There once were two houses for sale. It was spring, a time of year when the housing market is known to be red hot. These two homes were located on the same street, in a quiet middle class neighbourhood, with all the amenities one could want. Both were modest in size and sure to sell quickly! Or would they?
House ‘A’ was put on the market in early spring… snow, still on the ground. It sat and sat, and sat and sat. No buyer interest. It continued to sit for one month, two months, three. Still no interest.
House ‘B’ went on the market in the spring, after the snows had melted, and sat.
Why were these houses not selling? It was time for an investigation. After searching online, I found both homes. House ‘A’ was vacant, had a dated 80’s look, multi-colour painted rooms, wallpaper, etc. It was on the market, then off, then on again. House ‘B’ was also vacant, but it was newly renovated from top to bottom. House ‘A’ now had to compete with a neighbour (House ‘B’) who was looking current and move-in ready. House ‘A’ then dropped its’ asking price, and still didn’t sell. House ‘A’ finally bit the bullet and renovated the inside and guess what? It didn’t sell. What?! During the prime real estate selling season? Why didn’t it sell?? Heck, why weren’t either of them selling?
Because my friends, people (buyers) need to see with their own eyes, and to imagine how a house could look with their furniture and stuff in it. Staging a house helps the buyers to see what their lives would be like in this home. A house is the biggest purchase of one’s life and buyers will be very reluctant to gamble their hard earned money on an empty house!
… back to my research.
House ‘A’ listed at just under $600K, came off the market, spent money on renovations, re-listed at $590K, and after a total of 110 days on market (not including the days in between) finally sold (in July) for $585,500. That’s $14,400 less than the original asking price… and don’t forget the cost of renovations! It went back on the market… empty again, asking $619,900, and guess what? It’s now up for lease!
House ‘B’ took 32 days to sell, was listed for $615K and sold at the end of June for $590K. That’s a difference of -$25,000.
The bottom line is this:
The cost to stage a home is less than that of the first price reduction. A clearer explanation of the cost of staging versus not, is in the following link:
Just click or copy the above link and visit my contact page on Groovy Chick Redesign and Home Staging website. The RESA statistics say it all.
Don’t feel alone and unwanted like the fan in the stands.
Remember: Stage First, Sell Fast!