Long Rant on Reality-Who are America's homebuyers?

Are any of you pros in the real estate industry interested in making a REAL reality show for HGTV? I turned on my fav’ cable channel, HGTV, to entertain me while I folded another load of laundry. The show on was called “House Hunters” and the story always goes like this…Realtor and potential home buyers team up, look at 3 properties meeting the buyers’ criteria and then there’s the pivotal ending where the buyer needs to decide which house to make an offer on. Well, I think the producers had to be smokin’ crack when they decided to air this segment. On the other hand, this episode was so stereotypically American indulgence at its best…an eye opening reminder of how our culture, and more so, our youth, is so caught up in materialism.

Buyers criteria: Certain bedroom community outside Austin; 3500+ square feet; game room for a pool table; guest rooms; kitchen and dining room for plenty of entertaining; a pool and hot tub or at least plenty of room in the yard to put one in; a garage large enough for the $62,000 Hummer and a +/- price tag around $265K with a monthly PI of < $2000. Sure, at first I thought a $265K price tag was delusional but apparently in Texas, not terribly off the mark. The shocker for me came when the buyer was introduced…He was a single, 20 year old kid with just 2 years of college courses under his belt. He’d left school and was newly employed at his parents’ family run business. Mom and Dad were giving him the down payment, a gracious gift many parents offer when they can. But along with the down payment, they apparently were paying him an entry level salary high enough that his $2000 monthly mortgage might keep him around the ideal of 30% of gross earnings to qualify for a home loan. (If I did the math right, that’s around $72,000!)

I’ve not met a parent of my generation yet that doesn’t want to provide more for their kids than our parents were able to provide for us. I vowed the same for mine. My kids all have their own rooms and, in spite of my insistence years ago that I wouldn’t…I’ve provided them each with cell phones, a shared laptop they can call their own, heck, I even bought the car my teenagers share (albeit a 1993 economy sedan) and pay for most of the gas and insurance. I genuinely worry sometimes that I’m contributing to a sense of entitlement in them, discouraging them from working hard for what they want, teaching them that the finer things in life can come very easily if the wind blows right. Right this minute, I’m just thankful that none of them were watching the program with me. Spell guilt with a capital ‘G’!

So back to my concept for the new HGTV reality show. Realtor accompanies home buyer to the office of the Donald-Trump-hearted banker or lender to figure out how to avoid foreclosure on the home that has overextended him once he loses that $72,000 job. Bring in an “Antique Road Show” estate liquidator to sell off the possessions, Mike Rowe of “Dirty Jobs” to take away the Hummer and Dr. Phil to pick up the pieces as the buyer's life dissolves around him. At the end, the buyer gets to choose which of 3 lessons were the hardest to learn. I generally despise all those crazy ‘reality’ (NOT!) shows but part of me thinks this one could beat out “Survivor” in prime time! Auditions anyone?

Posted by Liz Harrison, Spruce It Up! Home Staging and Redesign, Salem,Oregon

Do the Math

It's often difficult for home sellers to swallow the cost of home staging of a vacant property. It's labor intensive for a stager so the one-time staging fee can run anywhere from $700-1500 depending on the size of the property, the number of rooms being staged, price range and location of the home. There's an additional cost for rental of furnishings and accessories that is incurred monthly, usually several hundred dollars. I'd say the average investment my clients make for staging a vacant home for three months is less than $2500.

Don't say 'ouch' until you consider the information found in this article in Realtor Magazine (taken from an AP source). "Maintaining Vacant Property Can Be Expensive" is typical for sellers who need to leave a home before its sold. Add the monthly cost of the mortgage, taxes, insurance, utilities, lawn care and mainenance. Odds are it adds up to at least the same amount as a 3-month investment in professional staging.

Based on current statistics from RESA and Staged Homes com, properties that are professionally staged are selling in around 30 days. The seller in the article had carried his property for nearly 2 years! Had he staged prior to listing, odds are very good that the house would have sold long ago (provided it was priced right). Hypothetically, if his home sold just two month sooner, he would have recouped more than his initial investment. Say the staged home sold in the average DOM we're seeing for professionally staged homes today...32...This seller would have saved himself over $26,000!!!! I'm no financier or mathmetician :>) , but that's a return of 10 times his original investment. "Money Saved is Money Earned" goes the old adage.

In this buyers'market where price and presentation are king, sellers can't really afford not to stage.

Contributed by Liz Harrison, Spruce It Up! Home Staging and Redesign

Community Celebrates as One

Last night, on the 4th of July, I headed down to Salem's Riverfront Park to watch people and fireworks. It struck me how much more diverse our community is becoming. Fifteen years ago when I moved to Salem from Portland, I was frustrated by the homogeneous demographic and culture. And just yesterday, I saw every skin color, heard many languages, witnessed the family traditions of the sub-cultures that now exist in our community. And just yesterday, everyone at the Independence Day Celebration, regardless of language or color or origin, was an American.

