If you are considering whether or not to stage your fix and flips then let the facts speak for themselves. Staging a home may sound like extra cost and effort, however, the numbers suggest that it is imperative to selling homes much faster. According to a survey by Coldwell Banker Real Estate Corp, non-staged homes spent about 50 percent more time on the market than staged homes, which also sold for more than 6 percent above asking price. Another study by RESA claims that un-staged homes spent an average of 181 days on the market and then once staged, sold in an average of 41 days. Homes that were staged before they went on the market sold at a staggering average of just 23 days. Staging a home creates an environment that allows prospective buyers to see the potential of a home and envision their own furnishings.
The National Association of Realtors claims that 77 percent of buyers’ agents saythat staging a home allows the potential buyers to visualize the property as their own home and they are 40 percent more willing to walk through the home just from seeing it online. Selling a home today is much different with a climate in which the marketplace is increasingly online, including the search to buy a home. US News says that more than 90 percent of people searching to buy a home start their hunt online. It stands to reason that if pretty much everyone starts their house-hunt on the internet and a staged home is known to attract buyers at a much higher rate than non-staged, then staging your fix and flip may be worth the money.
The savings of less time spent on the market and quicker investment returns can justify the cost of staging a home. Keep in mind, that staging your property doesn’t give you any guarantees but it is an effective marketing tool you can use to compete for quicker sales and higher offers. Not every property will make sense to stage so make sure you take all factors into account while deciding. However, typically staging a home does help it to sell it faster, and it is also widely believed to increase the selling price, especially if you find your property in the middle of a bidding war.
You’ve decided to stage your property…Now what?
Depending on your fix and flip budget, you may choose to have your home professionally staged and enlist the help of an interior designer to make sure that the furniture will attract buyers and not discourage them. Ask around and see what staging company other industry professionals have used.
However, if you think you have a pretty good eye and a creative side, you could save significant money in the long run if you stage it yourself. You can choose to either rent furnishings or invest in purchasing some that will work in various fix and flip projects that you invest in. If you choose to buy over rent, the furniture may actually pay for itself eventually through its continued use and savings of less time on the market. You can always store your furnishings in a storage unit when not in use.
If you decide to stage your property yourself rather than hiring a designer, here are a few tips to make sure that you are on the right track.
Tips on staging a home
According to the National Association of Realtors, the most important room to stage is the living room along with the master bedroom, kitchen, and outdoor space (if the property features it). You certainly do not need to spend the time or money on staging the entire property. You need to do just enough to make the house appealing and open up the buyers’ imaginations.
Most professional stagers suggest a modern and minimalist look with a few accessories to add some warmth to the property. Ensure that your furniture is not outdated or it could actually harm any potential offers making buyers feel the home is dated too. Keep furniture neutral and light, keeping with updated and modern styles. Use a splash color when accessorizing with throw pillows, blankets, vases, etc. The general idea is to decorate in a way that appeals to the greatest amount of people.
Maximize the space
When staging the property, think about the scale of the home and furnish it accordingly. You can choose pieces that will work in most of your investment properties and adjust accordingly with some tweaks depending on size and scale. If it is a smaller home, you don’t want to crowd it withtoo large of furniture and make the space seem small and cluttered.
Placement also matters, pay attention to things like fluid walking space with obvious paths of how the traffic should move. You may also want to use an area rug to direct the flow of the room around the furniture. This helps to create a flowing walking space with an obvious trail, directing how people should move through the home. Interior designers suggest moving the furniture away from the walls and place the seating to create conversational areas, essentially furniture groupings. You also want to create visual stability in the rooms and have a focal point. For example, in the living room center the furniture around a fireplace or an art piece. Highlight the best features of the home by strategically placing the furniture.
Keep It Simple And Fresh
Adding some fresh greenery to the space can help breathe life into the home. That said, don’t overdo it and create a nursery. A vase with some fresh seasonal flowers or a plant in the corner will do wonders to create a fresh look in the mind of buyers. Adding some candles is another way to help buyers emotionally connect with the home. The goal is to trigger the emotions of the buyers and give them a feeling of peace and tranquility.
Staging a home has statistically shown that it helps to sell homes much faster. Following a few rules and techniques like keeping the furniture modern, maximizing the space of home, and keeping things simple and fresh will help in staging your fix & flip for a faster return on your real estate investment.