THE PRICE OF IDEAS
Madison avenue makes tons of money for ideas in advertising. Donatella Versace makes money for her fashion ideas. Ideas and creativity are a commodity that many pay top dollar for. If creativity, innovation and problem solving were so easy, everyone would do it and there would be no Madison Avenue or Versace.
One of the most common complaints and misconceptions about Staging is the cost. Some say Staging is too expensive and not worth the fees being charged. Why should Stagers be paid at time of service instead of when the property closes? After all, how hard is it pick colors, pare down floor plans or pick out "knick knacks".
My question is how do you put a price on creativity and the ability to envision a plan before it even is put on paper? How do you put a price on problem solving and the ability to improvise?
Staging and the process is often misunderstood and critiized as too expensive or misleading to a buyer. When it's done well, staging is not overdone and doesn't come across as too contrived. So anyone can do it, right? It involves little skill, creativity or problem solving and has no impact. So why has the industry emerged? It's on TV and likely in your competition's marketing strategy.
Staging is advertising; very cost effective advertising when you consider the potential and real returns. Staging is live advertising that people can immediately connect with, reach out and touch. How much is that worth? It touches everyone in a good way across all walks as soon as they open the door.
Can you calculate the cost of additional days on the market and price dropping from what passes for much of what you see on the MLS or real estate listing sites? How about photos of clutter and cramped looking spaces? How much did those dark, grainy, upside down and sideways photos really cost?
As a seller, I have listened to agents we interviewed brag about how much they spend in advertising and getting the word out about their listings... "Nobody does more." As a stager, I hear this same chatter from clients about their agents. They complain about not seeing the results of all this marketing and advertising. I help clients who are advised not to stage and are told it is a waste of time and money.
A simple Consultation, depending on the company, can range from $500 on the high end to about $150 on the low end. This many times alone is all that is required to get a home ready to show and shorten time on the market. How many price drops does it take to sell something? What is the cost of a spread that just shows the outside of a listing, little to no interior views and both not always in a flattering light? Consider the price of ideas and then take your pick.
Ana Hitzel is the owner of AccentPositives Home Staging and the host of Your Place Your Space Home & Life Improvement Radio.
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AccentPositives provides effective and economical Home Staging Consultations and services on site and on line. Selected Best of Corona 2012 in the Interior Design category, we are located in Corona and serve the Inland Empire of Southern California, the Palm Springs area and North San Diego County. Call 951 833 8529. Email staging@accentpositives.com. Visit www.accentpositives.com.
Morning Ana, It's merchandising a product, a clients home. $150 can go a long way to help a client, as long as they are a serious seller! Well stated post.
You are right! I cannot believe how many beach condos try to sell the place with the original furniture. Not a good idea, when they are asking too much for it already.
Ana, this is so well stated. With a motivated seller, a written consultation is a very valuable marketing tool. Many Realtors do see the value, and I'm sure more will in the future.
Ana, Nice post and a great topic for one of my Realtor newsletters. "Advertising a listing that shows poorly for a typical listing period is way more expensive than Staging". I really like this statement!
Love your blog title and every word in this article. Let's shout it from the mountains girlfriend!
Ana,
Great post! There is nothing worse that a house that shows poorly because of the lack of staging. And there is nothing better than a house that shows great because of how well it's staged! I agree with Cynthia, $150 is money well spent to get the house sold.
Ana- Again, you seem to pick the right title and follow through with a well worded post. That is what we sell: our IDEAS, our creativity. If we are not paid until closing, or never, what can we take back? And for the relatively small price of a Staging we can save the Seller and Realtor much in time and money.
If I had a golden megaphone, I'd present it to YOU.
Great post, Ana! Staging is perceived as expensive, but hopefully that will change. More stagers are listing their fees and more of us are writing blog posts regarding our fees. A consultation can make a world of difference in the appeal of a property.
Hi Cynthia, thanks for commenting and yes we do merchandise for the seller. Maybe we should go back to the topic of why we are called "stagers":) It is a negative term to some, to some it implies something less than genuine and valuable.
Hi Carol, thanks for commenting, Everyone wants the best price for the least cost and many times sellers just are not realistic. That makes your job harder which is why you should call us:)! We can help clients get to the realism when they don't want to hear it from you!
Hi Kim, thanks and I think it's getting there too:)
Hi Donna, educate away! I am currently trying to start up a newsletter, something I have been putting off.
Hi Cathy, you get the bullhorn and lets get started LOL. Did you ever see the clip of that Michael Moore guy riding in a car with a bullhorn yelling at congress in D.C. Maybe we should enlist him!
Hi Carra, even if a little bit of a consultation sinks in with a seller, it can make all the difference. A very small price to pay for another tool for sucess.
Hi Kathy, exactly right and thanks, a golden megaphone would be cool, maybe it might get my kids to listen to me too!
Hi Sharon, thanks and I think you are right about getting fee information out there. We can't possibly price certain services sight unseen but we should be more open about starting points and high vs low end of each service.
When I started, it was hard for me to state my fees because I was unsure of what the market would allow. I was not as secure in the value of what we can do as I am now. Newbie disease.
Many Stagers struggle with fee issues. I get lots of questions on that and I see those questions in blogs or comments on blogs with other Stagers. Uncertainty about what to charge or worrying you might be too expensive is evident to a potential client or REA. They can sense if you are not sure of your own value and what you can bring to the table.
Great points, you are 100% right! Most homes need a home staging consultation to point them in the right direction before their online pictures are taken. When I hear staging is too expensive, I know the person just is not open to home staging or redesign. My consultations start at $199, how is that too expensive?
Hi Kate, Consultations are a bargain, thanks for commenting.
Ana, Great post! I hope soon more realtors and sellers will see it that way.
Ana,
I think you just reached out to every home stager on the planet with this post.
Thanks for sharing.
My consulation fees are right in line with those that are mentioned. Makes me feel very comfortable.
It's amazing the number of phone calls that I get and the home owner wants a free consulation. My doctor, attorney and dentist don't give FREE consultations and why should I?
Hi Donna, what a nice comment! Sometimes with all the banging Stagers get, we are not good enough at blowing our own horn about the worth of what we do. I know for me, it still can be intimidating when someone says "why do you think I should pay you that.?" Confidence, belief, passion and results:)
Hi Virginia, the free stuff drives me batty too and for the most part I stick to my guns on that, it's not just homeowners expecting that in my experience. I have never done a free consultation. Thanks for commenting.
Hi Linda, me too just keep spreading the word! Thanks for stopping in:)
Unfortunately, I think too many sellers want Realtors to be anything and everything to them -- Realtor, stager, home inspector, mortgage lender, financial planner, taxi cab, psychologist, etc. It takes everything we can muster to make them understand that they all are different professions and really should not be mixed together willy nilly.
Hi Jim, I think you are right. I respect professional realtors so much in that I think you have one of the hardest jobs around and get caught as the bad guy when things don't go a sellers way through no fault of your own. For those of you who do get it right you are invaluable.
Ana
I like your attitude. Attitudes can often be the make or break part of a deal.
Hi Russel, Sorry I missed this cool picture and thanks for the comment!:)
Ana