How home staging can increase your return on investment
Many homeowners who are looking to sell their home present their property as they would when they live in it. But, for these sellers to gain their asking price or to sell for a higher price at auction, they should look to have their home staged. Staging, on average, costs approximately NZD$1,300 per home, according to the National Association of Realtors (NAR) 2015 Home Staging Report. Now while this can sound expensive, it can add tens of thousands to the value of a property.
What is staging?
Home Staging is not ‘home decorating’ as many people believe, but rather it involves removing personal items from the home and displaying a property at its best. Staging shows off the house, its features and all it has to offer a potential buyer. A staged home also has greater appeal and allows a seller to fetch a higher price at the time of sale, giving them a much larger return on their investment or the cost of staging.
Why does staging increase return on investment?
Staged property sells faster than non-staged property
The cost of owning a property that you want to sell can become a burden, especially if you’ve bought elsewhere. So, while it costs to have your home staged, it can reduce your overall costs as your home sells in less time. For instance, according to a study conducted by The Real Estate Staging Association (RESA), a non-staged home is typically on the market for an average of six months before it sells, whereas a staged home spends an average of four months on the market. According to the Home Loan Affordability Report released in May 2016, the average New Zealand home loan costs $501 a week to service. Therefore, an extra two months on the market for a non-staged home in New Zealand will cost approximately $4,342 more than a staged home in mortgage repayments.
Staged homes sell for more than non-staged homes
In a 2014 survey of more than 3,500 staged homes, over 50% of the homes sold for a 10% higher price. More than 300 globally-based stagers and agents participated in the survey, and approximately 48% of the homes were vacant, and 52% occupied. With the median home price in New Zealand being around $490,000, according to the Home Loan Affordability Report, a 10% increase in home price could add an extra $49,000 to the value of a property.
Do you know someone who is currently thinking of selling their home and wants to gain a maximum return on their investment? If you said YES, then share this article with them, and they’ll receive a 30 minute in-home consultation worth over $150 for FREE.