Home staging is tax-deductible!
All of us in the staging business know that education is one of our principle responsibilities and greatest challenges. We know that staging creates value and results in quicker sales, but sometimes homeowners and Realtors need convincing.
There is often a perception that staging is something of a gamble. Realtors are sometimes hesitant to approach homeowners with the suggestion that they spend more money out-of-pocket for something that may or may not produce the desired result. Homeowners who have not hired a professional stager before worry that they may not recoup the cost.
This is especially true of those needing to stage a vacant house.
They think: what if I spend this money and don't see a return on my investment?
That is one reason why the home manager model works so well. Because we don't charge monthly fees to the homeowner when they agree to have their house staged using a home manager.
This situation is completely win-win.
At Showhomes we always point out that the value of staging lies in several key factors. Staged properties sell faster. Faster sales result in higher commissions for agents and reduced carrying costs for homeowners.
We have a long list of success stories to prove it, but when I sit down with a homeowner or Realtor with my proposal of services, well, those benefits can seem awfully intangible.
One of my standard selling points has always been this fact: staging always costs less than a price reduction. Why not pay $5,000 for staging and get an offer close to the price you want? Isn't that better than cutting the price by $20,000 - $30,000?
Well, if you put it that way...
Even so, some people are reluctant.
However, I think that a tax deduction might be seen as a more tangible benefit than those that come under the umbrella of 'reduced carrying costs'. I think I am going to add that to my Showhomes spiel.
In question form, no less: "Did you know that home staging is tax deductible?"
"Why no", they will say - captivated and intrigued, wanting to know more....
"Yes. Home staging is an investment. A legitimate, tax-deductible selling expense."
I'm not a tax expert or a CPA, so I will recommend that they speak to some such professional about the particulars, but I think it is important to inform homeowners and Realtors alike of that benefit/option.
Home staging services paid to a professional can be considered an advertising expense. Staging is still such a new concept to many. I am sure this fact is not widely known.
Tuesday, July 29, 2008
Tuesday, July 22, 2008
How to Sell a Spec Home
Showhomes Middle Tennessee helped sell a $1.4 million dollar spec home for Ernst Builders on Old Hickory Lake.
Ernst Builders, one of Nashville's premier builders, has been busy building out Fairvue Plantation north of Nashville. With the slowing real estate market, there is currently a 3 year supply of spec homes in the upscale lake front neighborhood. Wanting to get an advantage on their competition, Ernst consulted with Showhomes for long-term whole house staging and model home services.
The first spec home Ernst wanted to sell was a gorgeous lake front home that has been sitting stagnant on the market for over a year. Despite beautiful views and top-notch details, the home hadn't sold. The few buyers that came in for open houses had so much inventory to look at, the home just didn't stick in their minds.
Showhomes fully staged the home with brand new high-end furniture, accessories and artwork delivered direct from the manufacturer. Once it was staged, the home sold for near list price in less than 30 days!
Showhomes Middle Tennessee home stager Courtney Edwards had this to say, "We felt that if we could control the traffic flow of the home and get people to stop long enough to visualize what it would be like to live in this great space, it would sell and we are proud that it did!"
To view a real estate show featuring this home, click here.
Ernst Builders, one of Nashville's premier builders, has been busy building out Fairvue Plantation north of Nashville. With the slowing real estate market, there is currently a 3 year supply of spec homes in the upscale lake front neighborhood. Wanting to get an advantage on their competition, Ernst consulted with Showhomes for long-term whole house staging and model home services.
The first spec home Ernst wanted to sell was a gorgeous lake front home that has been sitting stagnant on the market for over a year. Despite beautiful views and top-notch details, the home hadn't sold. The few buyers that came in for open houses had so much inventory to look at, the home just didn't stick in their minds.
Showhomes fully staged the home with brand new high-end furniture, accessories and artwork delivered direct from the manufacturer. Once it was staged, the home sold for near list price in less than 30 days!
Showhomes Middle Tennessee home stager Courtney Edwards had this to say, "We felt that if we could control the traffic flow of the home and get people to stop long enough to visualize what it would be like to live in this great space, it would sell and we are proud that it did!"
To view a real estate show featuring this home, click here.
