It started with the Realtors. Years ago it was unheard of to speak to a seller about the "odor" in their home or their favorite wallpaper, the stains on the carpet and other "challenges" within their home. The Realtor just took the listing and hoped for the best.
What was the best? Was the he hope that the Realtor would find a buyer with a small dog who also peed on the carpet and therefore they were used to the odor? Was the hope that the Realtor would find someone who liked the smell of dirty socks or had the same cooking preferences as the current owner? Did the seller hope to engage the buyer in a refrigerator magnet contest to see who had the most diverse collection? What was that hope? What shifted for Realtors was the realization that selling a house was merchandizing rather than just putting a home on the market "as is".
(NOTE-this is Chris' dog Sugar, put the curser over the photo...that's Sugar. Always sorry to get caught.)
Most change happens when the public reacts to something and forces that company or industry to change to meet their needs. The public spoke and stopped buying the dumpy, or perceived less than perfect homes. The public said, in effect "Why trade my dirty carpet for their dirty carpet." There had to be more reason to move than to just trade challenges, right? We became a society of buyers that didn't have time for "fixing"; perhaps too tired to muster up the energy for the daunting task that awaited them in their "dream home".
Real Estate marketing became an even more important part of how property sold in the 1980's. Realtors came to the realization they couldn't just stick the sign in the yard and put an ad in the paper anymore and have the property sell. In November of 1978 interest rates went from single to double digit interest rates and it just kept going up until October of 1981 when rates reached 18.45%. If a Realtor had a client who could qualify and buy a home then, the clients did a refinance within 2 years when rates went under 14%!!! That was considered a great interest rate in 1983.
The times created a need for more merchandizing of listed homes to get them noticed by the buyers. Realtors began to realize they had to spend some marketing $$$ on their listings to get them noticed because buyers were not too interested at that point. Most buyers couldn't afford the payments at the high interest rates of that day, and those that could were not so inclined to rush out and buy if what they saw was cluttered, dirty or needed work. They had to be tempted. Home staging was created out of a need.
Realtors have always been smart enough to adapt to changing times. If the Realtor was going to spend money to get their listed properties noticed then they didn't want to lose the buyer when they finally got a prospect to come to the property and go inside. The real estate industry evolved from "selling homes" to "marketing and selling homes". Marketing techniques were created to fill a need and make the properties more competitive and marketable.
Fast forward to 2008 - Staging is now an accepted, no longer optional, marketing tool in the savvy Realtor's marketing plan. Realtors must be marketing experts along with all of the other skills needed to be a successful practitioner. So how does home staging fit into a Realtor's marketing plan? Very well thank you. It's the perfect compliment. It is completely client focused and one investment that has a high return for the client and the Realtor. Think about your local newspaper ads, can they do as much dollar for dollar?
AR has a huge group of home staging professionals online. The beauty of this forum is that you can read their published work and see their photos and determine the most professional "staged" stager for your client demographic. It's like having online shopping for resumes. I encourage you to take advantage of these professionals in your marketplace. You already know they are on trend as they are here. Any serious business owner will make time for a company internet presence. Isn't that who you want on your team, someone who supports your professional image?
Terrylynn Fisher, Realtor for decades in Walnut Creek, California, co-owner of StagersLIST.com and serious believer in Home Staging for REAL ESTATE.
Especially in today's market, every edge helps. Good insight, Terrylynn!
Terrylynn- This is an excellent lesson in both history and reality. Competition among agents for listings and among sellers to attract buyers demands that an agent do far more than put a sign in the yard. Staging, blogging, video, etc are all tools that an agent must have and utilize well.
Thanks for a really nice post. Staging is invaluable, and a wonderful resource for the markey.
Terrylynn, SO WELL SAID! You are my realtor hero along with Gary. Having been in the industry during all of those times that you so aptly mentioned I bet that many agents don't even know this history. I was a title rep. in the early 80's..ouch! We owned a RE brokerage in the early 90's...another ouch. I guess this is why I get so frustrated with so many of the local agents that are still living in the unreality of the 70's when marketing wasn't part of what they did.
THANK YOU, THANK YOU for this blog, I wish that I could share it with my realtor association! Perhaps I can, in my realtors newsletter or do you think they would be put off by it coming from me, even though written by you? We'll talk.
Terrylynn ~ Nice recap about real estate marketing and how it's had to change and adapt over the years. We're so glad that you are there rallying for stagers -- nice to have you in our corner! (P.S. Lovely dining room btw .... looks vaguely familiar!)
Great blog! I love the way you did the time capsule. I think knowing where we came from is necessary to know how to relate with older/seasoned sellers who are perhaps still living in that time.
