Home Staging Blog by Jennie Norris

head_left_image

When the Seller has to Drop in Price does that Mean the Home Staging Didn't Work?

Today's market is tough in many areas across the country.  House prices are declining and depreciating in many areas, with some lucky regions holding strong to their values. No matter what the situation, we have to remember this:  Staging Works.  In any Market.

How can we say that when a Seller might have to drop their price after the Staging is done?  If they have to drop their price, doesn't that mean the Staging didn't work?

No.  And this is why.

A Seller only has control over two factors - how their house presents (Staging) and the list price.  When one of these is out of balance based on the market conditions, the house won't sell. 

When a house is properly and professionally Staged and does not get an offer, the price needs to be adjusted.  When it adjusts to where the market supports that type of house or product, it will sell.

So for example, when a Seller has to adjust their price, their natural assumption is, "Gee - that $2,500 fee I paid for Staging was a waste of money - It didn't work because I still had to drop my price." 

Really?  Did you get an offer?  Did you sell your house?  And when you sold your house did you only sell $2,500 worth or did you sell the whole thing? Ah-Ha!

We have to help our sellers (and some Realtors) understand that Staging is an investment in getting a house sold.  And that investment pays off when a Buyer comes along and buys the WHOLE house - replacing the Seller as the owner.  For example, when the house is $500,000 - and the Seller invests $2,500 to Stage, and a Buyer offers $495,000 - did the Staging fail because the Seller "lost" $5K?

No.  The Staging WORKED - because the Seller got $495,000 after it was Staged.  The Staging returned his investment 198-fold (198x2500=$495,000).

This is a paradigm shift in thinking - because most Sellers will apply what they paid against what they have to drop in price instead of looking at it from the perspective of what they received.  What they received was an offer on their house.

The Staging worked.

And they can be happy in the knowledge that their competition that is un-Staged and on the market will sit and sit - and continue to drop in price - usually 5-10% each time.  This means that the un-Staged house will eventually sell at a significantly lower price than the Staged house. 

The Staging worked.

When the house is Staged and does not sell at the list price - and the Seller has to reduce in price - and then a Buyer makes an offer - that is a success story.  The Staging worked.  It brought a Buyer.  And the Seller is able to move onto their next phase of their life.

Eventually we may return to the days of the hot market where multiple offers exist all over - and the Staging helps a Seller get more than their list price - increasing the return on investment even more!

Staging works.

In fact. . . The only time Staging does not work - is when it is not used.

- Jennie

__________________________________________________________________________________________________

Let the Experts at We Stage Sacramento set the Stage in your house or listing.  We are your regional experts and partner with Realtors and Sellers throughout the Sacramento region including Placer County, El Dorado County and Sacramento County.  With over 2,200 houses Staged since 2002. we have the most expertise and experience to serve you.  Give us a call at 888-WE-STAGE to set an appointment with one of our Staging Specialists.  We Stage Occupied and Vacant houses - and have a large inventory of tasteful, unique and high quality pieces, flexible pricing and terms.

We are here to serve you - and excited to help you get your house Staged and sold!

www.WeStageSacramento.com   WeStageSacramento@comcast.net  1-888-WE-STAGE

 

7 commentsJennie Norris, ASPM, IAHSP • July 10 2008 02:07AM

Do Stagers have A.D.D.??

Not to trivialize those with A.D.D. which I know is a serious concern for people with but I wonder if Stagers have a little bit of Attention Deficit Disorider . . .  as one of the characteristics is a short attention span....

And most Stagers I talk with share that one of the things they love best about Staging is that you get in, do your thing, and get out and move on to the next project.  I know I am that way. 

I am not a person that has just one thing going on and find it hard to sit and read a book. I like reading, but I sit there thinking about all the stuff I need to do - so I pick up the "short story" books - that I can catch on the fly.  No deep thinking novels at this point in my life.  I am a "human-doer" not a human-being.  There is always something that has to be done - so I rarely just sit and do nothing, althogh I will chill in my pool on a hot day - just floating and thinking.

