Property staging: Is it worth the cost?

For investors who are wondering what staging exactly entails and if hiring a professional to do the job is worth the investment, you’ve come to the right place. In this article, we take a closer look at real estate staging and if it’s the right decision for your property. 

What is home staging?

Home staging or property styling is the process of preparing a property to showcase its full potential to prospective buyers. 

To achieve this, a home stager or property stylist will highlight the key features of the property and exhibit the best utilisation of space by accentuating its positive aspects and minimising its negative ones.

The process involves decluttering, redecorating, and installing or rearranging furniture and employing other aesthetic strategies to present the home in the best possible light, helping you appeal to your target market and in turn, maximise the chance of selling quickly at the best price.

In theory, property stylists help set the stage for your potential buyers to “fall in love” with your property. Their main goal is to create a good first impression with buyers and improve your property’s appeal, which could mean more interested buyers and a higher selling price.

Is it possible to stage a home without professional help? Yes, it’s possible to stage a home yourself. However, if you don’t have the time and think it can be highly beneficial for your property, you can also work with home staging companies that take care of it for you.

Additionally, if you decide to go through a home staging company, your real estate agent may be able to offer a recommendation or a list of referrals to you (and you may even get a discount!)

How much does home staging cost in Australia?

The cost of staging a house or investment property for sale will depend on several factors, including its location, the size of your property, how long you need the property to be staged, and the extent of the staging. 

On average, property styling costs are estimated to start at around $3,000. At the upper end, it’s estimated to cost up to $8,000 to $12,000. However, remember that these are the advertised average rates online and should not be considered as the full costs. 

But don’t discount professional staging as an option only for high-end properties or as being too pricey. There are many levels of staging and many options that could work for you.

You might not even need the full furnishing. Furniture can be hired for just one room or for a whole home. Do you just need artwork or a bunch of accessories to highlight the best features of your property? That can be hired too! 

Make sure to weigh the investment against your first potential price reduction if you don’t sell. Staging will always be more cost-effective, and you can customise it to suit your needs. 

Before you work with a property stager, it’s a good idea to work with your real estate agent to determine how much staging you’ll need. 

What are the benefits of staging your property? 

While property staging costs can be hefty – there is some hard evidence available that indicates staging is generally worthwhile. Here are some benefits of staging when selling your home or investment property: 

• Staging can boost your sale price. 

 Some experts estimate that staging a property before selling can add an extra 5 to 10 per cent to the total sale price. 

 In terms of local data, Brisbane-based agency Cape Cod Residential and the Interior Design Association conducted a six-year study which revealed that the average price premium increase across the properties that were staged was $69,017, with a range of 3 per cent to 10 per cent. 

Further analysis showed that 30 per cent of homes in the study achieved a price premium of over $100,000. 

Another study conducted by LJ Hooker discovered that styling a property could boost the final sale price by between 7.5 per cent and 12.5 per cent. 

Overall, these figures are nothing to sneeze at, as these numbers could mean the difference between breaking even and turning a profit. 

•  Styling your home can help it sell faster. 

 Any property investor knows that the time a property spends on the market can make or break an investment.

 Generally, if the number of days between the listing and the sale is few, it could be considered a high-demand market or the property was underpriced and was sold at a good value. 

On one hand, the more days properties for sale spend on the market, the more likely it is that the property is considered high risk, overpriced, or otherwise not as desirable to home buyers.

When looking at the overseas data, a survey of the US-based National Association of Realtors (NAR) found that staged homes spend an average of 73 per cent less time on the market.

In Australia, it’s generally estimated that properties stay on the market between 66 and 77 days on average before selling. However, staging a home can speed up a house sale.

The general manager of Brisbane and Sydney-based Furnish & Finish Property Styling David McLean stands by this claim, explaining: “What we found is that styled properties are selling four weeks faster than properties on average.”  

• Staging a home makes it easier to market.

When selling online, a product image is important as it creates an impression on the buyer. 

This also applies when you’re selling a house. Staging a property will help to make it look better in listing photos, which can play a big role in today’s mostly-online house-buying process. 

Staging a home for sale will also be more eye-catching when shared on social media, printed on flyers and displayed in other visual marketing mediums.  

With so much competition in the market right now, it’s also easy for your property to get lost in the sea of listings across the internet. 

Staging can help you stand out from the crowd, as professionally staged homes are eye-catching and can encourage more buyers to consider your property, even before they see it in person. 

• Helps create a personal connection with the buyer. 

Buying a property (especially for those looking for a place they can call home) can be an emotional affair. That’s why it's important that home buyers fall in love with the property. Once someone has fallen in love with space, it is much easier for them to commit to buying.

Sellers can help create that emotional connection between a buyer and your home by staging it. Professional color combinations, smart layouts and unexpected pieces (e.g. fresh flowers) help the buyer develop positive feelings about the space and imagine living in it.

A recent study found that 82 per cent of surveyed potential buyers were able to visualise living in a property that was for sale thanks to staging. 

