When It's Hot, When It's Not
Why staging is vital in any selling environment
When It’s Hot
The market is bustling! Realtors are flocking to new listings with buyers
in tow. Houses are being snapped up literally before the ink is dry on the
listing contract. Sellers can’t pack fast enough.
When it’s a seller’s market, buyers must act quickly. Because buying a house
is a very emotional process, staging can maximize your return in a hot market
because it will provide instant appeal to a buyer whose options may already be
limited. It is not uncommon in a seller’s market for a property to get multiple
offers well above the listed price.
A HOT STORY
A young, growing family was feeling the need for a home. They had been
renting for a few years and, with 3 small children, wanted the dream of a place
of their own. House prices were starting to rise and they were concerned they
would soon be unable to afford the leap. They purchased a small starter home,
barely more than a cube, for $49,000. They were so excited on closing day…their
dream had become a reality!
After nine months of primping and polishing, they decided to try listing
their house so they could move up to something more stylish. To their amazement,
their house sold within a week of being listed…for $63,000! They immediately
began their search for a new place and found a townhouse only a few miles away,
which they purchased for $84,000. Once again they spiffed and shined, and in
nine more months they were ready for a new challenge. After 2 days on the market
they were presented with 3 offers simultaneously. They accepted the offer that
was most appealing to them, which was for $119,000, a full $2000 over their
listing price!
Exuberant, the young couple found a large bungalow in a lakeside
community. Never did they think they could live in such a setting! They paid
$135,000 for it and quickly got started fixing up their gem. Only nine months
later, life’s circumstances caused them to have to relocate several hundred
miles away. Imagine their delight when their home sold in 2 weeks for $163,000!
In just 27 months they had parlayed their $49,000 investment into $163,000. The
combination of a hot selling market and preparing their home for sale netted
them $87,000!
This story may sound extreme, but it’s true! It happened to Entrances founder Nancy Albea in 1984-1987 in the crazed Toronto seller’s market.
By staging her homes prior to listing, she was able to maximize her return in an
already brisk market.
No doubt you will sell your home in this type of market, but the objective of
staging in a sellers market is to obtain the greatest return as well as multiple
offers in the shortest time.
When It’s Not
For Sale signs are everywhere. Realtor frustration is reaching an all time
high because their listings are aging and the buyers are few and far between.
Potential purchasers have a huge inventory to choose from and are very demanding
about finding exactly the right home, and they can afford to be. Sellers are
paying two mortgages because they can’t get a contract.
In a buyers market, every competitive edge is necessary to entice buyers. If
a home they are planning to view doesn’t captivate them on first sight, all they
have to do is keep driving a few blocks to find more that will. It is imperative
when selling a home in this type of market to make a strong first impression.
The alternative is reducing your price until you finally capture a purchaser.
While staging is important in any market to make your home stand out from the
crowd, it is essential in a buyers market.
A COLD STORY
While taking an innocent Sunday afternoon drive, a woman happened upon a
new subdivision not too far from where she and her family currently owned a
home. Looming in front of her was a majestic builder’s model home. Entranced,
she pulled over and proceeded into the enchanting structure. Inside she was
captivated by the spacious floor plan and lovely décor. Before she knew it, she
was signing a contract to purchase! How was she ever going to tell her husband?
Once he was speaking to her again, her husband forgave her and actually
really liked the new home she chose. They realized that they needed to sell the
home they already owned, and quickly! Unfortunately because their decision to
buy was based on impulse, they did not consider that the selling market was
extremely slow. Full of eager anticipation of their new dream home, they
prepared their current home for sale and listed their home with only 8 weeks to
sell.
Two weeks passed with no showings. The couple began to wonder if their
agent was actually advertising their home. Four weeks…no showings. They had
never before had a problem selling a home, and they had bought and sold several!
Anxiety was beginning to set in. The stress was so overwhelming that they packed
up their family and went on vacation for a week. Every night they prayed for a
showing. Time was growing short, and they could not afford to carry 2 mortgages.
When they returned from vacation, they found a note from their realtor
asking them to call. (This was before cell phones were widely used, back when
dinosaurs roamed) They crossed fingers and toes and called their agent. She had
an offer to present! To their surprise, it was a full price offer. Bewildered
yet ecstatic, they asked their agent how their luck could be so good. She simply
stated “They fell in love at first sight; luck had nothing to do with it”.
Another amazing but true story, this happened to Nancy in 1992 during a
market slump in Calgary, Alberta. Thanks to staging, she was able to captivate
the first buyer who came through the door. Who knows how long it would have been
before another opportunity came along?
