Staging in a changing real estate market
Posted September 6, 2022 in Special Features
We keep seeing headlines about a changing real estate market, but what does it mean? For one, a better way of phrasing it would be that everyday life is once again changing the market. The real estate market rarely changes on its own, and the see-sawing economy, the continuing debate about returning to the office, the end of covid restrictions, and changing interest rates have all impacted the real estate market over the last few months.
According to the National Association of REALTORS® “In July existing-home sales fell for the sixth consecutive month to a seasonally adjusted annual rate of 4.81 million. Sales were down 5.9% from June and 20.2% from one year ago.” It’s important to put these numbers in context – we are coming off of two years of record-breaking sales figures and price appreciation, and in many markets, activity is settling back in at pre-pandemic levels. Here in Clark County, the total market time increased to 24 days – an increase of eight days over June, but still an extremely quick moving market when looking historically. A side effect of this trend is that buyers are able to be a bit choosier now than at this time a year ago, meaning that sellers may have to return to some tried and true strategies to win a buyer’s heart.
Staging is a tried and trued way of increasing the appeal – and sale price – of a home. “In a 2021 survey by the Real Estate Staging Association(RESA)of 4,600 properties, homes that were staged sold on average $40,000 over list price. They also sold an average of nine days faster than unstaged homes—even in a hot housing market. RESA found that investing 1.3% in staging results in an average of 7.1% over-list returns.” (RESA, Joanna Fraley). When done correctly, staging enhances and highlights architectural features, aesthetics, and the natural environment in which the home is located. Moreover, staging allows the buyers to imagine what their home life will be like and how they will make a house their dream home. A home that is not staged is seen for what it is – four walls and a roof – not what it can become. Planting the seeds imagination and future potential leads to a higher final sales price and changes the perception of a home in the eyes of a buyer. Many REALTORS® across the country recommend professional home staging as a way to achieve their clients’ goals. Staged homes also get more attention on social media, which can lead to more offers and a better outcome for the seller.
While still at historic lows, we have seen increased inventory in our region, staging is just one more tool to help sellers get a competitive edge, and to help a buyer find their dream home.
Government Affairs Director
Association of REALTORS®