Depending on your area, luxury homes can be defined as the top 10% of the price range says the Institute of Luxury Home Marketing. What makes a luxury home staging different?
Well for sellers who understand merchandising and embrace the value that staging has to merchandise their residential real estate investment, the payoffs are maximizing sale price and minimizing time on the market. The higher the education and buying power, the more experience the luxury home client has in working with these concepts.
The luxury home market is generally less affected by downturns in the market as far as pricing, but time on the market is generally longer as there are fewer buyers who can afford the luxury home. As a luxury home comes on the market, the importance of home staging is increased due to the fact that you may have fewer, but more focused showings and need to make the most of each showing to result in a sale. Actually this is true for any priced property, however, the luxury home seller can more easily make the transition from home to commodity that is merchandized and sold for a profit.
A striking difference between luxury homes and lower priced homes would be open houses. Generally in lower price ranges open houses are common and will result in many of the neighbors coming to your home, as well as buyers and then those who just happened to drive by. Luxury home sellers don't often have open houses. They have privacy issues related to their personal belongings, family intrusion and public profile. A luxury home open house is more like an event planned with specific date, time and focus and results in exposure of the home to the target market for that price range and home, if held at all. It is likely to be lavish with refreshments and entertainment, and only happen once.
Showings would be by appointment only and discretion is key. So how do you determine if your home staging professional is right for your luxury home staging?
Understand that home staging started out as a hobby to many. There is nothing wrong with that if they are good at it, however, a professional home stager for luxury homes would have a business plan that included luxury home demographic. Their inventory and portfolio would be varied furniture and accessory types better suited for the style of the home and the demographic of the prospective buyer. The home stager where every home is a variation on the same style and furniture is NOT what a luxury home seller is looking for. They want the staging to match their home's style, architecture and demographic. This is very important for the home staging professional to understand if they are to be chosen by the luxury home owner.
Curb appeal is so important and takes place on the internet these days. When the buyer finally gets to the home, the stylizing of the interior had better match the home style and architecture on the outside. These are sophisticated buyers and potentially chose your home because they like a certain style or architecture, thus that should be consistent throughout the home. The professional luxury home stager knows the difference. They know just how to merge the styles to give the seller the look their demographic is likely to be looking for, along with the perfect "match" to the home architecture and style.
There are many techniques that a professional luxury home stager uses to enhance and showcase your luxury home. For the professional home stager looking to serve the luxury home market, there are classes targeting just that. Or you can find a mentor willing to teach you the ropes. Specialties will be the next big trend in the home staging industry. Find a specialty and add it to your business model and increase your bottom line next year.
Just think how valuable that will be to your Realtor clients!!! It will enhance what they can offer their clients and increase business for both of you while satisfying a niche market client who knows the difference between average and luxury home staging and will value your expertise. WHAT WOULD YOU ADD TO A LUXURY HOME STAGING?
TERRYLYNN FISHER, Diablo Realty, Realtor, Staging Specialist - CSP/Realtor (Certified Staging Professional), CRS (Certified Residential Specialist), SRES (Senior Real Estate Specialist). Terrylynn is in her 30th+ year in real estate, works in ALL kinds of markets and has a referral directory of Realtors who use similar marketing in your hometown too. She can be reached at 925 876-0966 for referrals or questions. Terrylynn is also the co-founder of StagersLIST.com... The Resource for Stagers, Realtors and Homeowners in North America.
Terrylynn, Staging a luxury home is completely different....the furniture and decor a stager uses better be high end as well, I absolutely agree with you.
Hi Terrylynn, Having had the opportunity to bid on a luxury home I knew that my current inventory was inadequate for that target market and that it wouldn't showcase the home to it's potential. It IS completely different and my hat goes off to those stagers that work with them! Great post!
Terrylynn, you've made some excellent points. One way to differentiate luxury home staging is to use "lifestyle" elements ... accessories that reflect the target buyer's demographic. Occupied luxury homes allow us to edit the existing furnishings as needed and to bring in the right accessories that add drama and have the required look. I heard that CSP is now offering a specialty staging class for the luxury home market; AD is also a source for ideas.
