Is Home Staging Worth It? Understanding the Difference Between Pricing, Cost, and Investment
- Harmony Home Staging & Design
- Feb 11
- 5 min read
Home staging has become a popular strategy for sellers agents and homeowners aiming to sell their properties faster and for a better price. However, it’s important to grasp the distinctions between pricing, cost, and investment. Each of these concepts plays a significant role in how you perceive the staging process and its potential benefits.
BTW - Agents...PLEASE DO NOT pay for staging! So if you don't pay, how do you get sellers to stage? Read to the end for ideas and tips.
Understanding Pricing
Pricing refers to the amount charged for home staging services, which varies based on the home's size and location, the staging's complexity, the seller's budgets, timeframes, and the quality and quantity of items chosen for the project.
When considering pricing, homeowners should look for staging companies that offer transparent pricing structures, free of hidden fees. For example, a 1,500-square-foot home may cost around $1,000 to $5,000 to stage, depending on specific services required, timeframes, and budgets, while a larger home could range from $3,000 to $10,000. Clarifying these pricing details helps homeowners budget appropriately and make informed choices.
The Cost of Home Staging
Cost encompasses all expenses related to home staging, going beyond the set prices for services to include rental fees for furniture, cleaning, landscaping, painting, and any repairs or upgrades done prepping the home for staging.
For example, if a homeowner invests $2,000 on home staging fees and $1,200 on furniture rentals, plus $800 on minor repairs, painting, cleaning, etc., the total cost would be $4,000. Understanding these cumulative expenses is vital for homeowners when assessing which method of staging makes financial sense. However, without staging, they may take a 10-20% price reduction all while continuing to pay their mortgage, utilities, insurance, landscaping, etc.
Whether it's a home staging consultation they implement themselves or a full-service professional staging, it's essential to calculate these total costs to get a realistic picture of the investment required.
Investment in Home Staging
The investment in home staging represents the potential return homeowners can expect after staging their homes. Research consistently shows that staged homes sell faster and at higher prices than those that are not staged. Homes that are properly staged can sell for up to 20% more than their non-staged counterparts and often at an almost 400% return.
By investing in home staging, homeowners can elevate their property’s perceived value, creating an inviting environment that attracts and appeals to prospective buyers. For example, a home listed for $300,000 could generate a sale price of $360,000 following a strategic home staging process, effectively covering any initial costs associated with home staging, repairs, and furnishings.
Balancing Pricing, Cost, and Investment
When contemplating home staging, balancing the pricing with total costs and potential investment gains is essential. Homeowners should ask themselves whether the expected return justifies the expense.
An examination of the local real estate market can provide insight into how home staging influences recent sales. Knowing that staged homes can sell for 20% more than non-staged homes may bolster the decision to stage, revealing the potential for significant financial gains.
What Is the Cost for Sellers' Agents?
It can be difficult to get your sellers to stage their homes. The most common question I get is "How do I get my sellers to stage?"
As you know, it takes a village to sell a home. I'm sure you have a painter, a contractor, a house cleaner, a landscaper, a title company, a mortgage lender, etc. that you work with. The best advice I can give you is to add a professional stager to your "village".
Sellers, inevitably ask, "What should/could I do to my house to get it ready for sale?" They understand it's something they need because they watch HGTV or other home improvement/real estate shows but don't know the details of how to do it, why they need it, how it can help, and the returns they can expect.
Here is the truth...you don't need to know the how and all of the why. All you need to do is say to your seller(s), "As a part of my marketing package, I have a professional stager I work with. I'm going to give her your phone number and she will call you to set up a time to meet." This is non-negotiable as it is a marketing tool in your toolbox that helps you and their house stand out from the competition.
This is where the money part comes in. I've worked with agents in the past that, no matter the staging service, they contribute $250-$1000 towards staging. The balance was up to the seller if it went over. If it was a staging consultation, that more than covered it. They tell their seller(s), "I'm going to pay either $X towards staging or pay for the home staging consultation." The agent calls me and I book the preview with the seller to discuss what staging would work best for them, why they need it, and address any questions or concerns they may have. Once the staging has been decided on, an invoice is sent to the realtor. Bada bing, bada boom.
Agents...you don't have to sell the staging ONLY the BENEFITS and RESULTS. When you present it as part of what you do, a selling feature of your services, make it a non-negotiable, and your sellers will accept your professional guidance. A professional stager will take care of the rest.
You may be asking, "How much is this going to cost ME?"
Through the process of getting a house ready for sale, it's CRITICAL to have the seller "buy-in" or skin in the game. How do you do that? By having them either invest with elbow grease or from their wallets. One or the other. This is why I tell ALL the agents I work with...DO NOT PAY FOR THE STAGING IN FULL. If you want to contribute, fine, it shows your commitment to the selling of their home but paying in full takes away any motivation from the seller especially if they are being forced to sell due to personal circumstances (divorce, death, imminent foreclosure, job relocation, etc.).
If this is something you want to offer in your real estate business, I have had some agents who charge higher commissions, take reimbursement at closing, or should there be a cancellation of the contract. Ultimately, it's your decision but if you need some creative solutions or ideas, I'm here to help.
Final Thoughts
Understanding the distinctions between pricing, cost, and investment is crucial when deciding on home staging. Pricing provides an immediate understanding of fees while cost encapsulates all related expenses. Lastly, considering home staging as an investment can significantly influence the perceived benefits it offers during the selling process. You WILL get a return on your investment, it's a matter of how much and a professional stager can help calculate that with you.
A professionally mindful-staged home sells faster and for more money, and can help homeowners recoup the initial investment, boosting profits above and beyond any current investments they may have. Therefore, when evaluating whether home staging is worth it, consider viewing it as a strategic investment for your future sale.
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