Staging

All the homes we sell are in top condition relative to their age and price. All known problems have been fixed before it is put up for sale. If the ceiling has water stains, we make sure there is no roof leak before repainting it. Weed whacked skirting is replaced. Weak or weather beaten decks are repaired or replaced. Bathroom vanities or kitchen cabinets that are worn or damaged are replaced. The HVAC system is inspected and repaired as necessary. Typically the home is freshly painted, new (or good as new) carpeting, linoleum, or laminate flooring is installed. Lastly, of course, every home is cleaned spotless. We offer a good home at a good price. What more could we do?

One of the recent trends in real estate marketing is the concept of staging- showing a tastefully furnished home rather than a bare, empty house. Most homebuilders with an onsite sales office set aside a home that is designated a model and furnished accordingly. Many MH dealers have fully furnished models on display in their lots. After attending a MH industry trade show, we started thinking maybe there is something to this.

We wondered how this would be received in our market and decided to stage a home. We already had success installing new appliances in the homes. We create a WOW factor by buying glass cooktop ranges and midlevel refrigerators. This has been enthusiastically received by our target market. We add a 15% markup on the price, and finance it into their home payment. This creates a win-win situation. Most of homeowners have just exhausted their savings with the down payment, and we've made it easy for them to enjoy the pleasure and convenience of new appliances. We decided to apply this same principle to staging.

There are three furniture stores in this town. We thought about approaching them with some kind of joint partnership where they would provide the furniture in exchange for us promoting their offerings. At some point in the future we may pursue that avenue, but for now, we decided to work with the local Rent-A-Center.

We went this way for a number of reasons. First we wanted to form an alliance with Rent-A-Center, because there is a strong overlap in our clientele. We hope this will develop into a strong referral stream. Secondly, buying furniture from them can be inexpensive. Those of you familiar with how Rent-A-Center works are probably puzzled by that last statement. But cash buyers can find some good deals on their end of lease furniture. But stay away from the $500 computers they sell for $1,700!

We decided to create a semi-furnished model. We furnished the living room with a couch, loveseat, table set, and area rug. The dining room had a table and chairs, complete with 4 place settings. The kitchen and bathrooms received small touches like candles and towels. Various wall coverings were placed throughout the house. The bedrooms were left unfurnished. We spent a total of $750 for materials and (the decorator's) labor. The home sold the same week it was finished, with the furnishings included for an extra $1000. We'll have to do it a few more times before we can comment on how staging impacts how quickly homes sell. But what we do know is that we created another profit center and just as important, added another very satisfied resident to the rolls.

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