How to Keep Your Commission Value Strong with Staging by Jennie Norris, ASPM, IAHSP - Sensational Home Staging

How to Keep Your Commission Value Strong with Staging

by Jennie Norris, ASPM, IAHSP - Owner, Sensational Home Staging

As the Market Gets Hotter Does this Mean Realtors Should Earn Less? The public has a general perception that Realtors don’t work very hard for their money. Right or wrong it is just a fact. They believe that all Realtors do is stick a sign in a yard, the house sells, and the Realtor gets paid a lot of money. Of course those that work IN real estate as an agent or an affiliate know this is a fallacy, but getting sellers to understand the VALUE of working with a quality, full-service Realtor can be tough – especially as the market continues to heat up and get stronger nationwide.

When times were tough and it was hard to sell a house because of the economic conditions, sellers were more apt to realize that selling their home would take work and effort. They were more willing to pay a qualified Realtor to help them get the results they wanted. 

When a market heats up and turns into a “seller’s market” like we experienced at the start of 2013, the belief is that Sellers don’t need to do much to sell their house. Why should they pay a Realtor full commission to do something that is going to happen anyway? Not only that, but when an industry is seen as lucrative and "easy" more people jump into it creating more competition for business.  Real estate licenses are being issued at record rates nationwide as a result of the up-turn in the real estate market.

In a seller’s market, the For Sale By Owner (FSBO) market also increases because the belief is that it is not hard to sell a house when demand is high and inventory is low. Again, those that work IN the industry know the value of working with a Realtor who has knowledge, resources and credibility. 

It is the misconception where the seller wants the most for the sale of their house but does not necessarily want to pay to ensure that happens. In real estate the old adage, “You get what you pay for,” is very true when it comes to selecting someone to help you sell your house however not all sellers seem to understand this.

Realtors that want to keep their value and income strong need to figure out other ways they bring value to the sale to get listings over their competition. Staging is one of the best ways to do that. Statistically a Staged house sells faster and/or at a better price than the un-staged competition. This happens whether the market is hot or slow, whether a seller’s market or buyer’s market. Statistics that have been gathered for years prove this is true. This means that even in a hot market, a Staged house will sell for MORE than the un-staged competition – and this is money in the seller’s pocket that they would not otherwise have. 

It is all about the Staged List Price versus the List Price and the difference between the two categories could be $5,000 to $100,000 depending on your market and type of house. When a seller realizes that you bring a tool to the table that can help them net MORE from the sale of their house, they want that. A seller does not sell to get “some” of the money out of their house – they want ALL the money possible.

Realtors - instead of thinking you have to discount your commission fees in order to get listings, think about the resources you have that bring increased VALUE to the sale process. When you bring in your team member – your Stager – to work with the Seller, you are adding value to the process. When the house is Staged professionally, the house looks better than the competition or competes equally with the competition and this benefits the seller. Statistically Staged houses help a seller keep or make 5-20% more on the sale of their house. When the seller is asking you, the Realtor, to reduce your commission by 0.5% -1.5% to “earn their business” you can share that you don’t do that because you have a tool at your disposal that will help them keep or make MORE than they are asking you to discount.

When Realtors discount commissions they must work that much harder to get more listings to keep their income where it needs to be. This means their time and attention per seller is reduced as they scramble to get more listings. Rather than be that discount agent, be the agent that brings value, time and attention to the seller. Incorporate Staging as a key listing tool – and even be willing to PAY for the consultation for your seller as a benefit of listing with you. Around the country that ranges from $100-$500 for an average size house depending on where you live. It’s an investment that will not only help you get the listing over your competition, but also helps you keep your commission strong.

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If you sell real estate in the greater Denver region and want help getting your listings Staged to maximize success for you and your Seller, give Jennie a call (303)717-7918 or 888-93-STAGE.  After successfully helping over 2,700 homeowners since 2002 prepare their houses for sale, you can trust Jennie's expertise. www.SensationalHome.com

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Who Determines the Price for Staging? by Jennie Norris, ASP Master, IAHSP-Premiere, SRS, REO - Owner, Sensational Home Staging

Who Determines the Price for Staging?

Price. Cost. Money. Expense. Budget. Fee. Spend.

Who Determines the Price for Staging?

Price. Cost. Money. Expense. Budget. Fee. Spend.

Lately something that troubles me is the perception that the Seller (and/or Realtor) gets to dictate the Staging budget and comes to the Stager telling us what they want it to be.  The Stager has not even seen the house yet.  This is not the right way to think about the Staging because the person stating the price has no idea what goes into Staging a house properly to get the desired results - a sale.  Unless you run a successful Staging company, you do not know what it "should cost."

Staging is an INVESTMENT - and the person best equipped to determine the Staging price ...is the STAGER.  Just as you Realtors reading this don't like it when your Sellers tell you at what price they think they house should be listed for sale, we don't like being told what our Staging costs "should be."

