Who Pays for Home Staging? Agents or Home Sellers?

By
Home Stager with Creative Concepts-Home Staging and Contracting, Salem Oregon CCB #180695

who should pay for home stagingWith many homes on the market and fewer home buyers, home staging has become more in demand than ever before.  Several agents and home sellers have asked us lately – who should pay for home staging?

Home staging makes houses easier to market — they look and “feel” better in person and in the listing photos. A quick sale of course benefits the real estate agent.  Should they pay for staging?

One example to consider:  If a home seller had carpets that needed cleaning, would the real estate agent advise them to do so?  Of course.  But they normally wouldn’t consider paying for the cleaning.  Likewise, home staging is an important part of home selling, and home sellers should pay for home staging.

Occasionally, sellers can’t afford to pay for home staging until after the home has sold.  What then?  We’ve brainstormed with agents and sellers and find affordable and win-win solutions to this situation.  Real estate agents are cautious (and reasonably so) before investing in staging listings that may not sell quickly and need to develop their marketing plan prior to committing to paying for staging.

We’ve worked with many different scenarios, and find frequently when sellers pay for staging, we obtain the best results. Why?  When sellers are invested financially, they usually value and implement the recommendations we give them.

While I do think it is the sellers responsibility to pay or share in the cost of home staging, I do believe it is the real estate agent’s responsibility to educate the seller on the value of home staging. I continue to be surprised at how unprepared many sellers are when entering the Oregon real estate market.  Home sellers need to be informed of the statistics revealing:

  • Staged homes sell quicker than unstaged homes
  • Over 90% of home buyers look on the internet for homes
  • Homes that look great online get more showings
  • A 2009 study reveals staging is a necessary improvement that yields a high rate of return – over 500%
  • Homes that linger on the market are targets for lowball offers and price reductions.
  • Staging always costs less than a price reduction!

Also home sellers benefit greatly from:

  • Understanding what buyers are looking for when visiting their home
  • Knowing that sellers form a STRONG impression from the curb and within the first ten seconds of entering their home.
  • How important lighting, room function and flow is to impressing buyers
  • Learning how to declutter, clean and prep their homes for sale effectively.

Once sellers understand the competitive nature of home selling in 2010 they are more likely to be willing to invest their money in a staging consultation or to pay for vacant home staging.  We work with a variety of payment situations, depending on the seller and agent.  For example:

  • Home Seller contact us directly for a consultation or staging services and pays for all staging expenses.
  • Agent refers clients to a professional home stager and educates seller on the value of home staging
  • Agent provides a staging consultation for their listings,
  • Agent agrees to reimburse home seller for a staging consultation at closing
  • Some agents pay for consultations and have a written agreement that if the listing is terminated, they will receive reimbursement for their expenses.
  • We work with a few agents who refuse to list properties when home sellers are not willing to work with a home stager.  They won’t spend their time, energy and marketing budget on homes that aren’t ready to compete.
  • On existing listings that linger on the market, use a portion of a price reduction to invest into staging – improving the appearance and price at the same time.

Each listing and situation is different, but finding a way to obtain the competitive advantage home staging provides is important to both the real estate agent and home seller.

Need more ideas on how to incorporate staging into a new listing?  Contact a professional home stager for other creative ideas and enter the 2010 real estate market knowing your home is making the best first impression possible.

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Re-Bloggged 8 times:

Re-Blogged By Re-Blogged At
  1. Michelle Minch 06/09/2010 11:28 AM
  2. Michael Collins 06/09/2010 11:39 AM
  3. Kym Tarr 06/09/2010 11:44 PM
  4. Lori Kim Polk 06/11/2010 12:28 AM
  5. Debra Landy 06/16/2010 10:53 PM
  6. Dan Edward Phillips 06/21/2010 01:46 AM
  7. Kathleen Emhof 07/13/2010 05:30 PM
  8. Ginny Truyens 12/20/2011 01:50 PM
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Topic:
Home Selling
Location:
Oregon Marion County Salem
Groups:
Real World Home Staging for Newbies
Real Estate Staging Association
Salem, Oregon area Real Estate Professionals
The Art Of Marketing You
Stage It Forward...
Tags:
oregon home stager
real estate staging salem oregon
who pays for home staging in oregon
selling your oregon home
home staging tips salem oregon

Comments 17 New Comment

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Rainmaker
386,574
Shar Sitter
Home Staging and Redesign Minneapolis/ St. Paul, M
Rooms With Style

I have many Realtors who pay for the staging consultation as part of their marketing plan to obtain listings. They pay no matter what the listing price of the home is.

But, I have other Realtors that never pay for any portion, even on high end homes. So I see everything.

I have only had 2 Realtors pay for staging a vacant home which shocked me! That is a lot of money out of their pocket with no guarantees.

June 10, 2010 02:29 PM
Ambassador
1,352,454
Kathy Streib
Home Stager - Palm Beach County,FL -561-914-6224
Room Service Home Staging

Margaret- what a great and informative post.  This question always comes up.  I do feel if the Seller pays for the consultation then they are more likely to "buy into" it.  I like Michelle's suggestion that if the Realtor wants to pay for the consultation then having the Seller pay for it initially, then reimbursing the Seller at closing protects the Realtor.

June 10, 2010 07:29 PM
Rainer
70,734
Kathleen Emhof
Home Staging and Redesign, Experts in Transition
Buffalo, Amherst, Orchard Park and Western New York

Margaret, in my local market, this is a very relevant post!  I have reblogged it to Localism.

July 13, 2010 05:38 PM
Rainer
36,056
Leanne Allen
Center Stage, LLC

This is great information and I appreciate the many insightful contributions on this topic!

July 26, 2010 11:00 PM
Rainer
74,711
Tori Toth
888.667.6643 NYC, HSR, SAR, RESA, IADIE, LIBOR
Stylish Stagers, Inc.

i always try and have the sellers pay, i've had one agent pay out of pocket and it didn't go so well.

January 09, 2012 02:15 PM
Anonymous
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Rainmaker
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Margaret Oscilia

Home Stager, Salem Oregon
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