HOME STAGING CALCULATION FORMULA
How much money could you save by staging before listing? Here is a simple formula and breakdown.
Mortgage + expenses (utilities etc.) = Monthly expenses
Monthly expenses X 3 months (avg. time un-staged) = Cost to list house un-staged. (Don't forget to factor in possible 1% price reductions after 30 days on the market)
Savings: Expenses x 2 months (avg. time on market reduced) – Staging Estimate = Savings if you stage your house first! (Don't forget to factor in the possibility of gaining 1-7% more over listing price.)
Example: Setting the scene: Let's say a sellers house is being listed at $325,000.00 and their mortgage is $1,800.00, their expenses such as HOA and utilities etc. are $2,200.00, their total carrying cost would be $4,000.00 per month.
Seller decides not to stage and take a chance: National Statistics show properties could sit on the market on average 3 months when left unstaged. The formula would look like this: ($4,000.00 per month) X 3 months = $12,000.00 in total in carrying costs for a unstaged property.
Hypothetically, if the same seller staged before listing the formula would look like this: ($4,000.00 per month) X 1 month = $4,000.00 in total in carrying costs of a staged property. That is a $8,000.00 savings.
National Statistics also show a house would sit on the market for 1 month or less after being staged.
For you math lovers, let's dig deeper: The Seller who paid $12,000.00 in carrying costs also had two price reductions (1% of the listing price every 30 days on the market) which wiped an additional $6,500.00 off the table. The sellers total has now grown to a $18,500.00 expense from not staging first!
Now let's talk staging expense: Let's say the stager provided a estimate for a vacant home at $1,800.00 (or that same amount was needed for updates on a occupied home), the sellers total out of pocket expense would have only been $5,800 if they staged first! How? Formula: $4,000 per month (carrying cost ) + staging fee of $1,800.00 = $5,800. Thats a potential $12,700.00 savings from staging first!
Statistics: But wait! Let's not forget about the another national staging statistic that shows home staging can potentially bring in 1%-7% more money than a unstaged home. For the seller who staged first not only sold under 30 days but also sold for 1% more than listing price. This is a gain of $3,250.00. That gain paid for the staging and still left money on the table! Total sale of $328,250.00, no additional expenses, no stress!
Remember, the cost of staging is always less the first price reduction as well as extended carrying costs!
These numbers are all relative to the individual’s mortgage and expenses. This formula helps determine how much you could save by staging before placing it on the market.