Terrylynn great article as always. what would we do if like Ginger said "we didn't have you in our corner". I am gonig to use your article as a linke in my next newsletter to my Realtor clients ok? Besides since thats my dining room staging I figured you would be fine with that :) Thanks for the showcase.
PS next time you are using a cute little puppy in your blogs you need to use Petey, Tootsie or Homer. I won't tell them this time!
Brian, yes, you are so right.
Erik, yes quite a leap from there, but sometimes we forget the times that caused the change in the first place. Just as now, there is a reaction to something that is a catalyst for change. And, change can be a good thing.
Mara, our market demands it, and yet we still have less than half of what's out there really staged by a professional. And the buyers see it right away. When I show them homes they begin to give comments on the staging. The staged homes just FEEL right.
Terrylynn ~ I was caught by your line about "merchandising". It is exactly that, isn't it? When you go into a store it is the merchandising that will catch your eye, draw you further in and result in your making a purchase. Just like with a house. With your permission, I'd also like to link to your article in my next newsletter.
Very well said Terrylynn. It is the mantra that I repeat over and over again. Stagers are marketing a product to the public. It is the Realtor's responsibility to at least mention staging to their client so that the client can make up their own mind whether they want to get the most equity out of the sale of their home. How arrogant (?) or uneducated (?) is the Realtor to not even mention it. They are not keeping up with the changes in their chosen field of work. The Realtor doesn't have to pay for the consultation or the Staging work so where is the resistance to even mentioning it to their client?
I teach my Realtors the magic phrases to use when speaking to their clients about staging. Do a presentation in a Realtor's office on this alone and you will get immediate business.
Use your line about ...why should I trade my dirty carpet for yours. Let me give you top dollar for the privilege Mr. seller!
Or, and I love this one..... I have a dog that pees all over my house too! I can't believe I found the perfect house for my lifestyle! Oh please Mr. Seller take my offer of $5,000 over your list so I can move in here and do nothing with the decor!
You are one sharp cookie Terrylynn, love your blogs. :)
Challenges in the real estate industry, and its cycles, come and go but marketing (and properly merchandising) a home is here to stay. I'm surprised more sellers don't realize the correlation between "looks really nice" & "more money/quicker sell time".
People today are much more savvy and demanding on what they spend their money on. Staged homes show a homes potential and should appeal to buyers emotions. Realtors who don't have their listings staged are missing out and doing a disservice to their clients. They commited to doing whatever it takes to sell that property so staging should be a part of that commitment.
Terrilynn, Well said and thanks so much for posting this blog!
Terylynn, this is awesome stuff, love when I learn something new on AR. 18.45% in 1981? Caught my eye as we just saw that date on the old cabinets in ours when we remodeled, that's just crazy....
When I bought my first house at 19 years old, the interest rate was 21% My husband made $7.25 an hour and I was making $ 3.25 per hour. We did not have help with the downpayment either. Our lawyer found us some private money at 15% and we thought what a deal we had found. We bought down the rate a few years later. The banks introduced weekly payments just then as well which we took advantage of.
So you can see how much the market has changed. Staging is definitely a huge opportunity for sellers to make money on their properties whether the Realtor likes the idea or not.
Terrylynn, great blog and thanks for taking the time to state the history and current advantages! Immeasurable.
Thanks so much, Terrylynn for standing up for stagers! And I'm honored that you visited my blog...
Ginger, absolutely you can use it, they'll find it interesting, sometimes we forget our own history when we are wrapped up in today. Yes, we'll talk.
Maureen, always nice to get your comments. Similar dining room to the house our class did. OMG that house finally closed, two more offers and it finally clicked. Poor guy, he almost didn't believe it and left the staging until the day before moving, cause he'd had such bad luck. We should have dusted the house or something to rush it along. I do that sometimes, but that's another blog post.
Melissa, ok now, watch it. I was living in that time...selling real estate in that time, oh my I was a mere child. But it's true, that's why this market while daunting isn't so scarey as we KNOW we'll come out of it. IF I could sell homes in 18.45% interest, I can do anything. I am just fortunate to have the loyal and trusting clients I have that come to me for advice and counsel.
Kym, of course...what was I thinking, did you put your cursor across the photo, it is apt for Homer anyway. It says, "Oops, I did it again." Doesn't he look a little guilty.
Of course you can use this, we are two faced, remember...one and the same?
Kathy, absolutely ok with me, just promise me you'll put the link to StagersLIST. And, would you want to put a link to your website too? We'd LOVE it and I'll write you another article from the Realtors point of view for your next newsletter in exchange. How about that? Just give me the topic and I'll put something together.
