In the real estate world, there are differing opinions on how far a seller should take the upgrades before selling their home. In home staging we also have to consider a number of factors when offering professional advice to a client. So, it is very important to consider these upgrades for a number of reasons.

Number one

Consider if your competitors have done upgrades. Have they been regularly maintaining their property over the years? Buyers are viewing those homes against yours. Buyers will buy a more upgraded home, especially if you are trying to get the same price.

“Market value” is what a buyer is willing to pay you for your property, not what you think it’s worth.

Number two

It does not make financial sense for a buyer to give you a high asking price when they have to invest thousands in upgrades. If they see a house already upgraded, most buyers will choose that one. Just like you probably would. Their reasons are usually the same, they can’t afford to do upgrades. This is because they are already maxed out for the purchase price.

Number three

Buyers often do not have skills to tackle these items themselves. They are not looking to buy anyone else’s headaches.

Dated homes sit for sale

If you chose to keep your property dated and wait longer on the market for a sale, you will encounter a number of stressors. Things like extended carrying costs, double property payments  and double utilities.  Plus double taxes if you already bought a house, more stress, going stale on the market, price reductions…etc.

There is one thing you can do to try to sell faster. If you are not doing upgrades, start off with a lower price than your competitors. That way you hit the market with enough impact to get noticed and get showings. You may get lucky and find a buyer that is willing to take your “project house” on.

If this is the road you want to go, then it is sometimes not enough to be $5,000 under your competition.

You will need to consider the level of upgrades that would be required and drop your starting price to that point. This may mean $10,000- $30,000 or more depending on how extensive the work is.

Investors tend to want to get a “deal” for 60%- 75% of the listing price, so that there is equity already built into the property and they can safely tackle the upgrades without losing money. It just numbers for them. But for you, it’s your equity you are giving away.

Reconsider this and do the upgrades that will put you front and center on the real estate map, and then keep your equity!

Return on Investment ROI Study

This one was done in 2011 by Home Gain

• Clean and De-Clutter = 586% ROI

• Lighten and Brighten = 313% ROI

• Staging                      = 299% ROI

• Landscaping             = 258% ROI

• Electrical/Plumbing Repair = 181% ROI

• Replace /Shampoo Carpet = 169% ROI

• Paint Interior Walls = 80-110% ROI

• Paint Exterior Walls =51% ROI

• Repair Damaged Flooring = 107% ROI

• Update kitchens and baths = 172% ROI

You can see that all updates offer a return on investment, some more than others. The stats are clear that the majority of Real Estate Agents make these recommendations and their advice should be heeded, as they are in the business of selling real estate and they are usually well versed in the ups and downs of selling.

As an Agent, I provide a very clear picture of what buyers want, so lets get your house “saleable” by doing as much as you can to compete with the market.

Real estate has changed dramatically in the last 15 years thanks to all the Home Staging Television shows. Buyers want what they see on TV and they are willing to pay for it.

If you are thinking of selling, I offer a 15 min strategy call on zoom to discuss your specific needs for selling and explain how the staging process works when I list a home. I also offer a flat fee commission for you, that will easily free up money if you want to tackle any projects!

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo owned by Simply Irresistible Interiors Inc.

When thinking of selling your home, flooring updates need to be considered, because wear and tear has taken a toll on the property to some degree. Also, the styles have changed over the years. What was in style 5 years ago, isn’t necessarily in style now. Buyers are always looking for the latest thing in design and interior updates.

If your flooring is over 5 -7 years old, has wear and tear or damages it will need to be replaced.

You can consider doing more of the same of what you currently have, but taking in to account the current flooring trends is a better route.

Return on Investment

Home Gain has an ROI chart where all updates are listed and flooring gets a 110% return on investment with 93% of Agents recommending doing it. So it is a benefit!

I agree with this, because I see the value of it everyday when clients can sell their homes faster than the competitors and the steady feedback from buyers is that they loved the new flooring. If you feel it’s too daunting your other option is to reduce your price or offer a buyer allowance for flooring, but it isn’t recommended. Why give away your equity?

