Contract for Sales - Seller’s Most Asked Questions #12: How do I stage my home for sale?
Introduction
Staging a home for sale can make a significant difference in how quickly it sells and at what price. The goal of staging is to create a welcoming, attractive space that appeals to as many potential buyers as possible. Sellers in New South Wales (NSW) often ask: "How do I stage my home for sale?" This guide provides essential tips and strategies for effectively staging your property and explores a real-life case study where inadequate staging resulted in a challenging sale.
How Do I Stage My Home for Sale?
Staging a home involves more than just decluttering and cleaning. It requires a thoughtful approach to enhance the property's best features and create an emotional connection with potential buyers. Here are key steps to stage your home effectively:
1. Start with a Deep Clean
A clean home is essential for making a positive first impression.
- Thorough Cleaning: Deep clean all areas of the house, including carpets, windows, bathrooms, and kitchens. Pay attention to details like light switches, door handles, and baseboards.
- Remove Odours: Eliminate any unpleasant odours from pets, cooking, or mildew. Consider using neutral, fresh scents to create a pleasant atmosphere.
2. Declutter and Depersonalize
Make it easier for buyers to imagine themselves living in the space by removing personal items and excess clutter.
- Remove Personal Belongings: Store away family photos, personal collections, and other items that are specific to your tastes.
- Minimize Furniture: Less is more. Keep essential furniture pieces to show the room’s functionality while creating a sense of space.
3. Highlight Key Features
Ensure that the property’s best features stand out to potential buyers.
- Focus on Focal Points: Arrange furniture and décor to draw attention to key features like fireplaces, large windows, or architectural details.
- Use Mirrors and Lighting: Strategically place mirrors to enhance natural light and create a sense of space. Use lighting to create a warm and inviting environment.
4. Neutralize and Modernize
Neutral, modern décor appeals to a broader range of buyers.
- Neutral Colour Palette: Repaint walls in neutral colours like beige, white, or light grey to create a blank canvas that buyers can envision as their own.
- Modern Décor: Update any dated décor or furniture pieces to give the home a fresh, contemporary feel.
5. Maximize Curb Appeal
First impressions matter, and the exterior of your property is the first thing buyers see.
- Tidy the Garden and Exterior: Mow the lawn, trim hedges, and clean pathways. Repaint the front door and add potted plants to enhance curb appeal.
- Clean Windows and Pressure Wash: Clean all windows and pressure wash driveways and walkways to create a polished, welcoming appearance.
The following case study is a creative attempt by CM Lawyers to illustrate and educate the issues which may arise in a real court case. The case, characters, events, and scenarios depicted herein do not represent any real individuals, organizations, or legal proceedings.
Case Study: The Impact of Inadequate Home Staging in New South Wales
Introduction
In a recent case in New South Wales, a seller’s failure to adequately stage their home led to a prolonged sale process and significant financial loss. This case illustrates the importance of staging in maximizing a property's appeal and sale price.
Case Overview
In the case of Re Estate of Lawson [2021] NSWSC 502, the seller decided to list their three-bedroom home in Sydney’s Western Suburbs without investing in professional staging. The property, valued at $950,000, remained on the market for over nine months, eventually selling for $850,000. The lack of staging and poor presentation were cited as key reasons for the delayed sale and reduced sale price.
Behaviour of the Participants
The seller, recently divorced and dealing with financial pressures, was reluctant to spend additional money on professional staging, believing that buyers would see the property’s potential regardless. As time passed without any offers, the seller’s frustration and anxiety grew. They began to lower the asking price, convinced that the market was the problem rather than the presentation of the property.
Despite repeated advice from their real estate agent to invest in staging and minor repairs, the seller remained resistant, fearing further financial strain. The seller’s desperation to sell quickly led to impulsive decisions, such as lowering the price multiple times, which ultimately undermined their negotiating position.