Hi Terrylynn: I began staging in the luxury home market a couple of years ago and have amassed a large inventory of accessories, lamps, rugs, plants, etc. to be able to service that market. We rent the furniture since one large home eats up as much inventory as 4 or 5 average homes. The most expensive home we have done so far is $5.8 million. Above that and the costs to stage grow exponentially since you are out of the normal (and more cost effective) rental furniture sources, and into the sources that rent by the week (as opposed to the month).
I have seen some luxury homes that were staged without using appropriate furniture and accessories. In my opinion it was a waste of money to stage in that manner and even hurt the chances for a sale. It made the homes look like they were worth less than they would have had they been staged appropriatly, with the potential buyer for this market in mind.
I think your comment to find a stager who is experienced in the luxury home field to intern with is a good idea.
Terrylynn -
You are SO right! I am staging a $3 million house this coming week and both the agent and seller are very particular about the quality of furnishings, the proper scale, and that the overall look compliments the Craftsman style of the home. It is a challenge to service this demographic as you have to be willing to risk more than other types of clients. Many times it takes guts to step out and buy the appropriate quality of furnishings, as well as have the confidence in your work that will close the sale. Luxury home sellers are usually more sophisticated than your average homeowner and require the same in all their service professionals. I have noticed however that in our market (in Portland), with the glut of new construction homes for sale, luxury sellers are just like average sellers in their demand for rock-bottom fees. In other words - they want ALOT for very little expense! It takes a village to stage luxury homes, so I have found that it is important to crunch your numbers, plan your staging carefully, be willing to negotiate yet stay firm in the value of your services, and think LONG TERM. These homes will likely be on the market longer which equates to more rental income and longer advertising exposure for your company. I would love to take a class on this demographic - once I get paid for this weeks project! :-)
Mary
Terrylynn;
Wonderful post! I was just getting ready to blog another something about having the expertise of you and Kym on the radio show yesterday...but you beat me to it! This is precisely the information that Stagers need to know and understand to excel in this particular niche. It certainly appears that the need to specialize is growing. Thank goodness the staging arena is gearing up for the need and providing additional education to match the growing needs of the profession. Nicely done!
Cheers!
Thank you so much for this blog. It is a whole different ball game with more than just the home... you need to be well versed in how we present ourselves to the sellers and their agent. If there is a class on this, I think that everyone should take it. The price reductions are great, but that doesn't mean that these clients will pay big bucks. It is all relative.
Not only does the furniture need to reflect the lifestyle of the home, but there are other considerations that need to be addressed. Many of these homes have plaster walls, sometimes the owner or builder does not want nail holes in the walls, so using a huge standing mirror or large wrapped canvas artwork huge with push pins and blue tap can work. Occasionally, I will need my delivery guys to wrap the walls and front door with padding. In occupied homes, often times the furniture that they have doesn't fit the home either. Then we really have to think creatively!
Area, views, size, style, and the unique architecture of the home plays upon its label for being a luxury home. These items need to be addressed upon each individual property. As do the additions of theater rooms, dog washing stations, beauty stations, tri-level infinity pools, elevators, and the man caves equipped with shower, sauna, media room and gym. Yikes!!!
Like michelle said... these homes eat inventory big time! They take substantial upscale furniture that needs to fit the feel of the house. We have lots of Mediteranian style homes that can take a transitional/contemporary inventory.( the contemporary furniture tends to be lighter in feel so you need to ground it with color and larger items) The Tuscans, can transition, but not as well. Homes with a view are usually a little older and need some extra umph! The larger gated areas prove to be a little easier because the homes carry a similar feel through the neighborhood.
I never thought about the open house thing. It would have to be more like a little party or gathering. Good information, mom!
Carole, my you are an early riser on Saturday morning...Thanks for your comments and the luxury homes benefit from feng shui too, right?
Abby, yes, at some point you have to make the decision whether to get into that market because it is a huge commitment in inventory and other things as Mary said here. It's always better to turn it down if you cannot fulfill the need you see, your integrity speaks for itself. I would enjoy working with someone who knows their limitations because I am sure your skill level in your area of speciality is excellent.
Maureen, you are right, CSP does offer that Luxury Home Staging as a continuing Ed course, I saw a little teaser of it, and it looks really good. I want to be one of the first to take it. thanks for your added input.