Tuesday, July 15, 2008
Black Holes
I wanted to take this opportunity to re-blog an excellent post from my good friend Thom Scott, Showhomes VP of Operations.
Are Vacant Homes Black Holes That Suck the Life Out of their Own Sales?
by Thom Scott
Recently I was asked by Design Talk to write a column on a question they are frequenly asked.
The question comes from sellers concerned abut selling their vacant houses and wondering if thier property would have a better chance of selling if it had furnishings in it.
Well I replied saying... the fact that most Realtors dread handling a listing that is vacant says a lot, for they know that an empty house is typically a harder sell to make than one that is fully furnished. But why are vacant houses more difficult to sell then furnished homes? Let’s take look at a few reasons…
First, an empty room will always feel smaller than a furnished room. When potential buyers tour a property, they are trying to “map” their lives into the home’s space. Buyers are evaluating the house to see if it will work for them. To help them understand whether a house will work or not, buyers will relate the size and fit of the seller’s furnishing to their own. Vacant homes make this basic part of the buying process more difficult.
Next, for many buyers a big part of knowing a house will be “right” is the emotional connection/vibe they get from it. Houses that are vacant often give off a hollow desperate loneliness. Because it is harder to get the welcome feeling of “home” from a vacant property, the emptiness will actually make it more difficult for buyers to emotionally attach to it.
You may have noticed that Realtors, about to show a furnished home, first turn on every light and lamp in it before the buyer gets there to tour it. (And when I say “every light,” I mean every light.) They turn on the lights because they know that a well lit home sparkles, shines, and adds a warmth and glow that buyers find appealing.
Unfortunately, a vacant house will quite often lack or have no lights at all in some rooms. This bad lighting makes it harder for the buyer to see what they are buying, and ends up making the house show as dreary, dark and dull. A big reason why vacant houses are harder to sell is that there naturally is not much to look at, so what there is to see gets scrutinized.
While buyers do want to spend their hard earned money to buy a home, they are not too interested in spending money on making repairs and fixing the problems the seller chose to leave behind. Having nothing in a house makes it very easy for the buyer to focus their attention on even the smallest of flaws and then negatively fixate on having to spend money to make repairs.
Think about it… a wood, tile and linoleum floor will show more dirt, scratches and mars; the smallest carpet stains will clearly be visible; and naked walls will noticeably reveal all the holes, nicks and scuffs that are present.
Because the home is unoccupied, the exterior maintenance will often go undone. In the summer, lawns will either overgrow or burn out and weeds will take over gardens. In northern markets, walks and drives will be hidden if not shoveled after a winter snow fall. In general an unkempt exterior will kill any curb appeal and immediately start to diminish the buyer’s hopes as to what to expect on the interior.
For all these reasons, a vacant house will be more difficult to sell then a furnished home. A buyer's market will only make it even more difficult for a seller to sell for there are more than enough homes to choose from. Therefore, it is easy to understand how a buyer will be attracted to a home that they spatially understand; get a good feeling of “home” from; is bright, warm and inviting; and shows no glaring signs for maintenance or repair.
Oh… and just because a home is furnished does not make it an automatically and perfectly appealing home to buy… for even a furnished home still should be light, bright, clean, maintained and uncluttered.
Great post Thom!
I'd like to add that said furniture should be current and match the style of the house. I've seen many an attempt at staging that included furmishings that were decades old (but not antique or retro in the good way) or new, but an odd hodgepodge of many different designs and periods, which in my opinion can be worse than empty rooms!
And that's my two cents.
Are Vacant Homes Black Holes That Suck the Life Out of their Own Sales?
by Thom Scott
Recently I was asked by Design Talk to write a column on a question they are frequenly asked.
The question comes from sellers concerned abut selling their vacant houses and wondering if thier property would have a better chance of selling if it had furnishings in it.
Well I replied saying... the fact that most Realtors dread handling a listing that is vacant says a lot, for they know that an empty house is typically a harder sell to make than one that is fully furnished. But why are vacant houses more difficult to sell then furnished homes? Let’s take look at a few reasons…
First, an empty room will always feel smaller than a furnished room. When potential buyers tour a property, they are trying to “map” their lives into the home’s space. Buyers are evaluating the house to see if it will work for them. To help them understand whether a house will work or not, buyers will relate the size and fit of the seller’s furnishing to their own. Vacant homes make this basic part of the buying process more difficult.
