As a professional home stager, you know that home staging has a real impact both on the sale price of a home and on the speed at which it sells. This month, another survey confirms it. This is great information to share with potential clients.
HomeGain surveyed nearly 500 real estate professionals nationwide and configured a list of the top 10 do-it-yourself home improvements that cost under $5,000 and benefit sellers most when they sell their homes.
According to the HomeGain survey, the top five home improvements that real estate professionals recommend to home sellers based on average cost and return on investment (from highest to lowest ROI) are:
1. Cleaning and De-cluttering ($402 cost / $2,024 price increase / 403% ROI)
2. Lightening and Brightening ($424 cost / $1,690 price increase / 299% ROI)
3. Repairing Electrical or Plumbing ($808 cost / $3,175 price increase / 293% ROI)
4. Landscaping ($564 cost / $1,777 price increase / 215% ROI)
5. Home Staging ($724 cost / $2,145 price increase / 196% ROI)
Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2003). This low cost home improvement is recommended by 99 percent of real estate professionals. The average recommended cost for this project is $402 with a returning value of just over $2,000 to the home’s sale price, or a 403 percent return (ROI).
[…]“In a buyer’s market, sellers need to dress their homes for success before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain. “The HomeGain results show that do-it-yourself home improvements like cleaning and de-cluttering and lightening and brightening your home are cost effective ways of increasing your chances of selling faster and closing closer to the asking price than homes rushed to the market with no improvements.”
Rounding out the top 10 low cost, do-it-yourself home improvements are:
6. Replace and/or Shampoo Carpets ($671 cost / $1,747 price increase / 160% ROI)
7. Repair Damaged Floors ($902 cost / $1,898 price increase / 110% ROI)
8. Paint Interior ($968 cost / $2,002 price increase / 107% ROI)
9. Update Kitchen & Bathroom ($1,958 cost / $3,255 price increase / 66% ROI)
10. Paint Exterior ($1,407 cost / $2,176 price increase / 55% ROI)
The home improvements with the highest price increases to a home’s resale value continues to be Updating the Kitchen and Bathroom ($3,254 price increase), followed by Repairing Electrical & Plumbing ($3,175 price increase) and Painting the Exterior of the Home ($2,176 price increase).
As the survey notes, home staging provides a return on investment of 196%. It is important to note that this return is a direct result of a professional showcasing the home—while the other methods of increased value that are highlighted in the survey are focused on the condition of the home.
At the end of the day, the reason the home staging industry is growing rapidly is because it works. Whether it is helping a client to de-clutter their home, pursue landscaping in their front yard, or re-arrange their living room, the services you provide will help your clients sell their home for more money and in less time. The survey we’ve discussed today is simply the latest confirmation of this reality—be sure to spread the word!