Creating home staging vision

home staging vision
Creating home staging vision (infographic from nar.realtor)

Although home staging has become entrenched in the home sale process, it doesn’t have to be a pricey way to prepare your home sale. Not only has it become part of the home seller experience, the home staging vision is now expected by buyers and their agents when they visit homes. 

The spring home sale season is the perfect time for the National Association of Realtors to roll out the results of their 2019 Profile of Home Staging survey (nar.realtor).  In a March 14th press release, NAR President John Smaby summed up this year’s profile by stating, “Realtors understand the importance of making a residential property as welcoming and appealing as possible to potential buyers. While every Realtor doesn’t use staging in every situation, the potential value it brings is clear to both homebuyers and sellers.” 

Staging may affect a home’s time on market, and it’s likely due to visual cues.  Meaning that home staging vision helps the home buyer picture themselves living in the home. More than half of the agents who responded to the survey indicated that home staging reduces time on market.  Forty percent of buyer agents said that home staging effects most buyers’ perceptions of a home.  Eighty-three percent of buyer agents believe that home staging vision makes it easier to visualize living in the home.

It’s not surprising that agents agree that the most staging attention goes to the living room, kitchen, master bedroom, and the dining room.  It’s not that these rooms have special significance, but rather it’s because it’s where people spend most of their time in the home.

The NAR survey also found that real estate TV shows has impacted home buyers’ views and expectations.  Thirty-nine percent of buyers indicated that they experienced a more difficult home buying process than what they expected.  Twenty percent of buyers reported being disappointed that homes they visited didn’t look like the ones portrayed on TV.  While ten percent believe that homes should look staged as they are depicted in TV shows. 

Not all agents stage the homes they list for sale.  Only twenty-eight percent of listing agents said they staged all sellers’ homes prior to listing them for sale.  Compared to the thirteen percent of agents who confessed that they only stage homes that they deem difficult to sell.

Does home staging affect sale price?  It was noted that all agents surveyed indicated that home staging affected their home sale positively.  Twenty-two percent of the agents reported an increase of up to five percent in buyers’ offers, while seventeen percent reported offer increases up to ten percent. Only two percent of the agents responded that it increased offers up to twenty percent.

But the idea of staging your home to get top dollar may just be traditional wisdom, as evidenced by NAR’s survey.  One of the few studies on staging revealed that indeed, staging does not have a significant impact on sale price.  Lane, Seiler & Seiler’s 2015 study (The Impact of Staging Conditions on Residential Real Estate Demand. Journal of Housing Research, 24,1. 21-35) concluded that although staging affects the home buying process and the buyer’s opinion and perception of livability, it’s not enough to result in a higher sales price.  The authors stated, “These results stand in stark contrast to the conscious (stated) opinion of both buyers and real estate agents that staging conditions significantly impact willingness to pay for a home. As such, the findings are new and useful to a large group of stakeholders (sellers and agents).”

Original published at https://dankrell.com/blog/2019/03/21/creating-home-staging-vision/

By Dan Krell
Copyright © 2019.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Curb appeal science

curb appeal science
How to increase curb appeal (infographic from keepingcurrentmatters.com)

Curb appeal is one of those “intuitive” topics that only gets media attention in the spring and maybe the fall.  If you search the internet, you’ll find millions of websites that talk about curb appeal.  Because the concept is based on accepted lore, my guess is that most of those sites regurgitate the same ideas.  Everyone has some understanding of curb appeal.  And if asked, they will give you their opinion on improving it to get a higher home sale price.  Everyone agrees that curb appeal can increase home buyer traffic.  And most agree that curb appeal can increase the home’s sale price.  But is there a curb appeal science?

I often present empirical studies to help you understand if widely accepted real estate traditions and principles are accurate.  Unfortunately, curb appeal science is one of those subjects that doesn’t get much academic attention.  Notwithstanding, there are two very compelling studies about curb appeal science.