Michelle you are too funny. YES I had a client like that once, they were selling their home with clutter, dirt and dog stuff everywhere, pee smells and everything, apologizing profusely all the time. The house they bought however, started out being a staged house. They just bought new houses instead of cleaning. It was interesting. They got to where they didn't see it, but felt crowded and we'd go buy another. Hum...expensive, staging to live is cheaper.
And, wow, at least you saw opportunity and bought (21%) my goodness. Most people never regret the decision. Glad it worked out for you. Thanks for your thoughtful comments.
If homeowners are not aware of home staging, an REA's don't even mention the word to potential homeowners, they are doing a disservice to the homeowners and themselves in the long run.
Cindy, YUP. And then back in the 80's...we were just figuring it all out and seeing how it evolved. Now we know the path was the right one, and I wonder, oh I wonder (like the song says) what would have been the course of real estate had that interest rate in high double digits not happened. Wonder if staging would have come about as it has? We seriously did have networking meetings to discuss what and how to "market" better our listings and bring buyers, then get them to stay. It was an interesting time, as is now. I LOVE being on the wave of this industry ride. And what a ride it's been. happy staging.
I forgot to mention the upside of the 21% interest rates. When I sold my house 8 years later it sold for $ 175,000. I had bought it for $50,000. Not a bad gain. We had invested $10,000 into the property during that time plus enjoyed living there.
So you are right when you say, after you have lived through that period in time you know you can survive anything. Although I have to admit I did lose my shirt on two houses when I bought in 1990. Most everyone in Ontario did at the time. People were just walking out and leaving the keys on the counter.
We managed to sell and get out. As you say, you just keep going and enjoy the ride.
Terrylynn! You have simply outdone yourself with this post. Well written, well thought out, well planned and not receiving the attention it deserves. :( I'm glad to see that Kim featured you. I flagged this post to be featured on the big board but I'm afraid I'm a little late to the party. Hopefully others will also flag you and one of the AR gods will notice. GREAT INFORMATION!!!! Thanks for doing such great work!
Yvonee, thanks as always for the affirmation and support. Always enjoy reading yours too. One of my first stops when I log on.
Staging is now an accepted, no longer optional, marketing tool in the savvy Realtor's marketing plan.
We are still working on that concept in the Brainerd Lakes area - but times have changed and the staged homes are the ones selling. Hopefully the rest will catch on soon.
Terrylynn - You are a wealth of information. Great post - If everyone had your wisdom, what a wonderful world this would be.
Chris you need to change the puppy to Homer, Tootsie or Petey. What I don't have enough dogs for you to choose from?
Kathleen you are talking Tipping Point in Minnesota??? I am excited. Sorry I took so long to see this, have been swamped with grandchildren before school starts this week, so...glad you commented.
Terrylynn,
Beautifully put and you are always such a support to the staging community. I agree that there are still some learning curve challenges out there that staging should not be optional...it is a necessary marketing tool!!
Nancy, how did I miss you...you are unforgetable. Sorry for the slight.
Debbie, what a wonderful world it would beeee...
Kym ok, we put Sugar, Rhiannon's dog, sorry we have a pecking order and Sugar is sensitive about these things.
Nicely said! The savvy Realtor is one who both markets and sells his/her listings so that all involved benefit.
That being said - I was told today by someone who is considering taking the Haverhill course that Realtors in our area just aren't interested in home staging and that this lady would be wasting her time by taking the course. This lady contacted me and asked me whether or not she should take the course, what the demand is like and if realtors are interested. We work with a lot of different Realtors, all of whom most definitely see the value of home staging! I told my associate that the Realtors she had talked to had either had a ho-hum experience with a stager or had never called one in to see the difference that it could make!
I told her I couldn't recommend the Haverhill course but that Home Staging was most definitely a needed resource in the Real Estate community!
Kahai, didn't mean to neglect you. THANKS for the comment, good to see you here. THANKS for your endless support. You are a treasure. Take care
Terrylynn, great blogs never die!
Heather, it was nice of you to respond honestly to her. So many people just don't want the competition or don't want to tell about their training, especially if they are disappointed as they don't want to feel foolish for having chosen it. On the contrary, every training you take teaches you something, if only what you don't want...so you just get educated and find your niche'
Terrylynn - What a great post. It helps to take a look at the past to see the future. I love that you incorporate staging in all your listings. I'm assuming you are paying the staging fee too?
Hi Terrylynn,
Times have indeed changed and staging is here to stay. Thank you for being such an active and outspoken supporter of homestaging. I llike Kym's idea of linking to this valuable blog from other places. Thank you.
Kelly, yes mam...I do stage all my listings, yes I pay the stager a fee for staging my listings. I believe what I say and I practice what I preach.
Paula, thanks, I believe in staging and truly am a supporter in many ways including my marketing dollars and encouraging my clients to do so. WHY? Because it works! Plain and simple.