As a result of these evolving buying habits, there have been two major shifts in the approach to selling real estate; agents now recognize that people want “move-in ready” homes as well as “an experience.”
Today most families and young professionals are trying to balance work, never-ending education, busy personal lives, and debt. Members of our society just don’t have the time they once had. Increasing pressure to do more, get more, and pay more has created this shift in demand for a property that is move-in ready.
Consider these two lifestyle examples. The first is a family of four with two working parents and two school-aged children who are involved in activities. The cost of living, activities, and raising the children in an image-conscious society can put an overwhelming financial demand on a family. Time is precious, and tackling home improvements is not likely to be on their list of priorities.
The second is a young professional couple, recently graduated, and likely burdened with post-education debt, the demands of their new professions, and the never-ending education required to sustain them. Also, Generation Y is less likely to have a strong skill set for doing home improvements, so it is more likely that they would have to hire someone to get the work done.
These examples are common and demonstrate why home buyers desire move-in ready homes.
Relationship marketing
Technology, including the ease of the Internet, is the second major influence on the recent changes in buying habits; it has created higher service expectations and set the stage for relationship marketing, which provides the “experience” the customer is looking for.
For example, going to the salon to get a haircut used to involve sitting in a chair and having your hair sprayed with water to prepare it for cutting. Then it evolved into having your hair washed and conditioned to prepare it to be cut, dried, and styled. Take a trip to a hair salon today, and you will most likely be greeted with an offer to hang up your coat and an invitation to enjoy a free beverage while you wait. You will spend time in the chair discussing your expectations with the hairdresser, then you will be led to the hair washing station where you will receive a head massage as the hair conditioner sets. You will experience your cut, dry, and style in a relaxed environment, as opposed to the hurried one you once knew. When leaving the salon you will make your next appointment and hope that you won’t forget it, but not to worry, the salon will call you two days beforehand to remind you. Altogether, the salon will provide you with a much better experience than it used to, and try to ensure that you will return to them, the people that made you feel good and established your trust. This is relationship marketing.
In brief, relationship marketing is establishing long-term, trusting relationships with customers in order to satisfy them so that they return, rather than shop around for their next purchase. As a result of this increased level of customer service, it is only natural for buyers to anticipate “an experience” with their purchases.
How is this relevant to home staging? It is important to realize that although you only have one product to sell, it is the potential buyer’s expectation of “an experience” that will ultimately influence his or her decision whether or not to purchase your house. Similarly, home staging will create an atmosphere that allows potential buyers to experience or imagine living in the house at its best. Home staging strategies have been developed from an understanding of both relationship and target-marketing practices and ensure that you sell your house quickly and for more money.
Target marketing
To increase your chances of a quick sale, you will need to broadly market your house and appeal to various potential buyers. How you do this depends on the “identity” of your home, which is defined by its location, style, and features.
Location will attract various types of potential buyers; for example, an elementary school in the neighborhood will attract a young family, but a shopping district in a downtown location will typically attract young professionals.
The style of the home is also a major factor. A new, modern home with the latest in technologies will likely attract highly educated, young professionals. In contrast, a 20th-century Victorian home will attract the typical Generation X folk, because they are old enough to have their education debt paid off; have more confidence in their ability to tackle home improvements; have more time because their children are older; and have an annual income that is in its prime. The vast difference is evident in that Baby Boomers come from a generation of hard work, appreciation of quality, and an acceptance that with a house purchase comes work. Those of a younger generation typically favor things that satisfy their need for instant gratification; they aren’t necessarily exposed to as much physical hard work as the older generation may have been; and they expect a move-in ready home that doesn’t require any immediate work.
The style of decor can also be an issue, as having your favorite color on the walls will not appeal to those who dislike the color, or those who do not have the time, energy, or money to have it painted.
Various features will also attract particular buyers. For example, a landscaped backyard that has a pool and a patio designed as an outdoor room will attract either a couple who love to entertain or a family with teens or older children. In contrast, families with young children will often fear a pool because of its potential danger, and older couples looking to simplify their lifestyle will often not be interested. Many preferences are related to the buyer’s age and income, such as young buyers purchasing their first home versus older buyers looking to trade down (perhaps in anticipation of retirement), while some features tend to be embraced by all home buyers. Other preferences will depend on how long the buyer expects to remain in the home. The desirability of certain features is also reflected in the buyer’s choice between a new or a previously owned home.
Understanding who will be interested in your home helps you stage it so that it appeals to the majority of potential buyers. For example, imagine that you are selling a saltbox (a colonial, wood-framed house) in a suburban neighborhood that includes local amenities and an elementary school. The house is large enough to accommodate future needs, its layout suits a family, and it’s located in a safe neighborhood that has amenities nearby and is close enough to school that the kids can walk. In this case, it is likely that your house will attract a family with young children; therefore, it would be in your best interest to market the property to appeal to this target market. This can be achieved by understanding how certain demographics typically perceive life and what their preferences are in terms of lifestyle.
This means that home owners looking to sell should invest in upgrading specific areas of the home, arranging furnishings, and displaying items that will represent the potential buyer’s ideal lifestyle, regardless of how they themselves lived in the house and their personal taste in decor.
You could consider upgrading key features of the kitchen such as the flooring, cabinet hardware, countertop, sink, and faucet. Or you can change the third bedroom from its current office arrangement back to a bedroom, but stage it as a young child’s room. Even if your children are grown and there are only two of you left in the house, staging it to attract your target market will increase your chances of receiving an offer.
Remember, most buyers use their hearts as well as their minds when shopping for a new house, so appeal to their emotions. You can find additional specific recommendations in the following chapters.
While it is often said (perhaps preached is a better word) that staged homes must be neutral in order to appeal to the masses, we find that bringing in the bling with color in the form of accessories is the simple step that catches the eye and the offer. We can go one step further and work the color angle as it is matched to the target