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Does Staging Increase Sales Prices & Is it Worth it?
Staging involves improving the look of a home to make it market ready and attract buyers. It often entails decluttering and depersonalizing rooms while also strategically placing décor to give off the best impression. Although it can make a house look nicer, does staging increase sales price and is it worth it? Let’s find out.
Does Staging Increase Sales Price?
The exact return on staging a home and its value can be hard to calculate. Many staged homes also undergo updates, preparations, or home repairs before being listed which can also impact the sales price.
While sometimes hard to quantify, many agents do believe that staging increases the sales price of a listing. In a survey from the National Association of Realtors, 20% of listing agents and 20% of buyers’ agents agreed that staging increased the dollar value of the home by 1 to 5% compared to similar homes on the market that were not staged.1 For a home that is selling for hundreds of thousands of dollars, this small percentage can make a big difference.
How Much Does Staging Cost?
Staging costs can vary depending on several factors such as the size of the house, the number of rooms staged, and the local market. The cost to stage a listing can range anywhere from $500 to upwards of $2,000. According to our recent survey of agents, the average cost to stage a listing was $2,000 or more.
For those who are short on cash, choosing specific rooms to stage like the main living area, master bedroom, or dining room can help reduce the cost. At Curbio, we also offer pay-at-closing staging services in some markets, so homeowners and agents do not need to worry about upfront costs.
Is Staging Worth it?
If staging increases the resale price of a home by 1-5%, but the average cost of staging is about $2,000, is it worth it? Will staging increase sales price enough that you make a good profit? Let’s do the math.
To determine if staging is worth it, you need to know what the return will be. Using the percent increase in sales price, we can calculate the monetary increase in sales price by doing the following:
(Final Sales Price x Percent Increase in Sales Price) = Increase in Sales Price from Staging
Next, you can find the profit from staging by subtracting the cost of staging from the increase it provides in the sales price.
Increase in Sales Price from Staging – Cost of Staging = Profit from Staging
If $449,800 is the median sales price of a home in the United States,2 and $2,000 is the average cost to stage the home, then using these numbers, the average profit from staging is listed below. You can also take this one step further and calculate the ROI.
|Percent Increase in Sales Price||Profit from Staging||ROI|
So yes, many agents believe that staging increases sale price enough that is it worth it, and homeowners could walk away with a couple extra thousand dollars in their pocket at the closing table.
Even if staging doesn’t significantly bump up the resale price, many agents believe that there are other benefits that can be well worth the cost. In our agent survey, some agents noted that staged homes sold over the asking price or faster than homes not staged. Other agents believed staged homes show better, look bigger, and got more attendance at open houses.3
As a result, 97% of agents in our survey said they regularly recommend staging to their sellers.3 Even in a seller’s market, the majority of buyers want move-in ready homes, and staging can get these listings one step closer to this ideal.
Whether you are a homeowner or a real estate agent, you do not want to miss out on how staging increases the sales price and its other potential benefits. At Curbio, we may be able to help. In some of our markets, we offer in-house staging packages with no money due until closing. In our other markets, we offer the option to defer payment for staging until closing for a small admin fee.
On top of staging, we also do pre-listing home improvements big and small to help homeowners make the biggest profit and sell quickly. Stop leaving money at the closing table. Contact us today to learn more about working with us or get started with our home improvement app.
- National Association of Realtors (2023). 2023 Profile of Home Staging
- Federal Reserve Bank of St. Louis (2023). Median Sales Price for New Houses Sold in the United States
- Curbio (2022). Preparing to Sell: 2022 Home Improvement Report