My favorite clients are the ones that let me see their house, allow me to price the Staging properly and agree to get it done realizing I am pricing my services to cover my process and what I do will help their house sell.

This is not I only want to spend $$ on the Staging but I want all of this done type service.  This is a You want the results Staging will give you - so you need to pay for that service, time and talent.  No champagne tastes on a beer budget.  Beer budgets get you poor Staging or surface Staging ...neither of which actually helps the house sell.

Who knows the RE Market?  The fact is in order to get the proper price to list and sell the house, Realtors have to do market comps, see what sold, and what is listed and come up with a range that works.  When a Seller tries to tell a Realtor what their house is worth, they are basing it on information they might get online, but only a Realtor can get access to the details on MLS that gives them an educated and informed position on pricing the house.  I know it is annoying to Realtors when a Seller tries to tell them what they want - especially when it is not based on valid information.  Who knows the RE Market?  The Realtor or the homeowner who has not sold a house in 10 years?

Same is true for Staging.  A Seller might wish to spend a certain amount to prepare their house for sale, and yet they really don't know what all is involved in getting a house Staged because they are not running a Staging business.  Realtors are not either.  It is not wise for them to talk pricing with their client before they have spoken with their Stager because once that dollar amount is tossed out there it hangs in the air and the Stager is left to try to make it work.  Very few Stagers I know operate on a cookie-cutter pricing system that allows any client to figure out what the pricing will be.  We operate on a project-by-project basis and base our pricing on a number of factors.

As an example, in order for a Stager to give an accurate price to Stage a vacant house we have to look at the inventory that is needed and time it takes to get the Staging installation done.  We consider the square footage of the house and the price-point to make sure the inventory reflects the type of house being sold.  We look at who is part of the Staging process... does it take 1 person or 4 people?  A 900 square foot condo will not be priced the same as a 2,500 square foot house.

There are real estate agents that will list a house at either an inflated price to get the listing (or as some would call it buying the listing) or lower their commission to get the listing. Realtors who don't believe in that strategy to get business will quickly dismiss that type of agent as one that does not do as good of a job or have as quality a marketing plan as a full-service Realtor.

Yet the same situation that a Realtor will say produces a low quality agent and lower results (low baller, discounter) is somehow expected in the Staging world.  I am here to say - stop the hypocrisy. 

There is VALUE in working with a quality Stager - because their work ultimately reflects on YOU and your ability to get that property sold - whether you are a Seller or Realtor.

It's true that each market is different - and prices for Staging vary around the nation.  However, what is consistent is that the STAGER is the one that needs to determine the price for the Staging. 

Here are some points I am asking Realtors to consider:

1.  Please do not give a seller an idea of price - let your Stager quote any pricing.

2.  Allow the Stager to properly price the Staging and share with the Seller directly so that if your seller has questions, the Stager is the one answering them. 

3.  Any negotiations on price should be between the legal owner of the house and the Stager.

4.  Realize that at some point if the Staging cannot be done properly it should not be done at all.  Throwing some decor and a few pieces of furniture in house is not Staging.

5.  Understand that the Staging helps YOU get the results you want with selling the house.  It is a team effort, so please do not undermine the Stager's pricing.  And by the way, when the house sells at a better price, YOU make more commission!

6.  When a Seller asks you about price, simply say, I will have my Stager get in touch with you to get you an accurate price for Staging your house.

When a seller limits the ability of the Stager to do the staging properly but coming up with some arbitrary dollar amount they hope to spend, they will not be happy with the results.  When the house does not sell, the Seller rarely takes responsibility for not allocating the proper Staging budget and points fingers at the Stager and the Realtor.

As the market normalizes - this practice of dictating a budget to a Stager without even receiving a pricing proposal will hopefully stop.  The old adage of "you get what you pay for" is true.  I am not in the practice of making it work to the point where I barely net a profit on the Staging and cannot stand proudly behind my product.  I am a business owner and here to make an income and profit on my time, talent and creativity.  You want the Staging done right - you need to pay for that service.  You would not be happy if you hired a schlocky mechanic to fix your car only to have it break down two weeks later.  You will not be happy limiting the Staging by reducing the budget as the buyer experience will still not be enough to entice them to make an offer.

Remember this:  If the investment in Staging is less than a price reduction and Staging can help your house or listing be priced BETTER than the competition from the get go - don't you think it's worth doing it properly?  Staging saves or help the seller make 10-20X their Staging investment - and that is something they can take to the bank.

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For help preparing your house or listing for sale in the greater Denver region, give Jennie Norris a call at 303-717-7918.  She has Staged over 2,500 properties, and is a top educator in the Staging industry.  Go to www.SensationalHome.com for more info.

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