Staging Residential Real Estate

Selling a property, whether a piece of land, a 100-unit apartment building or your custom-built home takes high-quality marketing materials and distribution to get them in front of the right buyer.

As we discussed in the previous chapter, there are three major factors that control the saleability of a property. Those factors are price, condition and marketing.

The condition of the property is one of the keys to getting the most value during a transaction.

Home staging is the art of preparing a property for sale. The goal of staging is to make the property as appealing as possible to attract the highest number of potential buyers. A small amount of effort put into the property in the right way will dramatically increase the sales price of a property.

The best news is that hiring a professional isn’t always necessary depending on your ability to learn and willingness to put in the proper effort. When staging a property, it’s important to look at the space from the buyer’s point of view. This is typically the hardest point for most sellers, especially if they have lived in the home. In order to have the proper eye, it should be noted that the buyer’s experience determines where to focus your time and attention.

Typically, a buyer is discovering the property for the first time online. The featured photo on real estate websites is most likely the buyer’s first impression.

In general, the featured image for a property is a photograph shot of the front of the property. This angle is also known as the “curb appeal” or the first image a buyer will see when they visit the home. Keep this in mind as we talk about the details regarding a properties condition in this chapter.

Categories of Property Conditions:

• 1. Brand new construction
• 2. Fully renovated
• 3. Cosmetically renovated
• 4. Move in ready
• 5. Distressed
• 6. Tear down
• 7. Land

Each of the above conditions has a dramatic effect on the ultimate value of the property. Although each property is unique, these categories of condition allow us to give a general understanding of how to price and market the property for sale. Improve the Property Condition Real estate is all about sales and in the art of sales, the number one goal is communicating how the sale benefits the buyer. That’s why the primary reason to stage your home is for the buyer’s first impression. Their first impression is formed in the first three seconds a buyer glances at the featured photo online and reinforced within the first 10 seconds of walking into the property. These are critical focal points prompting a buyer towards an emotional reaction. However, staging your home for a showing doesn’t need be a stressful experience.

It’s true that unless you already live in a model home—and you’ve kept it in staged condition throughout your time in ownership—you will need to make some adjustments prior to having a successful showing. The objective is to create space whereby the buyer can picture their life superimposed on what they’re seeing. If you have pictures of your family and personal clutter strewn about the home, these limit the message you want to convey. More importantly, there are areas of a property that have a bigger impact on potential buyers than others.

The list below is a rank of priority in terms of a homes appeal in the eyes of a buyer. I’ve seen many first time home sellers spend a large amount of time and money on fixing areas of a property that are less important while ignoring some of the most critical features of the home.

To avoid wasting resources, let’s take a look at the priority list for a properties condition:

1. 1. Front Exterior (curb appeal)
2. 2. Entryway
3. 3. The Kitchen
4. 4. The Living Room
5. 5. Master Bedroom
6. 6. Master Bathroom
7. 7. Guest Bathroom
8. 8. Dining Room
9. 9. Backyard
10. 10. Other Bedrooms
11. 11. Den and other miscellaneous rooms
12. 12. Garage

