To Stage or Not to Stage?

Question

Hello.  I was wondering how everyone feels about staging homes that are being flipped.

1. If your market is hot and you are getting offers in days is it helpful still?

2. Do you think it increases value or just lessens days on market?

3.  If you feel it increases value do you also think it increases the appraised value, as a low appraisal can kill a deal?

4. If you stage do you do it yourself or hire someone ( average cost if you hire it out)?

Thanks for your input

Julia Blythe · Answer

We normally do some radical transformations of old historic houses in very sought after areas of our town so we have developed a kind of following of people who love the old homes but want the modern conveniences we put into them. When everyone says to be safe and use colors for the masses, we ignore that advice and just reno as if we were going to move into the houses ourself. (Completely opposite school of thinking most flippers have.)  So far it has worked for us but I wouldn't exactly recommend that to anyone, as everyone's market and style is different and who knows, we may get stuck with a house we can't sell one day but we are willing to take that risk.  We have had to hold our breathes on some of the appraisals, but when we pre sell, we always make sure we are protected if for some reason, something doesn't work out with the buyer.

Kevin Fox · Answer

Hey @Wendy Vaidic

Never under estimate the power of great staging. I can't tell you how many buyers lack any and all ability to picture a vacant home furnished with their own things.

Staging helps to set an outline for how the room can be used and really helps the buyer imagine it as their own.

If there is room for it in the budget, do it. If there isn't room, make it.

Brian Pulaski · Answer

My first house I didn't stage. Not that it is any real scientific proven data, but it took a month and a half to go under contract.

My second house I chose to stage. Being a tiny house I felt it would help paint the picture of how to place furniture. This house went under contract in 3 days.

My third house I just finished. I staged this one (using 90% of the things from the first stage, as well as some items that came with the house, and some new stuff) and went under contract in 2 days.

Do I feel the staging caused this... Yes and no. The offer I just got the buyers asked about the decor and keeping it. They loved it. I think walking into a staged home feels like home, verse an empty and echoing house feels like a house. I go with couches, cushions, curtains, wall art, dining set, and even open a cookbook in the kitchen to a recipe I like! I've had comments people actually remembered the dish (a lamb dish on the last one, a chicken dish on the current). It costs a bit more, it takes me a day or so more, but it honestly gives me a better final product.

Letitia Harris · Answer

I lightly stage, semi sheer drapes in the front room & dining room, air mattresses all dressed up in the bedrooms, fake plants/trees.  Nice stuff in the kitchen, a small 3 seat kitchen table, love seat w/ coffee table & side table & lamps.  It makes such a difference.  Oh, and have music playing softly 24/7.  They always remember "the house with the music."

Nik S. · Answer

@Wendy Vaidic All very great points. Currently I am doing (2) flips (ARV = $135-$145k). I only have 1 crew so it takes about 10 weeks on each home. I think if I were able to get 2 crews I'd be good. My plan is to do at least (2) at a time, then I'll stick to lower cost homes.  Currently, I am just buying to keep 2 houses in inventory so I can keep rolling. My guys are happy to because they have steady work.

Wendy Vaidic · Answer

@Nik S.Yes, I think your design would net you more on higher priced homes, but I agree you also have to look at time invested. Also, if you can buy 2 lower costs house vs. one higher cost house are you over doubling your profit vs. time invested?  I have found that it really doesn't work out as a better investment doing higher cost homes when I figure in those factors but my market is hot so I do any deal that is good and I can afford at the time.  It'd be nice to get a home run one day though.  You never know :)

Nik S. · Answer

@Wendy Vaidic

So i am faced with the same challenges. I can do simple rehabs and make more money or I can do "my type" of rehabs and have fun and be excited with it.

My average ARV ranges from $130k-$150k.....THAT's my problem however for my area thats my sweet spot (quick sales). I think my design style would work better with higher ARV homes... I think I want to take the plunge to large/more $$ homes... More risk, more work more reward, all assuming. Takes more time but I think the design would showcase better and attain high end buyers!

Wendy Vaidic · Answer

@Nik S. nice rehab!  I have done 1 flip where I didn't improve it quite as much as usual and although it sold well and looked nice it just wasn't as enjoyable  for me to do.

@Evan Wiesner Choosing which homes need staging makes sense.  That's awesome you've been able to test staging and not staging in comparable properties.  We have a beachside area where homes are more varied, so it may make a difference in those areas.

Nik S. · Answer

@Julia Blythe

I do exactly the same, of course with a "budget" in the background. I am finishing up a flip right now that my friends/other flippers say I spend to much on materials etc....I believe my products are awesome and each one of them I would live in myself. My flips aren't comparable (color, material, appliance, floors, tile) to the rest. Even if I make a little less, at least I know I am improving neighborhood values and selling an awesome home to someone. Heres a rough pic of an UGLY kitchen that I made "my style". Pardon the mess, still have a week left on this project. Lighting is the Jewelry of the home!

To Stage or Not to Stage?

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