I offer project planning and contractor management, painting, fixtures updates, facelift renovations, and Staging for my listings. We can have a 15 min strategy call to discuss how this works if you and I work together. I also offer a flat fee commission rate at One Percent Realty for all the same Services as other companies. Let's chat!

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo owned by Simply Irresistible Interiors Inc.

 In my other blog, I covered the first part of working with Contractors. It would be a good idea to read that as well.

STICK TO THE BUDGET

It is super easy to get carried away with all the extras that could be/ should be done “since you are doing it anyway”.

This is a classic thought process and a surefire way to get in over your head. Adding items can add up and they were not part of the original contract. If you are planning to just do floors and paint, stick to your plan. Make sure that in your interviews you have asked enough questions to ensure that this topic doesn’t come up.

If you are painting, ask what is included in that whole process? Ask what would be an “add on”, while you are doing the interview so that you can decide how far to take it, before the work starts.

You can expect 10-20% on top of your original quote for contingency funds and unexpected issues, as their always are!

Quotes should include material, fixtures and labor that will be required to complete project to the specifications. It should also outline who is buying and delivering these items to the site, who cleans up and who pays for clean up.

Have Detailed Contracts

How detailed? So detailed that if, God forbid, all parties in the contract passed away,  a lawyer could easily and plainly see what was to be done and what stage money was payable. And what money was already paid. A contractor that balks at this idea is not one that you should hire. Contracts protect all parties so if they are unwilling to sign something or create a contract with you, then re-think hiring them.

Insurance

Property damage Insurance, as well as a valid Business license. Take the time to verify this.

Call their references and check their experience, including social media profiles

Permits

Are they are able to obtain any building permits if required and are they are knowledgeable about what is needed? In some cases you as the home owner can also obtain the permits yourself.

Payment plans 

Money has to leave your hands at some point so planning a schedule for this is a good idea. Typically, a 30% deposit is paid, then 30% when 2/3rds of the work is done as outlined on the contract and the last 30% when the final day is complete with a 10% holdback for you to have sufficient time to confirm all projects are in fact complete. Call Service Alberta if you have further questions about contracts.

Another option is that contractors will work all week and invoice for the balance owed that week. This is a good system that is trackable and also prevents further confusion on the invoices weeks later when time has passed and it is uncertain what transpired on the day in question. It allows you as the home owner to see progress and the time things take, pay as you go, and keep yourself on budget.

It is also beneficial to the contractor as they are paid regularly and this alleviates the stress of buying materials and also paying their own bills. They are people too and they often have families to feed also, so this is a very good way to work out a fair and equitable plan for everyone.

During the process -Supervise your contractors

Be there daily so you are well informed. We offer trade management as a service within our staging company if you prefer that option.

A professional is happy to answer all questions

So ask questions, there is no dumb question when it comes to your money being spent.

Never pay for more than has been completed

Depending on the business deposits may be only $500.00. Progressive payments are usually agreed to on a contract, but what can end up happening is that you pay your progressive payment and the work is not actually completed to that point. If you are new at this, this will be a problem and some contractors can smell new blood a mile away.

So again, be clear on the contract and have it reviewed by a lawyer if necessary. A common issue that occurs is that a contractor has worked all week at your house and the completion level is not where it should be, or has run into legitimate issues that held up the progress. At the end of the week, they want a progress payment and the work is not done to that degree. Do you pay? What if they tell you that their rent is due? Or their kid’s soccer dues have to be paid and they promised to pay it today? Do you pay? What if they say they will come back tomorrow (Saturday) to catch up…do you pay? The answer is no. NO.

This always causes tension and if you pay for incomplete work . You will lose in the end when you have paid for more work than has been done and they are now telling you that you owe more than you agreed to pay, and unless you pay they will not finish the work. This is a difficult predicament to be in and it does happen, so research, interview, have an ironclad contract, get legal advice and be prepared to stay on top of all this.

