Home Staging for the Appraisal Value
Right now the Real Estate market is HOT HOT HOT, which means potential clients aren’t as interested in staging their properties. We’ve been dealing with a shortage of inventory for months, so if a home goes on the market, chances are it will sell by the upcoming weekend whether it’s staged or not. This is what we call a Seller’s Market.
“A seller’s market is when there are more homebuyers looking to purchase a home than actual houses listed for sale. A seller’s market usually results in rising home prices, stiffer competition, and increased bidding wars among homebuyers.” -Redfin
Homes are spending a lot less time on the market because people just want a suitable home to live in asap. Who cares if it’s staged or not?! Let me explain that because staging creates an emotional connection with potential buyers, a seller can ensure they get the highest possible offer for that property when they do stage it. If they get $10,000-$25,000 over asking, then guess what? The staging is FREE because they more than covered the cost!
Let’s not forget the importance of staging for the appraisal value. An appraisal is an unbiased assessment of a property’s fair market value. Put together by an appraiser, it estimates the true value of a home, which lenders rely on to determine their loan amounts and loan-to-value ratio. Fair market value is a subjective number depending on who you ask. One element that determines the value of a property is the demand: The amount of desire to purchase a property combined with the financial ability to do so. When a home is staged and multiple buyers have made a connection to that property and want to buy it, demand gets created, thus driving up the fair market value and causing a bidding war.
Also consider the aesthetic appeal of the home with both the exterior and the interior. Staged homes tend to get higher appraisals due to the fact that they look more appealing and occur as well taken-care-of. Buyers want to live in a home like that. Entice, appeal and increase the appraisal value!