Studies and experts alike agree that staging is worth it, no matter what the market looks like.
While it’s true that in a seller’s market homes go quickly no matter what, however, if you want to get top dollar for your home, staging is worth the minor investment.
If you want your home to stand out and receive the most and highest offers possible, you want buyers to fall in love with the home.
How does staging capture buyers’ hearts for a successful, top-dollar sale? Read on…
Staging is all about presenting the house as a warm, move-in ready home that ideally home buyers can visualize themselves in.
Updating décor with popular, on-trend style, especially in living rooms, main bedrooms, kitchens, and dining rooms, will make a positive impression. If buyers can start to see what it would look like to live in that home, they are likely to be more committed and willing to place a high offer. If they can see themselves in the home, they are also less likely to change their minds at the last minute or ask for concessions.
82% of buyers’ agents said staging helped their clients visualize the property as their home, according to the National Association of REALTORS® 2021 Profile of Home Staging. Staging is worth it.
Staging can minimize the negatives and accentuate the positives of a property making the best impression possible.
These simple updates will help buyers see the home’s unique features and increase the perceived value.
t’s no surprise that a cold, empty property will not get the same attention as one filled with stylish, warm furnishings and accessories. Not only does it instantly create a more inviting room but buyers can get an idea of what kind of furniture would fit in the space.
You may only have one chance to catch the eye of those homebuyers scrolling through hundreds of home pictures. Nearly all—99%—of millennial home buyers start their search online, according to NAR’s data. Even in a hot market, staging a property to look amazing in photos will draw more buyers to see the home in person and even submit an offer.
Staging is an investment which helps maximize the rate of return on the sale of the property. Cost to stage a vacant home can vary, typically less than or around $5000 and usually less than the first price reduction! With an average investment of 1% of the sale price into staging, about 75% of sellers saw an ROI of 5% to 15% over asking price, according to data from the Real Estate Staging Association (RESA).
A recent survey from the International Association of Home Staging Professionals shows that staging helps sell homes three to 30x faster than the non-staged competition. Further, staging can help increase the sale price by up to 20% on average.
For those who decide not to stage, the same survey showed that the average price reduction on a home was 5 to 20 times more than what it would have cost to stage the home, not to mention the higher selling price they probably would have received as well.
So as you can see there is a strong argument that staging is worth the investment (which in perspective is a small one at that).
Many of Denver’s exclusive and luxurious neighborhoods are gated communities. For many who are looking for a luxury home, price alone is not enough. The neighborhood, its surroundings and privacy are usually key factors in considering whether or not a home has elite status.
Gated communities come in a few different varieties. Many are automated, requiring a key card or transmitter for residents to enter. Visitors typically have a separate entry gate fitted with a kiosk that has a directory and pad for code entry. Most of these are also fitted with cameras for added security.
Some luxury neighborhoods have gate attendants that monitor the entrance and often take the name and driver’s license number of visitors for documentation before manually controlling the gate.
A few luxury communities in Denver and the surrounding areas are not physically surrounded by walls and a gate but are protected and guarded by 24 hour security personnel that are often stationed at entrances and throughout the neighborhood. Cherry Hills Farms and Cherry Hill Village are two prominent luxury neighborhoods with this type of security.
Cherry Hills Village
Castle Pines North
If so, you’re not alone. It’s a question we get all the time in similar variations… “Are we in a housing bubble?”, “When is the housing bubble going to pop?”, on and on…
It’s a very valid question, especially for those of us who experienced, painfully, the housing market crash of 2008.
But it’s important to understand what led up to the housing crash of 2008 and what’s different today.
Homeownership has always been a cornerstone of the American Dream. Over 86% of Americans agree homeownership is a key part of the American Dream according to a recent report from the National Association of Realtors (NAR).
Before 1950, less than 50% of families owned their own homes but that soon changed with the GI Bill gave many of the returning veterans from WWII the ability to purchase a home. Since then homeownership moved upwards to 65% and the strong desire for owning your own home has continued to grow, helping home values to appreciate over the years.
