As a mortgage broker, I am lucky to work with investors and help them start and/or build their portfolio’s. One of my investors’ recently shared his experience of selling one of his properties and how Home Staging made a difference for him in standing out amongst the competition!
As a past home stager, I was reminded how sometimes we overlook important aspects of a property or have our eyes on the wrong things, when looking at all the options in the marketplace.
For instance, it’s common knowledge that bathrooms and kitchens are the most important areas that homeowners look at in a property and will also help to sell a property at a higher price point if they are clean, freshly painted and have modern touches.
However, if you are an investor and you plan to rent out the property, does that mean you should buy a home with top finishes, such as stainless steel appliances and marble counter-tops? Or renovate the property with these same finishes just to turn it around and rent it out?
In my opinion it does not make sense to rent out a property with high price-point finishes, as tenants will never take care of your home the way you would if you were living there. Most tenants just want a home that is clean and safe!
However, when selling a property, it is a completely different picture!
For instance, when my client initially bought this property in Barrie, it was run-down and needed lots of work so he got the home at a bargain. He took his time and renovated the property from top to bottom with high-end finishes but he overlooked that what he was spending would not necessarily bring him higher paying tenants, as he still needed to stay within market rent.
It did however pay off when he decided to sell the property! He commanded top dollar and a bidding war as he also home staged the property!
So what does home staging a property entail?
Curb Appeal – if the front of your home is not attractive, your potential buyer is going to keep driving to the next property that does look attractive and you won’t even get them through the front door.
Curb appeal entails having a nicely painted door and garage door (hopefully matching); trimmed grass and bushes and perhaps a pop of color with some nice flowers! It’s not expensive but it makes a huge impact on your potential buyer!
Other useful tips when it comes to home staging are:
- having the interior walls freshly painted;
- de-cluttering and clearing out the home of personal items and photographs. You want your potential buyer, seeing themselves living in your home not you! When you are selling your home, you need to take the emotions out of it – for investors this is easier as it is looked on as an asset and not a personal home!
- Furniture placement to provide flow through the house and especially in the bedrooms, you want to prove in smaller spaces that buyers can fit their furniture;
- Finally, you want to ensure that the kitchens and bathrooms are upgraded with nice finishes, matching appliances and not necessarily marble countertops but that the countertops and backsplash match the general paint theme throughout the house.
- You want to be able to walk through the home from room to room and have it flow with the same paint scheme – colors such as Taupe, Beige or Grey are the best colors to consider as they bring a sense of calm to the property and while physiological, it has a great impact on a potential buyer or even tenant.
Home Staging does not have to be expensive to make an impact but it is something to consider when you want to stand out amongst the competition!