounts for both staged homes and homes not staged. If a home is poorly priced buyers will not perceive the value. Staging will always appeal to buyers, yet not in an effort to trick these buyers. Staging promotes the finer characteristics of a home to help buyers see why the home is valuable.

As strictly buyer representatives NAEBA and its members are not seeing the whole picture. Remember after a first time buyer purchases a home they will now become sellers in the future. If NAEBA claims homes appear more valuable when staged these buyers turned sellers can also choose to use a professional home stager. Consequently, NAEBA should stop educating their readers about the ills of staging and continue to focus on the needs of buyers. Staging is a trend that will become more and more popular in the future; thus by avoiding these homes buyers will limit their options considerably.

NAEBA may continue to use scare tactics to attract readers and/or buyers, yet I hope anyone reading this response will acknowledge NAEBA’s tactics as just that. Sophisticated buyers may not all wish to buy homes which show poorly, yet they all strive to become more educated about the home buying process. Buying a home is complicated enough without having to worry about the “dangers of home staging”. The key to unlocking real estate success, as a buyer, is becoming educated enough to know the market, the inventory, and your needs. Once you grasp all three you will know when a home is right for you, whether staged or not. I wish you luck and would certainly appreciate any comments you may have regarding this or any other real estate topic.

If you would like to list your home, buy a home, or are just curious about real estate please contact me at (908) 656-3858 or email me at Michael-Pennisi@Burgdorff.com

The Key to Your Dream Home – www.MichaelPennisi.com

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