HOME STAGING CALCULATION FORMULA

 

How much money could you save by staging before listing? Here is a simple formula and breakdown.

 

Formula:

 

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!

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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.