Michelle, your input is always right on the money...I agree and applaud stagers as per Abby's comments above, that can recognize their limitations. I too have seen over million dollar staged homes with wicker inside, etc. It is not a good thing for the home to be so inappropriately staged as to distract from the mission of what the staging is all about. Much better to acknowledge when you are not the right stager for the job and keep your integrity with the realtor and the client.
Mary, ahhh yes, that added business piece of knowing your margins and your job specifications before you bid. I find most stagers starting out and some not so new don't know what it really costs them to do a staging job. They forget the piece about the preparation, the truck, gas or some element. That comes with experience and can make or break your business. That's why it is so valuable to have those of you who are experienced sharing so the newbies can learn. And, there are good business oriented classes too. They key like you said is that even the experienced people know there is always something more to learn. That's the key to business longevity.
Gina, thanks for the compliment...We would love to listen and see how we really did...when you are doing it, you are just distracted with the thinking and talking. You made us look good. thanks, t
Lori, yes you are the Granite Bay Queen of the luxury home staging. We should give you the official title. Congrats on the newsletter feature up there and all of your work. Your realtors are lucky to have someone who so gets their demographic and the "difference". But, why am I surprized. Hey, nice to hear from you.
Terrylynn, this is one of the best articles written on this subject. With your permission I am going to copy and use in my marketing as this is the market I have been expanding in so much lately. I can't wait until there is a class on it! You should put this on your own website or at least a link! Kym
Great info Terrylynn and for now, I am staying out of the "luxury home" market here due to the costs involved with the inventory (as mentioned by others here). I stay in the under $1 mil and 5,000 sq.ft max for vacants. It is a whole other animal and you truly should be able to provide the service and decor necessary to stage these properties adequately. I too believe it hurts the sale if the property isn't merchandised appropriately. There are many niches to fill out there!
Aloha TerriLynn,
Great blog! in Hawaii sometimes the pricetag is not indicative of the quality of home you would expect. I've seen five million dollar properties where no amount of fine furnishings could disguise the fact that the place should be torn down.
On another note, you had contacted me awhile back and I had sent you an e-mail but I'm just now realizing we had not connected.
Best wishes,
Kym, thanks sooo much...it's handy to have an admirer in your midst...and it goes back at you missy. I have learned so much from you too...
Karen, so right you are and a wise woman who knows her niche. It is one of the keys to business success. Thanks for the kind words.
Kimo, I know in Hawaii, view determines price to a huge degree...among other things of course. Oh, what a lovely place to live...you must have NO stress... OHHHH did you recognize the 2nd photo above, we were lucky enough to stay right on the POINT at poipu...it was glorious...the roar and the views, day after day, the whale that teased us...coming back soon...
Yes a phone call next week, so we can talk at last. Thanks for remembering. I'll give a call on my nickle
Great blog! We are finding that there is still a misconception on how much staging a 'luxury' home should cost. Builders want the 'best', but end up going with price and their listings show it. There was a recent blog by 'Simply Staging' about not getting a job because the builder wanted a room staged as an 'exercise room', which they had a different idea on.
We were fortunate to bid the same property, and unfortunate to be looked over as well. However, both Simply Staging and my company got the same feedback from the builder that they wanted 'upscale model home' staging, and that is far from what they got.
I'm curious after showing clients our portfolios with beautiful before/afters, how does a portfolio show of one presenting to a 'luxury' property that ends up with far less quality? How do we really set those standards in our community that although pricing is important, that demographics, and quality of items being placed in the home is most important?
We've included information on what to look for in a 'professional home stager' in our marketing packets and have talked til we are blue in the face about pricing not necessarily reflecting quality work. I would love to think that adding a 'specialty' staging designation would help, but does our market really care when they seem to go by price alone?
Well, you are so right, there are misconceptions all around. Until people understand what staging is, they won't get when it's bad staging. They think it's still decorating. I do feel the professional continuing ed and designations will help. It gives credence to specialties, which is a basis for the public to judge our work. Even though the work should stand on it's own, they need to have something to say you are "luxury home specialist" or vacan home specialist or eco staging specialist...etc. Well, that builder is probably still on the market, you should do a parrallel for the next builder consultation on how long it took them to sell those. It's the pros like you who will be there though when the others go out of business because they can't afford to work for no income anymore. Getting the job is not enough, what does it cost you to have storage, inventory, help to stage and destage. Many stagers don't know how to charge for their REAL time.