One of the first studies to empirically confirm the connection between home sale price and curb appeal was published in 2013.  Chen, Evans-Cowley, Rutherford, and Stanley (An Empirical Analysis of Effect of Housing Curb Appeal on Sales Price of Newer Houses. International Research Journal of Applied Finance. 2013, Vol 4 No 11, p1407-1419) examined how a home buyer’s preferences of a home’s exterior influenced the sale price.  Not a surprise, they concluded that there is a connection between a home’s exterior and the sale price.  They also quantified the relationship, saying that even small improvements to curb appeal can increase the value by as much as eight percent.

It’s not just the yard and exterior home maintenance.  Chen’s study also discovered that architectural elements also determine the home’s sale price.  They discovered that the demand for higher cost “modern” homes is relative to what’s contemporary.  Meaning that today’s highly desirable new homes and floor plans could be less desirable and sell for less in the future.

A more recent study went further and developed a measurement of a building’s curb appeal.  Freybote, Simon and Beitelspacher (Understanding the Contribution of Curb Appeal to Retail Real Estate Values; Journal of Property Research. 2016, Vol 33, No 2, p147–161) found that there are three dimensions of curb appeal that can be measured: atmosphere, architectural features and the authenticity of a building. 

A home’s atmosphere describes the general landscape maintenance as well as emotional aspects, such as how relaxing, inviting, and vibrant the home feels.  Architectural aspects rate the visual aesthetics of the home, highlighting modern design and interesting features.  A home’s authenticity relates to its charm and how “genuine” it feels. In other words, can the home buyer picture themselves living there? The study concluded that curb appeal and sale price is not only connected, but can also be accurately measured.  The two dimensions that affected sale price the most were atmosphere and architecture.  The authors also suggested that the atmosphere dimension has a social component (which may be associated pride of ownership). 

Although authenticity was not found to be as influential on sale price, it is notable.  A home’s authenticity (as described in this study) is probably one of the least thought of aspects when preparing a home for sale.  If the home staging, including landscaping and exterior elements, is over-the-top or does not portray the home accurately, a home buyer may be less interested in making an offer and negatively affect the home sale price.

Original published at https://dankrell.com/blog/2019/03/14/curb-appeal-science/

By Dan Krell
Copyright © 2019.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Occam’s razor home selling

Occam's razor and selling a home
Staging is one of the four basics of home selling. (infographic from nar.realtor)

Many home owners are preparing to sell their homes this year.  And in doing so, home sellers are looking for new and exciting ways to sell their homes fast and for top dollar.  But the reality is that selling a home is not rocket science.  There really isn’t a secret trick or approach to selling a home.  Rather, it’s more like magic, where properly performed fundamental tasks can set the stage for a satisfying experience. If you don’t know how Occam’s razor (or what it is) can help you get the most from your home sale, pay close attention.

Unfortunately, it’s a human trait seek a complex solution to a simple question.  In other words, applying Occam’s razer to your home sale can save you time and allow you to get out of your own way.  Occam’s razer is a tool that is often used to figure out solutions and devise scientific theories.  It has become popularized as the “keep it simple stupid” method.  However, Susan Borowski’s history and explanation of Occam’s razor, written for the American Association for the Advancement of Science, gives it teeth (The Origin and Popular Use of Occam’s Razor; aaas.org; June 12, 2012).  Borowski states, “Occam’s razor doesn’t necessarily go with the simplest theory, whether it’s right or wrong; it is not an example of simplicity for simplicity’s sake. It merely tries to cut through the clutter to find the best theory based on the best scientific principles and knowledge at the time.”

In other words, focus on the tried and true fundamentals of selling a home.  Anything above and beyond may not necessarily help to sell the home faster or for more money, but could help make the process more enjoyable.  That in mind, let’s consider these four basic concepts:

First, consider the condition of your home.  Do you have deferred maintenance issues?  Does your home need a makeover?  Homes that get top dollar are “turnkey.”  Many home buyers are willing to compete and pay more for recently upgraded and renovated homes.  Selling a home with deferred maintenance or lacking recent updates can not only turn off many home buyers, but can encourage low-ball offers.  A pre-listing home inspection can help you identify maintenance issues.  Also, consider consulting with a design professional to help you understand which updates (if any) are necessary to help your home sale.

