Does Staging Benefit the Buyer or the Seller?

Should You Stage Your Home?

Real estate has changed, and now more than ever, how well your home photographs can play a significant role in how much interest it attracts. Much like first impressions are incredibly important when forming relationships, they’re also very important when it comes to selling property.

If you want to receive maximum value for your home, you need to ensure it doesn’t sit on the market for long — one of the best ways to do that is through staging. Though some sellers are hesitant to enlist a staging company, the benefits of doing so outweigh the costs attached.

Staging Benefits Both Buyers and Sellers

Staging has without a doubt become more popular in the past decade — HGTV has likely played no small part in its increased popularity. But in truth, staging is more common today because it works.

Staging has without a doubt become more popular in the past decade — HGTV has likely played no small part in its increased popularity. But in truth, staging is more common today because it works.

When buyers enter a property for viewing or land on an online listing, the first images they see will shape their entire experience. Perhaps they crave a bedroom that doubles as an office, a small reading nook, or a workout room. Your home might be capable of delivering that, but if it’s covered in clutter or contains oversized furniture, the buyer isn’t going to see the full potential; something as simple as the right paint colour can transform a dark room into a bright and airy space. In short, staging can provide a window into what could be.

Price of Staging

Staging is quite common in today’s condo market; if you look at listings for luxury condos like One Bedford Condos or Ritz Carlton Condos, you’ll find that almost all units are staged. The reason for this is because having a luxury condo sit on the market for a month will result in a price decrease that will easily exceed the costs of staging.

Spending money on a home that you’ll soon be vacating might feel counterproductive, but when sellers get caught up on the price of staging services, they’re not considering the cost of a home sitting on the market.

While staging can be expensive, it leads to higher offers: A seller might spend $2,500 on staging services and end up with three offers, selling $20,000 over asking — a net gain of $17,500. By comparison, a seller might opt to not employ staging services and receive a lower offer after the home has remained on the market for a number of weeks.

The costs associated with staging vary and are dependent on the size of the home. At Toronto condos for sale, we provide complimentary staging for certain listings; however, we too must account for square footage. Painting and acquiring furniture for a 600 square foot condo is a very manageable project while doing the same for a 6,000 square foot unit is entirely different.

To stage a smaller unit, you’ll find companies in Toronto that will offer their services for as low as $1600, following a one-time consultation (that should cost between $100 and $200 if the stager isn’t hired); which would be considered on the low end. When you consider that the average cost of a condo in the first quarter of 2019 was CAD 603,243, paying for staging and selling the unit one month earlier would save you money compared against a mortgage payment, not to mention, yield a higher offer.

Do Real Estate Agents and Landlords Stage Rental Units?

In my experience, it’s rare: I’ve seen a rental unit staged before, but it was a luxury suite listed at $8,000 per month. In practical terms, rental units usually don’t warrant staging because the rental market is so competitive, and units that show poorly will usually rent within a couple of days. As well, any gains from increased rent probably won’t cover the minimum $1600 for staging services.

Staging is Essential in A Slow Market

As mentioned, the internet has brought change to the real estate industry, and it’s essential to have a home that “shows well”. By featuring a professionally staged unit in an online listing, you increase the chances of a buyer taking an interest in the property and feeling the need to move quickly with a competitive offer.

In the end, the decision to stage is made by the homeowner, but if you’re wondering whether or not your home needs to be staged, it’s never a bad idea to ask your realtor.