Maybe it's because I juggle my business, my husband and his business, and our four children and all their activities - that I have adapted to a quick pace.  I can be cooking dinner, handling calls, helping a child with a poster project . . . simultaneously.

With Staging, there is the focus work that has to happen - the preparation of proposals that take time and attention to detail that has to happen with marketing, business documents, etc. - and even with Staging, the fine touches and fine tuning . . . so I do it when it is needed.

But when I am creating - I love the instant change I get to see in a house that is being Staged.  It must be the same way a painter feels when they paint a wall and see the instant results.  Of course, they have all that annoying prep work with taping things off - that I hate . . . just let me get to the fun part!

I honestly share that I am "3-time girl" - I really don't want to visit a client's house more times than that if I can help it.  Now don't get me wrong, it's not that I don't love and appreciate my clients - I just don't want to see them over and over!  Once I get the hosue done, I want to move on to the next project.  The next time I see that client it should ideally be for another project - not the same one.

I have done the hand-holding, shopping with my client, helping them pick things out - and when it drags on or they can't make a decision - I find it really boring to be honest.  I do my share of "Staging to Live" projects - and know that when the Staging gets slow, the STL jobs can sustain me . . . but I still prefer the quick work of Staging to Sell.

I love seeing the instant transformation that takes place with Staging - so I get my "quick fix" and instant gratification - versus waiting for a long-term project vision to be carried out.

I am not an impatient person - I have staying power when needed, but by choice, I prefer what I do in Staging and I like that I can make a big impact in a short time, and get accolades, and move on to my next challenge.

Do you fall into the A.D.D. Stager cateogry?  Seems like it would be a kindred spirit trait in those of that truly found our calling in Staging.

6 commentsJennie Norris, ASPM, IAHSP • July 09 2008 06:18PM

US News & World Report Features Home Staging - July 3, 2008

Link to this great article on "The Home Staging Cheat Sheet" featuring Home Staging Guru and The Creator of Home Staging - Barb Schwarz. 

It addresses Home Staging as the key tool to selling a house!  Full of great ideas and advice for readers, it addresses some key factors for Staging and things to consider when prepping a house for sale.  More means more

When we have national exposure like this on our business of Home Staging - it only helps to build the awareness of what we do for Sellers, Buyers and Realtors and cements our business even more into the fabric of the real estate industry.

http://www.usnews.com/articles/business/real-estate/2008/07/03/the-home-staging-cheat-sheet.html

Jennie

3 commentsJennie Norris, ASPM, IAHSP • July 08 2008 11:56PM

What Audience are you Staging for?

Buyers?  Sellers?  Realtors?  Fellow Stagers?  Media?  Decorators?  Who are YOU staging for and why?  The questions begs an answer - we have to know who our primary audience as we Stage or else we become like a split personality trying to please too many "bosses."

Do we Stage for the Realtor who might give us their opinion on what they want to see in the house even when inside we may not agree - but give in because we don't want to "confront" the Realtor?

Do we Stage for the Realtor that keeps us in the money with jobs and referrals making sure they look good?

Do we Stage for the Seller who is having a hard time parting with their house or has strong opinions on what they are willing to do or not do to prepare their house for sale?

Do we Stage for a Seller that is looking to us as their last hope to get their house sold and trusting us to tell the truth and do what we can to prepare their house for sale?

Do we Stage for our Fellow Stagers - who are in the trenches with us and we want their approval or just appreciate their camaraderie?

Do we Stage for the Critics (some of them colleagues) who pass judgment on choices and outcome without knowing the background on the client, budget, etc.?

Do we Stage for the Media that seems intent on portraying Staging as Decorating, and Stagers as caustic or critical instead of supporting the Seller?

Do we Stage for the Decorator that does not have a clue what Staging is and try to fit us into their mold - making Staging about the Stuff and not the house?

Do we Stage for the Buyers who expect to walk in the door and find a house they can make their own?

