The more I see in this current market, the more I think my number of 10% is true.
If you expect to get $400,000 of equity out of your house, I think you should be prepared to invest at least $40K in upgrades to justify the number. Let me be clear - I'm not saying $40K gets you back $400K. No-o-o, no, NO! I'm saying if you bought your house for $250K 10 years ago, and you now want to get $650K, it's likely you need to have put in at least $40K in upgrades for the kitchen and bathrooms, fresh paint, new carpet or refinished floors, etc.
Case in point - one of today's appointments.
Here's the kitchen.
Do you know any woman prepared to buy a tiled countertop today? It's not flat and the grout is a perpetual germ risk. Some folks will put up with those cabinets; these happen to be rather worn. And the black fridge....
BTW, the bathrooms - all three - have the same tiled surfaces around the sinks, tub and toilet.
Here's just a few shots of the rest of the home:-
Yup! Flimsy 80s construction. (The wall paper borders are a true tribute to all that Waverly had to offer back then!!!) Updated bathrooms, kitchen and fresh paint would be all that's needed and then look what you got --
a light, spacious 5 BR home with in-ground pool, stables (for 2 horses), 2 paddocks and a turn-around, access to miles of horse paths, 2.75 acres, 4 car garage with lift (for a car tinkerer), huge basement, 3rd floor "escape", game room and much more!!!!
This house is comps out well in terms of price, yet has been sitting on the market for 15 months.
You would detail a car to sell it; most do it to turn the thing in coming off a lease so as to not be hit with overage charges.
You would dress for a job interview, first date, special date, party.
You would spell check your resume.
Why then are you so reluctant to fix up your home when you put in on the market? You're asking someone to part with their life savings and sign away their first born. Give 'em a little something for it, why don't you? Make it worth their while. The days of "hey, this thing is all about the features" are gone, man. You gotta package the place nicely.
And realtors who think they are done when they've listed on the MLS and Realtor.com? Your world's changed, too. Sorry folks, but a new day has dawned, and you need to find fresh ways to package and sell homes.
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Juliet Johnson Staging urges sellers all the time to properly "appreciate" what they've got. Recognize it, savor it, nourish it and grow it. In the Appreciation Game, staging's the last piece of the puzzle, and cannot serve up a buyer on a whim!
I merchandise high-end homes in NJ w/ staging & re-design to add the right perceived value so as to speed & maximize each sale. We illustrate the potential & options within all architectural styles.
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Great post Juliet! I still don't understand why sellers wont spend a dime to get their home sold, and still don't understand why realtors are not recommending improvements and of course that all important "staging." Are we the only ones out there that get it?
Juliet - Your last two paragraphs drive the entire post home. Buyers know what they want and sellers plain have to acknowledge it - they know when they're looking to buy when they finally do sell! Realtors know better, the market has changed and time is up! Great, great post!!
Jackie
Sellers don't want to hear it and Realtors don't want to alienate them. Realtors need to be taught how to sell staging. Stagers? I think the stagers need to teach the Realtors how to sell them. Again a good Realtor presentation will make you successful beyond your competition. The seller presentation with added features about their commission and speed of sales, etc. Use statistics and data, yours if you have it and others like NAR seller survey statistics, etc. It will make a difference. Good luck
Excellent comments, my friends, thank you.
We live in an Add Water and Stir society... at the MOMENT... it may not always be so. Therefore, know what you have to offer and come out strong with a clean, crisp, exciting product. In this case, it's land, horses and a pool - this is a leisure-lovers' dream, all contained in one piece of property.
Terrylynn - I'm worried about crossing over the line.. but am starting to think that we're going to have to help realtors market their homes in this new environment.
Jackie - the market has indeed changed. Helping people move on is so important.
Terry - I think people are trying to disengage from their current house and so they don't realize that it needs to wrapped up nicely.
Amen!
I love your comment "We live in an Add Water and Stir society"... That is so true. I keep telling sellers (who are sometimes family members & close friends), that buyers do not want to fix up a home - they want it move in ready. Just like the seller doesn't want to update it, well neither will a buyer!
I think we stagers are slowly getting the message out there though, and in time we will have more work than we can handle!
Juliet - I couldn't agree more with your Appreciation Game analogy. Staging is just part of the puzzle and can't always be a magic bullet for homes that don't offer the updates that consumers now demand at certain price points. Great post.
Juliet- So true! Everyone understand and accepts the detailing of a car before selling. I look forward to the day when staging, too, becomes a given.
Oh yes, so true! Most buyers want to be able to just step in and live...not work! Besides if you are going to get back every penny plus some, why not make the effort!
That is a dream house to work on if you can convince them...I would LOVE to tackle that one! Good luck and keep us all posted on the progress if you do it.
Cheers
Juliet - it is a new day, homeowners have to adapt. It seems to make so much sense and yet it is so hard to make homeowners get it.
I truly believe two things have to happen for our industry to take the next big leap. First, as a group we have to educate every potential client about the value of home staging. Second, the economy needs to turn around. Lots of financial fears right now, even with those that do understand the value of what we do. There is just so much negative energy about everything that in general people are nervous about turning loose of a dime for anything. The housing stats in most areas is just plain lousy. The last I looked, home that expire without ever having an offer made on them is about 48% of all listings. I think the main thing that plays into this is that home values have depreciated so much all over the country yet home owners just have not bought into that yet. It's a hard nut to swollow, I mean property never depreciates, right? NOT! On the other hand, Homes that are priced right, in good condition and presented well are competing very aggressively for those few buyers that are out there. I read recently that there are about 35 sellers for every buyer. A home owner who has their home staged and priced right should be in great shape to sell for as much as the market will bring.
