For fix and flip and long-term investors, an investment property’s holding time can be the most stressful experience of the entire project. Once renovations are complete and the property is ready for listing, your business decisions and beliefs about consumers are tested.
Additionally, with costs like utility bills, HOA fees, and loan interest rates burning a hole in your pocket, investment holding periods can quickly become just as financially burdensome for investors. That is why many investors consider staging a property to enhance appeal and push buyers over the finish line.
Additionally, with costs like utility bills, HOA fees, and loan interest rates burning a hole in your pocket, investment holding periods can quickly become just as financially burdensome for investors. That is why many investors consider staging a property to enhance appeal and push buyers over the finish line.
What is Staging a Home?
Home staging is a tactical approach real estate professionals use to “set the stage” for potential buyers. Property owners go through the home from a consumer’s perspective and visualize how target demographics would prepare their home once they move in. Then, they bring that vision to life for potential homebuyers.
Staging an empty house can create an emotional response in prospective buyers. By strategically prepping walls, moving furniture, decorating, and creating a liveable environment, homebuyers are more likely to build a connection with a property and visualize themselves and their family living in that home.
Staging an empty house can create an emotional response in prospective buyers. By strategically prepping walls, moving furniture, decorating, and creating a liveable environment, homebuyers are more likely to build a connection with a property and visualize themselves and their family living in that home.
Timelines & Home Staging Costs
The best time to stage your property is before listing it on the MLS, as your property is never more valuable than its first day on the market. A staged home can present more powerful marketing photos for online listings.
Once renovations are completed, staging a property can take as little as 1-2 days, depending on the size of the home. However, it’s important to plan ahead when it comes to furniture rentals, which can take up to two weeks to receive.
On average, staging a property costs around $400, or $600 from professional home staging services. These prices are subject to change depending on the size of the home and target demographics.
Once renovations are completed, staging a property can take as little as 1-2 days, depending on the size of the home. However, it’s important to plan ahead when it comes to furniture rentals, which can take up to two weeks to receive.
On average, staging a property costs around $400, or $600 from professional home staging services. These prices are subject to change depending on the size of the home and target demographics.
Home Staging Benefits
With the additional costs, is staging a property worth it? In short, yes. Outside of tugging at the emotional chords of potential buyers, home staging is one of the only pre-sale marketing items you can do that adds value to a property.
Let’s look at some of the biggest home staging benefits:
Increased Sales Price: According to 50% of home real estate agents, staging a property on the market can increase its sales price by between one and 10 percent.
Increased Appraisal Value: By decluttering a home and increasing market interest through staging, an appraiser’s perception of a property’s desirability and potential can result in higher appraisal values.
Less Holding Times: According to Realtor.com, staged homes sell an average of 88% faster than vacant and empty properties.
High Return on Investment: According to the National Association of Realtors, for every $100 invested in staging, the potential return is $400.
Let’s look at some of the biggest home staging benefits:
Increased Sales Price: According to 50% of home real estate agents, staging a property on the market can increase its sales price by between one and 10 percent.
Increased Appraisal Value: By decluttering a home and increasing market interest through staging, an appraiser’s perception of a property’s desirability and potential can result in higher appraisal values.
Less Holding Times: According to Realtor.com, staged homes sell an average of 88% faster than vacant and empty properties.
High Return on Investment: According to the National Association of Realtors, for every $100 invested in staging, the potential return is $400.
How to Stage a House for Sale
How do you stage a house that appeals to a wide range of homebuyers? In many cases, the hardest aspect of staging a property is removing personal preferences. To successfully and strategically stage a home, you must work from the mindset of a buyer.
Here are a few tips for getting started with staging:
Keep Décor Neutral: Now is not the time to add personality to a room. Shocking colors or pattern designs can alienate a sizable portion of your target market. Stick to neutral colors, like whites, blacks, grays, and beiges.
Remove Personal Items: Speaking of personality and creating a lack thereof, personal items must be removed from a property, including pictures, plaques., certifications, etc.