Or Do we Stage for Ourselves - with the personal satisfaction of a job well done?

It's important to know WHY we do what we do and WHO we are Staging for . . . I think we Stage for a mix of the above - keeping a balance between the Realtor, Buyer and Seller - and the rest of those on the list are not a primary consideration when I want to keep my focus pure. 

Personal satisfaction is one of the most important parts of what we do and we have to be true to ourselves and Stage for the pure joy of a job well done, for the thrill of helping a Buyer find a Home to purchase, and for the helping a Seller achieve their goal of Selling their house. This in turn helps our Realtor clients earn more money.

I think it's also important to weed out those we should not be Staging for and not buy into the influence of trying to please someone or something that is not rooted in the ideals of what Staging is all about.

I am not a chameleon Stager - shifting with the wind and changing my focus based on the latest "new thing" or opinion out there. At the heart of the matter, our inside voice will speak to us and let us know if we are being true to ourselves and our Staging talent that is a God-given gift that we get to share with others.

- Jennie 

 

4 commentsJennie Norris, ASPM, IAHSP • July 08 2008 11:27PM

Critic or Critiquer - what are you?

CRITICOne who tends to make harsh or carping judgments; a faultfinder

CRITIQUE:  give review of, to discuss or comment on something, giving an honest assessment of its good and bad qualities

The definitions of these two simiilar words is really revealing. 

A Critic takes things from a negative perspective and finds fault with others - and other processes they may not agree with - finding fault and lacking praise. 

While a Critique is an objective assessment that provides the pros-and cons to whatever is being assessed and is not necessarily framed in the negative. 

Anyone can be a critic - pointing out the flaws in someone or something else.  It is much harder to Critique - because it requires heart and compassion.

In the world of Home Staging - what role do you play with your clients?  Is it our job to be a CRITIC in their houses - telling them what is wrong with how they live and their choices . . . or is it our job to CRITIQUE?

I believe we belong in the latter category - however, there is a misrepresentation of our business by the television shows depicting "Staging" on various HGTV series.  I tire of seeing CRITICS offend the public they are supposed to be serving.  As they offend seller after seller, the general public recoils in horror - and asks themselves "why would I want to have THAT person in my house?"

We have to tell the truth - that is our job too - but we can couch it in kindness, and sandwich our suggestions in positive.  When a CRITIC speaks - minds close. When a CRITIQUE is offered, minds open to the possibilities and suggestions.

- Jennie

7 commentsJennie Norris, ASPM, IAHSP • July 08 2008 01:55AM

Share the Truth - Change a Life

As much as some would have us believe that Staging is saturated and everywhere, Staging is still being discovered by those creative individuals trapped in a dead-end job. 

I recenntly got an email from a hopefully future ASP Stager that wanted to know about the business and what it takes to succeed.  After going back and forth with truthful insights about the market, she is resolved to get into the business as soon as possible.  She will approach it with an honest outlook based on her market - and a real perspective on what it will take to succeed.

It is exciting to me to see the light go on in the heart and mind of those considering this field, and I hope that she will one-day look back at her beginnings with a smile and joy in discovering her true calling.

I know I did.

- Jennie

1 commentJennie Norris, ASPM, IAHSP • July 08 2008 01:07AM

For Local Trends in your Market and Future Outlook - ASK Local Successful Stagers

If you want to know what is happening in your market ask those that work in your market.  Sounds simple but I find that there are those that rely on the "expert advice" of someone that may have a global outlook on Staging, but is totally out of touch on what is happening in a specific area.  Sometimes, these people are not even involved in the process of Staging so are totally out of touch with what is happening in today's markets.

My advice to anyone that is wondering how Staging or Real Estate is working in a region - find someone that is successful in THAT region - and ASK.  I know most people would take the time to answer the question.  You can find local real estate news by researching the newspapers and housing reports for the counties. And you can ask a local SUCCESSFUL Realtor about trends and predictions for the future market.

