February 1, 2008

Today’s Real Estate

Staging to sell

By Donna Nardi
Special to the Times

Sally Smith listed her home for sale. She had gotten an awesome job offer in the Midwest, and needed to sell quickly. Her realtor friend, agreed to put her home on the market for a discounted fee.

Sally began to dream what a great house she could buy in the Midwest with the proceeds from her home and the commission savings. After all, the prices of homes in the Midwest are so much more reasonable than here! After little preparation to the home – she was in a great hurry - and virtually no marketing plan, John “threw” Sally’s house on the market. After all, what does one expect for a reduced commission?

The house sat on the market with dismal showings. There were several homes very similar to Sally’s in the neighborhood and they were selling. Sally loved her home, and couldn’t understand why it hadn’t sold. After talking to her neighbor whose home had just sold, she discovered the problem.

The sold home had been carefully prepared – good repair and clean as a whistle. Upon entering her neighbor’s home, Sally was amazed at what she saw. The home was so warm and inviting, she wanted to buy it! The neighbor showed her that the difference was in staging the home to sell.

It’s no secret that today’s housing market is a true challenge for sellers. But there are many ways a seller can be sure their home stands out and can be the first on the block to sell. This is not the time to dump a house on the Multiple Listing Web site and expect it to sell for top dollar. In a buyers’ market, buyers become more choosey than ever; there’s a lot to choose from. And today’s buyers are the most educated and savvy in history. The Internet has seen to that.

While the nitty-gritty of home preparation is the seller’s responsibility, today’s seller should look to the professionals for their expert advice and assistance. Their realtor should be the go-to person, and have a team at the ready to aid the seller in the home preparation. In general, the home should be in good repair, squeaky clean, uncluttered and have great curb appeal. But, that’s just the beginning. Now that we now have a home with a clean slate, it’s time to dress it up for the party!

I sat down with Diane Hofer, owner/stager/designer of Enchanted Homes in San Jose to seek her input. Diane calls it “E Harmony” for homes. The buyer will be the home’s most important guest. So, get it ready!

First, we must understand what staging is. Staging creates an understanding of the home – its use, organization and features. If we confuse a buyer, we lose them. Only 15 percent of the population has special reasoning skills that allow them to go into a home and visualize its best use. Staging draws a picture for the buyer, and allows them to see a well-organized, open and friendly home, and shows respect to the home and to the future buyer.

We also must understand our audience. Generally speaking, a buyer is buying up. They are looking for a better quality and lifestyle, inside and out. Buying up doesn’t necessarily mean buying a larger home, just better quality.

Is the projected buyer a young family buying their first home? Then, the design of the staging should keep children’s interests in the forefront. Is the future buyer buying an image? The staging will reflect high-style furnishings and design. Each home has a personality, which should be shown in its best light. The desired effect of staging is to welcome the new owner in their own language. They should feel at home from the time they come up the walkway, through the home and all the way through the backyard.

Statistics show that a staged home nets at least 6 percent more. You could think of it as paying the entire commission. Staging makes the home more desirable, affording an easier, faster sale, which reflects on the bottom line. Most often, a faster sale nets a higher price.

Hofer explains that a staged home presumes a home is in good condition. Affixing a Band-Aid on a glaring repair problem is not the purpose of staging. However, it can redirect attention from an adverse condition, possibly a tiny bedroom, and showcase the home’s better features. Often, staging can show a great use for an unused or confusing area.

A potential problem can occur when a seller is too emotionally attached to the home. When this problem arises, it’s critical to educate the seller to allow the professionals to do their job. Often just by depersonalizing, the emotional attachment dissolves, as it’s no longer theirs. It’s the job of the realtor and stager to work together to educate the seller to ensure the best, fastest, and highest gain of their home.

Often the high cost of staging prevents a seller from seeking stager’s services. The costs must be viewed in prospective. Hofer explains that not every home requires a full-service staging. She offers a complimentary consultation, which will determine the extent of needed services. It can be as simple as giving directives for cleaning, uncluttering and adding accessories all the way up to staging that requires the full spectrum of furnishings from the warehouse. The cost is almost always absorbed by the higher price netted of a staged home.

So, during this challenging time, why not use the experience and expertise of professionals? A home that stands out in the crowd will be the first one to sell – why not let that home be yours?

Donna Nardi is a Realtor, Accredited Staging Professional, and Senior Real Estate Specialist with Prudential California Realty in Willow Glen. You may reach her at (408) 918-4410, or donna.nardi@prurealty.com, or www.HappyWayHome.com.