Advice on Realtor Price

By
Home Stager with Home Staging By CC

Hello fellow Stagers. A couple days ago a high producing Realtor contacted me to stage SEVERAL properties. When I sent him the pricing and a pdf of what our contract may look like he contacted me to make changes on the contract-which included that "HSCC (home staging by C.C.) would not get paid until the house sold!!

Well, this is a first. All my other Realtors pay upon completion of Staging. Seems only fair when I am not making even a percentage of what they will when it sells.

NOW, I am not scared of the contract because all my Staged properties have sold. But, I do depend on the what I make at each Staging. Plus, what about monthly rental. He won't pay even monthly rental until it is sold. 

He said "I don't make money until it sells-so it only seems fair to me."

I wantd to reply, "well, you chose to be the Realtor, I chose to be the Stager-different professions, different payments." OF COURSE, I did not say that and haven't replied yet.

Have any of you worked with a Realtor this way? If so, was it a good experience?

Posted by

Cecilia C. Cannon

cecilia@homestagingbycc.com

www.homestagingbycc.com

Home Staging Chicago

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Rainmaker
781,081
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC

As an agent, I cannot imagine asking a stager or any other contractor to do work and wait to be paid until the home sold.  I would steer away from that agent.  I don't like their logic.  Stick to your guns girl.

February 04, 2011 10:42 AM
Rainer
10,968
Cecilia C. Cannon
Home Staging By CC

Thanks Paula!! I appreciate your input as a Realtor. THANKS!!!

February 04, 2011 10:47 AM
Ambassador
671,201
Karen Crowson
Livermore Wine Country Homes
Alain Pinel Realtors, Pleasanton, CA

I would ask him what his intentions are if it doesn't sell. You need to protect yourself better than he intends to.

February 04, 2011 10:52 AM
Rainer
40,719
Erin Newbill
Coldwell Banker Elite

Is he the one that is actually paying for your services or is it the seller that is paying?  I can understand why he would ask if in fact that it is coming out of his pocket.  Could you make an agreement to be paid within 60 days of service?  How about add a fee for delay in payment, and a interest fee on the monthly rental.  This is of course only if you are actually willing to wait to get paid.  I agree that he should realize that your business is ran differently than his.  You can't go into McDonalds and say I want the Big mac and I will pay you after my next settlement.  Most companies (outside of the real estate office) want to be paid at the time of service.  There are some real estate related companies that are willing to get paid at settlement ie. termite inspection.  However the property is already under contract when they are hired so they have a date in mind that they would be paid.  In your case there is no guarntee that the home will go to settlement, there are to many other varibles still in play.   Getting paid at the time of service is still the best option.

February 04, 2011 11:00 AM
Rainer
253,132
Kathy Burke
S.F. East Bay Home Staging
Sensational Home Staging~~Danville, CA

Regardless of who is paying.....you like any service provider/contractor should expect to be paid when services are rendered.  Just like the painter, gardener, etc.  If you agree to be paid at closing it should be at a premium price......+20%.  And I would put an end date....."At closing but not to exceed xx days".

For me....I always collect 50% in advance and the balance upon completion of staging set up.  

Good Luck!

February 04, 2011 11:11 AM
Rainer
56,085
Tommy Taylor
CNE- Texas Hill Country Realtor
Taylor Properties & TexasForSale.net

As a Realtor I would not dare ask a stager(or anyone else that it is not customary of) to wait until closing to get paid. There may be reasons other than the staging issues that are keeping the house from selling. What if the current agent never sells the house, where does that leave you??? Good luck, but I would advise against entering into a contract as mentioned above.

February 04, 2011 11:21 AM
Rainmaker
113,066
Tessa Skeens
Marketing + Staging For Denver Realtors, Builders
Hampton ReDesign, Home Staging and Redesign

As Tommy pointed out there are many reasons why a house doesn't sell and most of them are out of your control. There are so many gotchas to consider on this "deal" that I would walk away.

You would tie up your time and inventory on these properties and that doesn't make for good cash flow. It's also a red flag that someone you haven't worked with before is asking for these kinds of concessions. Keep us posted on how it works out and good luck!