Next, work on the home’s presentation to give it a clean and spacious feel.  Decluttering is one of those tasks that can be overwhelming, but it’s importance cannot be overstated.  Decluttering will force you to decide which items to keep in the home.  Additionally, staging your home can help balance space, furniture and décor.  This can help home buyers envision living in the home.

Deciding on a list price is often a conundrum.  Although enticing, don’t be seduced by the agent who tells you the highest sales price without understanding their rationale.  The housing market can turn on a dime.  If your home isn’t priced correctly, it can languish on the market.  There are many aspects that go into deciding a price, so work with a respected seasoned agent to go through the market details and scenarios. 

Finally, when the home is ready to list, how is it to be marketed?  Today’s MLS listing syndication takes advantage of the fact that most home buyers actively search homes on the internet. Don’t rely on gimmicks that promise activity on your listing.  A complete marketing plan will take into account the factors we discussed here, and apply strategies to attract motivated home buyers.

Original published at https://dankrell.com/blog/2019/01/12/occams-razor-home-selling/

By Dan Krell. Copyright © 2019.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Home sale renovations

home sale renovations
Interior Home Sale Renovations (infographic from nar.realtor)

According to the National Association of Realtors (nar.realtor), the average time a homeowner stays in their home is ten years.  This is higher than the seven-year average prior to the great recession (but is less than the thirteen-year average immediately following the recession).  Needless to say, many homeowners are approaching (or have exceeded) their ten-year stint, and are likely selling their home during the spring and will likely be doing home sale renovations.

Any home sale preparation in today’s housing market should include some home sale renovations.  If you haven’t replaced the home’s systems (such as the roof or HVAC) while you lived in your home, there’s a good chance that they are approaching or have exceeded their average life expectancy.

Additionally, the décor and fixtures in your home are likely outdated.  The home sellers who make the mistake of not updating or renovating before they list inevitably face home inspection issues.  They ultimately find that the home takes longer to sell at a reduced price.

Let’s face it, remodeling can be expensive and overwhelming, especially when it’s for home sale renovations.  According to the NAR’s 2017 Remodeling Impact Report, about $340 billion was spent on remodeling projects in 2015.  Although a majority of homeowners would remodel their home themselves, thirty-five percent would prefer to move instead of remodeling their home.

The Report cited functionality and livability as the top reasons for home sale renovations.  It’s a no-brainer that home buyers prefer homes that are functional, comfortable, and sustainable.  Aesthetics is not enough for a home to be appealing to today’s home buyer, it has to fit their life style.  Additionally, home buyers want efficient systems in their new homes that can help save on utility costs.

Home sale renovations should focus on functionality and livability

What projects will get buyers who will pay top dollar into your home?  It should be no surprise that the number one interior project, listed by the 2017 Remodeling Impact Report, is a complete kitchen renovation.  Other essential interior projects include renovating bathrooms, installing new wood flooring, creating a new master suite, replacing the HVAC system, and finishing a basement or attic.

It also shouldn’t be a surprise that the Report listed replacing the roof as the top exterior project. Other exterior projects in high demand include new windows, new garage door, new siding, and installing a new front door.

If you want to add value to your home, even if it’s not for home sale renovations, check the 2018 Cost vs. Value report (costvsvalue.com).  The report can give you insight to which remodeling projects are the most popular, and estimates how much of the cost you can potentially reclaim when you sell your home.

There’s no doubt that renovating your home can be expensive.  Although the costs of home sale renovations can tempt you to cut corners, don’t.  Cutting corners on renovation projects can actually cost you more.  You may have to repair, or even re-do the project if not finished adequately.  Home buyers are savvy, and can spot low quality materials and poor workmanship.

Also, make sure to get permits when required.  If the home buyer doesn’t ask you, the home inspector will likely recommend that the home buyer check for permits.

Although many homeowners don’t mind a DIY project, many hire home improvement professionals.  When hiring home improvement professionals, check with the Maryland Home Improvement Commission (dllr.state.md.us/license/mhic) to ensure they are licensed contractors.  You should also ask for proof of their insurance, including Workman’s Comp insurance, in case there is an accident on your property while completing the project.

If you hire a contractor who will accept payment when the house sells, read your contract carefully and thoroughly. Do your due diligence.  There may be provisions in your contract that you may not be aware of, such as added costs, charging interest, and setting/lowering the sale price.