Mandatory holdbacks are required in the province of Alberta

This is not optional. You are legally required to keep 10% of the final pay back to allow time to ensure project is complete to your contractual agreement. Typically you can review your completed project with a few days and then if there are issues, they must be resolved before the final 10% is paid. Contractors may pressure you to give it to them with promises to return to complete items, do not give it to them. Sob stories are for Disney™ not business!

Be Aware!

• Be aware of a contractor if they request large deposits, or cash only, or payment in full upfront.

• Be aware if they do not charge GST or have a business license

• Be aware if they are too vague or do not want to put details in a written contract

• Be aware if they have no only a box # for an address and no physical location

• Be aware if they want you to obtain all permits and do not want to be involved in that process

• Be aware if they pressure you to decide now or offer you a discount for a “now” decision

• Be aware if they have answering services and do not use their own phone numbers for contact

Although this may sound scary,  I am not trying to scare you from using contractors. Most are fantastic to work with. I am trying to inform you on what can and does sometimes happen, so that you can prepare yourself fully and come out of this process unscathed.

Most often working with contractors, although stressful due to the nature of the projects, is usually a great learning experience and a rewarding time to see your vision come alive. Property improvement, even if you are moving, always carries its own rewards.

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo owned by Simply Irresistible Interiors Inc.

When making the move towards doing updates on your property it is intimidating to think about having to deal with contracted trade people. There are many horror stories, lots of them justified, and the thought of tackling this is the biggest reason that most people chose not to. All contractors are not bad news, but there are things to watch out for.

Follow the guidelines below to put yourself in the driver’s seat when making hiring choices and doing the project management.

When considering Price Points is it $5,000 or  $50,000?

This is will be relative to what you haven’t done on your property over the years. The fact is that you do pay for upgrades on your home. This happens by actually doing upgrades or by lowering your price enough to sell. Either way you pay.

Getting written estimates is a good place to start. Verbal estimates seem to mysteriously increase, so always get it in writing! Get multiple quotes and ask them to be as detailed as possible so you can carefully review them later.

Level of Quality in Product

You do get what you pay for. Reputable companies will typically have been “seen around” town through various long standing advertising. You need to always ask for references from past clients and also Google their personal name and the company name to see if anything pops up.

Do not hire the cheaper contractors simply because you think it’s better to save money. You will not save money. It usually ALWAYS ends up costing you more in the mistakes they make, the issues they create and the headaches you endure. Pay for quality and you will get it.

This doesn’t mean you have to spend over the top amounts to upgrade but you do have to spend something, so don’t choose the lowest price. Go for the middle ground if you are only basing your decision on price.

Contractor scheduling

This is a tricky balancing act even for those who do it every day. Most contractors are not large corporations, but are running self -employed businesses and therefore they have to run the company, market for new business and also do the work. If this is the case, you can expect their estimated timeline for completion to be twice what you expected.

This is because they typically have other projects on the go and you are not their main focus. They have to go out to see new clients during working on your house and so the hours they give you are usually broken up. This actually makes everything take longer because they have to re-focus themselves each time they get to your house and it takes away from progress momentum.

Self- employed contractors are also busy answering their phone and putting out “fires” from other jobs they have on the go. This can and does cause frustration for a Seller who is updating to get on the market in a set time line.

Give yourself plenty of time to get this work done because it always takes longer than they tell you. Self -employed contractors do have some benefits as they are more flexible with hours and pricing, they are usually trying to build a good business reputation and do not want to get a bad name, so are more likely to fix issues to the best of their ability.

Trust your judgment during the first interview and do not be swayed by flashy talk or pushy sales. If a contractor is pushing you to decide right now, say no. There are many options for you hire and you can afford to wait to make the right choice.

Type of property

This will determine the level of upgrades you choose. A starter home does not need granite counters or top of the line hardwood flooring. Do not be up sold in such a case.

