You have decided to sell your home and have agreed
a price of $450,000 with your agent. Your agent has a commission of 5% - based on $450,000
they will receive a commission of $22,500, leaving you with $427,500 after commission, but before
costs.
You love your house however; decide that you don’t want
to spend any money on preparing it for sale as you believe although a needing
some work it will sell relatively quickly (within 6 weeks), plus the new owner
can update the house to suit them.
Fast forward three and half months, the market has
slowed and you still have not sold.
You have reduced your asking price to $425,000. Feedback from open homes has been
that work is needed on the house compared to other homes at $425,000 – even after
you have reduced the price. You
are adamant that you will not reduce your price further even though your agent
is suggesting you should.
Did you know that since putting your house on the
market:
- You have paid $6800 on mortgage repayments
- $1500 in outgoings
- 14 weekends interrupted by open homes
- Had increased stress because you haven’t sold
- Forgone $25,000 in your sale price, and
- Your agent has only reduced their commission by $1,000 at your current price of $425,000.
|
Long
Sale - Home not staged
(min
3.4 months)
|
|
|
Asking Price
|
$425,000
|
|
Less
|
|
|
Mortgage payments
|
$6,800
|
|
Outgoings
|
$1,500
|
|
Commission
|
$21250
|
|
|
|
|
Subtotal
|
$29,555
|
|
Net Profit $395,450
|
|
If you don’t get an offer this month, your costs
will increase and your profit will decrease, particularly if you reduce your
price again. Not a good situation.
Now consider the alternative. You decide when listing your home
for sale to get some assistance in preparing your it for sale and engage a
Home Stager at a cost of $2,000[1]. The original asking price
stays at $450,000 and the property sells in 6 weeks.
|
Quick
Sale - Staged Home
(6
weeks)
|
|
|
Asking Price
|
$450,000
|
|
Less
|
|
|
Mortgage payments
|
$3,400
|
|
Outgoings
|
$750
|
|
Commission
|
$22,500
|
|
Staging Costs
|
$2,000
|
|
Subtotal
|
$28,650
|
|
Net Profit $421,350
|
|
What a result, you have made an additional $25,900 in profit – reduced your stress
levels and sold your home in half the time!!
HomeStaging does
make a difference. If you would
like find out more, call Décor Interior Style on 0430 195 940 and ask for
Vicki.
[1] This is an indicative price only, the
actual cost will depend on the condition of the house, work required and if
hire furniture is needed.