Original article is published at https://dankrell.com/blog/2018/11/17/home-sale-renovations

By Dan Krell. Copyright © 2018.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Home selling basics

home selling basics
Preparing for a home sale (infographic from nar.realtor)

It’s that time of year again.  Many home owners, just like you, are getting ready to put their houses on the market.  One thing I’ve learned over sixteen-plus years of home selling is that there are different strategies to achieve the same result.  Basically, there is no “one way” to sell your home.  But, if you look beyond the gimmicks and tactics promising to sell a home faster and for more money, the basics are essentially the same.  In other words, focus on home selling basics to increase home buyer traffic and possibly get a better price.

Prepare for home selling

Most would be home sellers don’t realize that selling a home is a process.  Preparing your home can seem overwhelming, but it doesn’t have to be.  Focusing on home selling basics will not only get you excited about selling your home, but can help your home sale results.

Preparing your home to sell can be a costly endeavor, especially if your home has a lot of deferred maintenance or lacks updates.  However, the obstacle of selling when your home is in need of attention can be overcome by pricing it with its condition in mind.

Regardless of your home’s condition, it should still be neat and clean.  This means decluttering.  Decluttering is a process of prioritizing and clearing out unnecessary items from your home.  Removing unneeded items and furniture from your home will make your home feel larger and organized.  You don’t necessarily have to throw out these items, you can decide to make charitable donations and/or store them until you move.

People talk about “Neutralizing” a home to take away personal affects from the home.  It basically strips away the things you did to personalize your home.  Neutralizing applies to paint schemes, decor, wall hangings, flooring, etc.  It may sound extreme, but neutralizing your home will allow home buyers to envision how they can live there. Although your proud how to show your personal touch by displaying trophies, awards, diplomas, family and personal photos, these should be removed because they can distract home buyers’ attention.

Should you stage your home?  Maybe.  Staging can be another home selling expense you’re not prepared for, but it can help sell your home faster.  You can hire a professional stager or interior designer for the total staging experience.  However, staging doesn’t have to be expensive.  Some staging or design professionals can provide you a list of recommendations for a nominal fee.  If you’ve already decluttered and painted a room or two, you’re well into the first phase of staging.  Although some home sellers decide to rent furniture for their home staging (which can also be expensive), it’s not an absolute.  Once you remove the unnecessary furniture, the remainder may just need rearranging.

Don’t let your home’s exterior can turn away potential buyers before they get inside.  Even if you spend lots of time and money on preparing your home’s interior, it may not matter if home buyers don’t make it inside.   Many home buyers decide if they like a home by its exterior appearance.

Improving your home’s curb appeal is similar to preparing the interior.  Take care of deferred maintenance and declutter the exterior.  Believe it or not, landscaping is a key factor to attract buyers when home selling.  Make sure the lawn is cut regularly, and don’t over-crowd the flower beds and shrubs.  Trimming back trees will not only add to your manicured landscape, but it will also make your home easier to see from the street.

Once your home is one the market, consider having an open house.  The open house is more important today than it has been in decades.  Consider that contemporary home buyers are taking control over their home search.  Besides searching listings on their own, many will visit open houses on their own as well.  Deciding to not have an open house eliminates many potential home buyers from seeing your home.

Home selling basics is about safety too.  Selling your home means having people whom you don’t know visit your home, mostly when you’re not there.  Having unknown people walking through your home increases the chance of things going missing.  Don’t tempt would be thieves by leaving money, jewelry, medicines, or any other valuables on display.  Don’t just put your valuables away, lock them in a safe place.

But in the end, home selling basics comes down to the price.  Home buyers are savvy and know value.  In this market, it’s easy to get big eyes and over-price your home.  Making the mistake of over-pricing your home can stretch out the days-on-market and test your nerves.  Instead, decide on a list price that is consistent with recent neighborhood sales of homes that are similar in size, style and condition.

Home selling basics

  1. Make repairs
  2. Declutter
  3. Improve the curb appeal
  4. Staging
  5. Open house
  6. Find a buyer

By Dan Krell
Copyright © 2019

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.