Contractors are there to “install only” not determine your product choice or price points you need to spend. However if you have a million dollar home, it needs to be finished with appropriate levels of quality or it will destroy your chances of selling. Choose upgrades that reflect the price point of the asking price.

I can help you with that as that is part of my Pre-Reno consulting service, or when listing your home with me, this is a discussion we can have, as I include many support services for my clients.

Market Expectations

What are other homes listed in your price range doing? You will need to at least offer that much or take it to the next level and offer more. If your competitors are not upgraded, then you absolutely should  be, as it will secure a faster offer and the best price on the block.

If your competitors are upgraded then you need to be also upgraded at least to that degree or better, to even stand a chance at selling. Today’s buyers are telling the sellers what they want in a home so listen…and you will win

Budget VS. Return

The ROI on upgrades varies and is also dependent on your neighborhood values. Your budget of course will determine how much you can invest into your sale, so plan a budget that takes in account an overall impact on the property, not just one or two rooms.

It is better to paint a whole house and put new floors throughout, than to just gut and update a couple of bathrooms. Choose your budget to cover all your bases and consider that investing now will prevent future price reductions, so you are actually saving money.

Keep in mind every broken item, damaged wall, crooked cabinet door, etc. will remove dollars off your offers. If your property looks broken down, buyers will want to get it for a deal since they have to fix it themselves. So your offer from them will be less than you hoped for.

Research

Do lots of interviews with contractors. At least 3 each. Spend a few days doing this and ask lots of questions. Searching the internet beforehand to learn what to ask would give you an advantage.

So make sure you are informed before they step through your door. If you are alone in this process, have a trusted friend there to be a support. It is better to have someone there with you to keep you on track and it will help prevent being swayed by pushy sales tactics.

No shows EQUALS no 2nd chances.…if a contractor is a no show for your first appointment, then do not give them a second chance. This is a good indicator of the level of service they will provide you if they are missing their first appointment.

If you need support during this process, and are my listed client I am happy to help you in any way I can.

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo owned by Simply Irresistible Interiors Inc.

This topic covers a wide range of issues with regard to blocked light when selling a home

Here are some key points to consider:

• How many windows are allowing light in and how many are being blocked?

• Trees and Shrubs should be cut back to allow as much light in as possible. Consult a professional on this subject so that the pruning does not kill the trees.

• Buildings can block light, but unless it is a portable shed or structure that could be taken down you are usually stuck with it so paint and interior lighting is the best course of action. Also, keep in mind with regard to RPR’s that outbuildings should not just be taken down as that may affect your RPR.

• Oversized window valances or coverings are usually out of style and should be removed, in almost ALL cases.

• Neighbor’s recreational vehicles may block light and perhaps they would consider moving them while you are selling? It doesn’t hurt to ask. Not to mention they are a visual eyesore.

• Awnings on decks should be fully closed for showings and if you have dated awnings on the front of your house remove them if the budget allows.

• Exterior roll down security shutters should remain fully open for all showings. This is not a time to hide the house!

• Use a bright light in the foyer and in the exterior light and leave it on at night.

• Consider adding a mirror to entry to enlarge the area’s appearance.

• Large pieces of interior furniture should be moved away from all windows, including headboards.

• Clean all windows, do both sides of panes.

• Keep curtains & blinds open.

• Clean all drapes, blinds and shutter (including exterior shutters)

• Choose the brightest incandescent bulb you can (no fluorescent or white LED, this isn’t an office or hospital)

• Clean all switch plates.

• Add lamps to all rooms or dark corners.

• Use existing lamps and change the darker shades out to a lighter one.

• Turn all lights on for all showings and ensure exterior lighting works.

• Paint all woodwork panels to a neutral or remove them completely.

• Take out loud color furniture pieces or dark heavy wood furniture.

Opening and keeping open all window coverings is the first things and a MUST DO, regardless of the view. Buyers want to know what surrounds them when they are buying. Usually opening the coverings solves a lot of light problems. Having the windows professionally cleaned also will allow sunlight to burst through and give a great, clean first impression.

