A Case Study: How Staging Affects Your List Price Strategy
When you analyze 30+ homes per month, the strategy becomes second nature. And while we believe quite strongly about the benefits of strategic staging, proof of the process typically comes in abstract forms. But when we get our hands on actual numbers proving ROI, things get exciting! Read through for the full stats on this fun property.
The situation…
When a dear friend and real estate superstar, Michele Ciardullo of Team Denver Homes with LIV Sotheby’s, came to us for a staging project, it started as typical as they come. The task was simple and standard fare - the homeowner was moving out and mostly needed our help staging the main floor.
This home is perfectly situated on a cul-de-sac with all the trimmings of a growing family home but between deep red fabrics, and iron accents, the home was overwhelmed by dated finishes.
Michele’s a pro and knows the area well and considered her comps. She and the homeowners agreed to list around $1,400,000 knowing the home needed a bit of work but would wait until it was complete to finalize their list price.
The analysis…
Each home we preview goes through our own internal evaluation and this one, like most, had a few concerns.
How does the sun hit and is it being obstructed from inside the home? The main living and dining room are north/west facing. Unobstructed daylight.
Is there recessed lighting? No
Which undesirable features will a buyer point out? Dated floors, cabinets, light fixtures
How does the layout cater to the likely buyer’s primary function? Likely a family which means the living spaces need to cater to larger settings and easy pass through from one space to another. Small chair vignettes will not serve any purpose for this buyer.
What shape are the floors in? Faded in some areas but pretty good shape.
Are dated finishes prominent and, if so, can we downplay or have to replace? They exist in primary functional spaces but can be balanced with the right tones and coverage.
What potential blockages are hindering buyers from fully absorbing each space? Furniture layouts currently prevent mindless wandering into the living areas which subconsciously (and literally) creates a barrier to entry. Small seating plus small rugs create a disconnect from the large rooms and high windows.
What palette will be most complimentary to the existing finishes? Neutrals, greenery with muted blues and greens to balance red and yellow undertones throughout.
What existing features can we best highlight? Openness, vaulted ceilings, fresh painted walls, the hint of modernity throughout.
Our plan…
At first glance, we knew what the buyer would see:
Limited light, dated red tones in cherry cabinets, yellowed red oak floors, iron light fixtures, small rooms and unusable spaces without any clear function or purpose. The domino effect would set in and they would not only nitpick the rest of the home but perhaps even begin to see the house as a full gut. Not even the greatest of potential can save the buyer buying at the top of their budget or one who doesn’t have the time or patience to remodel.
But there’s good news! Where a buyer sees flaws, we find the highlights - high ceilings, large living space, and a great flow for entertaining throughout. To tackle the dated features, we look to our trusty color wheel to balance the finishes. Red floors and cabinets get the love from subtle green accents and faux plants. Texture and upholstery prevent the tone on tone tsunami. Silver hardware and lighting cut into the excess warmth.
Faded red oak floors can appear yellowed and will benefit from muted blues. Though we didn’t paint this home, consider this philosophy when selecting paint colors. Opt for our favorite - Benjamin Moore Simply White that avoids any convincing undertones or go all out with a warm sage tone (for more of our favorites and how to use them check out our Resale Paint Guide).
The seemingly small living spaces had no business acting small when being flanked by vaulted ceilings and 2 story windows throughout. We encouraged the buyer’s focal point to gain new heights by using a high leg sofa for visual space. A large arched floor lamp and dose of texture combined with modern lines showcase the modern paint palette.
Upon completing the staging, Michele revised her pricing strategy and moved her listing into a new category of comps, finding new status among the neighborhood remodels. She re-evaluated the price and went live!
See the transformation and the financial impact below…
Financial Results…
After Michele’s clients invested $4,200 in strategic staging, she revised her listing price recommendation from $1,400,000 to the new listing price of $1,575,000 and upon bringing the property to market, she immediately collected multiple offers. The home is currently under contract and will sell over asking. The best part? There are plenty more stories where that came from!
FINANCIAL BREAKDOWN:
$1,400,000 original list price
$4,200 staging investment
$1,575,000+ sold price
STATS:
$175,000 Added Profit
12.5% Increase to List Price
4,066% Staging ROI