As a professional working in the real estate industry, I've become familiar with many different areas and neighborhoods in town. Many of them reflect the culture of those that live there. Others tell stories of success and prosperity while many instill worry for the families trying to raise youngsters in safe, happy homes. Regardless of the differences between those neighborhoods that are evident now, I hope that Salem will remain a community that values the diversity that's changing the status quo. I'm often accused of being idealistic but I really look for Salem to grow into a place where everyone views themselves and others as members of OUR community, all vested in the same outcome...quality of life, family focus, vibrant economy and residents willing to set aside selfish motives and work for a greater good. It couldn't possibly be as it was on this 4th of July but it can begin to steer that direction.

Written by Liz Harrison Spruce It Up! Home Staging Salem OR

Can I Afford To Have My Home Staged?

The following is a great article from a home builder who has seen all types of markets and situations over the past 40 years. We haven't had experience with thousands of sales like he has, but we too continue to be amazed at how staging makes well laid out homes warm and wonderful and awkward floor plans "work".

Via John Mulkey, Housing Guru (TheHousingGuru.com):

As a former homebuilder with 40 years experience, I can say without equivocation that professionally staged homes have a distinct advantage over non-staged homes. I can say this as I have had direct experience with the sales of thousands of homes during my career.

With several years in the corporate world of home building, I saw first hand the advantages of staged homes. That’s why ALL major homebuilders, including the ones for which I worked, had professionally decorated model homes in each neighborhood. And strangely, the model home plan was always the big seller in that neighborhood.

The simple reason for that is that buyers are attracted to homes that show well, that are tastefully decorated, and in which they can visualize living. Most buyers lack the ability to visualize a home with their furniture and accessories, so having the home appear “ready for living” is a distinct advantage.

In today’s difficult market, staging isn’t just helpful, it’s essential to achieving a sale at a reasonable price and within a reasonable time frame. In order to sell, a home MUST show better than its competition; and there’s much too much competition to ignore having a home professionally staged. And, while some feel that the lower prices being dictated by this market rule out the expense of staging, the opposite is true. Staging is usually less expensive than the alternative. Staged homes sell faster—meaning less time on the market and fewer mortgage payments and other expenses—and often command a higher price.

The ultimate goal for sellers is to attract buyers. Tastefully staged homes will do just that, allowing sellers to reap the dividends of a faster sale, and perhaps, more money at the closing table. The question is not, "Can I afford to have my home staged;" it is, "Can I afford not to?"

For the latest news for those interested in buying, selling, building, remodeling, or repairing homes, visit: The Housing Guru

During the past week our company received calls from five different agents/owners exclaiming - It's Sold! Some of these homes were on the market for a very long time before staging. Staged homes show better than unstaged homes - a critical advantage in this market!

Article submitted by Margaret Oscilia of Creative Concepts and Contracting. Copyright 2009.

Stay in the Game with the Most Valuable Partners in Service

Prudential hosted a vendor fair prior to their awards banquet on Tuesday, June 9th. Over 55 vendors displayed goods and services that will benefit Prudential Realtors and their clients.

Stagers are a Realtor's Most Valuable Parners in Service!! Realtors will hit a home run with their clients every time by connecting with a professional stager. Realtors visited the Mid Valley Professional Stagers (MVPS) booth and walked away with a bag of peanuts, property score cards, and MVPS trading cards. They also had the opportunity to play a toss game to enter a drawing for a complimentary consultation.

A huge THANK YOU to Prudential for including Mid Valley Professional Stagers as one of their Most Valuable Partners in Service and for the opportunity to participate in a second year of their annual vendor fair.

This article submitted by Lisa Sherman of Interior Aura. Copyright 2009.

The Market is Picking Up? Staging Saves the Day!

Based on these recent sales results in our area, you'd never know the market is in a slump. There ARE buyers out there. Buyers that want great products at great prices. These homes staged by Spruce It Up! were "packaged" for the market and sold very quickly. Let your home be a showcase that will really draw a buyer's eye, and heart. Call in a Professional Stager.




STAYTON 3/2 HOME

Oct 2008-April 2009- Vacant, on the market for 6 months w/ multiple price reductions
April-May 2009- Removed from the market, replaced carpeting, professionally staged by Spruce It Up! Home Staging.
May 2009- Relisted w/ new agent for more than last asking price. SOLD in 3 weeks...cash offer at nearly full asking price!



WEST SALEM 3/2 HOME

April 2009- Home was cleaned out and professionally staged by Spruce It Up! Home Staging
May 2009-Listed on WVMLS and under contract in 14 days.

Submitted by Liz Harrison, Spruce It Up! Home Staging Salem OR

Stagers are Green, too

Everywhere you look these days are articles about going “Green”. Seems you can't pick up a magazine or newspaper without noticing how important this has become in every aspect of our lives. It struck me recently that Stagers are experts in regards to repurposing, recycling and reinventing. We have to be. It's just not feasible or reasonable to buy new items for each staging job that comes along. Yet to make each home have it's own distinctive “look” requires some inspirational thought and input.

