Recently, I represented a seller on the Riviera. The seller was in a high equity position but with no liquidity to cover the necessary market preparation steps for the property. Part of the reason I felt comfortable paying for market preparation expenses is that we had a written agreement that I would be refunded on close of escrow. The other factor that gave me the green light to take this risk, is that the property was priced right in a low inventory market. We had 6 offers in the first week and it sold for all cash over asking price. I received my upfront funds back along with my commission and the seller received more money than expected for the property.
At your service,
Sotheby's International Realty
1436 State Street
Santa Barbara, CA 93101
Because Home Staging is a powerful selling tool, I encourage sellers to view Home Staging as an investment on their ultimate profit, rather than viewing it as an expense.
Think about this: if you are carrying the costs associated with owning a home while on the market, such as mortgage, property taxes, home owner's insurance, fuel, electricity, interior and exterior maintenance, that adds up.
I know of homes that are still sitting on the market today that have had numerous price adjustments. Many of these homes would have benefited with Home Staging from the beginning of the listing. Price adjustments and time on market cost the homeowner.
Agents and sellers prefer a quick sale vs. a "stale" listing that requires price adjustments.The cost of Home Staging is significantly less than the first price reduction. First price adjustments are normally $5,000 or more depending on the original list price.
Also consider this: many times, after a home has been Staged (or if it's Staged before listing) it can command a higher price because Home Staging adds value to the home. It appears to buyers as "move-in ready" and looks good in media print and on the MLS. It other words, it shows well in comparison to the competition.
It's an upfront investment but pays off at the end of a quick closing escrow!
Pacific Coast Realty
805 705 3798
Sofie Langhorne, Coldwell Banker Residential Brokerage, Montecito- Santa Barbara. CALBRE#01851983
--------I would add a somewhat different perspective. I would agree to pay ALL costs, including staging, inspection, even repairs... IF...... you would contractually commit to a price at which you would SELL your property.---------That little piece of information allows the agent to measure the likelihood of success.------However, if you piled on and come up with some cosmic number as what you 'believe' the value should be.....I can't invest my dollars in a ill fated exercise.-------As you well know you should not invest emotion, expectation or money if you can not control the outcome. Under normal circumstances, the homeowner has veto power, even on a full price offer. I just has an owner turn down an offer that WAS at the previously agreed to sell price! Fortunately, I have not invested in staging. Unfortunately, as we have all become to often aware, the 1st offer is often the BEST offer.
First of all - everything is negotiable, so you can always ask....but..........personally, I wouldn't agree to pay for that upfront.
I would pay for professional brochures and other marketing materials like that - virtual tour, postcards, etc............but in regard to staging....no......
I might consider splitting the cost with the builder at closing....... it also would depend on the commission you are paying (here new construction usually has a lower commission attached to it as compared to a resale)..........and the extent of the staging you want (only the main rooms, or every room.....full staging w/ furniture and artwork, etc, or subtle hints of staging?).
And, is this a one house deal, or are there multiple homes you're building?
The only way I would enter into a venture such as this is to do so with a written agreement that would require the seller to repay me the entire amount invested should the property not sell or be withdrawn form the market for any reason.
One should not consider this a part of the normal marketing expense at any price range.
Just keeping it real!
But as with many things in life, there is room for negotiations generally...and in the end we want happy clients!
While any number of agents (me included) would love to discuss helping you sell your home, it sounds like you have a relationship established with someone already and I am sure he or she would love to discuss this with you and come to an agreeable arrangement.
Sun Coast Real Estate
Broker Associate - Berkshire Hathaway