Stage it or sell vacant?

Question

I'm getting ready to start a rehab.  I plan to price it agressively (low) to sell fast.  What is the return on staging?  For those of you that stage, how many rooms?  I'm thinking LR, DR, MBR.  Also, what is the approx. cost?

J Scott · Answer

We stage every property, and do full staging on each (every room).  We own a few sets of our own staging furniture, so that keeps the costs down tremendously.  Depending on where you live, you should be able to stage a 3/2, 2000 sf house for about $3000 by buying the furniture yourself (and you can reuse it in all future houses); you can pay a stager to provide the furniture and do the work; or you can rent the furniture and do it yourself.

If you rent the furniture, it will probably be about $500-800/month, depending on how much of the house you stage.  If you hire a stager, the price is going to be highly dependent on the location and the professional you choose.  It could be as cheap as $400/month or as much as a several thousand dollar commitment.

Unfortunately, the price is going to be all over the place depending on your approach, your location and if you use a professional to help.

Here's the more important point, in my experience:

I don't believe that staging (at least in this market) is going to have a very big impact on your sale price (maybe a percent or two), but -- when done well -- will have a big impact on your DOM.  So, if your house is priced aggressively, staging is probably a lot less important than if you're priced at market and are looking to sell in less than average DOM.

Joel Owens · Answer

I think bad staging can be worse than no staging at all (empty space).

Bad staging can high light the negatives more so than an empty space where the buyer is having their own vision of what could be there.

I agree with JScott that if you are priced aggressively based on recent sold's and not actives it should move quickly.

Glenn Espinosa · Answer

I'am a newbie rehabber but IMO that quote should help a lot with your answer. If a lot of listings in your area are staged then you definitely want to be in that category as opposed to not. You have to be able to beat the competition in price, looks, and value if you want your house sold fast.

Maybe compare DOM for the staged houses vs vacant houses in your area.

I'm with J Scott in that my partner and I have decided to stage most if not every property we rehab. It's a small investment into our company and a lot of the furniture will be reusable per each house. Lastly, we hope to entice buyers with the option to keep the furniture with all full price offers. For first-time homebuyers and young couples this may be all they need to move forward with a house as they oftentimes do not have a lot of furniture (at least not as nice as our staging furniture  :wink: )

Account Closed · Answer

Staging has helped me sell a "hard to sell house",  the buyer wanted the furniture too.  I didn't stage it until it was on the market for over 90 days, so it helped.

Account Closed · Answer

Staging has helped me sell a "hard to sell house",  the buyer wanted the furniture too.  I didn't stage it until it was on the market for over 90 days, so it helped.

Will Barnard · Answer

I have yet to stage a home on my exit. I think that your market and area is a large factor in the decision of staging. In my market, there have been so many REO and other vacant homes that buyers are now acustomed to seeing homes vacant, whereas in the past, staging was somewhat of a necessity here. Times change as does the market. My first 5 rehabs soldat or above ask price within 5 days of DOM and without any staging whatsoever.

I agree with Jason in that staging should only be done for your situation if you were trying to get top retail pricing. If you price your home below the market (aggressive pricing), staging should not be necessary andonly add a cost to your bottom line that otherwide may not have been necessary. The other option is to list and see what happens in the firstweek or two. If no offers come in but you have lots of showings, you will want to get feedback from the showingagents and perhapsthen consider staging.

Ophelia Nicholson · Answer

I totally understand staying in your own backyard where you feel comfortable. I do that as well since real estate is local.
Feel free to pm me or call- my number is at the bottom of my posts. Not sure if I'll be much help on the general contracting side of things- My uncle is a GC and 50% owner of our rehab business so my price gauge maybe a little diffrent from yours- also what we pay for subcontracting will be probably on the cheaper side since he knows people he has worked with for years.
But I'd be happy to help in any way that I can. Best of luck- off to meet the granite guy to do the bathrooms.

Cheryl C. · Answer

Ok.  Gottcha.  I like to stay in my backyard (Reston, Herndon, etc.) because I know the market cold and can act immediately.  It's limiting but I don't want to work too hard (learning other markets).  I'm seeing deals in DC and MD (PG CTY) but I'm staying in my comfort zone.

I'll check online re: staging.  May give it a shot and see what happens.  It will only be very "light".

Mind if I pm you re: contractors, to compare general pricing?

Ophelia Nicholson · Answer

Sorry Cheryl,
 Let me clarify- I work in Fairfax at my 9-5 mortgage job but I only invest in MD, where I live because it takes almost 3 to 4 times the amount of money just to buy a house in VA and the profit margin is pretty  much the same.
 I would love to work with you but I don't think I'd ever be looking in fairfax for a deal unless it landed in my lap. Good luck on your rehab- let me know if you decide to stage or not.

Cheryl C. · Answer

If you find something in Fairfax, contact me.  I'd be happy to work with you.  There are so many cash investors chasing deals here that it is hard to land anything with any "meat on the bone".

South of here (PWC, Stafford, S. Stafford, King George, etc.) still have alot of reo's and shorts with less competition.

Stage it or sell vacant?

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