While sectors of the Canadian real estate market are booming (Vancouver and Toronto), the market in Calgary has slowed considerably. When a real estate market softens and houses are sitting on the market for longer, home staging should be an essential part of the marketing strategy for any property. Supported by statistics provided by the Real Estate Staging Association (RESA), a staged home spends 72% LESS time on the market and receives offers 7-10% HIGHER than an un-staged property. What does this mean to the average builder, realtor or homeowner?
The benefits of a property turning over faster are numerous. As a builder, if your projects are turning over quickly, you are reducing your financing costs which leads to a direct increase in your ROI. All other associated carrying costs, like property taxes, insurance, utility expenses as well as maintenance and up keep costs, will also be reduced. As a home builder you are able to see your profits faster and this gives you the ability to reinvestment your profits or begin other projects.
Realtors also reap benefits from having a property turn over faster. Not only do they receive their commissions sooner, they also increase their client satisfaction immensely. By partnering with a home stager, it demonstrates to clients a serious commitment to marketing their home to its full potential and providing the client with a value added service that is ultimately going to lead to a quicker sale with a higher priced offer. The faster a home sells, the happier the clients are, and the less money a realtor has to invest in marketing the property. And of course, happy clients will provide more referrals for those realtors in the future. Staging is the ultimate win-win scenario.
Homeowners often feel pressure in a challenging real estate market. Property owners are concerned with the amount of time their property could be on the market and what the carrying costs could add up to. They could be seeing the return on their, most likely, biggest investment, declining. In return, homeowners are often hesitant to spend money up front on a property that they are planning on selling. Homeowners may not realize that home staging is an investment and not an expense and that the cost of home staging is much less than a price reduction. By staging their house, they reduce their marketing time and end up with more cash to either reinvest in a new property or to put towards other investments.
Though real estate staging cannot change everything about a property, like the location, it will increase the marketability of a property so it sells quickly and with better offers to purchase. When professional staging is part of a property marketing plan, the statistics demonstrate year over year that these properties sell faster and for more money.