When homeowners decide to invest time and money into their property to prepare it for sale, there are many areas that will go unnoticed and could cost considerable amounts without producing noticeable returns. Items like plumbing, heating and roofing are important and major issues will be uncovered by a general inspector but an investment to improve theses areas if they’re not needed could be a waste of resources. It’s best to start with a budget for improvements and then spend it wisely on the most impactful areas. When I sold my first home, I improved two major areas of the property for less than two thousand dollars. I first replaced worn carpeting on the stairs in the entry way and then I had a stained concrete patio poured in the backyard. At the time, the rest of the home was in very good condition and I was able to sell that home within two weeks for about 50% more than I purchased it for three years earlier. Let’s dive deeper into each area and how you can improve it with a minimal investment of time and effort. Front Exterior First, you likely noticed that the front exterior of the home is ranked highest among the property. This is because the front exterior is generally the very first image a buyer will see both online and in person when they first arrive to view the property. Spending time on improving the landscaping, exterior paint and architectural improvements will go a long way in attracting a buyer and getting them inside the property. Negative items like an unkept lawn, overgrown or dead trees and peeling paint can turn off a buyer and makes it harder for them to appreciate other areas of the home. In most cases, improving the front exterior is one of the most cost effective areas that will potential give you a great perceived home value. • Repair any noticeable exterior damage. • Cut the lawn. • Trim trees, bushes and other vegetation as needed. • Repaint the exterior if needed. • Remove all dirt, cobwebs and other debris. • Wash all exterior windows. • Repair cracked driveways and walkways. • Improve fencing and security features. Entryway The entryway of a property is unique to the design and layout but should be bright and inviting. If the entry feels cramped with furniture and other items it will make the home feel smaller to buyers. Limit the amount of furniture and art in this area of the home in order to give the appearance that there is plenty of room. • Clean entry flooring • Remove jackets, shoes and other items that are normally stored near the door • Turn on all interior and exterior lights near the entrance • Repaint walls if needed to hide scratches, holes and dents The Kitchen Most homeowners put a great deal of importance into the design and functionality of a kitchen. When guests are over, the kitchen is usually a central focus for entertaining. This is a space that is used constantly, even if the owners are not gourmet cooks. Low end appliances and out of date designs turn off modern buyers and make them think of the amount of money and time that would have to be spent on updating this area. • Eliminate all kitchen odors. • Empty all garbage containers. • Highlight an eat-in-area with a table set for dinner. • The kitchen should always be spotless. • Expand your counter space by removing small appliances. • Organize the interior of the refrigerator. • Improve appliances if needed. Outdated fixtures and appliances tend to kill real estate deals quickly—unless the buyers are home flippers or don’t mind replacing the items. Even if they don’t squash the deal, the buyer might want to add contingencies or renegotiate the price to compensate for the money they’ll spend replacing everything. At the very least, buying new cabinet hardware can immediately make a difference in the visual appeal of your kitchen (and bathrooms too!). Painting the cabinets is also an option (again, neutral colors like white are more appealing.) The goal here is to make affordable improvements. However, stop short of trying to cover something up. While you may not be able to afford replacing the dishwasher, merely replacing the front panel (definitely do so if it’s damaged or stained!) can backfire. It can send the message that you’re hiding something. And, if you’re willing to try and paint a new face on an old dishwasher, what else are you willing to try and misrepresent? Balance is the key. Fix or replace everything you can afford before the staging. Then, if necessary, make affordable cosmetic adjustments and be completely forthcoming in your disclosures about appliances that may need replacing. The Living Room This area of a property is designed for entertaining and comfort. It’s where time will be spent with guests, watching a movie and celebrating holidays. Improving this area usually focuses on refinishing worn flooring, repainting walls that are out dated or damaged and improving some design features. A new trend is opening the living area and combining it with the kitchen. If this is possible by the removal of a wall or two, it may well be worth the effort and could increase the perceived value and space. • Hide appliance wires. • Redesign outdated finishes like old fireplaces. • Keep the room neutral to appeal to a broad audience. • Clean flooring and consider replacing carpet and tile with hardwood since most buyers prefer it. • Replace any damaged furniture and accessories. • Set up the room with a fashionable sitting area. The Bedrooms Depending on the current décor of your bedrooms and bathrooms, the “clean, simple, warm and inviting” methodology should flow into these areas as well. Neutral colors, bright spaces and organized closets will increase the value. Any wear and tear or other defects to the room and furnishings should be repaired. Storage space is a huge lure for buyers especially with master bedroom closets. • Create a master suite effect in your decorating. • Depersonalize bedrooms and decorate in a neutral theme. • Make sure that the beds are made and the linens are clean. • Organize your closets, remove unnecessary items and put them in storage. • Turn on all lights and open blinds. Don’t forget to make your bed and hide dirty laundry. Stage the room as if it