For Staging, the success in a region is not totally based on the market conditions - success has more to do with marketing and carving out niches that are in response to market conditions.  Ask a local expert for the real snapshot of what is happening, instead of relying on a global picture.  Ask a SUCCESSFUL Stager about trends, statistics and predictions that are based in reality, not theory.

I have received several emails recently from people around the country asking about the viability of a Staging business.  Can I succeed in Staging in my city of ___?  The answer is - it depends on their drive, motivation, and, yes, the market. 

Finding a local Stager to query is needed - and I can easily point them in the right direction using the online directory at www.Stagedhomes.com - and our IAHSP Chapter members rather than try to be the "expert" in an area where I don't even live or work. 

I am not saying that is the only resource, but it is the one I rely on most based on my background and relationships with great Stagers all over the US.  This AR site is also a great resource to locate Stagers from all over.  My point is that I don't profess to be an expert in areas where I don't Stage - and even though I may have an outlook based on the areas where I train, I rely on the local, active, and successful Stagers to provide the snapshot of success rather than apply a broad-brush stroke that does not accurately represent the region. This is really important as markets vary greatly based on a variety of factors and I would not want to lead anyone astray.

The key is to listen to the local experts - a perspective about Staging can be shared by anyone that wants to set up a forum - but it does not mean it is accurate for that market.  So ASK the ones that work in the region - and rely on the reality you can trust.

- Jennie

5 commentsJennie Norris, ASPM, IAHSP • July 08 2008 12:51AM

How Can Staging Help Houses Compete With Foreclosure Properties?

Foreclosures are everywhere all over the US - a product of a loan industry mistake that has cost thousands and thousands of homeowners their home - displacing them and flooding the market with devalued properties. We have read stories of people literally dumping their furnishings on their lawns because of lack of storage facility space in town - and walking away.  These are high-end communities and bedroom communities from California to Florida and everywhere in between.  If you are not living the nightmare, know that you are blessed and in the minority.

Who is "at fault" depends on which side you are on - the buyers that purchased more than they could afford or the lenders that gave loans to people without verifying income and ability to pay. . . the fact is it is a sad reality.

Not all markets are suffering with Foreclosure or REO (real estate owned or bank owned) properties - the lucky areas where jobs are still strong and the economy flourishing - but in many areas across the US - modest to high end homes are being dumped on the market by banks hoping to offload them from their bottom line.

The question I pose is Can Home Staging help a House to Compete Against a Foreclosure Property?  Is PRICE the only consideration?

The answer is that Staging CAN and DOES help a house look its best - and makes a house BUYER READY - MOVE-IN READY.  This is important - and often overlooked when the focus is only on Price.

When a Seller has their house Staged, and is able to address necessary upgrades or changes up front - they are putting their best foot forward - and telling a buyer "You can move in right now - and LIVE."

A foreclosure property requires work - Period.  Even with basic clean-up and landscaping a REO property will still need a lot of work.  For Buyers, they may be able to get a house for less than market value, but they will be spending a lot of time and money to repair, upgrade, and create a home for themselves.  That could take weeks or months.  Meanwhile, a Staged house is ready to LIVE in.  When our sellers are willing to upgrade and replace worn out appliances or carpeting up front (rather than give a carpet allowance) - this helps sway a buyer in their direction.

Buyers that are out there "looking for a deal" might be able to pick up a property that is under market value, can find them easily.  What they need to be honest about is the amount of time, work, and money it will take to get that property to be on equal footing with a regular for-sale house.  If they are honest, they will admit it will take a lot of out out of pocket money (rather than funding an already-upgraded house through mortgage), and more often than not, a buyer runs out of money before all the projects are done.  Not all buyers want a project - and yet some are thinking that is the only way to get a deal.  The fact is, they will often spend more updating and fixing a foreclosure property than they would to just buy a regular for-sale house that is priced well.

