The Undeniable Power of Home Staging: Sell Faster, Maximize Your Profit
Renowned real estate mogul and Shark Tank investor, Barbara Corcoran, once famously questioned, “Why wouldn’t someone stage if they want to sell a house, and if they want to get more money for the house? I don’t get it.” Her statement encapsulates a fundamental truth in today’s competitive housing market: professional home staging is not just a luxury; it’s a strategic imperative. Corcoran, who built the Corcoran Group into a real estate powerhouse before selling it for a staggering $66 million, has always been a staunch advocate for staging. So, the lingering question remains: if the benefits are so clear, why isn’t every seller embracing this powerful tool?
As a seasoned home stager, educator, and writer, I consistently highlight the profound advantages of investing in professional home staging. It’s truly a no-brainer. The cost of staging is almost invariably less than the first inevitable price reduction a property might face when struggling to sell. This simple economic truth alone should convince any seller of its value.
The real estate industry, from agents to sellers, is increasingly recognizing this critical shift. The National Association of Realtors (NAR) released their insightful 2019 Profile of Home Staging, revealing compelling statistics. A remarkable 83 percent of buyers’ agents reported that staging makes it significantly easier for prospective buyers to envision a property as their future home. This figure, up from 77 percent in 2017, underscores the growing impact of staging. This comprehensive report, only the third of its kind, is a testament to the industry’s evolving understanding of buyer psychology and market demands.
The impetus for this crucial report originated from real estate professionals themselves. Dr. Jessica Lautz, NAR Vice President of Demographics and Behavioral Insights, explained, “Realtors were asking for this report. Our members were walking into homes, and the buyers were disappointed houses didn’t look like they did on TV.” This highlights a significant challenge: buyer expectations have been profoundly elevated by popular home improvement and design television shows. Setting these expectations correctly is vital for sellers. On the selling side, 38 percent of agents reported that these elevated buyer expectations had directly impacted their business, making it harder to meet initial demands. This data provides invaluable support, helping sellers understand the new benchmark for presenting a property.
Beyond simply appealing to buyers, home staging has a tangible impact on a property’s market value and the speed of sale. The NAR report clearly indicates that staging directly influences financial offers. Forty-four percent of buyers’ agents stated that staging increased the financial offer on a home. More specifically, 25 percent reported an increase in a home’s dollar value by 1 to 5 percent, while a significant 12 percent saw an increase of 6 to 10 percent. These figures demonstrate that staging is not an expense but an investment with a clear return.
Does Home Staging Really Lead to Top Dollar Offers?
The numbers speak for themselves. Beyond increasing the offer, staging dramatically reduces the amount of time a property spends on the market. Over half of sellers’ agents, 53 percent, confirmed that staging a home significantly decreases its market time. In a fast-paced market, or one where inventory is high, selling quickly at a premium is every seller’s dream, and staging makes that dream a reality.
To further validate these national findings, I consulted with a diverse group of stagers and Realtors across the country, including those in the vibrant Dallas real estate market. Their experiences consistently echoed the findings of the 2019 NAR report, reaffirming the transformative power of professional staging.
Julie Pillans, a distinguished Realtor with Ebby Halliday, articulated the fundamental psychological aspect of staging: “Most people don’t have the vision. When you stage, it helps to tell the story of how great the home can be.” She emphasized the growing necessity of staging in today’s landscape: “Staging is becoming more imperative because there is more inventory on the market now and your listing needs to stand out. Staging is the only way to do that.” In a crowded market, a staged home cuts through the noise, capturing buyer attention and sparking imagination.
The anecdotal evidence is equally compelling. Peggy Millheiser, another respected agent with Ebby Halliday, shared a remarkable success story. “After 244 days on the market, my client agreed to have her property staged. Within three days we had a contract, over the asking price, and two other buyers waiting in the wings!” This dramatic turnaround vividly illustrates staging’s ability to unlock a property’s true potential, even after prolonged market stagnation.
