What about if a staging company charges a 1/2 % success fee?

Asked by Kristi, Denver, CO Thu Dec 18, 2008

Show Homes of Colorado is demanding that I pay a 1/2% success fee on the sale of my home? Is this legal? I was under the impression that only a broker can charge a success fee? I already paid a "set up fee" of $2500 to initially have my house stage and now they want a portion of my proceeds. Any advice would be greatly appreciated.

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Sylvia Barry,…, Agent, Marin, CA
Thu Dec 18, 2008
Only if the terms is in the staging contract you signed with the stagier. Also, what constitute a success sale should have been spelled out - do you consider successful if you sell (for the full list price? for 90% of the list price? just sold and nothing to do with the sale price? The time frame? sold within a month? 3 months? 6 months?)

If they want to charge a success fee, there had better be a definition of success if you ask me.

But bottom line is , what does your staging contract say? If it does not say that, I won't worry about it, if it does and your situation fits, then you probably have to pay.

Sylvia Barry
Marin Realtor
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Dec 18, 2008
Who represented you? Are you selling without professional representation?
Just because you don't "want to pay" does not mean you are not legally liable to pay.

On what grounds could you deny them payment?
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Kristi, Home Seller, Denver, CO
Thu Dec 18, 2008
Yes it is very clearly outlined in the contract. I already paid up front for the initial consulting fees plus any accessories to add to my home. This success fee is in addition to the fees I already paid and is directly tied to the sale of my home.
0 votes
Steven Rall, Agent, Burnsville, MN
Thu Dec 18, 2008
Did you sign a contract? Was it spelled out in that contract? In my market place (twin cities of MN)I've never run across that type of fee. It is always an initial consulting fee plus a room by room charge if the stager is bringing in furniture or accessories.
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