I highly recommend https://www.cleanshinywindows.com/

Interior Lighting and other Tips

Update all fixtures in the home, if budget allows. This has a great impact and first impression. Stay away from builder style pieces and go for the dressier ones.

I can consult with you on this and even have a Electrical contractor that can install them for you.

https://www.facebook.com/The-Troubleshooters-100187558527685

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo owned by Simply Irresistible Interiors Inc.

Buyers today are savvy, they have been very educated thanks to the internet and the television programs on home staging. They are also not spending the way the used to. The economy changes and daily stress of lower incomes and a higher cost of living have created the demand for move in ready homes.

As well there is a generational gap that is more prominent than ever before, younger couples are buying older homes and they are generally more unskilled at property maintenance and updating a home, than their older generation home sellers. There are multitudes of older sellers moving out of their long term homes and that makes for a flooded market in that category.

The other problem in this scenario is that if a younger buyer is looking in a set price point, they can likely find a new home, with a warranty for the same price as your older unrenovated home.

This happens in every price range, regardless. If your home is in need of repair, why would they buy yours? You are competing with the newer model homes and they are popping up everywhere. So consider your buyer’s needs and demographic.

If your potential buyer is the demographic of a younger family or a couple with no kids but both work, consider that thinking the way they think and finding out what they want to be your top priority if you want to sell your property.

Turning around the Blind Eye

After years of living in your home, it becomes part of you. You tend to get used to the disrepair or the chipped paint and “one day” will get around to fixing the broken closet door and you just don’t see it anymore.

In the weeks to come we are going to give you checklists so you can address these and other issues, and they must be addressed unless you are willing to knock off thousands from your asking price to reflect the work that will need to be done.

Keep in mind that buyers think in “thousands” just like you do when searching for a new home and they want to be compensated for their trouble if they have to repair your half completed projects.

Where to Start- A General Checklist that every Seller needs

CLEANING:

•   Clean door jams and polish handles

•   Clean furnace filters and wipe the furnace down

•   Clean drains

•   Clean septic system

•   Rent an Ozone machine to deal with smoke smells in the home or garage and follow instructions as they  can be dangerous

•   Clean oil stains off the garage floor (CLR™ should work for this or try Coca Cola ™)

•   Clean and wax floors

•   Basically clean every single thing in the house

•   Clean all door tracks and window tracks

•   Clean Windows, Gutters, & take Christmas lights down  https://www.cleanshinywindows.com/

•   Sweep out and if possible wash garage floor & paint it if you can with proper products

REPAIRS:

• Repair holes in gutters and fix all eaves that may be falling down, as well as have them cleaned.

• Fix broken doors, baseboards, trims, windows.

• Fix gates and broken fences.

• Make sure garage doors all open and close properly.

• Service sprinkler systems.

• Repair damaged steps or door casements.

•  Repair damaged screen doors.

•  Replace broken light fixtures.

•  Repair any tiles that need it- floor or back splash tile.

•  Fix all dripping faucets and the damage they may have done under the sink.

•  Service noisy exhaust fans (kitchen and bath).

•  Remove rust stains from sinks and toilets.

•  Remove mold and dirt build up from bathrooms and kitchens.

•  Ensure locks are working easily / replace if they are sticking or stubborn.

•  Oil hinges on doors.

•  Ensure doorbell works properly.

•  Ensure shutters are in good condition.

•  Fix cracks on ceilings or walls or in basement ( don’t hide anything from the buyer).

•  Silence noisy floors.

•  Replace worn toilet seats and covers, take off themed toilet seats or incorrectly sized ones.

•  Remove plastic runners or glued down rugs and repair the damage they may have caused.

•   Seal or re-surface driveway.

•   Add gravel to bare patches like along the side of the house where no sun is).

•   Re-grout any tile if necessary.

•   Re-caulk and repair seals in shower enclosure and around sinks.

•   Ensure that toilets don’t run continuously.

