In a declining real estate market, professional property staging is imperative!
In the Canadian real estate markets, we have heard a lot lately about the crazy appreciating housing markets in Vancouver and Toronto but here in Calgary our real estate market has been in a slow tail spin with the declining price of oil and contraction of our energy sector. During this time of depreciating prices and long marketing times, staging a home for sale has become an imperative part of the marketing plan 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 a property turning over faster are vast. 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. Partnering with a home staging company demonstrates to your clients your commitment to their marketing plan by providing the client with a value added service that is ultimately going to benefit the sale of the property. The faster a home sells in the hands of realtor, the sooner that a realtor can take on another listing. And receiving offers that are 7-10% higher than an un-staged property, clients will be happy to provide more referrals for those realtors.
Homeowners often feel pressure in a contracting real estate market. Property owners are concerned with the amount of time their property could be on the market and that the carry costs could mount up. They could be seeing the return on their, most likely, biggest investment declining. In return, homeowners are often afraid to spend the money up front on a property that they are planning on selling to stage it properly and market the house so it sells quickly. Homeowners benefit from staging by selling their property faster and for more money than un-staged properties. 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 in other investments.
Though real estate staging cannot change everything about a property, like the location, it can increase the marketability of a property so it sells quickly and with better offers to purchase. When a property includes real estate staging as part of its marketing plan the statistics demonstrate year over year that these properties sell faster and for more money.