was to be featured in a magazine and you will here complements. The Bathrooms Many buyers consider the bathroom finishes as a major aspect of a home. In most cases, the bathroom is a sanctuary for homeowners and a place to escape, especially in the master. This is a room where functionality plays just as much of a role as the design. Having the tile painted or refinished in your bathroom is a great way to make it look like new again. Stage each bathroom with fresh linens for showing. • Do not leave towels around unfolded. • Wipe down the sinks and shower areas after each use. • Re-caulk the tub if the caulk is not sparkling white. • Hide toiletries and medicines out of sight. • Repair or replace broken tiles in the shower/tub. • Replace shower curtains and keep them clean. • Put out fresh towels and decorative soaps. • Remove any signs for rust and calcium buildup. • Remove and disclose any signs of mold. The Backyard Although the backyard of a property is lower on the priority list, a great backyard can be the difference between no and sold for a buyer. Many properties, especially in major cities, don’t have the luxury of a backyard but if there is space for one it’s best to maximize it’s appeal. A bare, dirt filled backyard can be a big negative to a buyer. They will immediately begin to think of the amount of money and work that would be needed to make it into a usable space. On the other hand, a fantastic backyard with a pool, spa and more can drastically increase a homes value. Here are a few tips to improve the condition of a backyard: • Keep the yard mowed and raked at all times. • Be sure the front door and screen door work perfectly. • Use flowering plants to dress up the yard, walkway and patio. • Remove all toys, bicycles, tools, unsightly patio furniture and trash from the yard. • Porches, steps, verandas, balconies, patios and other extensions of the house should be kept uncluttered, swept and in good condition. • Remove all leaves and debris in the gutters, roof, walkways, patios and landscaping. • Paint all entrance doors and window trimmings. • Make sure the garage door opens easily. • Fix and paint the garage door if necessary. • Organize and de-clutter the garage. • Clean and shine all hardware and accessories indoors and out (door knobs, lamps, mail box, address numbers, etc.) • Trees and shrubs should be trimmed and pruned. • Use a new doormat. • Be sure the front doorbell is in good working condition. Tip: Properly installing an in-ground spa is one of the best ways to improve the value of your property and see a return on investment during a sale.   Staging Checklist Below you’ll find some more generic tips to help you strike a balance between the sellers need to live in the home and the buyers need to picture themselves as the owner of home. o Open the window shades and let in the sunlight. o Create a positive mood. o Turn on all lights, day or night. o Replace non-working light bulbs. o Remove all clutter from each room to visually enlarge them. o If you have a fireplace, highlight it in your decorating. o Keep your home dusted and vacuumed at all times. o Replace the carpet if it does not clean up well. o Air out your home for a half hour before showings. o Spray the house with pleasant air freshener. o Hide all family photos in storage. o Hide all religious relics. o Hide all sports team memorabilia. o Remove all unnecessary furniture. o Create the feeling of a spacious entry area by using decorative accents and removing unnecessary furniture. o Putty over and paint any nail holes or other mishaps in the walls. o Paint all interior walls a neutral color to brighten the home and make it look bigger. o Repair or replace any loose or damaged wallpaper. o Clean all light bulbs and light fixtures to brighten the home. o Wash all windows inside and out. o Use plants in the transitional area of your house. o Make the most of your attic’s potential. o Remove and/or hide excess extension cords and exposed wires. o Open doors to areas you want potential buyers to see such as walk-in closets, pantries, attics, etc. o Remove all smoke and pet odors. o Repair or replace banisters and handrails. Furniture Reassignment If you’re doing this on your own, as opposed to hiring a company to stage the home for you, then clean and simple should be your motto. Create the visual of more space by removing excess side tables and chairs. Pare down a room to essential elements. For example, if you have a living room or sitting room with a couch, a recliner and a coffee table, consider finding a temporary home for the recliner (unless this is a huge area). Less is more when it comes to buyers desiring to see the space more than how you’ve lived in it (unless they’re buying your furniture too). Should your walls be laden with family photos or a mantle full of trophies collecting dust, take those down until you’re in your new home. If the wall looks too barren, consider repainting it a neutral color or should you have artwork that would help brighten the room, hang that in lieu of the pictures but less is more in this case. “Junk” Spaces Some people are undoubtedly hoarders, such as the old guest room or now defunct exercise room (you know the one, where the treadmill or bike now operates as a clothes hanger or dust collecting service). Any room where you’ve shoved extra “stuff” should be repurposed. Even a room that has no furniture or personal belongings is better than showing buyers a junk room. However, if you have an excess of furniture in other spaces, by all means repurpose the room. De-clutter and pack away all non-furniture items. If you do have furniture in there, make sure it’s clean and without any damage. Even if it’s your favorite chair but it has holes or looks like it’s been salvaged from the dumpster, store it off premises. Indeed, if it’s empty, placing a nice armchair and side table with a lamp could stage the area as a reading or meditation room. Home Lighting Unless the buyers are vampires, bright spaces are far more alluring than dimly lit rooms. Trying to hide defects or other home negatives with lighting is not the way to go. Take care of any damage or wear and tear before you