Staging Your Home: An ROI Case Study
Wednesday Jan 12th, 2022
Is Staging Worth it?
When it comes time to sell your home, you may be wondering if you should stage it. After all, you're busy and don't want to spend the time and money on something that may not drive a higher sales price. But what if staging will increase your home's value and speed up the sale process? In this case study, we'll look at an example of a staged home and its' ROI.
Regardless of whether or not you stage, you should always declutter your home first; and I mean be brutal! Get rid of everything - rent a storage unit if you need to. Your house will show better, it will feel larger, and it will make it easier for you and tradespeople to do the necessary cleaning and touchups before listing.
The Cost of Staging
The first step is to invite the Stager to do a walkthrough of your home. They will suggest what furniture and art to keep - they then supplement this with their own inventory to create the optimal layout and design theme. You may find that the suggestions they make will cost more than the actual staging. For example, we sold homes in Collingwood and Toronto this past fall. Both were staged, but the actual staging was a fraction of the cost of all the other work.
Staging costs vary, but you’ll generally get quotes in the $3,500 to $5,000 range. The staging lasts four weeks and if your house doesn’t sell, a subsequent four-week period is often discounted by up to 50%.
We recently sold a rental property and prior to listing the house it needed a lot of work. The costs were as follows:
|New Carpet & Hardwood Flooring||$10,410.50|
|Ozone Odor Stop Rental||$90.40|
|New Kitchen Countertops||$867.56|
|Total Prep & Staging Cost||$26,797.31|
The work definitely paid off.
Staging Is Work, But It Pays Off
Within a 2km radius of our listing, 16 similar detached 3 BR homes sold during the same period (Fall 2021). The average paid was 102.6% of list price (Source: Lakelands Assoc. of Realtors). Ours was listed for $795,000 and sold for $877,000; that’s 10.3% over ask! Had we not staged the property, it’s likely our listing would have sold for the average over ask, or about $816,000. We received an incremental $61,000 by investing $26,797 in staging the home - a great return of an additional $34,203. In addition, we had 21 scheduled showings and an open house that drew 9 - that's 30 potential Buyers! The house sold in 6 days - the average over the same time period for the other homes was 19 days.
Here’s a look at how great the home looked after being worked on and staged.
Selling can be a stressful process, and the question of staging is on everyone’s mind these days. It does not always make sense to stage - our job is to make recommendations and give you the resources and contact information of professionals who we know will do a great job at reasonable prices. The phrase “it takes money to make money” applies when you stage your home and as we’ve seen - it does pay off!
About the Author
Craig Rennick is a Sales Representative of Sotheby’s International Realty Canada, Brokerage, and a member of The Toyne Team. He lives in Collingwood and recently renovated their family cottage on Good Cheer Island in the Sans Souci area of Georgian Bay.