The Power of Home Staging: Sell Your Home Faster and for More Money
Should You Stage Your Home For Sale – Is It Worth It?
It’s often a question sellers have – do we need to stage our house. And it’s a great question! Afterall, staging homes can set a seller back anywhere between a few hundred dollars to $10,000 plus depending on what’s required for the home.
The question is – Is it really worth it?
This article will attempt to answer this question for you in a way where you see value taking the advice. The short answer is that the we believe it adds value and that you should definitely do it. But don’t take our word for it. We have included as much statistical based evidence to help you form a conclusion.
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How much does it cost?
For homes that are well styled already it may only cost a few hundred dollars on a few items to finish a room off. But a large family house can easily cost somewhere between $3k and $8K for small and large homes in what I would call the “regular” realms and even more for the high-end prestige.
But it’s only a cost if you get nothing back.
My experience is that it is an investment in extra interest in your property. As one extra buyer could be worth $20,000 very easily.
- It brings more attention to your photos
- Which in turn brings more inspections
- Which in turn brings more offers for your property.
Anecdotally my experience says that you at least get back 100% of your money, if not, 3-8 times your investment, depending on the market you’re in.
Case Study: In March 2023 we offered an off-market inspection to 6 prospective buyers prior to staging the home (Address to remain anonymous). One placed an offer for $1,050,000 (and really appeared to have lack-lustre interest in the home). Post-staging the home and marketing on realestate.com.au and domain.com.au the same buyer purchased the home in the first week of going online for $1,160,000. They’ve now settled and they’re ecstatic with their purchase!
Potential Return on Investment
According to one publication, about 75% of sellers see an ROI of 5% to 15% over the asking price when they choose to stage their homes professionally before they put them up for sale. A 2021 survey found that investing 1.3% in staging results in a 7.1% average over-list return1.
Staged homes sell for on average 25% more than homes without any staging2. A 2022 report found that staging helps increase the sale price by up to 20% on average
A survey conducted by the Commonwealth Bank of Australia in 2013 revealed that 44% of Australian buyers were willing to pay more for a property simply because they genuinely liked it.
Can’t The Buyers See Past All That?
The short answer is no. But there’s a good reason why – Now you would think that when someone buys a huge asset such as a house, they would act logically. They would buy with their head, but not with their heart.
The reality is that it is quite the opposite.
Buyers make an emotional decision then reinforce it to themselves with logic
Psychologists and behavioral economists have demonstrated that our subconscious thoughts possess a logical aspect that communicates decisions to the conscious mind through emotions. The conscious mind then seeks logical reasons to justify these emotional decisions, completing a circular process.
In the realm of real estate, it was common for agents to focus solely on appealing to the logical aspect of buyers with facts and figures. While factors like location, price, and resale value are indeed important, they do not seal the deal. The key lies in establishing an emotional connection.
A survey conducted by the Commonwealth Bank of Australia in 2013 revealed that 44% of Australian buyers were willing to pay more for a property simply because they genuinely liked it. This prompted some agents to recognize the significance of targeting emotional buyers alongside logical ones. One effective method that emerged was professional home-staging, which added personality and charm to properties.
In Australia, a survey by the Real Estate Institute of New South Wales highlighted that staged homes sold 2-3 times faster compared to non-staged homes.
Here’s How It Works On Your Buyer Emotions
First impressions: Making a positive impact from the moment buyers step into the property.
Clearing the space for imagination: Allowing buyers to envision themselves living in the space.
Selling a lifestyle: Showcasing the property as a desirable and aspirational living environment.
Psychology of colors: Utilizing colors strategically to evoke specific emotions.
Details matter: Paying attention to small details that create a favorable impression.
Creating a multi-sensory experience: Engaging buyers through various senses, such as scent and sound.
Pulling at people’s heartstrings: Eliciting an emotional response by highlighting personal touches or sentimental aspects.
Creating illusions of more light & space: Utilizing lighting and spatial arrangement techniques to enhance perceived openness.
In conclusion, the psychology behind buying a home demonstrates that people make decisions based on emotions and subsequently justify them rationally. Recognizing the importance of appealing to buyers’ emotions, real estate agents have started employing techniques like home-staging to create an emotional connection that goes beyond logical factors.
The Tangible Benefits You Will Receive:
Staged homes sell faster:
Statistics show that staged homes sell at a significantly faster rate compared to non-staged homes. According to the National Association of Realtors, staged homes sell 73% faster than their non-staged counterparts. Additionally, a study by the Real Estate Staging Association of Australia revealed that staged homes in Australia sell on average 43% faster than non-staged homes.
Staged homes sell for more money:
The impact of home staging on the sale price of a property should not be underestimated. The National Association of Realtors states that staged homes typically sell for 1-5% more than non-staged homes. Similarly, in Australia, the Real Estate Staging Association found that staged homes sell for an average of 7% more than non-staged homes.
Staging has a high return on investment:
Investing in home staging can yield a significant return on investment. The Real Estate Staging Association reports that the average return on investment for home staging is an impressive 299%. This means that for every dollar spent on staging, homeowners can expect to receive nearly three dollars in return.
Overcoming buyer objections:
Buyer objections can often hinder the sale of a property. However, home staging has proven effective in overcoming these concerns. A study by the International Association of Home Staging Professionals highlights that staged homes can help address buyer objections, such as worries about a home’s size or layout.
Increased online views:
In today’s digital age, online visibility is crucial. Statistics reveal that staged homes receive approximately 20% more online views compared to non-staged homes, according to the Real Estate Staging Association. This increased online exposure enhances the chances of attracting more potential buyers.
Visualization and buyer preference:
Staging makes it easier for potential buyers to envision themselves living in the property. In a survey conducted by the National Association of Realtors, 83% of buyers’ agents confirmed that staging facilitated their clients’ visualization process. Moreover, a study by realestate.com.au in Australia revealed that 71% of buyers stated they would be more likely to purchase a property that had been staged.
Reduced time on the market:
Staging significantly reduces the time a property spends on the market. The Real Estate Staging Association found that homes staged before listing typically spent an average of 23 days on the market, while non-staged homes lingered for an average of 184 days. Similarly, in Australia, a survey by the Real Estate Institute of New South Wales highlighted that staged homes sold 2-3 times faster compared to non-staged homes.
Conclusion:
The evidence is clear – home staging is a powerful tool that can greatly enhance the selling process. By staging your home, you can attract more potential buyers, increase the perceived value of your property, sell it faster, and ultimately maximize your return on investment. Take advantage of this proven strategy and give your home the competitive edge it deserves in today’s real estate market.
