Penny Wise and Pound Foolish

When I was a kid, I had heard grown ups say it more than once and I remember asking my mother what it meant.
After explaining that 'pound' was a denomination of money in England she said that "Penny wise and pound foolish means that someone is reluctant to spend a small amount of money on something that would result in them either saving or not losing a large sum of money."

This is what happens today when a seller takes a hard line on not wanting to spend a few hundred dollars to improve the saleability of their house with staging. A few hundred dollars invested in just the right improvements or changes can mean 5 to 10 thousand dollars more in a sellers pocket on closing day.

"I don't want to have to spend money on this house. I need to put all my money into buying my next house" said a woman I met at a business gathering. I happened to know that this woman had a home with dark paint and very dramatic ethnic themed wallpaper. "I love it" she said. "And someone else will come along that loves it too".

Well, hopefully. But she may wait significantly longer to find that buyer because dark and dramatic wallpaper will leave some buyers cold. Most buyers want light. Realtors agree that people will pay more for light. Two rooms of the same size and shape...one with lots of light and one that's dark, the light will always sell quicker. People see dark paint and wallpaper of almost any color as something that will have to be done over. They may not even be able to envision how the room would look if the walls were made lighter or the shrub was cut back from covering most of the window. They will move on to where they can already see the light. In the meantime, this lady will wait, having more open houses and more life disrupting private showings than the owner of the 'light' home. The issue of light is only one of many selling roadblocks that stagers can help you avoid. Many houses sit for months on the market before a seller decides to try staging. The house may then sell quickly but after sitting for months on the market, buyers will see a seller in a more disadvantaged selling position. They make lower offers than they would on a house that only just went on the market. Stalling to stage is rarely a good strategy.

"My realtor hasn't told me I need to stage my house. I'm sure if she felt it needed it, she'd say so".

This does seem counter-intuitive but consider this. Telling a homeowner their home needs staging might rub a homeowner the wrong way and the truth is....if you get $5000 more for your home after staging and your realtor is splitting a 6% commission on a $400,000 house , the difference in your realtor's pocket is just $150.
Do you really think that $150 is a strong incentive for a realtor to convince you to stage....especially if you resist?  It's only $150 for them but it's a difference of $5000 for you!  Many homeowners think staging is a function or a priority of the realtor. Much of the time, it is not. A homeowner needs to make his own decision about staging because he will ultimately reap the greater return. And it is rare to find a realtor that is willing to pay for or share the cost of staging, even if it may mean selling your house quicker. In  today's economy and with lower commisson percentages, sometimes as low as 4%, realtors do not 'invest' in selling homes as they once did.

Don't be penny wise and pound foolish. Give your home the advantage over un-staged homes in your neighborhood and price range and you'll sell your home if it is priced right. If you question whether it is priced right, visit comparable homes on the market and be realistic about how your home compares to theirs. Pretend you are a buyer and see your own home as objectively as possible in comparison to those who are competing for the same buyer you are.

East Coast Staging and Redisgn        Staging Consultations just $100         
978-358-8111
New England Coastal area from Cape Cod to Kennebunk