•   Update toilet paper holder, towel racks and curtain rods.

•   Patch floors where damage has occurred or replace flooring.

•   Update batteries in all smoke alarms.

•   Make sure burglar alarms are working.

•   Secure area rugs.

This list is very important to take heed to and is by far the most time consuming items on the preparation report. In many cases, not everything will need to be addressed, so you can tackle your projects in their own order of importance.

Property’s often get neglected in many areas and as you can see once you start addressing an issue there will be another to take its place.

All of these points are items that do affect the buyer’s first impression and also what they feel your property VALUE truly is. If there are many unattended projects left for a buyer, they will either walk away and find a home that is move in ready or they will low ball your offer enough to justify the work they will have to do.

The many Television shows on Staging and Buying Real Estate attest to this.

And as I said before, Buyers think in “thousands”. So spend a couple days or a couple weeks getting these items looked after and in the end you will reap the rewards of the best sale price you can get.

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo owned by Simply Irresistible Interiors Inc.

Everyone’s perspective on clean is different, as I can attest to after seeing thousands of properties in my Real Estate and Staging career over the last 25 years. Even some professional cleaning companies have different views on what they deem as clean, which can make even hiring cleaning companies a bit tricky.

To sum up what I will write about I will cut to the chase and say that your home, when prepared for sale, should be WHITE GLOVE clean.

This means that anyone can wear a white glove and wipe any surface of your home and the glove stays white. Even in areas like the tops of door trims…Sounds complicated? It is, but it’s manageable. It will require a “face to face inspection” of areas that you normally don’t get too close to!

Let’s start with a major once over clean of your home

This will occur after all the de-cluttering, packing updates and repairs. It is the step before the Staging.

So first, having these other items taken care of will make the cleaning process go much smoother. A large portion of what would have normally hindered your progress is now out of the way.  You can begin at the top or back of your house and make your way to the front door, using a room by room process or you can do all similar items at the same time.

For example, all light fixtures, then all window sills…and follow that pattern. Whatever works best for you and your family. Remember that cleaning will represents hundreds of dollars to your bottom line and it is worth doing to create the best first impression for the buyers.

Take the following list and use it as the guide to make your master list

• Clean fireplace thoroughly

• Clean out ashes and remove all firewood

• Clean off soot stains with soot remover

• Clean all chandeliers and light fixtures & change bulbs to yellow/ incandescent

• Polish all woodwork, including furniture

• Clean back splashes in all bathrooms and kitchens

• Polish mirrors

• Clean all window screens and storm doors and screens

• Clean front door hardware

• Clean the front entryway very well, it reflects the first impression of the entire house

• Sinks should be free of food, stains and odors

• Keep dishes done and put away every day

• Clear off all small appliances off the counter tops

• Take all items off the refrigerator (top, front and sides)

• Clean cabinets of all stains and food splashes. This will require getting on your knees in front of the cabinets for a “face to face inspection”. You will be surprised what you find!

• Clean kitchen exhaust fan, filters, hoods

• Clean bathroom exhaust fans, they can be easily pulled down, washed and put back up or for a few dollars they can be replaced. You can find them at home improvement stores.

• Clean toilets using “the face to face” approach

• Wash all sinks and faucets, including behind them. They should shine.

• Clean oven, stove top, burners (replace burners if needed)

• Run a dishwasher load with CLR™ only

• Empty the refrigerator and wash all drawers, and shelves. Buyers are buying these appliances and will look inside them. Clean exteriors as well.

• Wash all floors, staircases and closet floors. Keep swept and shiny

• Wash all baseboards throughout the house. Face to face inspections!

• Organize all scrub pads, cleaning supplies and soap under the sink

• Empty pantry by 50% and wash all shelves

• Keep interiors of cabinets neat, clean and free of smells. This will require de-cluttering the pantry also. Cabinet interiors should reflect storage space and should not look cramped and “too full”

• Empty garbage daily to prevent odors

• Eliminate all odors “If you can smell it, you can’t sell it!”

