Home staging takes listing from drab to fab
A little fix-up work is all that's required of
sellers
Monday, November 13, 2006
By Dian
Hymer
Inman News
Staging a house for sale is a concept foreign to many home
sellers. But, it has been immensely popular in the San
Francisco Bay Area where sellers have reaped huge benefits
from their efforts.
You don't have to fix up your home before selling. A home
can be sold in virtually any condition, if it's priced right.
There are basically two reasons why sellers go to the effort
and expense to prepare their homes for sale. One is that it
helps to bring a higher price. The other is that it usually
results in a quicker sale.
It's imperative to make cost-effective cosmetic
improvements in order to realize an increase in profit when
you sell. Major renovations made just before selling -- such
as completely remodeling kitchens and bathrooms -- are not
cost-effective. Although they improve the appeal of the home,
you aren't likely to recoup the full amount of your investment
on a quick turnaround.
But other cosmetic improvements such as refinishing
hardwood floors, replacing outdated floor coverings, removing
old window coverings (and leaving them off, in most cases),
replacing outmoded light fixtures and painting are worth the
money. The reasonsuch fix-ups tend to bring a higher price is
that most people have difficulty imagining what a house will
look like fixed up. You do the fix-up work so that you don't
leave the sale of the house to chance.
Fixer-uppers appeal only to certain buyers who usually want
a break on the price to compensate for the condition of the
property. By sprucing the property up for sale, you appeal to
a much broader audience. The more interest there is, the more
chance there is for a sale at a higher price.
The goal of fixing up a house for sale is to get it into
move-in condition. Let's say your home has an older, dated
kitchen. In its present condition, it's a turnoff to buyers
who haven't the time and resources to remodel it. By painting
outdated cabinets, painting the walls in a trendy decorator
color, changing cabinet knobs, updating light fixtures,
changing the floor and adding stainless-steel appliances, your
kitchen won't be new. But, it will appear fresh and inviting.
You make cosmetic improvements to overcome buyers'
objections. If you sold your home with a dismal kitchen, most
buyers would discount the house because they couldn't live
with the kitchen.
You open your home up to a larger pool of buyers by doing
the improvements mentioned above. Rather than rejecting the
house, buyers feel they can move right in without first having
to a lot of work. And, you accomplish this without major
remodeling; just sprucing the home up to an acceptable
level.
HOME SELLER TIP: Sellers often resist spending money on a
property they're selling. This is particularly so in the
current market, where they may have less chance of receiving
multiple offers and a generous price. However, properly
preparing your home for sale can give you an advantage in
today's challenging market.
Buyers are pickier than they were a year ago when home
prices were rising quickly. Currently, appreciation is flat,
at best. Many buyers are concerned that prices are falling.
So, their enthusiasm for paying huge prices regardless of the
condition of the property has waned. Buyers are looking for
value.
Getting a house fixed up for sale takes time and money. A
good real estate agent can be an invaluable ally in this
endeavor. In fact, you should consult with your agent before
embarking on any projects to ensure that you make
value-enhancing improvements.
THE CLOSING: Resist the temptation to show your home before
it's ready. You could lose a prospective buyer who can't
visualize how your house will look after the improvements are
done.
Dian Hymer is author of "House Hunting, The Take-Along
Workbook for Home Buyers" and "Starting Out, The Complete Home
Buyer's Guide," Chronicle Books.
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Copyright 2006 Dian Hymer