Between the initial consultation and the actual staging are many hours of prep time that would surprise most people who are not in the business. Examining photos of each room and then choosing appropriate furniture and accessories can take many hours. This time the chair that was in a living room may show up in this bedroom with a different throw and pillows to achieve a new look. The wicker chest that doubled as a coffee table is now at the end of the bed as a bench. The lamp has a slightly different shade that goes better with the bed coverings. The tray on the wicker chest was a wine tray in another living room and now has a couple of colorful mugs and faux fruit for a relaxing “Breakfast in Bed” look. The small table with a chair previously from a breakfast nook is now a desk in the room. Two small file cabinets do double duty as nightstands. Candle holders have their look changed by adding foliage and different colored candles to blend with the room's decor. And so it goes with each room to be staged.

No one would ever guess that most of these items are being reused because all good stagers know how to repurpose, recycle and reinvent. It's just our nature.

Article posted by Deanne Morris, Deanne Ellen Interiors, copyright 2009

Moving Out, Moving up, Moving on

Professional stagers can be instrumental in helping families and individuals with the task of downsizing or relocating. For seniors, leaving a longtime home to move into a retirement community is often a daunting and emotional task. For the busy families that care for them, the process can be just as overwhelming.

“Dear Liz:

In July 2006, I had you assist me in pre-planning for a move-in, downsizing from a 2-bedroom house to a one bedroom retirement apartment. We met in the apartment to discuss furniture arrangement, paint color and flooring options and to identify/create optimal storage solutions.

It was the easiest move I ever made because I knew right where to put everything. It was wonderful! I got so many compliments on how nice the apartment looked. It is a very pleasing arrangement and one I like more all the time. You certainly may use my name as a reference!”

Sincerely.
Mildred Y., homeowner/retiree

Article submitted by Liz Harrison, Spruce It Up!Copyright 2009

10 Common Mistakes Home Sellers Make

Smart Money has some ideas here on helping home sellers get off to a great start. Home sellers are smart to take time to do some research and make sure they heed this advice. You wouldn't go to a job interview without preparing a good resume, thinking of what skills you have, or making sure your clothing was perfect to make a great first impression. Selling your home is no different!

Here's a summary of a couple of my favorite points from this article.

Get a great agent - just because they are your friend or relative, doesn't mean they are a good marketer or negotiator. We work with dozens of agents and have learned there is a huge range of skills and qualities. Will they keep you updated, give solid advice, advertise well on the internet. Look at their listings - are the descriptions, marketing materials and photos top notch?
Set a Reasonable Price - Price it well - not expecting to lower the price later. Testing the market causes you to lose valuable time. Your agent and some research should help you determine the correct price.
Don't skimp on listing photos - According to the National Association of Realtors over 85% of home buyers look first on the internet. These photos need to be phenomenal - not only showing well staged rooms that are clutter free and well arranged, but also good quality photography too. Light, bright and spacious that's the image buyers want to see!
Don't wait to fix up the place - Statistics show that buyers are willing to pay more for move in ready and always overestimate what repairs will cost. While that new carpet may only cost $2,000, buyers are going to want a $5,000 price reduction if the work isn't already done. What type of buyers do you want to attract? Buyers looking for a fixer uppers or buyers looking for their "home sweet home"? Don't underestimate the emotional appeal of your home. Gary Keller (Keller Williams) said in his book Shift that price attracts buyers, but staging brings in offers. Your home must appeal to the emotions of buyers to get a great offer in this market!
Check out this full article and take the ideas to heart if you are considering selling your home!

Article submitted by Margaret Oscilia of Creative Concepts and Contracting. Copywright 2009

H.O.M.E. Youth Resource Center - Phase 2

I promised you an update on phase 2 of the H.O.M.E. Youth Resource Center project... here it is!

The following weekend, January 31st, three members of Mid Valley Professional Stagers (MVPS), along with the generosity of one community member and three men from the National Guard, we tackled the removal of carpet and the pad throughout the main and upper level of the resource center. One local contractor contributed services by relocating the washer, dryer and 2 refrigerators while another installed a wonderful storage solution for the teen's backpacks.

With hammers, pry bars, gloves and masks... we were ready. Over the years, a different carpet had been added to each room, giving it an eclectic mix. Much of the carpet pad was so old that it just fell apart. Based on the large volume of traffic and condition of the carpet, it appeared to be 15+ years old. We were thrilled to find hardwood flooring underneath that was in pretty good condition.

The following week, donations for area rugs, 2 new sofas and miscellaneous items were received to help provide warmth in the transformed spaces.

Above is a group photo of the carpet removal team and below are a few action shots from everyone hard at work. As you can see we were tired (well exhausted, really) and dirty... but another day that resulted in a HUGE difference for the H.O.M.E. Youth Resource Center and the at-risk teens it services!

Article submitted by Lisa Sherman with Interior Aura. Copyright 2009.