Who Pays for Home Staging?
Who pays for home staging? It’s a good question and one asked by both Realtors and home sellers. Here we suggest five options.
Option 1 – Home Seller Pays
Home sellers who understand the value of home staging will gladly make the investment. For the past decade, several studies related to home staging’s return on investment (ROI) have been conducted and the results are consistently positive. HomeGain’s 2009 survey shows a rate of return of 583% on an investment as small as $500. Almost ten years later, Realtors surveyed indicated that home staging increases the dollar amount that buyers are willing to pay for a home by between 1 and 20%. Stats like these consistently prove that home sellers have the most to gain from an investment in home staging.
Option 2 – Real Estate Agent Pays
Another option is for the Realtor to pay for the initial 2-hour consultation. Let your clients know that this gift should bring a faster sale and a higher sale price. (Any additional consulting time is the home seller’s choice and responsibility.)
Option 3 – Real Estate Agent Reimburses Home Seller
At Closing:
Here’s an option that combines the best of these first two approaches. The home seller makes the initial home staging investment and the Realtor reimburses an agreed upon amount at closing. For example, the client is reimbursed at the closing table for the initial 2-hour consultation or a fixed dollar amount. Any additional investment in staging time and services is made at the home seller’s sole discretion.
The option to reimburse at closing offers the lowest financial risk, protecting the Realtor in the case clients take the home off the market, do not implement the recommended changes, or insist on listing the home at a price that is too high.
After the Consultation:
Following the same process as above, reimbursement can also be made directly to the home seller after the consultation if the Realtor prefers not to wait until closing.
Option 4 – 50/50 Split
Split the cost of the initial home staging consultation, or a defined cap, equally between the home owner and the Realtor. This shows the Realtor’s support for home staging while still ensuring that the home seller has “skin in the game”. (Any additional consulting time over the “cap” is entirely the home seller’s choice and responsibility.)
Option 5 – Float a Free Loan…with a Concierge Service
Many real estate companies offer concierge services, or use a company such as Zoom Casa, to defer 100% of the cost of staging until after the sale. (This option is ideal for clients who require extensive work on the home. It is often unnecessary for owner-occupied homes being staged with what they already have.)
The Choice is Yours…
Each client is unique and you, the Realtor, should decide which option works best in a particular circumstance. No matter who pays, the goal is to help all clients sell quickly and for the best price by consistently incorporating staging into any marketing plan.
Before Agent-Paid Home Staging Consultation
After Agent-Paid Home Staging Consultation
Eastchester, NY, home sells in first listing week with multiple offers for 25k over asking price.