Then they live in the house for months or years - with their 'to-do" list. Meanwhile, a regular for-sale house with to-do items addressed UP FRONT - is enjoyed from move-in Day by Buyers who can then take their discretionary income and enjoy something like a trip or splurge. 

A Realtor client of mine wisely shared this with sellers this past week - while we were there to prepare a Staging report - and made the point that anything that can be done up front will help their house to attract a buyer. 

Because the bottom line is: Why would a Buyer purchase a regular sale house that needs upgrades and work when they can buy a foreclosure property for less?  It is common sense.

Price does matter.  But so does PRESENTATION.  And Ease of Transaction. 

So Sellers out there - NOW is the most important time to put your BEST FOOT FORWARD - and address all issues before listing the house for sale.  Get a professional opinion and specific advice from a Home Stager.  Work with a REALTOR.  Do necessary things like replacing dated fixtures, appliances, and paint walls warm neutral colors - bringing the house up to standards expected for the market will help that Seller attract a buyer.  Because when they really look at it - WHY would a Buyer want want to move in and work-work-work when they can move in and enjoy-rest-and relax.

- Jennie

 

1 commentJennie Norris, ASPM, IAHSP • July 08 2008 12:08AM

Home Staging Industry Awards To be Given at the IAHSP Convention!

With about a week to go before our Annual IAHSP-ASP Home Staging Convention (I am getting sooooo excited!!!!) - I wanted to take the opportunity to toot the horn of really deserving and talented Home Stagers that have been nominated for prestigious Home Staging Industry Awards!

The Rising Star Award recognizes the ASP Stager that really took off after their ASP Course the past year.  They began marketing, started or joined an IAHSP Chapter, and secured clients.  They are setting the pace in their areas and are doing excellent Staging work!

The Barb Schwarz Staging Award of Excellence is a TOP industry award named for the woman that Created Home Staging in 1972 and has influenced so many Stagers around the world.  This was the first award in the Home Staging industry.  As a Two-Time recipient of this award, I can personally attest to the honor of having it bestowed by peers.  Instead of having a vote at our convention, we requested nominations of deserving ASP Master Stagers.  These ASP Master nominees had to send in examples of their work, testimonials, marketing examples, and client references to the awards committee who then voted on who the recipient will be based on their quality work, customer service, and representation in the industry.  The winner will be announced at the Saturday evening awards dinner and auction on July 19th!

The IAHSP Chapter Excellence Award will be given to the IAHSP Chapter that is setting the example for all ASPs and IAHSP members with how they represent Staging in their communities, and how they honor the principle of working together for success.  This award will be voted on by committee and the winner announced at the IAHSP Convention.

The IAHSP Spirit Award is given to the ASP in attendance at our IAHSP Convention that represents the ideal of an ASP in their interactions with other Stagers and their clients.  Nominees were sent in by peers and the list was narrowed down to those that will be voted on by convention attendees with the winner announced at our Saturday awards banquet and auction.

Please help me in congratulating the following AR Members and wonderful ASP and ASPM Stagers! I have provided links to their AR profiles where applicable.

Justine Pimentel and Michelle Pimentel in Southern California, and Michelle Morris of Northern VA are the 3 ASP Stagers nominated for the Rising Star of the Year Award

Linda Pufford, Victoria Hunter, Marcyne Touchton, and Trish Kim - are nominated for the Barb Schwarz Staging Award of Excellence!

Trish Kim, Marcyne Touchton and Melanie Warren are nominated for the IAHSP Spirit Award that will be voted on by convention attendees next week,

AND Seven (7) of our fabulous IAHSP Regional Chapters have been nominated for recognition of the IAHSP Chapter Excellence Award - and all are very deserving, and setting the pace for our over 100 IAHSP Chapters!  Atlanta, Charlotte, Dallas, Phoenix, Seattle, Vancouver WA and Washington DC are all nominated and we are really proud of all the members and the boards of these chapters for setting the pace!

CONGRATULATIONS to all the nominees!  You are all winners and we are proud of how you are representing our Home Staging industry! I hope you can join me in congratulating the AR Members that contribute to this site for being recognized by their peers!