stage the home for showing. Clean and simple spaces combined with inviting warmth helps to promote a welcoming atmosphere. As such, replace the light bulbs throughout your home. Your goal is 100 watts per 50 square feet of space. If you have smaller light fixtures such as above the stove or lighting accents on the walls, make sure you brighten those bulbs as well. Small Spaces Made Bigger With all of this emphasis on space, you may be wondering how you can avoid having to knock down walls to make a space larger. First of all, if all of your rooms are the same color, this will give the illusion of a larger area. Brighter colors that lean towards white also tend to make a room appear bigger. Another trick is to paint the walls the same color as any curtains or window coverings you have in the room. Additionally, the aforementioned tips of removing clutter, and excess furniture also serve to give the room a spacious appeal. If you’re in the “I hate white walls” crowd, neutral colors such as beige or grey are still light enough to communicate spaciousness but also add an element of warmth to the room. In terms of those custom painted rooms in non-traditional colors, they tend to put buyers off. The more a buyer thinks they’re going to have to exert extra effort in repainting or fixing wear and tear, it decreases the likelihood they’ll be galvanized to place a viable offer (unless their flippers who want to change the home anyway but the price will reflect that). For the Art Aficianados Art is subjective. Such is the reason for you to be judicious about the placement and type of art you have in your home during a staging. Now, if your home has been professionally decorated recently, this may not apply to you. However, if your artwork or any other fixture in your home hasn’t recovered from the 1980’s, then you may need to do some rearranging. Remember, clean and simple. If you have one large piece that fits the vibe of your living room, place it there. You can also create interesting patterns without overwhelming (or distracting) the buyer by adjusting how you organize the artwork. Play with different collections, groupings or patterns. Be sure to stay away from pieces that are possibly offensive or subjective. Religious artwork should be taken down along with any sports team memorabilia. Accessorize A mixture of dark toned or brightly colored pillows on a white couch can make a drab room pop to life. If you have vases or other decorative items, the rule of three applies. Similar to arranging your artwork, creative groupings or arrangements of your décor accessories helps to beautify a room. Make sure that you have a unifying color, shape or texture (white with blue accents, angular or circular shapes, etc.) This conveys to the buyers that you care about the condition of your home—thus sending the message that you’ll also be equally conscientious about the sales process. All Things Underfoot For many buyers, hardwood floors are quite the selling point. If you have hardwood in your home and it’s in great condition, show it off! Make sure it’s buffed and shined to wow buyers. If it needs repairing, it’s in your best interest to do so as soon as possible. Prefinished wood is far less expensive than hardwood, so if you’re thinking about replacing carpet to lure in more buyers, then prefinished might be the way to go. Cracks in your exterior pavement are also a concern. Depending on the underlying problem—sometimes tree roots are the issue but either you or the buyer will need to deal with eventually—pavement cracks are an easy fix. Also keep in mind it will probably be much less expensive for you to do the repairs as opposed to the buyer subtracting these potential repairs from their asking price. Professional Staging When we’re sitting down with a homeowner(s) to go over the pricing, marketing plan and necessary paperwork before listing a home I am constantly asked if hiring a professional stager is necessary. Professionally staged homes: • Are preferred to other properties. • Generally sell for more money. • Sell at a faster rate. • Look better in advertisements. • Receive more buyer traffic. • Taken more seriously by buyers. • Viewed by buyers as in good condition. • Often appraised at higher values. • Showcase as move in ready. Professional stagers are similar to interior designers but are focused on “big ticket” items that will showcase a home in the best possible way. In many markets, professional staging is not a good idea due to the cost associated with them. Lower price point markets, where the average home is a few hundred thousand dollars or less make it difficult to justify this added expense. In many cases, a professional is not needed as long as the homeowner’s furnishings are designed well and in good condition. By implementing the tips in this chapter, a home should show in good condition without the hand of a professional. In luxury markets like Santa Monica, a professional stager might be worth the consideration. This is especially true if the home is empty. The idea behind a stager is to help the buyer visualize living in the property. Many buyers have limited visualization and find it hard to imagine where furnishings will go and how it will look. The added expenses to rent the furniture, fixtures and accessories will help give an empty home greater appeal and comfort, which will lead to more profit in the end. Odors Kill Sales Most buyers are turned off by even the smallest amount of uncleanliness or odor when they walk into a home. Because of this, many homeowners lose thousands of dollars when they sell because they do not adequately clean their home. If your home is squeaky clean, you will sell it faster and get more money for it. If you plan to move anyway, why not get rid of that old junk now so your home will appear larger? Odors must be eliminated, especially if you have dogs, cats, young children with diapers or if you smoke. You may not notice the smell, but buyers do! Most agents have a difficult time communicating to their sellers about the odor. However, by hiring me to get the most money for you, don’t take offense if I must confront you about odor problems if there are any.