As you can see, the only time home values dropped significantly since 1945 was during when the housing bubble of 2006-2008 popped. While some think the sharp increase in prices during 2006 looks very similar to the rise we’ve seen in the past 2 years and thus means a crash is coming, there are differences between the two periods of increases.
In 2006, homebuyers were not truly qualified for the mortgages they were given. Many could not afford to continue paying their mortgages and the market was flooded with foreclosures
⇒ Foreclosures caused a domino effect and banks along with the rest of the economy was in tailspin
⇒ Home values dropped…like off a cliff
⇒ some just walked away from their homes when they realized they owed more than what it was worth
⇒ more foreclosures ⇒ more decline in home values over the next few years.
2 Reasons today’s market is not like the one we experienced 15 years ago…
Prior to 2006, banks were creating artificial demand by lowering the standards needed to qualify for a home loan or refinance their current home – meaning even those with bad credit history, no stable income, etc… “qualified” for a loan. Today, regulations to prevent a repeat of 2006, require much higher standards to qualify for a loan – you really have to show that you’ll be very likely to make your payments.
Today, the demand for homeownership is a reaction to the recent COVID-19 world-wide pandemic that caused people to re-evaluate the importance of having a home. Lockdowns will do that! Plus remote work seems like it’s staying around to some degree, increasing the options for those who don’t have to live so close to work. It also increases the demand for a home that can double as an office so many people are looking to move out of their smaller, rented apartments onto a bigger house.
When home prices were on a rapid incline in the early 2000s, many thought it would continue as such and so they started to borrow against the equity in their homes to finance college educations, new cars, boats, and you name it. However, when prices started to fall, many of these homeowners owed more than their house was now worth, causing some to just abandon their homes. This led to more foreclosures.
Homeowners haven’t forgotten the lessons of the housing crash even as prices have skyrocketed the last few years. Accessible home equity has more than doubled compared to 2006 ($4.6 trillion to $9.9 trillion) according to Black Knight.
The latest Homeowner Equity Insights report from CoreLogic reveals that the average homeowner gained $55,300 in home equity over the past year alone.
Today’s homeowners will not face an underwater situation even if prices dip slightly. Overall, homeowners today are much more cautious and there are regulations to make sure banks and others don’t get too greedy.
The housing market crash 15 years ago was due to a flood of foreclosures that was fueled by shady mortgage practices. No one wants that to happen again. Therefore, with the increased regulations, stricter mortgage standards and an increasing level of home equity, there is no realistic reason to believe that today’s housing market will crash.
People who have been waiting to sell their house, mostly due to the uncertainty that COVID-19 caused in the economy and our personal lives, are getting ready to put their homes up for sale.
Predictions for home sales in 2022 vary but all agree that they are going to increase as people become more comfortable.
Which means that SOON there will be more homes on the market and thus more competition if you want to sell your home.
Currently, if you own a home, you will likely have several offers from homebuyers struggling to find a home. Multiple offers, bidding wars and going over list price is still a thing.
In the U.S., practically every industry is struggling with supply chain distributions. The housing market is as well.
Right now we are experiencing a lull (hopefully a long lull) of COVID-19 cases and more people are feeling comfortable looking at homes and moving. Other factors that are causing more people to search for homes include:
It is a common trend that more houses come on the market in the late Spring and early Summer as schools wind down and families have more time to prepare for a move. More houses on the market is great news for buyers but as a seller, that means more competition.
So when is the best time to put your house on the market? Now. Why?
So, if you don’t have to wait until Summer or late Spring, now is the best time to sell your home.
Hate the thought of long drawn out showing periods, updating or fixing up your home to get ready for sale?
According to the latest Existing Home Sales Report from The National Association of Realtors (NAR),
If you are thinking of selling your home, you really shouldn’t wait. You as a seller are always on the better end of the deal when demand is high and supply is low. And that’s exactly what the market is like in most metropolitan areas of Colorado right now.
But again things do not stay the same for long.
Remember not only will more existing homes come on the market but more new construction homes will be completed as more time goes by, adding to your competition.
If you have a home to sell, give us a call, send a text or email.
We’d be happy to go over your options with you, see how much your home could sell for right now and get your house listed as soon as possible!