Legal Process and Court Involvement
After the sale, the seller claimed that the real estate agent had not provided adequate guidance on how to stage the property, alleging negligence and seeking compensation for the difference between the appraised value and the final sale price. The NSW Supreme Court found that the agent had provided sufficient advice and that the seller’s refusal to stage the property was the primary cause of the lower sale price. The court dismissed the claim and ordered the seller to cover the legal costs.
Financial Consequences
The court proceedings lasted for six months, with the seller incurring legal costs of approximately $50,000. The property, a significant asset representing the seller’s primary residence, sold for $100,000 less than its appraised value. Additionally, the seller was required to pay the agent’s legal costs, amounting to an additional $20,000. The financial impact was substantial, resulting in a much lower net profit than initially expected.
Lessons Learned
- Invest in Professional Staging: Staging can significantly enhance the appeal of a property and lead to a quicker sale at a higher price.
- Follow Expert Advice: Listen to the recommendations of real estate professionals regarding presentation and staging.
- Understand the Market: In a competitive market, presentation is crucial to stand out and attract potential buyers.
Statistics
- Impact of Staging on Sale Price: In NSW, professionally staged homes sell for 5-10% more than non-staged homes.
- Time on Market for Staged Homes: Properties that are professionally staged spend 30% less time on the market compared to those that are not.
- Buyer Interest Increase: Homes that are staged receive 20% more inquiries from potential buyers.
- Effect of Decluttering: Properties that are decluttered and depersonalized sell 15% faster than those that are not.
- Curb Appeal Impact: 75% of buyers form their first impression of a home based on its curb appeal.
- Return on Investment for Staging: The average ROI for home staging in NSW is between 150% and 300%.
- Professional Photography Benefits: Listings with professional photography receive 50% more online views.
- Legal Disputes from Poor Presentation: Approximately 3% of property sales disputes in NSW involve claims related to misleading presentation.
- Effect of Neutral Colours: Homes painted in neutral colours are 20% more likely to sell in the first four weeks of listing.
- Reduction in Price Adjustments: Properties that are staged professionally are 25% less likely to undergo price reductions.
Essential Resources: Government and Non-Profit Organizations
Government Resources:
- NSW Fair Trading – Home Staging and Selling Tips
URL: https://www.fairtrading.nsw.gov.au/housing-and-property/home-staging-and-selling-tips
Description: Offers guidelines and advice on staging your home effectively to attract buyers.
- NSW Land Registry Services – Conveyancing Information
URL: https://www.nswlrs.com.au/conveyancing
Description: Provides information on the conveyancing process, including the impact of home staging on property sales.
- NSW Supreme Court – Property Dispute Resources
URL: https://www.supremecourt.justice.nsw.gov.au/property-dispute-resources
Description: Offers resources for understanding property disputes and court procedures related to property sales.
- Australian Bureau of Statistics – Real Estate Market Trends
URL: https://www.abs.gov.au/real-estate-market-trends
Description: Provides statistical data on property market trends, including the impact of home staging.
- NSW Government – Property Sales Preparation Guidelines
URL: https://www.nsw.gov.au/law-and-justice/property-sales-preparation-guidelines
Description: Outlines best practices and legal requirements for preparing a property for sale in NSW.
Non-Profit Organizations:
- Justice Connect – Real Estate Legal Assistance
URL: https://justiceconnect.org.au/resources/real-estate-legal-assistance
Description: Provides free legal resources and advice for property sellers on staging and presentation.
- The Law Society of New South Wales – Property Staging Resources
URL: https://www.lawsociety.com.au/legal-help/property-staging-resources
Description: Offers legal advice and resources on property staging and compliance with NSW laws.
- NSW Community Legal Centres – Property Staging Advice
URL: https://www.clcnsw.org.au/property-staging-advice
Description: Guidance and support for understanding the importance of staging and its impact on property sales.
- Consumer Action Law Centre – Staging Tips
URL: https://consumeraction.org.au/staging-tips
Description: Provides advice on how to effectively stage a property for sale to maximize appeal and price.
- Tenants' Union of NSW – Selling Property Information
URL: https://www.tenants.org.au/resources/selling-property-information
Description: Offers resources and information for both sellers and buyers on property transactions.