You staged the house, you had stunning photos taken, your listing is getting lots of views, you have steady showings, but for some reason you are not in contract yet when the staging term nears expiration. Should you renew or let the staging be removed?
First, I want you to know that I am writing this from the heart, with real life experience in your shoes. Quick back story. It was 2017, I had just finished a big flip. We had spent over $130k to update a beautiful country home. I was excited to have it staged! This was before I had a staging business, so I hired a local interior designer who did staging on the side. (This experience is a whole story in itself, about how I fell in love with staging.)
We had a buyer in contract pretty quick, so when the initial one-month term was up, I let the designer remove the staging. An extension was offered in my initial contract, but I don't recall the designer trying to educate me the way I want to educate you here.
Lo and behold, our Bay Area city slicker buyer backed out. Another story all together but be careful selling country property to city people! It was December when the house went back on the market, with no leaves on the trees and no furniture and decor in the house. It was painful!
So, here's a few facts I wish I had known then. Yes, the contract renewal is an extra cost. Yes, you should plan for it. Yes, you'll already had the stunning photos. Yes, some people might be able to imagine the way it would look with furniture. But...
No, it will not feel as good to walk into empty as it does when it is staged. No, it will not stir the buyers' emotions the way it does when it is staged. No, it will not be as easy for buyers to overlook flaws in your house. No, the appraiser will not be as impressed as if it were staged.
The best way to ensure that you don't experience what I did is to keep your staging in place until your appraisal and inspection are complete, all contingencies have been signed off, and your listing agent feels confident in the buyer's ability to close. With that plan, you will have peace of mind knowing that if you need to go back on the market, you will still be Ready to Show!
Now you know why it's important, are you wondering why you should be expected to pay more for an extension? After all, the Stager and movers don't have to do any more work. You're not alone, so let me try to explain. A staging company has to buy all the furniture and decor that will be used to stage your house. Every month that furniture should be earning money to pay for its purchase and eventually its replacement. If it isn't earning money at your house, it could and should be earning money in another house.
The amount you will be charged to extend or renew your staging contract will be far less than the initial staging investment, because there is no labor involved. The renewal charge will be covering the use of the inventory only. That inventory is a valuable resource to your Stager. We often find ourselves wishing we had a piece available, but it is tied up in a job, so we must buy another. We maintain an inventory fund for these situations and for replacing tired furniture and keeping up with current designs.
I hope this helps you understand the value and expense of renewing your staging contract, and when it may be needed. Our current contracts start with the first 8 weeks included and then extensions are available for 40% monthly or 15% weekly. So, if your initial staging investment is $3600 for 8 weeks, the renewal charge will be $1440 monthly or $540 weekly.
Don't worry, staged homes usually sell quickly when they are well prepared and priced properly. So get yourself a great listing agent who knows your market well, do all the prep needed and get ready for a quick sale!
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