February 04, 2011 11:38 AM
Rainer
106,684
Heather Cook
Rooms in Bloom Staging & Design ~ www.homestagingdesign.ca

Cecilia - You need to explain that the carrying costs of staging homes (most especially when renting furniture from other sources) is not something you are prepared to do. It's called extending credit and virtually all stagers are not in a position to do something like that. If those homes do not sell - for whatever reason - then what happens? Do you not get paid? What about all of your out of pocket expenses? I agree with Kathy Burke that if you do agree to that sort of arrangement that you are charging a premium once the homes do sell. Also ensure that you can financially handle covering those payments. I would rather see you put an end date which means you get paid by the end of the first month or until the house sells - whichever comes first. That way you're only deferring payment for a very short time.

I'm not sure that this realtor understands exactly what is involved in a staging project nor the costs we incur to stage properties. We are a service based industry - much the same as a plumber, electrician - and we would never ask those professionals to delay payment for parts/labour until a home sold.

February 04, 2011 12:07 PM
Rainmaker
659,786
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
"Staging that Sells Portland Homes"
Room Solutions Staging, Portland OR

Cecliia ~ Apparently this agent is not used to working with professional stagers.  I'd never accept those terms, mainly because too many aspects of the sale are out of our control ... i.e. price, location, condition of the home, market conditions, etc.

On a previous model home that was staged long-term, I obtained written permission from the owner to place a lien on the home if necessary  The seller paid 50% of all costs upfront but the balance was due in 90 days whether or not the home had sold.  Consult with your attorney to find the best way to handle liens in your state if you should go that route.  My advice is not to accept terms that don't work for YOUR business.  Good luck!

February 04, 2011 12:47 PM
Rainmaker
358,092
Ginger Foust
Home Stager Oakhurst CA, Dream Interior Redesign & Staging
Certified Staging Professional

Cecilia, doesn't sound like a good deal for you and you need to explain to the agent why your costs are different from his. 

ONCE I took payment at closing but my deal was with the seller, not an agent AND I got a percentage of the listing price when she signed the contract.  I also knew that all aspects of the house would be updated and in good condition so that with my staging, this home would sell quickly...and it did. 

When agents ask me to do what this agent has asked you, I tell them I cannot do business that way and I move on to another that understands.  How dare he mess with your contract. 

February 04, 2011 02:26 PM
Rainer
10,968
Cecilia C. Cannon
Home Staging By CC

THANKS everyone. Like Kathy I always collect AT LEAST 50% in advance and the balance upon completion of staging. This was a first for me. I also liked what Kathy said about a premium price if I (+20%) I agree to this. 

However, I do feel Like Maureen and others mentioned-I am not at the point where I can incur those costs if the home doesn't sell for whatever reason i.e. over priced. In 2010 all our staged properties sold but 1 and that 1 house was severly over priced. I am not involved in the pricing of the home to help sell it faster, if I was, it would be a different story.

THANKS EVERYONE. I will keep you posted on what happens.

February 04, 2011 03:22 PM
Rainer
134,375
Birgit Anich
Connecticut Home Stager - Fairfield County, Westchester
Birgit Anich Staging & Interiors, 203.807.4040

I read the others comments and I agree with them, we are not in the postiion in extedning credits. As a business owner you are lucky that you can choose who you want to work with. Good luck!

February 04, 2011 10:43 PM
Rainmaker
486,417
Kathy Nielsen
Atlanta Georgia Home Stager
http://atlantahomestaging.net

Is this agent asking the plumber, the carpet layer, the painter to wait until the house sells to be paid? Likely not. Nor should he ask you. 

And I so agree with Maureen. There are too many variables outside of your control.

Kathy

February 05, 2011 07:02 AM
Rainmaker
324,530
Julia Maher
Connecticut Home Stager
Nestings: Connecticut Home Staging and Model Homes

Cecilia:  Do you accept credit cards?  If the agent has a cash  flow issue, that might help.  Keep us posted!  Julie

February 05, 2011 11:06 AM
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Rainer
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Cecilia C. Cannon

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