- Jennie

 

3 commentsJennie Norris, ASPM, IAHSP • July 07 2008 11:23PM

"Outstaging the Stager" - The Games Sellers Play

It always makes me smile (and chuckle a bit inside) when a seller that knows I am coming over tries to "out-stage" me.  This has happened numerous times - and still I manage to find 4 pages of recommendations for the seller - much to their surprise!  I am not nitpicking either - these are standard do's and don't's for Staging - and any one of you that has the ability to advise a client would find the same to-do items.  Out-Staging the Stager is hard to do for Sellers as they don't see things we see or understand the "WHY's" behind our suggestions.

The latest example was interesting - as my colleague and I pulled up to the house we saw the Realtor and the clients chatting in the garage.  After introductions and some small talk, we said, "Well let's take a tour!"  The woman then said to the Realtor, "You did not tell them, did you?" which made me a little nervous.  Tell me what?  Then she proceeded to tell me that she was a Stager.  OK - now we were equipped with that knowledge and we shifted gears a bit as we knew inside we would find a person that fancied herself to be a Stager - ready to hear our comments about what still needed to be done to the house.

As we went through the house - she said, "You are nothing like that show on TV" - you know the one with the terrible mother-daughter team that go in and judge and criticize everything?

The house had already been on the market for a year - and did not sell.  So - yes, there were things that were needed to Stage it for sale.  From the first curb appeal impression (add colorful annuals and new bark, and a tall topiary or plant by the front door) . . . to our initial walk through the front door - we were greeted with really obvious Staging do's.  For example - they had a large pool table in the living room, and a bar set up in the Formal Dining Room.  When I asked about the pool table - she said, 'We've always lived this way."  OK but remember living and selling are two different things.  The house was painted some tasteful colors - yet they were too custom and showed up as really dark in the photos online. 

When I photographed the house I showed her what her house looked like to buyers.  She had never seen the photos the prior Realtor used - and it was a instant "Ah-Ha" as she saw how her house looked to others.  She said, "Wow- my kitchen table (that was too large and we recommended putting it in the Dining Room) looks like a landing strip for an airplane!"  It did - dominating the room.  A picture is worth a thousand words - or in this case, fewer days on market.

Painting the family room was already on the discussion list, but the seller said she did not want to paint it a really neutral color - and the yellow wall that led to the kitchen was staying.

Solution:  I suggested "cutting" the color in 1/2 and 1/2 again if needed.  Lightbulb - AH-HA moment- she said.  "I never thought of that - it's a really good idea."  Moving on - we found plenty of furniture to use to furnish the living room and dining room as originally built - and expected by buyers which was a good thing so they don't have to rent furniture.  The upper Master - needed rearranging and painting, and the Master bath needed to be made more luxurious and updated.  They were open to all suggestions - and hopefully will implement them all.  In our market with 60% foreclosures, having a house that is move-in ready needs to happen in order for a buyer to feel a regular sale is advantageous.

As we talked, we found out that the couple had taken a re-design course - not a Staging course - (they could not even remember the name but took it in Vegas). . .and their focus was on working on houses to help upgrade and remodel them - not getting them ready for sale.  This was evident in the way the house had been presented for sale - and I thought to myself - good job for the Realtor that was wise enough to bring us out for a professional opinion - and shame on the agents that had the listing for a year with the house showing the way it did.  The way the house showed in photos and in person did not do it justice, and we know with some paint, elbow grease, and rearranging, their house will show well, and be what buyers expect to see.

Staging and re-design are not the same thing - and the goals are totally different.  Bottom line:  It always pays to have an objective 3rd party opinion - and honestly, I would have one of you come out to help me Stage my house so that I heard the truth of what needed to be done - as it is a truth that we cannot really be 100% objective in our own houses. - Jennie

 

20 commentsJennie Norris, ASPM, IAHSP • July 07 2008 10:38PM