Next, for many buyers a big part of knowing a house will be “right” is the emotional connection/vibe they get from it. Houses that are vacant often give off a hollow desperate loneliness. Because it is harder to get the welcome feeling of “home” from a vacant property, the emptiness will actually make it more difficult for buyers to emotionally attach to it.
You may have noticed that Realtors, about to show a furnished home, first turn on every light and lamp in it before the buyer gets there to tour it. (And when I say “every light,” I mean every light.) They turn on the lights because they know that a well lit home sparkles, shines, and adds a warmth and glow that buyers find appealing.
Unfortunately, a vacant house will quite often lack or have no lights at all in some rooms. This bad lighting makes it harder for the buyer to see what they are buying, and ends up making the house show as dreary, dark and dull. A big reason why vacant houses are harder to sell is that there naturally is not much to look at, so what there is to see gets scrutinized.
While buyers do want to spend their hard earned money to buy a home, they are not too interested in spending money on making repairs and fixing the problems the seller chose to leave behind. Having nothing in a house makes it very easy for the buyer to focus their attention on even the smallest of flaws and then negatively fixate on having to spend money to make repairs.
Think about it… a wood, tile and linoleum floor will show more dirt, scratches and mars; the smallest carpet stains will clearly be visible; and naked walls will noticeably reveal all the holes, nicks and scuffs that are present.
Because the home is unoccupied, the exterior maintenance will often go undone. In the summer, lawns will either overgrow or burn out and weeds will take over gardens. In northern markets, walks and drives will be hidden if not shoveled after a winter snow fall. In general an unkempt exterior will kill any curb appeal and immediately start to diminish the buyer’s hopes as to what to expect on the interior.
For all these reasons, a vacant house will be more difficult to sell then a furnished home. A buyer's market will only make it even more difficult for a seller to sell for there are more than enough homes to choose from. Therefore, it is easy to understand how a buyer will be attracted to a home that they spatially understand; get a good feeling of “home” from; is bright, warm and inviting; and shows no glaring signs for maintenance or repair.
Oh… and just because a home is furnished does not make it an automatically and perfectly appealing home to buy… for even a furnished home still should be light, bright, clean, maintained and uncluttered.
Great post Thom!
I'd like to add that said furniture should be current and match the style of the house. I've seen many an attempt at staging that included furmishings that were decades old (but not antique or retro in the good way) or new, but an odd hodgepodge of many different designs and periods, which in my opinion can be worse than empty rooms!
And that's my two cents.
Wednesday, July 9, 2008
RE/MAX Tells Agents to Stage
RE/MAX made an announcement to all their agents at their national convention: if they weren't staging vacant houses, they weren't doing their job. Dave Lininger told the agents to cash in 401 K's to fund staging if they had to, but get it done.
This news came from Judy Pokorny of Toledo, OH. Judy is a Remax agent and Toledo is one of the slowest real estate markets in the country. She knows what Remax is now pushing - selling a home vacant is a guaranteed way to leave money on the table.
The best thing about Showhomes is this: our staging services are free to Realtors and affordable for homeowners. This makes our programs an excellent choice for cash-strapped sellers and REOs.
This news came from Judy Pokorny of Toledo, OH. Judy is a Remax agent and Toledo is one of the slowest real estate markets in the country. She knows what Remax is now pushing - selling a home vacant is a guaranteed way to leave money on the table.
The best thing about Showhomes is this: our staging services are free to Realtors and affordable for homeowners. This makes our programs an excellent choice for cash-strapped sellers and REOs.
Wednesday, July 2, 2008
Showhomes E-Book
Showhomes released a new e-book for franchise sales:
Take a look and let us know what you think. The new e-book explains about Showhomes and gives lots of detail on our rapidly growing business. Showhomes is a mix of pure staging and using live in Home Managers to stage and furnish a home so that it sells faster and for a higher price.
Take a look and let us know what you think. The new e-book explains about Showhomes and gives lots of detail on our rapidly growing business. Showhomes is a mix of pure staging and using live in Home Managers to stage and furnish a home so that it sells faster and for a higher price.
Showhomes is currently in 25 markets in 19 states and growing rapidly.
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