Sellers who are eager to attract serious buyers and maximize the value of their home often utilize home staging as a way to leave a good impression.
Homes that are skillfully staged look better in photos online, creating more leads, showings, and ultimately, offers. Furthermore, prospective buyers want to be able to envision themselves living in a home. Staging makes it easier for them to understand what it would look like and how spacious it will feel once it has been furnished.
Home staging by the numbers
You don’t, however, have to take my word for it. The National Association of Realtors (NAR) releases an annual report which collects and analyzes survey data from nearly 2,000 agents regarding their experience with home staging.
In their findings, they note that 62 percent of agents agree that staging a home lessens the time the property is for sale. Furthermore, 77 percent of agents said home staging makes it easier to visualize living in a home that would otherwise be empty.
Which rooms should be staged?
Staging an entire home takes an enormous amount of time and money. One way to simplify the process is to stage a select few rooms. In the NAR’s study, they asked agents which rooms they typically staged when selling a home. The results:
83% Living Room
69% Master Bedroom
66% Dining Room
31% Yard Space
25% Children’s Bedroom
21% Guest Bedroom
From these results, we can ascertain that it’s important to stage the main rooms of your home. Lesser used a multi-purpose rooms (like offices and guest rooms) aren’t as important to stage.
Can staging your home increase the sale price?
It’s difficult to say with certainty if, and by how much, home staging affects the sale price of a home. However, if staging your home is successful at getting the attention at a greater number of prospective buyers, there’s a good chance you’ll be able to go with the highest bidder.
When the NAR asked agents if staging increases the amount buyer’s offer on a home, their responses were somewhat mixed.
29% of respondents thought it increases the offer by one to five percent
21% of respondents say it increases the offer by six to ten percent
8% said it increases the offer from between eleven to twenty percent
14% said it had no impact on the dollar value of the home
27% were unsure if it had an impact on the dollar value
In general, it would seem that most agents feel that staging a home not only improves a buyer’s opinion of a home, but also increases its sale value. If you’re planning on selling in the near future, staging at least part of your home could be something to consider to give your property a competitive edge.
If you plan to sell your home, it may be helpful to prepare for a difficult negotiation with a homebuyer.
Although your home may be in great shape and you've set a fair price for it, there are no guarantees that you'll be able to avoid a long, complex home selling negotiation. However, a home seller who prepares for a difficult negotiation now may be better equipped than others to remain calm, cool and collected throughout the home selling journey.
Now, let's take a look at three tips that home sellers can use to get ready for a difficult negotiation.
1. Assess the Housing Market Closely
A home seller who sets a competitive price for his or her residence may be able to avoid a complicated home selling negotiation entirely.
To determine a fair price for your house, a property appraisal is ideal. During this appraisal, a property inspector will evaluate your home's interior and exterior and help you identify any problem areas. Then, you can complete assorted home improvement projects and price your house accordingly.
Furthermore, it is important to assess the prices of comparable houses in your area. With this housing market information at your disposal, you can enter a home selling negotiation with data to support your arguments.
2. Understand Your Home Selling Goals
How a home seller approaches a negotiation may vary based on his or her goals.
For example, a home seller who needs to move out of a house as soon as possible may be willing to go above and beyond the call of duty to satisfy a property buyer's requests. By doing so, this home seller can speed up the property selling cycle.
On the other hand, a home seller who can afford to be patient may be unwilling to budge on various homebuyer requests.
Consider your home selling goals closely before you enter a negotiation with a homebuyer. And if you feel uncomfortable, you can always walk away from a negotiation and reenter the housing market.
3. Focus on the End Results
A home selling negotiation can become contentious, but it is important to remember the end goals of this negotiation.
Ultimately, a successful negotiation will meet the needs of both a property seller and buyer. If a negotiation heavily favors a homebuyer, a home seller should be ready to exit the negotiation.
A home selling negotiation can be stressful, and you should be ready to take breaks as needed. For example, spending a few minutes meditating or walking outdoors may help you clear your head and reenter a home selling negotiation with a fresh perspective.
Lastly, if you want additional support, real estate agents are happy to help you. A real estate agent knows what it takes to negotiate with homebuyers and will do everything possible to ensure all parties involved in a negotiation get the best results.
Take the guesswork out of a home selling negotiation – use these tips, and you can prepare for a difficult negotiation before you add your house to the real estate market.
Selling a home takes patience. Especially when you’re balancing your time between settling into your new home, and keeping up with your work and family life. So, when you’ve finally gotten to the point of accepting an offer on your home, you’ll probably breathe a sigh of relief--and you should! However, there are still a few more things that will need to happen and a couple of things to consider before closing the deal on your home sale.
Contingencies on the purchase contract
A purchase contract typically includes contingency clauses that are designed to protect the interests of both the buyer and the seller. These clauses mean that the contract is contingent upon the actions being completed before it can be legally valid.
There are three main contingencies that will likely be included in the purchase contract before closing--inspection, financing, and appraisal.
The inspection contingency allows the buyer to have the home inspected by a professional before closing (the time should be specified within the contract, but the inspection should usually occur no more than two weeks after you accept the offer). A home inspection lets the buyer know what to expect in terms of repairs that the home needs now or will need in the near future.
