Home News As Australia’s Market Cools, Home Staging Can Make a Big Difference on Sale Price

As Australia’s Market Cools, Home Staging Can Make a Big Difference on Sale Price

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Australia has a thriving side industry of home staging, stylishly redecorating everything from tiny studio apartments to mansions before going public.

An agent survey conducted by LJ Hooker, a brokerage firm across Australia, found that styling a property for sale adds between 7.5% and 12.5% ​​to the selling price. But with the once-hot Australian market cooling off and sellers facing greater competition to stand out, staging is even more useful than in recent years, selling prices aside.

Bianca Denham, national director of special programs at agency Ray White, said: “If the balance of supply and demand is back in favor of buyers, as we’re seeing now, we typically need to invest more in marketing. There is a presentation or staging that is an important tool in the sales process.

“A well-constructed styling package can make an old home look new, a small space look bigger, and is a must for open plan living areas. As a result, sellers will need to invest more than during the boom to create the same competitive environment associated with premium selling prices,” said Denham.

Justin Wilson, home stylist and founder of New South Wales-based Vault Interiors, says the trend, which can benefit sellers, simply comes down to making a great first impression. says.

“It’s like a first date. You don’t go out in your pajamas, you get your hair done and your makeup because presentation matters. So it’s the same when you put your house on the market. You want the best price.” “You have to do your best,” she said.

“In our experience, we’ve seen prices go up by 5% to 20% when you actually make your home look good,” she continued. “If you want a premium price, you absolutely have to style it. It’s become an expectation of agents and vendors.”

Hipages.com.au, a national online portal for finding merchants, tells Australians that for every dollar spent staging a property, sellers should expect A$3 (US$2.07) in return at the time of sale. I advise that there is.. According to Wilson, the average cost of bringing in furniture and accessories before listing a home, combined with a professional eye, is A$3,000 to A$7,000. However, that fee will vary depending on the size of the property, its location, and how much of the floor plan is staged.

“I would say that about 50% of our work is actually part of the styling. Not realistic. Advise home owners on very large items such as sofas and old armchairs so replacements can be brought in.”

She said that for partial remodels, sellers should focus on rooms that stand out online, such as the master bedroom, living room, dining room, kitchen, and outdoor entertainment area.

Unleash your home’s potential

According to Wilson, the art of home staging that captivates buyers isn’t necessarily the equivalent of full interior design or photography styling, but rather showing possibilities.

“Many people don’t realize that just getting the space right—using the right flow, function, and right scale of furniture—can completely transform the dynamics. Whether it’s creating a study room under the stairs or providing a media room, it adds value where you might not expect it.”

Nicole Gleeson, sales agent and partner at Kay & Burton in Melbourne, said the ultimate goal of home staging is to elicit a strong response.

“For me, the first is not making a percentage difference in the selling price. It is creating competition,” she said.

“For example, if you have enough visionary buyers who know the interior and the proportions, that’s great. They might walk into an empty house and say, “No, that room is too small. It cannot be placed.”

Needs that are difficult to quantify

Nerida Conisby, chief economist at brokerage Ray White Australia, said home staging has become an important part of marketing, but it’s hard to put a dollar amount on home staging results. .

“In terms of value appreciation, some homes are already well presented and just need a little polish rather than full style, so it’s very difficult to work out. It may not look great at all, so styling it the right way can add a lot to the price,” she said.

Home staging is so mainstream in Australia that buyers expect a certain amount of presentation when looking for a home.

“Whether you are selling a home for A$10 million or a home for A$400,000, you always need your home to stand out. Making the best impression is always best. We are a visual property. and when people see a house online, if they are somehow not attracted to the property, they are ready to take the next step of calling an agent or visiting the property. I know it’s unlikely to go on,” Conisby said.

This will be especially true in the Australian market next spring, when there will be more inventory on the market than in years past, according to PropTrack senior economist Eleanor Creagh.

“There were more new listings across Australia in the first half of 2022 than any other year going back to 2015,” Mr Creagh said. As a result, competition among buyers has subsided and homes don’t sell as quickly.

“By giving buyers more choice, vendors may benefit from making their properties stand out from the crowd. One way to do that is to have a professional stage your home,” she said. added.

Create competition

Gleason says emotion is the most effective tool in their marketing arsenal when agencies pitch the ‘Great Australian Dream’.

“You build an emotional connection that buyers fall in love with. When they see your home online or in person, you want them to feel. is what we are trying to achieve,” said Gleason, emphasizing the need for competition. “There may be someone in your house who has a crush on you, but having two people who have a crush on you at home can be much better.”

Gleason’s team recently sold a new three-bedroom home on Ralston Street, an exclusive suburb of Melbourne in South Yarra. The entire attached townhouse was staged and sold in fierce competition for nearly A$3 million.

“It was beautifully styled, but as soon as we sold it, we moved all the pieces to a residence in an adjacent town and sold it to one of the low bidders on the first property within days,” she said. rice field.

It’s important to inspire prospective buyers as they walk through your open house. The ultimate goal is to charm them early in the process.

“You want your listing to pop, but most people won’t come to the open without a nice looking home, especially in a chilled market,” Wilson added. A well-equipped first port of call can draw more buyers to your door.”

with VL Hendrickson

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