• Wash walls, especially high traffic areas that have been used and abused

• Clean ceiling fans

• Clean and dust everything (doors, mirrors, shelves, baseboards…)

• Clean carpets or update them to the most current trends

• Vacuum often, including the couches. Pet hair is a turn off, so stay on top of it.

• Clean under and behind appliances. This is a dirty job but somebody has to do it

• Garbage out daily

• Cat litter cleaned every day, or if you have other pets, keep their wood shavings or “messes” clean 100 % of the time, you never know when you will get a last minute showing (put a soft air freshener nearby)

• Call an exterminator to deal with any insect problems 

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

photo credit to cottonbro studio

Your financial needs do not dictate your asking price.

Recently, in my staging business, we have had 3 properties that have been overpriced and staged, against professional advice. As I have been so clear on this point with my clients, I still cannot force their choices on what they think their home is worth.

Despite their Realtors telling them the correct pricing, they insisted on “trying it higher”. They all had their financial needs/ issues driving these choices.

There are multiple problems with this scenario, first being that they are shooting themselves in the foot and second they are assuming they know the market better than a professional Agent. Their refusal to take solid sound advice has worked against them.

The Result?

Well, instead of selling in record time (our average Staged days on market is 9-18 compared to 56 in the Edmonton Real Estate Board) they sat for months and months, Paying double mortgage payments and double carrying costs in some cases.

As well, they were behind the 8 ball trying to chase the market, while qualified buyers viewed their homes and SAW they were overpriced and moved on to buy other properties. They lost the summer markets and paid for staging rentals for more months than was necessary.

Then, guess what? All 3 Sellers opted to take out their staged rental package. Big mistake, because now, the Agents have called me and told me of the new challenges they face in trying to sell these now stale listings.

Agent #1 called and said that the home that did look like a show home, was now just another empty box and that his open houses were met with disappointment when the buyers came expecting to see the staged home (as the gorgeous MLS photos displayed). Buyers commented with questions like “where is all the furniture?” “Wasn’t this home staged? We came to see it because of the pictures.”

This Agent was put in an awkward position in having to answer these questions and it makes the Seller look bad too. It’s essentially false advertising. This home went through multiple price reductions to finally reach the actual value and took over 7 months to sell when it shouldn’t have. The other mistake I truly believed stalled this sale was that the Seller tried to sell it themselves before staging or calling an Agent, but that’s another BLOG!

Agent #2, had 2 staged listings, and this situation happened to her twice. She also called me after the staging was removed, but with a bit of a different story. She said that now her showings were being booked and then during and after them, Real Estate agents who showed the home called her and were upset that she had staged photos up in a non-Staged home. I totally see their points. This happened to her 4 x between the 2 homes.

Those agents, bringing buyers, are putting staged homes at the top of the list because they show SPECTACULAR. And this sets the bar for all the rest of the showings, ultimately resulting in a Staged home getting sold faster than every other house.

However, these Agents and buyers were met with empty rooms. Both properties also being overpriced and having had 2 price reductions, are still for sale, and now empty.

In one of these cases the Seller’s FRIENDS are telling him how much its worth and none of them are in Real Estate. It always boggles my mind when people deem themselves to be experts in a field they have never worked in.

All the staging money and rentals were lost at this house too, because now the seller needs to have empty room photos re-posted so that he can honestly present what the home looks like today- EMPTY.

Sellers who invest in Staging and Rentals need to take the advice of professionals. This is not a game, it’s the REAL ESTATE market and buyers aren’t uneducated, they won’t overpay for homes and they want to view property that is presented well. Staging allows for emotional connection and buyers will pay a premium for that.

It is totally within a Seller’s right to get the highest price for their home, but overpricing is not the means to that end. It is serious business this real estate thing and as much as I understand that Seller’s have financial issues and are trying to pay off all debts in the sales of their homes, I have said it before and I will say it again, ” Your financial needs do not dictate asking price!” You are only hurting yourself when you overprice.

