The market is full! Real estate agents flock to new listings with buyers in tow. Houses are literally being bought before the ink is dry on the listing contract. Sellers can’t pack fast enough.

When it comes to a seller’s market, buyers need to act fast. Because buying a home is such an emotional process, staging can maximize your return in an active market because it will provide instant appeal to a buyer whose options may already be limited. It is not uncommon in a seller’s market for a property to get multiple offers well above the list price.

A HOT STORY

A young and growing family felt the need for a home. They had been renting for a few years and with 3 small children they wanted the dream of a place of their own. House prices were starting to rise and they worried that soon they would not be able to afford the jump. They bought a small starter house, barely more than a cube, for $49,000. They were so excited on closing day that their dream had come true!

After nine months of sprucing up and polishing up, they decided to test their house for sale so they could move into something fancier. To his amazement, his house sold within a week of being listed for $63,000! They immediately began their search for a new place and found a row house just a few miles away, which they bought for $84,000. Once again they shone and shone, and in nine more months they were ready for a new challenge. After 2 days on the market, 3 offers were presented to them simultaneously. They accepted the most attractive offer, which was $119,000, a total of $2,000 above the listed price!

Exuberant, the young couple found a large bungalow in a lakeside community. They never thought they could live in such an environment! They paid $135,000 for him and quickly began fixing the gem from him. Just nine months later, life circumstances meant they had to move several hundred miles away. Imagine his delight when his house sold in 2 weeks for $163,000! In just 27 months they had turned their $49,000 investment into $163,000. The combination of a great sales market and preparing their home for sale netted them $87,000!

This story may sound extreme, but it’s true! It happened to me in 1984-1987 in Toronto’s crazy seller’s market. By preparing my homes before I put them up for sale, I was able to maximize my return in an already dynamic market.

You will certainly sell your home in this type of market, but the goal of entering a seller’s market is to get the highest return as well as multiple offers in the shortest amount of time.

For sale signs are everywhere. Real estate agents’ frustration is reaching an all-time high because their listings are aging and buyers are few and far between. Potential buyers have a huge inventory to choose from and are very picky about finding exactly the right home, and they can afford it. The sellers are paying off two mortgages because they can’t get a contract.

In a buyer’s market, every competitive advantage is necessary to attract buyers. If a house they plan to view doesn’t captivate them at first glance, all they have to do is keep driving a few blocks to find more that do. When selling a home in this type of market, making a good first impression is imperative. The alternative is to lower your price until you finally find a buyer. While staging is important in any market to make your home stand out from the crowd, it is essential in a buyer’s market.

A COLD STORY

While driving innocently one Sunday afternoon, a woman stumbled upon a new subdivision not far from where she and her family owned a home. In front of her stood a stately builder’s model home. Delighted, she stopped and entered the enchanting structure. Inside, she was wowed by the spacious floor plan and beautiful décor. Before she knew it, she was signing a purchase contract! How was she going to tell her husband?

Once she spoke to him again, her husband forgave her and she really liked the new home she chose. They realized that they needed to sell the house they already owned, and fast! Unfortunately, because their decision to buy was based on impulse, they didn’t consider the sales market to be extremely slow. Filled with eager anticipation for their new dream home, they prepared their current home for sale and listed their home with only 8 weeks to sell.

Two weeks passed with no performances. The couple began to wonder if their agent was actually advertising their home. Four weeks, no shows. They had never had a problem selling a house before, and had bought and sold several! Anxiety was starting to set in. The stress was so overwhelming that they packed up their family and went on vacation for a week. Every night they prayed for an exhibition. Time was running short and they couldn’t afford to carry 2 mortgages.

When they returned from vacation, they found a note from their real estate agent asking them to call. (This was before cell phones were widely used, when dinosaurs roamed.) They crossed their fingers and toes and called their agent. I had an offer to submit! To his surprise, it was a full price offer. Puzzled but ecstatic, they asked their agent how their luck could be so good. She simply said: They fell in love at first sight; luck had nothing to do with it.

Another surprising but true story, this happened to me in 1992 during a market crash in Calgary, Alberta. Thanks to the staging I was able to captivate the first buyer who walked through the door. Who knows how long it would have been before another opportunity presented itself?

The moral of our story

When you see your home as an investment staging it makes sense. Imagine selling your home as-is, only for the new owner to make the improvements and collect what should have been YOUR equity.

Why would you give away your untapped home equity? Think of it as turning his own house upside down. A small investment of time and money can generate a large return at closing!