 Staging also makes a property look more "move-in ready" — meaning that the space doesn't seem to need a lot of work or repair before a new buyer could live on the premises. Staging could help give that impression, which could be an advantage for you when selling your property.

• Shows potential buyers how to use the space in the property. 

 When a room is completely empty, it can be difficult for potential buyers to envision how it might be used. That’s especially true if there’s an unusual layout or dated features in the property. 

 Staging can help buyers see the potential of a room and how to get the most value out of it. Additionally, empty rooms can look smaller than they really are; staging can help them appear larger.

 What are the drawbacks of home staging?

 While there are a lot of advantages to staging a property prior to a sale, there are also drawbacks that vendors must consider, including: 

• Staging requires a significant upfront investment.

While home staging might help you sell your house faster, it requires a significant upfront cost. And if your home ends up sitting longer on the market than anticipated, the cost of rental furniture can grow beyond your planned budget.

Keep in mind that if you are selling a rental property, you may need to have the property vacated. This means you can lose rental income when the property is being marketed. 

If you are selling your home, you may need to store your belongings somewhere else if you don’t have another place lined up yet. That means additional storage fees in addition to what you expect to pay for staging, and maybe rent payments, too.

• Property styling can be a time-consuming process. 

 Aside from the financial cost, home staging can also be a time-consuming process. While staging may be as simple as swapping out a few pieces throughout the home, in some cases, it could involve some significant renovations. 

Ideally, the time and effort will pay off in the end by getting a higher selling price and the money will be quicker to enter your pockets, but there’s no guarantee that will be the case. Like any investment, it can be a bit of a gamble.

How to choose the best home stager for your property

The best way to ensure that you will get your bang for your buck is to choose a home or property stager that is fit for your needs. 

Here are some tips on how to choose a home stager that is right for your property:

 1. Check their training

Before hiring a stager, make sure that they are certified in specifically staging houses for sale. 

While interior designers often offer staging services, they may have not been trained in staging. It’s important to note that staging a house for sale and designing for a living are two completely different things and also have two completely different processes.

Designing a house for living is all about a property owner’s taste, whereas staging for selling is about knowing and understanding the buyers and being able to translate this into a staging design. Sometimes, designers may make you overspend as they do not think from the perspective of buyers.

2. Get background information 

The next step is to check their experience and completed work. Make sure that the home staging company or property stylist you’re considering has a solid amount of experience. 

Ask questions such as how long they’ve been in business, what kind of training they have and what are their major achievements. Also, don’t choose a home stager just because they’re cheap. If you want the best results, you need to seek a staging company that has a solid track record with clients, even if that means paying higher prices.

3. Check their portfolio

Aside from getting background information, you also need to see hard proof of their previous work. Potential candidates should provide you with images of their completed work physically or via e-mail, but if they refuse, you should take that as a bright red flag being waved in your face. 

This is also a good time to ask how they are keeping up to date with staging trends and new techniques.  After all, you don’t want to hire someone with an outdated styling strategy. 

Here are some things to keep in mind when checking their portfolio: 

• Does their work show a wide variety of styles?
• Have they handled different types of properties or are they only showing you pictures from one and the same house?  
• Are the staging designs all the same or do they look personalised for each property? 
• What accessories, artwork, additional lighting and rugs were added to the property? How do they choose what goes on in a house or unit? 
• What is the overall design sense of the stager? 
• Can you see before and after pictures of properties they have styled?
• Do they have a track record of delivering within the set timeline? 

 4. See client testimonials and reviews

Check and read testimonials from previous clients your potential home stager has worked for.

You can do this easily by searching online for reviews or checking the feedback on their social media pages. That way, you can make sure they have a history of leaving customers satisfied with the final look.

5. Make sure they have insurance 

Don’t take any chances and ask for proof of liability insurance. A legitimate, experienced home stager would be fully insured in the event any damage or injury should happen during the staging process.

This is common practice in the industry, so if a stager cannot show proof of coverage, you might want to look for other options. 

Is it worth staging your property? 

To answer the question above, experts will generally have one answer: it depends on your circumstances. 

Home staging can increase the likelihood that you'll sell your property and do so quickly, and for top dollar. If you're on a tight timeline or looking to boost your profits on the sale, home staging can also be that extra push you need for your property.

It also can be beneficial if your market is particularly competitive for sellers by ensuring your home is memorable, beautiful and stands out from the rest.

However,  it’s also important to remember that each property is different and buyer preferences vary in different areas. This means that while some properties may benefit from professional staging, there are some circumstances when you’re better off DIY-ing the staging of your property. 

If you're ever unsure of whether staging is in your best interest, it’s advised to talk to an experienced real estate agent to assess your property and make recommendations based on the local market and preferences of buyers.

For more tips on selling your property, read our related article, Selling a property fast: 7 tips on how to make it happen. 

Disclaimer: The information provided is for guidance and informational purposes only and does not replace independent investment or financial advice, which we strongly recommend.  

Smart Property Investment provides Australian property investors with must-have insight, strategies and real-life experiences to help guide successful buying and selling decisions in the Australian property market.

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