Since the vast majority of buyers will be purchasing their home through a loan, a financing contingency is included to allow the buyer time to secure their mortgage. Getting pre-qualified and pre-approved makes this process easier, but the buyer will still have to finalize and close on their mortgage before their financing is official.
This clause exists to protect the buyer in the event that their mortgage application is denied, ensuring that they aren’t penalized.
The third contingency most often found in purchase contracts is a home appraisal. The buyer will order an appraisal and then the appraiser will reach out to you to find a day to come and value your home.
If the home is then appraised at the amount agreed upon in your contract, this contingency is met. However, if the appraisal comes up lower than the purchase amount, the buyer can renegotiate the price.
Walkthrough and closing
Once the appraisal and inspection have been met and financing secured, the buyer will have a chance to do a final walkthrough of your home. The walkthrough usually occurs no more than two days prior to closing on the sale. A walkthrough allows the buyer view the home one last time to ensure that the condition of the home hasn’t drastically changed since the home was inspected or appraised. So, make sure the buyer is aware of any changes you planned to make to the home before closing.
Now you’re ready to close on your home sale. You’ll receive a disclosure form to review (read it carefully!) and sign. Once closing is complete, ownership of the home is officially transferred to the buyer.
While the closing process does include several steps, it’s important to be available and cooperative along the way to ensure a smooth sale and transition into your new home.
Preparing your house to sell can mean different things in different markets. You want your home to be competitively priced and attractive to the buyer, so you put some extra effort into staging and end up with no takers. What happened?
Despite what you see in decorator magazines and on television, sometimes less is more, way more when it comes to staging your home.
Here are some areas to watch out for when following staging “advice.”
- Over the years, real estate agents have shared the notion that freshly baked cookies or bread evoke a warm and welcoming atmosphere. But unless you're offering the treats to share, leave the baking to the shop down the street. The idea has run its course and appears to be just what it is—a sales tactic that might backfire on you.
- In the same vein, don't light scented candles all over the place. What seems delightful to you may be overpowering to your potential buyer. They may be wondering just what you're trying to cover up. Instead, open the windows and air it out. Or use an odor-removing spray with a "fresh" or "linen" scent.
- Don’t cover the windows. Don’t buy new blinds, new drapes, new valances, or sheers. Just don’t! Your windows should be as lightly-dressed as possible. Remove or pull up shades to let the dazzling sunlight stream through the clean glass. Chances are, your buyer has different taste from you, so spending money on new window coverings would be a lose-lose!
- Leave the music and television off. Since you don't know your buyer's taste in music any more than you know their taste in candles, allow the home's everyday sounds to become music to the buyers' ears.
- Don’t decorate every surface. It’s easy to do when using magazines or home décor shows as your guide, but savvy buyers want to see the nitty-gritty surfaces. They want to know what they’re buying, and not worry about what you’re covering up with all that stuff.
- During holidays or events, don’t overdo the celebratory decorations. These become distractions and may turn off your buyers.
- If you've painted a room a deep shade of red or purple, consider painting it light and bright before your open house. Regardless of how popular they are in theory, homes with darker shades don't sell as quickly as lighter hues.• Don't leave family portraits and very personal items hanging on walls or filling display spaces. You want the buyers to imagine themselves there, not to see you.
When staging your home for sale, opt for less, not more. Less furniture, fewer window coverings, and limited décor give your home its best chance. For more ideas on home staging, talk to your local real estate agent.
There is a lot to think about when you know you’re ready to sell your home. The best approach is to take things step-by-step in order to get everything right.
Make Necessary Repairs
Before you even decide to put a “for sale” sign out front, you’ll want to address the problems in your home that you know about. If the roof needs to be replaced, or you know you need a new refrigerator, you should tend to those things as soon as possible. While these items can be an expense for you, completing these things before the sale of the home will increase the value of the home and save you some aggravation when it comes time for the home inspection.
Don’t forget about the small details as you look at what needs to be done on your property. Does the doorbell ring? Are the lightbulbs all working? These small details are just as important as the big stuff.
Find A Real Estate Agent
Finding a real estate agent isn’t a one-size-fits-all job. You want an agent who understands your needs and is an expert in your particular market. You can check with your family and friends to see if they have a particular agent who they recommend. Also, you might check out reviews online to help you discover an agent. Do you have a particular agency in mind? Give them a call and they can set you up with one of their agents. Many agents will be happy to provide a number of references of recent sales if you inquire.
Find Out How Your Home Will Be Marketed
If your home won’t be on social media, there’s something wrong with the marketing plan. You’ll need lots of good photos and maybe even a video tour of your home. You should definitely be sure that your home is being marketed on YouTube, Facebook, and Instagram to name a few social networks. These networks even offer paid ads to help you reach the right buyers. Talk with your realtor to see what the plan for marketing your home sale is.
Prepare For Home Showings
While you still might need to live in your home while you’re selling it, you want the property to be presentable. Start at the curb of your home and work your way to the inside. The property should look presentable from the moment buyers pull up to the house. The lawn should be mowed, the landscaping should be trimmed, and the inside of the home should be thoroughly cleaned. This will seal the deal on the sale of your property after all of the other hard work has been done.