Wasn't sure if this or off-topic was the appropriate forum, but in any case, I'm preparing to sell a residential property and the realtor who I am working with is telling me to drop $20k on a professional interior design firm to do the staging...
I was thinking more like $2k, $3k? Maybe $5k tops... but $20k... She told me what sets this firm apart is that their pieces are sourced as antiques and from only the finest high-end furniture sources. Furthermore, she says that "proper" staging is essential to attracting the right type of buyer...
I admit staging is important (and there are statistics that show staged homes seller faster than empty homes), but $20-fucking-k?!
This realtor has a fantastic track record of getting homes sold well above list price and has been mostly fine to work with, but is this bitch crazy? Or doing something illicit - e.g. getting a kickback from the interior design/staging company? Or is this par for the course in HCOL cities?
The bitch is crazy.
You'd expect to pay this if you were staging a new condo development model unit, from scratch. For an existing home? I'd say a few thousand dollars to get the place professionally cleaned, maybe you add a couple light fixtures or accent pieces if you've done a bad job decorating. But 20k is insane. Good brokers tend to have lots of this stuff pre-sourced; maybe you can lease it from them? Or buy it with the expectation that the broker buys it back from you for 75 cents on the dollar or something?
At some point, how much value is this really adding? This is why brokers are scummy operators, even the good ones. This realtor has a great reputation... because they're asking their clients to put up tens of thousands of dollars to make their job easier. That's not doing a good job, that's making someone else do the good job. Depending on the value of your home, even in a high cost of living area 20k is going to almost certainly be 1-2% of your home's value!
Depends. How big is your place and how much are you looking to sell it for?
Approximately 1,800 sq ft
Realtor's suggested initial listing price is $1.7m - which I would be happy with - but she thinks she can ultimately get it to sell for more and hinted at (though not explicitly) going as high as $2.1m, but the upper bound would be achievable only if I followed her advice on staging...
That seems like a lot for 1.7k sqft. I’d shop a few companies (staging companies).
Is it a one time cost or is there a continuing rental fee?
20k isn't that much for a 1.7mm house. You are going to be paying like 100k in realtor fees. Maybe ask for a discount on those costs to help offset staging?
100% agree. Gotta think in terms of value of the property. $20K is 1% of the value you expect to get. If the broker has a great track record - and says it’s worth it - I’d be inclined to listen.
$20k is more or less a "one-time" cost - it covers an initial staging term of 90 days. This can be extended in 30-day increments for $2000/month if necessary, but my realtor says it is highly unlikely the property will still be on the market after 90 days...
As someone who builds luxury condos more expensive than $1.7mm...$20k is insane for staging and is not going to increase your property from $1.7mm to $2.1mm...buyers aren't stupid. When you ask people to pay $2mm+ for anything...i can guarantee you they are not shelling out that kind of money because you displayed a $10k couch. If your property was worth like $10mm+ then maybe $20k is justifiable...but even then I don't think so. Also, when you mentioned that this agent "sells properties higher than the listing value" that's because she advises you to set the listing price lower than the market value...That's like saying if I have a $1mm home and I list it for $1 and then it sells for $999k...then yes technically the agent "sold my house way higher than the listing." Agree with Ozymandia...99% of real estate brokers are sleezy scumbags that only look out for themselves and not their clients. Real estate agents want to sell your property, get the commission, then move on to the next deal...they are not interested in doing several open houses to get you the best price because that takes more time and work and the benefits are marginal to them. Imagine if you sell your house for $1.8mm instead of $1.7mm. To you that's a $100k more in your pocket, but for the agent it's only an extra $2.5k, assuming they split the commission. It's not worth it for them to fight for that extra $100k
I feel like she is getting a kickback on the back end which is more for her if it costs more for you. See how she reacts to you bouncing the idea of going XYZ firm instead of the one she suggested for cost and aesthetic reasons. You don’t need antique furniture to do staging, just clean and tasteful basic furniture. The home should do more talking than the furniture which I can’t imagine would be true with luxury antiques.
Suggesting another staging firm is brilliant. Let us know what the agent says. My bet is something like no one has same quantity furnishings as her firm or she is hesitant to take risk on an “unproven” firm, something like that. Scam alert for sure.
I’d just straight up ask her…that seems like a huge price. What is your financial relationship with the staging company?
My realtor just brought in some additional pillows and art to help stage when I sold a similar condo. He already had a small warehouse of furniture and accessories that he pulled stuff from. He did all of that for free.
Update:
I suggested another staging firm that would be a quarter of the cost of the expensive one my realtor suggested, and my realtor sent back the following email response (edited to remove certain identifiable details)
I realize dropping $20,000 on staging is a big pill to swallow, but you have to trust me on this. The feedback we get is overwhelming positive when we stage using one of these top-tier stagers and it ultimately yields the best results. My track record speaks for itself. I have countless examples of this. Here are some recent ones: Property A (22% above asking), Property B (10% above asking), Property C (29% above asking), Property D (25% above asking)... the list goes on.
The longest most recent listing I had was 45 days, and it still sold within $10k of asking price (worth noting, that seller didn't use my staging recommendations!)
I know you work in finance and are a numbers guy, but real estate is about marketing and feelings. Are you intrigued by what you see on your computer screen? Enough to come in and see the house? How does a home make you FEEL when you walk through the door? The right staging creates a sense of security, warmth, and invokes a positive feeling when buyers walk through the property.
Your apartment is lovely, but there are some flaws that buyers will pick up on as they walk through the property. An elevated staging approach will better conceal some of those blemishes, resulting in a better outcome for you.
At the end of the day, I will work within your comfort level, and I realize I am asking you to take a financial leap of faith on this tactic! If you want to use [alternative cheaper staging company], then I will defer to you and make the best of it.
Let me know what you decide so I can formalize the schedule and book the photographer.
Best,
Realtor's name
Laughed at this. So that Seller saved himself 10k by not using this broker's absurd staging recommendation, it sounds like.
Brokers always take credit for hot markets and pass the buck for poor ones. Their track record doesn't speak for anything
How dismissive. Do you talk to clients that way? This is how she’ll handle you during the transaction.
Please tell me you walked from her. Successful agents are easy to find.
Your agent annoys me. Just show her this thread.
How did the staging look in those comps?
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