House flippers recognize the value of home staging.
Throughout various points in my career, I’ve heard that Real Estate Investors, particularly house flippers, are cheap. I haven’t found that to be particularly true, to be honest. What I have found is that they are very picky about what they spend their money on. In order for them to spend money, they require a return on their investment. They need to know that there is value in what they are buying.
Too frequently I hear other stagers talk about how “pretty” they make a home, but rarely do they talk about how much money they make their customers! That’s probably why so many Investors love Rave Home Staging. We are all about creating an atmosphere that potential home buyers love, often leading to faster sales, with higher sales prices.
What initially made an investor take the leap into home staging?
Because investors have often tried home staging with other companies, and haven’t found it effective, it was a tough hill to climb, to get them to take the leap again. Helping them understand that Rave Home Staging offers a service that is unlike most other staging companies, was the key to help them eventually take the leap.
Awkward Rooms were frequently the first test of home staging.
Many of the investors who work with us tell us that purchasing a property with an awkward space was one of the main reasons that they decided to try staging. Knowing that buyers would have a hard time understanding the space without staging created an easy entry point.
This particular house sat empty for months prior to being staged. After staging, it sold in less than 2 weeks. Believe it or not, this is the same room, from the same angle. Buyers had a difficult time understanding how to use the “stage” that was really the dining room. This house has multiple renovations over time and the floor plan had become increasingly awkward with each update. Staging helped identify how buyers could use the space.
Unfortunately I do not have the “before” photo of this space. The door, in this room, is actually the front door, and the narrow area seemed like wasted space. Showcasing it as more of a true entry area, with storage and seating, helped buyers understand the value. This particular house was the first staging project for a flipper. Since the success of this quick sale, he has staged every house after. Last year, that was more than 40 residential properties!
In this house, the seller was ready to drop the price by $25,000 before the Realtor suggested trying home staging with us. Because the property was incredibly awkward, with low, open ceilings, steel beams, and small spaces, buyers felt the house was unwelcoming and needed massive renovations. Knowing that this property was in an artsy area, we went all in and built the perfect eclectic style for creatives. The result was an acceptable offer in just over a week’s time!
Making more money on a deal gets the attention of Real Estate Investors!
In the video, you may have heard Alex Rose talk about a house that he had considered flipping, but didn’t believe that it would ever get more than $80K on the resale. After staging, the seller received a full price offer and closed at $100K. That’s a $20K increase on only a $2000 staging budget.
This isn’t the first time that happened. In another situation, flipper Obi Dorsey, had a project on Dellwood that was expected to list at $99,900 when renovations were complete. After staging, the property was listed at $119,900 and received multiple offers, eventually closing at list price.
Staging every Room of the Home sets Rave Home Staging apart
In the video that I posted, you’ll notice that you hear several investors mention that Rave stages all the rooms of the home, and that it creates additional value for them. While staging only the key rooms, (living room, dining room, eat-in kitchen, master bedroom & bath), is the most common staging in the industry. Melissa learned from her company in Charleston, SC, that staging the entire house actually created more value for her customers. When comparing her own key room staging to her full home staging projects, the stats showed that the full home staging sold 28% faster than key rooms only.
In addition to the agreement by investors that full home staging does a better job of selling faster, which always means more money, they also cite the fact that fully staged homes are less likely to be burglarized. Thieves looking online, at a partially staged home, can still tell no one lives there. When each room is staged, it is far less obvious.
Just another reason why home sellers should stage their homes too.
While it may seem to make sense that Real Estate Investors use home staging to sell their products, remember that builders do too! The reason for both is that home staging creates a return on the investment, selling properties for more money and in less time. Whenever you listen to the masters in any category, they tell you to do what the people at the top are doing. Duplicate the success. Home staging is incredibly affordable, typically less than 1.5% of list price, but returns are usually between 3-5%. Before you list, consider staging first. If your house is already on the market and hasn’t sold yet, be sure to call us today! 904-379-5523 or email us at email@example.com.