You don say where you are, so it hard to tell.
For reference, we own about 6 sets of staging furniture, and when we not using them all, my wife does staging for other investors. She charges between 1.5 2.5% of the ultimate sale price of the property, payable only when the property sells (regardless of amount of time).
As another point of reference, we have built some good relationships with furniture wholesalers and suppliers (and also gets a lot off Craigslist) and can stage a 3/2, 2000 sf house for about $2500 in new furniture. This includes all accessories, pictures, etc.
So, if you plan to do staging of more than one property, it probably cost effective to just buy the furniture.
We generally pretty good at forecasting when we need furniture for one of our own staging jobs, so if we know we have three sets available and will only need two sets for the next 3 months or so, we comfortable using one set for another investor.
When we have extra furniture, we store it in our basement (we have a large unfinished part of our personal residence).
And when we don have enough furniture, we buy more. Many of our buyers ask for a couple pieces of furniture here and there, so we turn stuff over pretty quickly. I say a typical set of furniture lasts 3 4 houses before it all sold off as part of a deal.
Originally posted by Jason Kim:
Do you consider them as an expense to your company at the end? or are you actually getting your money back. And do you charge your furniture when you sell the house with it?
Generally, it only takes staging for one investor (maybe 1.5) to recoup the expense of a set of furniture. So, by occasionally staging for others, it essentially pays for the furniture. Though we found that staging for others ends up being more of a pain in the butt than it worth, so we tend to only do it for a select few investors that we have good relationships with.
But, even if we didn do that, we EASILY recoup the expense of the furniture and the storage in our business.
Sometimes we sell furniture piece meal (for example, a buyer asks to buy a couch along with the house); in those cases, we nearly always sell the piece for more than what we paid. And sometimes a buyer will ask for a bunch of furniture, and we negotiate it into the purchase price of the house; again, the higher selling price almost always outweighs the cost of the specific furniture we losing.
That said, now that we have two babies, the biggest difficult with all the staging stuff is the time it takes to buy the furniture. Because a lot of the stuff is not easy to find again (they were on clearance or purchased off Craigslist), it a pain in the butt when we have to replace something.
Also, if you can get staging for anywhere near the price Mark is paying, I see absolutely no reason to own your own furniture. Around here, prices are a LOT higher for a decent staging, which is why we do it ourselves.
Try this: Go to a local rent to own store or a mom and pop furniture store and ask them if they like to have their furniture displayed at an open house. Have a great open house on a saturday or sunday and allow them to have a representative of their store on site. Also list everything for sale. This is a win win situation. A lot of times we like to overdo it when it comes to home staging but if you think “furniture store” type decor (simple , not bulky) and are even able to get a furniture store to stage the home you good to go.
J, I can totally feel the efforts that needs to be put in order to find the right one from Craigslist(I bought many things from it and it always like that). Sometimes the options are just too many and sometimes it does take up alot of time to find THE ONE. I can see that there are many positives of staging the house when flipping houses but also there are extra works that needs to be pushed in order for the house to get s michael kors canada old in faster time. Seems like staging home is something that really helps the house to get so michael kors canada ld and it would always bring positive feelings to the buyers. But at the same time it may need some sort of system that would make things Less Hassle because of the size and the weight which can be a burden. I guess just like any work of business, the extra effort does and will always bring a better results at the end.
I was able to buy couch, coffee table, 2 end tables and lamps, console table, dining room table and 4 chairs, wall hangings, and a whole bunch of bowls and random stuff at target for about $2K. I bought it online and they shipped it for free. If you live close to the house you rehabbing you can even get it shipped right to the house and just track it online and go move it inside once it comes. I just got it shipped to my house then drove it over.
Has anyone considered getting CAD renderings done of the interior of homes showing how they could be laid out and furnished? We are builde michael kors canada rs, and our son does architectural renderings for us (he not an architect) We just sold a new home off his renderings, before we even closed escrow on the land! The new buyers wanted to kn michael kors canada ow what the house could look like, with the colors,materials and products they are wanting, so he conposed a virtual tour for them.
I don know what a CAD draftsperson would charge for this, but seems like it would be cheaper than buying and storing furniture in some instances. I know we be using it in our business much more.