Staging?
People create lists - lists of logical attributes that a new home must possess for it to make the cut. But people buy with their hearts, even dropping "must haves" if they feel a strong connection to a home. In order to make that connection, they have to be able to see themselves living their best life in that space. Property merchandising is packaging real estate to market a lifestyle. According to a comprehensive analysis by Architectural Digest, "home staging has demonstrated its ability to attract more potential buyers, encourage higher offers, and expedite home sales."
1
85% of staged homes sell from 5% to 23% over list price, according to a 2021 report by the Real Estate Staging Association. For a home listed at $350,000, that would mean a sale price of $367,500 to $430,500.
2
81% of buyers' agents said that a staged home was easier for their clients to visualize themselves in, based on a 2024 study by the National Association of Realtors.
3
Un-staged homes stay on the market an average of 90% longer, according to the National Association of Realtors. Staging means fewer holding costs such as mortgage payments, taxes and utilities - not to mention price reductions (the realtor's go-to), which take tens of thousands of dollars out of your pocket - per drop.
4
Staging is tax deductible!? Considered a legitimate selling expense, the cost of staging is subtracted from the proceeds of the sale, reducing your overall profit in the eyes of the Fed. IRS Publication 523.
5
Staging typically costs 1% to 3% of the list price. For a $350,000 home, this means between $3,500 and $10,500. A single price reduction is rarely under $10,000.
6
Staging is profitable, even in a seller's market. Even if homes typically sell quickly and over listing price, they won't necessarily appraise for the best price or the price the buyer offered, especially if it’s above the listing price. If your home needs an appraisal as part of the buying process, staging can help. Appraisers use comparable properties as part of their valuation, so if your home is staged, it will be considered comparable to other staged homes - in the top tier of the range, rather than the bottom.
7
Contingent sales are no fun. Staging means that more issues will be dealt with prior to showings, meaning that buyers won't be negotiating credits before closing or walking away altogether.