Juliet,
You are so right. 20 years ago my clients wanted a fixer. Today they want it fixed. Agents who don't get this will be getting out of the business.
Staging is to selling real estate what product development and packaging are to advertising.
I like the formula. Probably a pretty good rule of thumb!
Kim Dillon, Creative Eye Home Staging
Susan, that is profound. Please may I quote you - in my newsletter and general writing.
Thanks for the info and I will keep this in mind. I am not in real estate but it helps to pass this info along to clients who may be selling.
Juliet,
We really are in a different market and your post is right on target! Agents, who want to be called professionals need to be strong enough to let their clients know what needs to be done and just as importantly not be afraid to consult a professional like yourself in order to make it happen!!
On-point post, Juliet. Thanks for illustrating with photos.
Juliet, love your blogs.I know you cant hear me but I am shouting hallelujah!! I'm not the only one that fills that way. I think after living in there homes for a while they get use to it. They might start out thinking I'll do it later. Then it becomes (if it does bother me why should it bother some else) and ( if they don't like it they can do it themselves) Some times you have to spend money to make money.Terrylynn I agree with what you said "Realtors need to be taught how to sell staging"
Juliet,
Great Post. and the reponses are all right on target. People still don't get retail and how much money is spent to wine and dine you into buying a product.
Last July in my county alone there were over 10,000 homes on the market, the report came out for the year of 2007 only 9,000 homes sold here for the whole year!
Love your job interview, spell check, car detail comment! 30 yrs ago who ever heard of a Bridal Consultant right! Hope we don't have to wait 30 years for people to get it!
Becky
Juliet--
Boy, I've gotta say, this post (in its entirety) needs to be a brochure that everyone of us can buy and give away.
No one has ever hit the nail on the head and done a better job of hitting it than you.
Congratulations! (And I really mean it about publishing the darned thing.)
Billycherry
Hi Juliet.....Yes, you are right! One of my current clients agreed to spend the money upgrading all of his counter-tops (kitchen and baths) to bring his fairly new home (10 yrs old) up to the million dollar price tag he desires. It took some persuasion....and now the final results are nearly completed and he is thrilled. Tiled counter-tops in a million-dollar home....no way! While I understand people's hesitation to SPEND when they are trying to SELL, the big picture is something which we can help paint for the seller.
In the end, these necessary changes have made my client sort of hope to keep the house if he doesn't get his price! LOL! Fine with me. I know I have done a great job with offering and choosing these upgraded choices. The staging will sell this home so I told him not to get too attached to the home at this point...get ready to cash the check! Great blog! Regards-Kathleen G
Hey Juliet I have seen some beauts since I have set out in 2008. One house is more cluttered and outdated than the other. My bids are higher than last year because these homes NEED SO MUCH MORE WORK just to get in shape, never mind updated and modern. Why do people wait until the last minute. This should be an ongoing phase of updating your home for thoughts of the future. AHH What a world that would be.
So what were your ideas for this one?
Phyllis pafumi
Phyllis - I'm the same. People seem to be suddenly 1) waking up to the new reality and 2) realizing there are good people out there to help them. You, me, lots of good folks. This is going to be YOUR year!
Kathleen - ain't that just what you want - a seller happy either way. Now he can negotiate from a position of true indifference and the buyer, sensing his strength, will behave the better for it! Nicely done.
Well now, Bill, that's very nice of you. Might just take you up on that. Stand by.
Well put, so true and fun to read! Great post!
Juliet,
Great Post! I've used the "detail your car" analogy" but "dress for an interview", "spell check your resume" are priceless- you should copyright them.
Jodi, Your Columbus Home Stager
funny how far around we've come in a few years. I hate it when people want to be cheap. The black refrigertor nd tiled countertop are definitely early 80's. Do you know what is next after stainless? I don't care for it much and am redoing my kitchen. I have looked at the rubbed bronze. Any other suggestions?
Any home not move in ready is a fixer -up -er. A fixer -up- er will be reflected in the price of not-so-hot.
Not-so-hot can be changed to wow-I got-to have-that by a savvy-stager.
Go Juliet, just fill in your own voice accents.
Hi Gayle, there were a couple of blogs written about kitchens last year. I think I even wrote one on trends in Kitchen cabinets:- http://activerain.com/blogsview/190150/Trends-Kitchen-Cabinets
It seemed to differ across the country.
Thanks, Jodi, I don't think I'm original with any of the three comparatives, but they do work as a tryptich!!
Cheers, Shelley.
Hey, Kathleen! Happy New Year! You're so right.. but around here we're finding people just not interested in a fixer-upper any more. They'd rather forgo the "opportunity" and just buy it done. Same with you?
Same here - in most cases they are already exhausted with selling and moving themselves - they want to unpack and settle in. The slow market places them in a pretty good opportunity to do at a lower price right
now , as well.
Move in ready or months and unknown dollars later - which would you choose?
Most people can only see things as they are and not as they could be.
Did they have a budget to do the work, or were they hoping you could stage it for $199?
<chuckling> That's a great comment, Paula! Actually, I was called in to tell the owner what he already knew - he had to firesale the thing as a fixer-upper or spend some money to get the home into the 21st century. Then and only then would it bring in the kind of money he felt it was worth. We have a lot of flimsy 80s construction in the rural NJ and it really does not hold it's value in the way home owners hoped. The sub prime crisis has nothing to do with this. This was always going to be a problem. <sigh> Its timing just happens to coincide.