RealTown's RealTalk

Hey gang, it's syndicated housing columnist Lew Sichelman again with another request for input from the true professionals in the real estate business. This time the topic is, vacant or furnished?

Is it easier to sell a house when it is furnished and occupied or when it is empty and the owner has moved on? There are divergent views on this, I know, and I would like to air all points of view. Please give me your thoughts and reasoning.

Also, I am looking for any anecdotes, horror stories, whatever, that may have occurred when a house was left empty. And of course, I'd welcome any tips any of you might have for making an empty house more attractive to would-be buyers.

Remember, this is for attribution and publication in a newspaper column that runs in newspapers throughout the country with a total readership of roughly 20 million people.

Lew Sichelman, The Housing Scene, United Media

lsichelman@aol.com

Lew,

Furnished versus unfurnished and empty. I have good and bad experiences with both. Leaving the property furnished lends a lived in feel to the property, and also helps buyers visualize where they might put furnishings, etc. The home also looks less cold and feels more inviting to a buyer prospect. An unfurnished home, yes, is a clean slate, but it also looks very stark. On the plus side, it can make a smaller home look larger.  If the seller has not utilized the space well and their decorating leaves a lot to be desired, I generally prefer to have it unfurnished . 

Having said all that, I predominantly work in a 2nd home vacation resort. Most of our properties convey fully furnished. Buyer's are looking for a "turn key" package in my type of market. Most of our listings are vacant and fully furnished. The good news that after almost 25 years in the business in Ocean City Maryland, the horror stories are very few and far between.

I like to take each home I have listed on a case by case basis. If the seller wants to take the furnitures and move, I assess how the property shows with the furniture, and mentally decide if it would look better or worse without all the furnishings. I then make my recommendation to the seller.

Our goal is to sell the listing in the shortest time possible, at the best possible price, with the most favorable terms whether it is furnished or not.

Monica McNamara
Coldwell Banker
Ocean City Maryland

www.Ocean-CitySales.com
http://www.realtown.com/MonicaMcNamara/blog
877-480-7653

Lew-

Good question!  I always try to have furnishings in my listings.  That being said, the owners' furnishings are not always the best choice.  I am a huge proponent of staging.  In today's market, it is not enought to just fluff some pillows and add a scented candle.  I have never found a home that could not benefit from an impartial eye.  Staging in my area (Boise, Idaho) can range anywhere from $100 o $10,000 or more.  Sometimes just a few items need to be removed, brought in or rearranged.  Other times staging may include painting, repairs and a houseful of furniture.

The U.S Department of  Housing and Urban Development says that a staged home will fetch an average of 17% more than an unstaged home.  I find this to be a true (maybe even a little low) number.  Also, the cost of staging is always less than the cost of your first price reduction.

Having neutral but warm  furnishings in a house helps potential buyers visual where their things will fit.  It is difficult for many to do this in an empty home.  At the very least, I like to make sure there is furniture in the dining, living and family rooms.  Bedrooms do not seem to be quite as important.

So, while some may disagree, I firmly believe that a (correctly) furnished home will sell more quickly and for top dollar.

Sue Dahlgren -Windermere Real Estate - www.SueDahlgren.com

Very interesting question Lew.  My experience has been that it depends on the motivation of the seller (relocating - MUST take furnishings) vs staging, price range and a myriad of other factors.

I recently sold a house in less than a week, after it sat on the market for quite some time with other agents because it had this cavernous look to it.  You also notice every single mar in the paint, each small wrinkle in the carpet, etc.

I did some minor staging to the major area's of the house. Kitchen, Great room, Master bed and bath.  Had them paint a couple accent walls, put in a few plants, and the house sold for full price. 

The sellers were highly motivated though, they'd had enough of making two mortgage payments and dealing with the upkeep of the vacant home.  

First impressions count, some people have imagination - others don't, but it doesn't have to cost a fortune to dress it up a little.  Last but not least, PRICE is most important.  I've sold houses that were vacant, needed a little TLC,  and looked like the Grand Canyon, but as long as the price is right - it sells.

I always prefer a blank canvas- an empty house... that way I am free to stage it to its best advantage that will show the best in all media. I can put simple things in spaces to define them and avoid the problems of over decorating... many sellers don't understand that decorating and staging to sell are two different things, and what may show up well in person, doesn't show up as well in media- and can sometimes be plain distracting.

When an empty house is not possible, I recommend and strongly enforce a radical "clutter-ectomy" where everything but the absolute essentials are packed and moved to storage and then I stage over the remaining items and supplement with what will work better.

With an empty house, it is easier to control the environment 24/7 with a day & evening lighting schemes, subtle fragrance from candle warmer and an iPod with portable stereo speakers tucked discreetly with a carefully selected playlist of tunes that enhance the ambiance.

The best scenario is for the sellers to either move first or at least be gone (vacation, stay with friends or family or hotel)  for the first important week of market time- which in most cases with the right pricing means they return to offers on their property as their reward.

I've certainly read the market data that suggests that a professional staging accelerates the sale of a vacant (or for that matter otherwise cluttered or poorly staged homes).  But more importantly for me has been the emperical evidence in my own listings. 

For example, I inherited a vacant condo listing that previously sat for 2 years unable to be sold.  We professionally staged the home and were able to get it under contract in 3 months.

I always espouse the merits of staging ot my clients, and will frequently include a professional consult and/or staging services in my marketing strategy as part of the services I provide.  It's a win for my client, and it's a win for me as I've seen the ROI.

-PF

For Lew ....to stage or not to stage?

Do vacant properties or staged properties sell quicker?

It seems in real estate that there are no hard and fast rules except price! Every time a REALTOR touts something as gospel, somebody else comes along with an exception to the rule.

I think vacant properties tend to sell quicker overall, not because they're vacant necessarily and/or staged, but because it is easier to show the home to a buyer! You don't have to schedule around a day sleeper, sick children, big dogs, etc.

There is no question staging can make a property more appealing to buyers. And occupied homes need to be "staged" in order to sell for higher price and better terms. Some homes benefit more from staging than others. Excellent staging can certainly highlight the best features of a home but maybe more importantly, minimize the negative aspects of the home.

Bottom line is this! Sellers need to know that showing the home WHEN THE BUYER wants to see the home is the number one thing. Especially in this market!

If I were a seller now, I would...

Never turn down a showing!

Always have the home ready to show!

Do exactly what my agent told me to do to get the home ready to sell! and then some!

Do everything I could to make the showing pleasant for the buyer!

Ask my agent to ask the other agents what we could do to make the showing as convenient as possible!

Thanks! talk to you soon...

Dan Walker

Associate Broker, CRS

ABR, GRI, e-PRO, CNHS
Dan@AtHomeUtah.com
www.AtHomeUtah.com

Direct 801.288.2260
Fax 866.851.4308