Melissa Marro, owner of Rave Home Staging in Jacksonville, Florida, provided further proof of staging’s business impact. In 2018, her company’s gross sales increased by an impressive 39 percent year-over-year. Marro elaborated on a critical benefit: “More importantly, buyers’ agents now tell us that they prefer to show listings our company has staged because they know their customers will be excited to write an offer. This means less wasted time going from house to house, looking for the one. This change has led to even fewer days on the market for sellers who use our services.” Staging not only attracts buyers but also streamlines the viewing process for agents, ultimately benefiting everyone involved.
George Bass of George Bass Stage & Design in Dallas reported a robust 40 percent increase in their business this year compared to last, a sentiment echoed by stagers nationwide. This consistent growth across different markets underscores the surging demand for professional staging services.
Karen Otto with Home Star Staging shared an even more impressive statistic: “Our business is up 50 percent from the first quarter of last year to the first quarter of this year.” Otto expressed her bewilderment at the historical reluctance to market homes as meticulously as other consumer products: “Why homes for sale have been the last product to be marketed, like any other product you purchase, is baffling to me. Smart retailers drive a buyer’s eye the minute you step foot in their stores. It’s no different with a home for sale, and even more important when you are talking hundreds of thousands of dollars.”
Her insights highlight a crucial area often overlooked: the vast majority of homes sold are occupied. “Smart Realtors are offering staging service to all sellers, not just for high-end vacant homes. The occupied homes are where agents need to concentrate. I think they don’t realize staging exists for occupied homes and that it is so important because most homes sold are going to be occupied. Staging is for any home in any market, and it’s finally becoming mainstream enough that agents and seller alike understand the value it brings to the home selling equation.” This emphasis on occupied home staging is vital, as it involves decluttering, depersonalizing, and optimizing existing furniture and decor to appeal to the widest range of buyers without requiring a full vacant home setup.
The broader industry trends further support the staging revolution. Cort Furniture, a prominent rental subsidiary of Warren Buffet’s Cort Business Services Corporation, provides essential furnishings for staged homes nationwide. They have observed a robust 13 percent increase in the Dallas market alone, with a notable surge in inquiries from investors seeking to stage their rental and resale properties. This investor interest signifies a broader understanding that even for investment properties, staging translates into quicker leases or sales and higher returns.
A fascinating addition to this year’s NAR report delved into the profound impact of television shows on seller and buyer expectations. Consider the widespread popularity of programs like Property Brothers, Buying and Selling, Fixer Upper, Flip or Flop, and the enduring classic Love It or List It. These shows have collectively shaped a new standard for how homes should look and feel. NAR reported that 38 percent of respondents directly attributed the influence of home buying and renovation television shows to having an impact on their business. This trend highlights the critical need for sellers to present a property that aligns with the aspirational aesthetics buyers now expect.
The report also wisely included a section on the significant influence of family members in the home purchasing process. In many instances, if parents are contributing to a down payment, their preferences and opinions hold considerable sway. While exploring emerging trends, I inquired with NAR researchers about the prevalence and impact of virtual staging. The current consensus is that while it exists, it remains somewhat controversial and not yet commonplace enough for comprehensive data collection. However, as technology advances, virtual staging may become an increasingly relevant discussion in future reports, offering another tool in the seller’s arsenal.
Ultimately, the message is clear and consistently reinforced by industry leaders and data alike. As Barbara Corcoran aptly told the Real Estate Staging Association at one of their annual conferences, “Home staging is no longer optional in the real estate market, it’s a must. It’s what will make the difference in whether your home sells or not.” Professional home staging transforms a house into a dream home, allowing buyers to visualize their future, prompting quicker decisions, and ultimately, ensuring sellers achieve the maximum possible value for their property.
Remember, the first impression is often the only impression. Nobody wants to scroll through online listings featuring photos of a cluttered home or a stark, uninviting vacant property. Invest in staging; invest in your sale.
Karen Eubank is the owner of Eubank Staging and Design, an award-winning professional home stager and writer with over 25 years of experience. Karen teaches the popular Staging to Sell class and is the creator of the online course, The Beginners Guide to Buying Wholesale. Her passions include dogs, international travel, history, white paint, champagne, artificial turf, Tudor and Midcentury Modern homes, and any house designed by Clifford Hutsell. Her unique background, including her father’s career as a spy, ensures she keeps secrets very well! Discover more about Karen’s expertise at www.eubankstaging.com.