Misconceptions about Selling Your Home (and Staging) your home

Misconception #1 - Giving a credit for a perceived defect or improvement is the same as having it done... "We'll give a credit for the ...stained carpet, paint, landscaping, roof, etc."

As a consumer, when buying a car that needs new tires, do you feel you should pay the same price as if it had new tires? Would you be willing to pay more for the convenience of not having to have the tires put on yourself? Interesting thing to think about, probably you'd want to be able to drive away in the new car, new tires and good condition and not have to take time off work, drive straight to the shop to get the new tires, etc. Right? And worse, when negotiating, you might have doubts that if the tires are in need of replacement, perhaps the people selling the car didn't take very good care of it; or that there may be other things not visible that might need attention. It would make you wonder. When negotiating a sale if you are the seller, you don't want people to wonder. Their wonder costs you $$$.

Buyers of homes are much the same, in fact more so, as they pay more for the new home than they would for a car. Many feel they should be able to move right in and not have to do anything to the new home. In fact, they will negotiate strongly if there are any perceived defects, offer much less than the cost of making the actual improvement, and perhaps not make an offer at all if there is a comparable property with the work already done.

What does the free market do to your home sale? It gives the buyer the power to choose. It gives the buyer the ability to compare your home to other homes in the similar price range, similar condition and similar neighborhood. Remember, the definition of market value is what a buyer is willing to pay...

Actually, this is one of many areas where an experienced Realtor earns their fee. They know the neighborhood and can assist the seller in finding that price which would generate an offer. They know that an overpriced property will help sell other properties. The buyer of a $600,000 home knows what a $600,000 home looks like, as they have been educated as to what is on the market. They will not pay $600,000 for a $500,000 home because they know it is not worth it based on their knowledge of the market. The overpriced $600,000 home actually helps sell the well-priced $500,000 home by default.

This is generally not the sellers' intent when they say "But I have to have $600,000 for my ($500,000) home or I can't afford to move", but it is often the effect.

The priced to sell property is "on sale" versus for sale. When you go to the mall you want to buy the items you are looking for "on sale". "On sale" is usually 25% to 50 or 60% off. You don't need to price a home 50-60% less, but you do need to be perceived by the buyer as "on sale" in this market to get an offer.

Realtors will be most willing to show your higher priced home to their buyers so they can use it as a contrast to those buyers on what a good price the "on sale" properties are. The buyers will write offers on the "on sale" homes.

Misconception #2 - "It doesn't matter that I haven't upgraded in 20 years."

If you have not updated or kept up with the ongoing maintenance on your home, you will also help other properties sell first. Again, it causes buyers to wonder, what else might have been neglected, or what surprises they might find. The effect is that buyers shy away from your home or make much lower offers than your home's real value as they are acting on their opinion of its perceived value.

Misconception #3 - "I don't need to stage my home."

Staging a piece of jewelry is placing different stones in a setting to see what looks best or what showcases the stone to its best advantage.

Staging a home is showcasing the space so that the buyer can see the intent of the rooms and "see the space". Along with staging, condition is a very important element of a property's value to the buyer.

Myth #4 - Isn't staging "tricking" people?

Wow! The first time I heard this, I was really taken aback. The CSP (Certified Staging Professional) definition is "staging is the process of preparing any home for sale regardless of price or location. Staging is a service, usually executed by a professional, to enhance property presentation...in order to secure an acceptable offer from a buyer".

Decorating is a personal style for the current homeowner's enjoyment and taste. Staging is a universal style neutralizing and showcasing the space so the future homeowner can envision themselves in the home. Staging is a marketing technique to allow the buyer to see what they are buying, rather than your personalized items that can distract from the home's function and space.

In conclusion, a professional realtor and professional stager together can affect the equity that you take away from your home sale as they can stand back and be objective where you cannot. We are just too attached to our decorating, to our "stuff" and our homes and need an objective advocate who is giving us the advice we need to hear to maximize our home sale and our home's potential appeal to the target buyer of today. I tell clients that I will "tell them the truth, even if it is difficult to hear". I feel it is my responsibility to give them the information they need to make an informed decision.

If I use a professional Realtor and stager when I sell my home to maximize my equity (and I do), I owe it to you to give you the same opportunity to maximize your equity when selling your home. A good Realtor would never tell you something that was not consistent with their values for themselves.

Terrylynn Fisher, Terrylynn-n-Team, Diablo Realty, Realtor for 30+ years in Walnut Creek California has been assisting buyers and sellers as "The Staging Realtor". Call her for a consultation at 925 876-0966. She has stager and Realtor referral sources all over the US and Canada...