To stage or not to stage? That is the question many sellers are faced with when listing a home, and the answer often depends on how competitive the market is in that area. For anyone who’s selling a condo in Toronto the answer is often yes, but what about less competitive markets? And who does staging actually benefit: buyers or sellers? While sellers may debate the benefits of staging, the evidence is quite clear — staging is beneficial to both buyers and sellers, and can result in higher offers or quicker sales. So why doesn’t everybody do it? In a word: cost.
The Price of Staging
Sellers who scoff at the idea of staging a home are usually concerned with the price of staging — which is entirely reasonable, as it can certainly seem counterproductive to spend money on a home that you’ll soon be vacating. But what most people don’t consider in this instance, is the cost incurred when a unit or house spends more time on the market than necessary.
The most savvy sellers however, usually feel that while staging is expensive, what matters in the end is the total amount they net for the sale. If the seller needs to spend $2,500 on staging but will attract multiple offers and yield $15,000 more, it’s certainly worth it. When you look at some of the most expensive condos in Toronto, such as 33 Mill St or the Shangri La Private Residences, not surprisingly, the vast majority of listings in these buildings are staged.
The cost of staging services depends entirely on the company and the size of the home — we offer complimentary staging for some listings at Strata.ca but even we are limited by square footage; it’s one thing to paint the walls in a 600 square foot condo and decorate with some furniture, it’s quite another to furnish a 6000 square foot mansion.
There are companies in Toronto that will stage a small condo for as low as $1600, following a one time staging consultation that could coast between $100 to $200; considering that the average cost of a condo in Toronto as of the first quarter in 2019 was $603,243 — a price that comes with a hefty mortgage payment — selling a unit even a month earlier could yield substantial savings. And it doesn’t just benefit the seller, as buyers also gain from this process.
How Staging is Beneficial to Both Buyers and Sellers
Staging has become increasingly popular in recent years; some would attribute this to the rise of HGTV reno shows that regularly feature staging, and others might assume it’s a passing craze; the reality, is that staging has increased in popularity because buyers and sellers can see the benefit.
For sellers, paying for staging services can lead to a higher offer or less time on the market. Buyers benefit by seeing the full potential of a home: painting can transform a dark, cramped unit into an airy space, and it can also allow a buyer to envision a different usage of a room.
Maybe your den could be a library? Or that dingy basement could be a home theatre room; these functions can be hard to see when a home is dated, but staging can offer a glimpse for prospective buyers.
Do Agents Stage Rental Units?
I’ve actually seen a staged condo rental, but it was a luxury rental priced at $8,000 per month. While the condo rental market is highly competitive in Toronto, it wouldn't make sense for a landlord or their agent to invest even a minimum $1600 to stage a condo for rent, as that amounts to about 25% below the average monthly rental cost in the city. The market is also so competitive, landlords will yield very little benefit regardless. Renters are tripping over themselves over even the most mediocre properties.
Why Staging Can Help in A Non-Competitive Market.
The internet dramatically changed the way that homes are purchased and sold, and as we become increasingly reliant on websites and databases, the need for a home that “shows well” in pictures is becoming more important. Putting your best foot forward by featuring a staged room on a listing can greatly increase the likelihood of someone taking an interest in your home, regardless of whether it’s a seller’s market or not.
The decision to stage ultimately falls to the homeowner, but should you need more information, most realtors will be more than happy to advise you on whether or not staging is necessary for your location.
