Staging vs Proper Pricing
While a good real estate agent will be able to establish the proper price of property regardless of what the house looks like, staging a home often makes the difference between whether the house will sell for that price or not.
If you’ve never sold a house before, you may not know what home staging is. Essentially staging a home involves dressing it up to make it look its very best. Staging involves cleaning, tidying, beautifying, and ensuring that your home meets the expectations of the property value.
What Proper Pricing Entails
When a real estate agent estimates the price of property, he or she takes many things into account including the real estate agents everlasting adage, position, position, position:
- Position of the property in terms of state (the general property value of homes in some states is higher than in others)
- Position of the property in terms of roads and highways (while access is important, being near a busy highway usually adds noise and pollution, reducing the property value)
- Position in terms access to leisure time amenities including, beaches, lakes, parks, walking trails and fitness centers
- Position in terms of facilities like schools, shops, banks and so on.
A real estate agent will also look at the neighborhood in terms of the type of people who live there and the general price of property in the neighborhood. They will look at the recent price of property in general in the area, and compare similar houses in a similar position to yours.
Of course a run-down house will have a lower property value than one with a house offering the same accommodation and features as one that has been well maintained. For this reason a real estate agent will often suggest that before the house is put on the market, basic repairs and/or renovations are undertaken. While this will affect pricing, it is also important not to overcapitalize. For many it is less stressful (and certainly less costly) to reduce the price of property rather than undertaking major renovations. But staging a home will help minimize the reduction of price, and help maximize the property value.
Repairs, Renovations and Staging
It is important to understand the differences between repairs, renovations and staging. While all will help to increase the price you are likely to get for your home, there are major differences. In a nutshell:
- Repairs involve fixing things that are clearly broken. Generally you cannot overlook these, although they could range from minor to major: a tap washer that needs replacing; a broken tile on a bathroom wall; a toilet seat that has come unhinged; a leaking roof.
- Renovations generally involve upgrading a home to improve facilities and appearance. This could be as simply as repainting rooms to refitting a kitchen or even adding on a room.
- Staging is done to give maximum impact to first impressions. It involves cleaning, tidying and removing clutter – even excess furniture. Professional who make a living from home staging will declutter, clean and then add props (flowers, pictures, maybe a rug) to complete the pretty picture.
While repairs are usually essential, and renovations may be a risk, staging can add property value at minimal cost.
According to Barb Schwarz, founder and current chairperson of the International Association of Home Staging Professionals (IAHSP) Board of Directors, a home staged by an IAHSP member is likely to be on the market for no longer than a month, compared to four to five months for homes that are not staged.
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