Is Staging Still Necessary in a HOT Market?
/Summary
Right now in Colorado Springs, it is a hot market. It's nuts! Houses are selling before we get to stage them sometimes. We had one house with 43 showings the first day! So for all you sellers out there, that's great for you. For your buyers out there, it's really stressful trying to find a home right now and for you realtors out there, I know you're busy.
So the question is, is it worth to stage a home in a crazy hot market? I've heard it said a couple times, “I can list my house right now as is, do nothing, and it will sell quickly and for asking price”, and that's actually true right now. Things are going that fast and for that amount of money. So, is it worth to stage or do anything to your home before listing it? Yes. The answer is yes.
This is a financial asset for you as the seller. The more money you get for that home, the more that assets worth, so it's easier to get more money (well above asking price) by doing a little bit of investment up front.
Buyers in this market are under a ton of pressure to put in an offer over asking price, and they're going to feel a lot of pressure because they have to make the decision fast. They get cold feet when they're pressured into buying something they're not totally sold on. So, we want to get an offer right away, and we want to get an offer that's going to take us all the way to close.
When a buyer walks into a house that hasn't been prepared for market, the repairs haven’t been done, the neutralization and depersonalization process hasn't been done, the staging hasn't been done, you haven't created a cozy, welcoming atmosphere, so when buyers walk in, they'll put in an offer, but they're not going to fall in love and that’s what you want if you really want to make the most bang on your buck for this sale.
Investing a little bit on the front end really has a great return on investment. Average return on investment for any staging investment, has a 399% return on investment. You're going to get that money back and more and we're going to get you all the way to close.
Realtors, what about you guys? Is it important for you to talk about staging and repair that home for the market when you know it's going to be an easy sale?
It is competitive market for realtors right now. Established, successful realtors have consistent listings. They have a reputation for doing a great job with handling their sales and they get more referrals because they’re professional realtors that bring in professional services, professional stagers, and their clients know they're getting the full service for hiring you as a realtor.
When you encourage your sellers to really prepare that home for market, you’re going the extra mile to pay attention to the details so that it really shows well and makes it all the way to close. That earns those referrals, which means more business, standing above the competition of what is it now, 4,500 realtors that are out there, and your clients get the experience they deserve and expect when they hire a professional.
So, do we need to prepare our home for market and stage it in a hot, hot market? ABSOLUTELY.
Transcript
Hey guys, hope everyone is enjoying the start of spring, even if we woke up to a little snow this morning. Let's talk a little bit today about staging homes in a sellers' market. So right now in Colorado Springs, it is a hot market. It's nuts. Houses are just not lasting hours on the market, selling before we get to stage them sometimes. And it's kind of crazy out there, right? We had one house and 43 showings the first day, it's just nuts. So for all you sellers out there, that's great for you. For your buyers out there, I know it's really stressful trying to find a home right now and for you realtors out there, I know you're kind of crazy. Things are just nuts, right? Having a hard time with your buyers, helping them find places and things are just selling quick. So there's some pluses and minuses there.
So the question I want to address is, is it worth to stage a home in a crazy hot market? I've heard it said a couple times to me that I can list my house right now as is, do nothing, and it will sell quickly and for asking price and that's actually true right now. Things are going that fast and for that amount of money. So is it worth to stage or do anything to your home before listing it? Yes. The answer is yes.
Now let's talk about why. So when it comes to selling your home, we have to remember that this is a financial asset for you as the seller. This is probably one of the biggest assets you have in your portfolio. So what does that mean for you? Well, the more money you get for that home, the more that assets worth, the more money you have to put in your nest egg, or to go to your new adventure, to go to your next house. And so, yes, you're going to get some easy money this way, but it's easier to get even more easier money this way, by doing a little bit of investment up front.
Think of it as a financial decision and a financial investment that has a great return on investment because right now a great home that's fresh, move in ready, fresh paint, is staged, has beautiful pictures, it's going to fly off that market and it's going to go well over asking. We just did one and it's 60,000 over asking, and people are just blown away by their experience. We get great feedback and you walk away with more money in your pocket. And I think that's ultimately the goal, why be lazy and just get what you can get when you can really benefit from the sale of your home? So that is one way to look at it.
Two, when it comes to being a seller in today's market, the process is nuts. You're going to get a lot of offers. It's going to go fast. Now, buyers in this market, they are under a ton of pressure to put in an offer, to find a home. And what happens in that kind of environment is they're going to go over asking price, they're going to try to get that offer. They're going to feel a lot of pressure. They have to make the decision fast. And then as the process gets going, people get cold feet when they're pressured into buying something and they're not totally sold on it. So we want to get not only an offer right away, we want to get an offer that's going to take us all the way to close. You want that buyer in love with your home from the minute they walk in, until they close on the property and the sale is complete, that is the result of a successful sale, right? That means it's been successful. So we want to make sure to address that.
The other thing is when someone does come in your home, if you haven't done any of the stuff to repair your home for market, besides leaving money on the table, you're really communicating things about your house that may or may not be true. Think of it this way, have you ever gotten your car, your car, it's been a slushy snowy day and your car maybe has some, for a week, maybe it has dirt caked on it, maybe you haven't vacuumed in a while. Maybe your kids have left some crumbs or wrappers in the back seat and you get in the car and you just feel like it doesn't feel great, right? You're like, oh, maybe I need a new car. And then you have a sunny day and you take it through the car wash, vacuum it out, wipe down the, not a lot of work and you get in that car feeling like a million bucks. I love my car. That is basically what you're doing with your house.
When a buyer walks into a house that hasn't been prepared for market, so the repairs have been done, the deep cleaning hasn't been done, fresh paint hasn't been applied where necessary, the neutralization and depersonalization process hasn't been done. Things are cluttered and unkept, the staging hasn't been done, we haven't arranged that furniture to maximize the space. We haven't created a cozy, welcoming atmosphere with decor. When buyers walk in, maybe they're desperate, maybe they'll put in that offer anyway, but they're not going to fall in love. And we want buyers to fall in love if you really want to make the most bang on your buck for this sale.
So investing a little bit on the front end really has a great return on investment. Average return on investment for any staging investment, so whatever you put in staging has a 399% return on investment. That's insane, right? You're going to get that money back and more and we're going to get you all the way to close. So put in a little elbow grease, invest a little money, get that house ready for market and have a great sale and a successful outcome.
Now that's talking to you, you sellers, realtors, what about you guys? Is it important for you to talk about staging and repair that home for the market when you know it's going to be an easy sale? You're going to get it on there, it's going to get listed, it's going to get sold. Why would you take the extra steps to prepare that home and make it look great that much better in today's market? Well, one thing besides the other stuff we address with sellers, it applies to you too, but the other thing is it is competitive market for realtors right now. And what I'm finding is I work with a lot of established, successful realtors that have been in the business for years, have consistent listings, they're known, they have a reputation for doing a great job with handling their sales. They get more referrals because they bring the goods. They're professional realtors that bring in professional services, they bring in professional stagers and their clients know they're getting the full service for hiring you as a realtor.
So that's another way to look at it is when you bring in a stager, when you encourage your sellers to really prepare that home for market, when you go the extra mile to pay attention to the details so that it really shows well and makes it all the way to close, you get those referrals, you get more business, you're going to stand above the competition of what is it now, 4,500 realtors that are out there and really give your clients the experience they ultimately deserve when they hire a professional.
So the question was, do we need to prepare our home for market and stage it in a hot, hot market? Absolutely. I think those are, what was that, like three good reasons to put your home out there in the best light possible. I hope you're having a good day. And I'll talk to you again soon.