Jill Turgeon 

The Staging Agent 

One Percent Realty 780-218-7444

Photo credit to Pixabay

As of January 1, 2024, until today, they have saved a whopping $489,000! Savings per client range from thousands to tens of thousands, depending on the sale price of the home and the terms negotiated.

So, how does this work exactly?

Well, let me explain....(All prices are plus GST.)

If your home is under $400,000, your commission payable is $7,950.00. (Buyer's Agent gets $3,500)

If your home is $400,000 - $900,000, it is $9,950.00 (Buyer's Agent gets $4,500)

If your home is over $900,000, it is 1% plus $950 for marketing costs. (Buyer's Agent gets 0.50% of the sale price)

The Buyer's agents MAY ASK for more than the posted commission. And they can because the Commission is negotiable.

Why would they do this?

Well, for starters, their buyer may have asked them to write it in the offer, because of the Exclusive Buyer's Representation Agreement (EBRA) that should have been signed before that offer was written.

All Buyers MUST sign this document prior to writing offers; in fact, it should be signed before viewing homes with an Agent.

The EBRA states that a Buyer will pay an agreed fee to their Agent if the property sale offers less commission to the Agent than the Agreement states they will be paid.

So, if they fall in love with your home and the Buyer's Agent's payment fee is posted less than the EBRA outlines, he/she will be paid, the Buyer may ask to write the EBRA's fee into the offer and see if the Seller will pay it. Commission is negotiable, so they can do this.

Sometimes they do ask for it to be written in, and sometimes they don't ( *****see my stats below for more on this!******)

IF the Buyers ask you to pay their Agent's fee, you, as the Seller, have 3 options;

1. SAY YES! You are free to give the Buyer's Agent more if you like. That is entirely up to you, and your decision may be based on the sale price, terms, or other factors that make this an easy choice for you.

2. SAY NO. You can always say no, and to be perfectly clear, the EBRA that the Buyer already SIGNED prior to writing the offer states that they will pay the Agent if he/she cannot collect it from you. So it will be submitted to their office and to the lawyers to form part of the offer documents, and the buyers will need to bring in the amount due as part of their closing costs. It is already a signed contract prior to them even seeing your home.

3. You can also agree to a FLAT Fee or a different percentage amount. Because Commission is negotiable, you can negotiate something else in between that works for everyone.

So, the next logical question is:

How often do these scenarios play out? GREAT QUESTION!

I have tracked all my sales and scenarios since day one. Let's take a look!

From my LISTINGS SOLD since Jan 1, 2024 to today:

47.2% paid NO extra Commission

30.9% paid a Flat fee of various amounts that were satisfactory to all parties

21.8% paid 3.5% on the first $100,000 and 1.5% on the balance of the sale price to fulfill EBRA agreements for that amount.

And MANY of those were sold for over asking price due to multiple offers.

So, this is how I calculate the Commission savings.

Since many Agents charge 7% on the first $100,000 and 3% on the balance of the sale price, this is number I use to calculate the savings. Keep in mind for your next listing, that Commission is Negotiable and not all Brokers Charge the same. You can also negotiate Up and pay higher than these numbers if you want to!

Commission doesn't always have to be negotiated down.

The reality is that it is a savings option that works for lots of clients. So, if you are curious about this process and how it plays out, let's chat. I am happy to answer your questions.

I offer Full Service Real Estate for a fraction of the cost!

Jill Turgeon

One Percent Realty

780-218-7444

www.stageandsellrealestate.ca  

www.linktr.ee/thestagingagent

#savings #onepercentrealty #lowcommission #happycleints #savemoney #sellfast #FullServiceRealEstate #mutliplelistingservice

*not intended to solicit listings already under contract. Commission is negotiable and not all Brokers Charge the same. These commission savings are based on comparing with a broker that charges 7%/$100,000 and 3% on the balance of the sale price. *not intended to solicit listings already under contract