Avoid Divisive Décor: When staging a home or selling a property in general, decorations or mementos that can stir friction and hesitancy from a potential buyer must be removed. Get rid of any religious and political items or any other items that can be offensive.
Keep it Simple: Too much furniture or decorations can suffocate a home shopper. It also minimizes the size and potential of a room.
Add Greenery: With sustainability remaining a top priority for today’s homebuyers, adding plants can breathe life and color into a space while tapping into your consumer’s wants.
Maximize Natural Lighting: Natural light breathes life and spaciousness into a room. You can enhance the overall appeal of a room (both in person and through online images) by keeping windows unobstructed and designing rooms with as much natural lighting as possible.
Here are a few tips for getting started with staging:
Keep Décor Neutral: Now is not the time to add personality to a room. Shocking colors or pattern designs can alienate a sizable portion of your target market. Stick to neutral colors, like whites, blacks, grays, and beiges.
Remove Personal Items: Speaking of personality and creating a lack thereof, personal items must be removed from a property, including pictures, plaques., certifications, etc.
Avoid Divisive Décor: When staging a home or selling a property in general, decorations or mementos that can stir friction and hesitancy from a potential buyer must be removed. Get rid of any religious and political items or any other items that can be offensive.
Keep it Simple: Too much furniture or decorations can suffocate a home shopper. It also minimizes the size and potential of a room.
Add Greenery: With sustainability remaining a top priority for today’s homebuyers, adding plants can breathe life and color into a space while tapping into your consumer’s wants.
Maximize Natural Lighting: Natural light breathes life and spaciousness into a room. You can enhance the overall appeal of a room (both in person and through online images) by keeping windows unobstructed and designing rooms with as much natural lighting as possible.
Virtually Staging Properties
With 90% of consumers starting their home search online, virtually staging properties has become as (if not more) important than staging a home for walkthroughs. And, with some of the latest innovative house-flipping software tools, virtual staging can save you significantly on costs and time.
Home design and marketplace platforms, like Houzz, act as Pinterest for home flippers and stagers–enabling users to create realistic 3D designs and photorealistic images of fully furnished rooms for online listings.
Stagers can:
Home design and marketplace platforms, like Houzz, act as Pinterest for home flippers and stagers–enabling users to create realistic 3D designs and photorealistic images of fully furnished rooms for online listings.
Stagers can:
- Add appliances, fixtures, greenery, and furniture to rooms
- Apply backsplashes, rugs, curtains, or carpets
- Add paints to interior walls and adjust lighting
Staging a Rental Property
While rental staging may not garner the same upfront returns as staging a property for sale, it is still a viable and worthwhile investment for long-term investors. By strategically staging a rental property, you help renters realize the full potential of a unit and its rooms. Can I fit a bed here? Will a sofa fit here? Common questions renters have that may cause hesitation can be answered through staging.
Reducing Investment Holding Times with the Right Financial Approach
Whether renovating, renting, or selling a property, adequate financing is the backbone of your overall investment success. CIVIC offers the most reliable short- and long-term financing options for investors looking to maximize investment returns.
Our Fix and Flip financing provides:
Our Fix and Flip financing provides:
- Flexible short-term options
- Coverage of up to 100% of renovation expenses
- Interest-only payments with 12 to 18-month terms
- Extensive rehab financing for larger fix and flip projects
CIVICs Single Rental loan and Rental Portfolio loan options provide:
Our team of real estate experts provides the most simple, honest, and reliable approach to financing, helping our clients secure, rehabilitate, and sell or rent their properties with the right funding fast.
CLICK HERE to schedule a FREE consultation with a CIVIC team member today!
- Competitive 30-year term loan options
- Maximum rental flexibility
- SFR, warrantable condos, townhomes, PUD, and 2-4 units eligibility
- DSCR blanket loan with no W2s, paystubs, or tax returns required
Our team of real estate experts provides the most simple, honest, and reliable approach to financing, helping our clients secure, rehabilitate, and sell or rent their properties with the right funding fast.
CLICK HERE to schedule a FREE consultation with a CIVIC team member today!
