The following article appeared
in the Mountain View Voice in March of 2000
All dressed up and
ready to go: Statistics show benefits to staging
by Joy Valentine
When Cinderella went to the ball, she probably would not have won
the prince if she had gone dressed as a maid. Cinderella would have
lost out, and so would the prince.
There is a fine line between enhancement and
camouflage, and staging houses for sale -- like dressing up people
-- lies somewhere in between. In good staging, the best features of
the house are maximized, and the worst are minimized. Staging a
house is presenting the dream, showing it the way it could be.
That's what dreams are made of, and the relatively recent phenomenon
of staging homes for sale has proven that actualizing that dream has
merit, both for buyers and sellers. The following statistics
indicate how much.
In discussions with colleagues and based on my own
experiences with staging, I suspected that staged homes sell faster
and for a higher price than those that are not staged. Wanting to
test that theory, I analyzed 2,772 properties sold between March 1
and September 30, 1999, in eight cities: Atherton, Los Altos, Los
Altos Hills, Menlo Park, Mountain View, Palo Alto, Portola Valley
and Sunnyvale.
Out of that group, I took a sample of 129
properties that had been staged, or 4.7 percent of the total. This
sample represented condominiums, townhouses and single-family
residences. They ranged in list price from $229,000 to $4.8 million.
The following results show marked differences
between the sample of staged homes and the total group, which
consisted of both staged and unstaged properties.
For the group of 2,772 properties, the average
number of days on the market was 30.9, and the average difference in
sales price over list price was 1.6 percent.
For the sample of staged homes, the average number
of days on the market was 13.9 -- about half of the time for houses
in the general sample. The average difference in selling price over
list price was 6.3 percent, nearly four times as much as for the
other group of homes.
Please note that the staged sample was not skewed
by one or two outstanding properties. The homes in the sample were
fairly similar in terms of days on the market and net sales
difference.
It would appear from the above that buyers, like
Cinderella's prince, want to see the house "dressed up." Judging
from the net sales difference, they are willing to pay for it, too.
In addition, this phenomenon is occurring in an extremely strong
sellers' market that would not appear to need any help.
I believe that the above findings have significant
implications for Realtors, interior designers, prospective sellers
and buyers and anyone else who stands to benefit from the marketing
and sale of residences. And this information is pertinent not just
to the Bay Area, but could be instructive throughout the country as
well.
By contacting Realtors in numerous major
metropolitan areas in the United States, I found that, for the most
part, staging is hardly being done, if at all. As usual, California
seems to be the leader in this area. Thus, our experience here may
well be helpful down the line in other real estate markets, even
where sales are so strong that some feel there is no need for an
additional boost.
Concerning the actual staging of houses for sale,
there are a number of stagers in the area who charge a range of fees
and use a variety of approaches. Some focus on rearranging the
existing furnishings with only minimal additions; others create an
entirely new "look" by bringing in their own furnishings and
accessories. Some will implement major remodels; others will
coordinate painters, landscapers and other service providers. Many
will combine both approaches, depending upon the seller's needs and
pocketbook.
Whatever the approach, staging houses for market
appears to make a difference to buyers. And based on the results of
my analysis, the practice also carries with it implications for
sellers who wish to get the most value from their properties.
The data for the above analysis were provided
by RE Infolink and the following staging firms: A Fresh Look,
Redwood City; JAG Staging, Palo Alto; and One Two Six Design, Palo
Alto.
Joy Valentine is a Broker Associate with Coldwell Banker in Los
Altos and can be contacted at (650) 917-4206.
Issue date: March 24, 2000