Home Staging Creates Bidding Wars
By Tori Toth
As one of the hottest times to sell your home quickly approaches, many experts suggest bidding wars could become a trend this spring. A bidding war happens in markets where prices rise as a result of the supply of available homes for sale decreases.
According to a recent report from The National Association of Realtors, the average supply of available homes for sale is 4.9 months, while in a normal market there is usually a 6 to 7 month supply. That’s proof that demand is growing faster than supply. So, how can a seller take advantage of this and potentially find themselves on the winning side of a bidding war?
Well, yes you should be priced right, but buyers don’t necessarily fall in love with a home because of price, usually it’s that feeling inside when they see that house, a house they connect to, that makes them scream yes, this is it! To create that butterflies in the stomach, lighter than air, jump for joy feeling you need to stage your home with the buyer in mind.
How do you do that?
1) You need to focus your perceptions on the buyer.
What would they want to see in their dream home? Clutter? Dirt? Dark spaces? If you have these issues in your home then guess what it’s time to stage, and you can find videos on these exact problems on our YouTube channel. Remember, when a home shows well it will get more attention and more eyeballs which means more offers and a potential war for your home.
2) To think like your potential buyer you must research who that person could be.
What age are they? Are they married? Do they have kids? Do they play golf or football? Where do they like to shop? What’s there profession? Figure out what makes them tick just by researching the people living in your own neighborhood.
3) Exploit the buyers emotions to close the deal.
Take the research you find and showcase it in your home. A buyer makes a decision based on a previous experience or emotion. Maybe you have a lot of first time homebuyers entering your neighborhood, they are couples starting out migrating from a city for more space to entertain. In this example, you need to dress up entertaining rooms to appeal to them. For instance, set the formal dining room table to show where they can offer not only good food, but fun to guests that will appreciate their hospitality and make the potential buyer feel like they belong, loved and above all pride themselves on being a hostess with the mostest.
Want real proof that home staging can start a bidding war, Stylish Stagers, Inc. recently came across a similar win-win situation with a homeowner in the West Village of Manhattan. Monica P., the owner, had been on the market for eight months without any buyer interest, she actually got so discouraged she began renting out the home. It was recommended that she try home staging and increase the price to $600,000.
We staged the entire space quickly on a Thursday, focusing on the living room and bedroom by bringing in furniture and accessories that influenced the potential buyer’s lifestyle. That same day the photographer came and took photos. An open house was then scheduled for that Sunday. By Monday, there were multiple offers and the seller was able to accept a higher offer at $645,000. Now if that’s not a win-win situation, I don’t know what is.
Tori Toth is a Certified Home Staging Expert, Regional Vice President for Real Estate Staging Association and owner of Stylish Stagers, Inc. She has been interviewed on CNN Money and was named a Professional Stager of the Year Finalist in 2012. Learn more about Tori and her Stage 2 Sell Strategy at www.toritoth.com