Home staging, the process of preparing a home for sale to make it more appealing to potential buyers, can significantly impact the return on investment (ROI) for homeowners. Here’s a detailed look at how home staging can affect ROI:
1. Faster Sales:
** Reduced Time on Market: Staged homes often sell faster than non-staged homes. According to the National Association of Realtors (NAR), staged homes typically sell 73% faster.
** Buyer Appeal: A well-staged home helps potential buyers visualize themselves living in the space, making the property more attractive.
2. Higher Sale Price:
** Increased Offers: Staging can lead to higher offers. Studies show that staged homes can sell for 1% to 5 percent more than similar unstaged homes.
** Perceived Value: Staging highlights the home's strengths and minimizes its weaknesses, often leading buyers to perceive it as more valuable.
Costs of Home Staging
Professional Fees: Hiring a professional stager can cost anywhere from $2000 to $5,000 or more, depending on the size of the home, the extent of staging required, and the market.
Calculating ROI
To calculate the ROI of home staging, use the following formula:
ROI = (Increased Sale Price – Staging Costs divided by Staging Costs x 100)
Example Calculation
1. Scenario: A homeowner spends $3,500 on staging.
2. Initial Listing Price of Home: $450,000
3. Sold for $20,000 over Asking: $470,000
ROI – ($470,000 - $450,000 divided by $3500 x 100 = 471
In this example, the staged home listing price was $450,000 but sold at $470,000; a $20,000 over asking sale. With an investment of $3500 to stage this home, the ROI would be 471 percent.
Factors Influencing ROI
1. Market Conditions: In a seller’s market, staging might have a more significant impact due to higher competition among buyers.
2. Quality of Staging: Professional and high-quality staging can result in a better ROI compared to amateur or poorly executed staging.
3. Home Condition: Homes that need minor cosmetic updates can benefit more from staging than homes in need of major repairs.
TS Staging and Design has been staging homes for 3 ½ years and have found that many homeowners and realtors are experiencing the benefits of home staging. Here are just a few testimonials from our clients:
“Our home was staged and listed within a two-day period. Once active, we had an offer in hand and many compliments on the staging that was carried out. I know this investment made a huge difference in the sale of our home as we received offers over our initial asking price.”
“The staging at the house was spectacular and the buyer wanted to not only buy the house, but all the staging furniture too!”
“TS Staging and Design staged a vacant listing, and they blew it out of the park! Everyone wanted to buy the house fully furnished! It ended up selling with multiple offers and $56,000 over asking price! The staging made all the difference, and I can’t thank them enough!”
In summary home staging generally offers a high return on investment by reducing the time a home stays on the market and potentially increasing the sale price. While the upfront costs can vary, the benefits often outweigh these costs, resulting in a substantial ROI for homeowners.
If you would like more information regarding staging services, please contact TS Staging and Design at 207-400-9393 or check us out on Facebook, Instagram or our website at www.tsstaginganddesign.com. We are a 7x award winning professional home staging company that provides superior customer service and beautiful designs that attract buyers to your home!
Don’t leave money on the table! Call TS Staging and Design to discuss your staging needs! <
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