HOME STAGING GLOBALLY
Home staging, optimising and styling a home for sale, started in the US in the eighties and is today a global property phenomenon with home staging companies on every continent.
Home staging is a proven technique for decreasing the selling time of a property and maximising return on investment. The reason it works is simple. In any industry, products that are in high demand and short supply, sell faster and for higher prices than their competition. At Illuminate Home Staging we help to increase the demand for your house by creating a home that is easy for multiple buyers to fall in love with.
HOME STAGING STATISTICS
Of buyers are viewing homes online first. Empty properties don’t show size or layout and have far less people on show day.
The amount of time you have to impress a buyer. Properties without furniture provide little for buyers to fall in love with.
The additional time buyers will spend in a furnished property, compared to only 5 minutes an empty property.
Of agents agree that staging makes it easier for buyers to visualise the property as their future home.
Research shows that on average a staged house will sell for up to 10% more than the property would have received if not staged.
Staged homes sell 50% faster than homes that aren't staged. Our fastest record is just one week with two offers at full asking price.
Sources: NAR 2015 Profile of Home Staging, Coldwell Banker Survey, The Times Media Company, https://www.contactually.com/blog/real-estate-statistics-for-2016
IS THE COST OF HOME STAGING WORTH IT?
According to FNB’s 2014 Estate Agent Survey approximately 80% of residential property sellers in South Africa, end up dropping their price by around 8% with houses spending an average of 3 months on the market. We all know the phrase that time is money... well nothing is more true when it comes to property. The logic follows that the longer a property stays on the market the higher the likelihood of it undergoing a price reduction or of buyers making offers well below asking. The more weak points to your property the longer this time is likely to be. A simple way to determine whether the costs of making a few improvements and staging your property will pay off is to use the following formula to calculate the costs of selling your property. We've applied it below to the sale of a R4 000 000 home:
Price - 8% Reduction - (Bond + Rates/Levy x Time on Market ) = Expected Return - 5% Agent Fees
R4 000 000
- R320 000
- R104 763
According to our example above, when this formula is applied to the sale of a R4 000 000 home that would mean a likely R320 000 price reduction with R104 763 spent in expenses over a 3 month period. This would bring you to a total of R3 575 237 before paying R184,000 in agent fees. The total cost of selling a R4 000 000 home in South Africa could therefore be expected to be R608 763. That's the same as buying an Audi TT. As a property seller it's important to be aware of what we like to call "the credit card effect". Just because you are not seeing hundreds of thousands of rands leaving your bank account and are viewing the sale only in terms of possible gain you may be unaware that each factor preventing your house from selling is actually loosing you money. Now that you are aware of these costs, compensating by simply raising the price of your property is only likely to lead to your house taking even longer to sell.Home staging offers a solution.
If we look at our scenario above, employing the services of a home staging company would limit the price reduction (lets assume to only 4% ) and up to halve the time it takes to sell. That is a conservative gain of R212 381 (5.3%) without even considering the upside that home staging could ensure you get close to asking price or more. The price of a few minor repairs or improvements, furniture/accessory hire or home styling for a few weeks is definitely worth it.
"Home staging is the only property marketing technique that offers the potential to sell your house faster and for more. Unlike current sales tools home stagers contribute to recouping the expected costs incurred when selling a property. "
WHAT LOCAL AGENTS HAVE TO SAY ABOUT STAGING
"It's really worth paying attention to details of presentation before putting a property on show."
Lew Geffen, Chairman of Sotheby’s International Reality in South Africa
“Most buyers prefer a home that is ready to move into and many are willing to pay a premium for this advantage”.
Richard Gray, CEO of Harcourts Real Estate, South Africa
“Your home will definitely show better if potential buyers can easily visualise themselves living there.”
Berry Everitt, MD Chas Everitt International.
"It’s a fact: acquiring the highest market value and elevating your home above others in the same price range often comes down to first impressions."
Keller Williams Reality, Southern Africa
"The best way to go about showing your home is to put yourselves in the shoes of the buyer. The easier on the eye your home, the better the offer you’re likely to receive. That’s why preparing for show day is an import part of the property selling process. You want to avoid a situation when potential buyers overlook your property due to poor maintenance, clutter etc."
Pam Golding Properties, South Africa
"First impressions do count, which makes the presentation of your property critical to a successful sale."
Adrienne Hersch Properties
“Ensuring that the home is prepared for the market and ready to sell will increase the home’s marketability and attract more potential buyers to the property, which could in turn result in a slightly higher sales price. Staging the property will also have an impact on its saleability. It is advisable to de-clutter the home, but keep it furnished. An empty home will make it look bare and it will be potentially difficult for buyers to see themselves living in the property.
Adrian Goslett, CEO of RE/MAX of Southern Africa