Selling a home can be an expensive venture, and while you may already be budgeting for closing costs, agent commissions, and transfer taxes, there’s one additional expense that can make sellers cringe: home staging. However, in the wake of the National Association of Realtors (NAR) commission price-fixing settlement, home sellers are more empowered than ever to negotiate their way to a more affordable selling experience. One particularly smart strategy that can save you 100% on staging costs is to ask your real estate agent if they’re willing to cover the expense as part of their commission.
It may sound too good to be true, but if your agent is eager to secure your listing, they might just agree to help with staging. Here’s how this strategy works, what you can expect, and how it can benefit both you and your agent.
The Power of Negotiation
Traditionally, home staging has been an added expense that falls squarely on the shoulders of the seller. Whether you’re paying for professional furniture rentals, decor, or staging services, the cost can add up quickly—often ranging from a few hundred to several thousand dollars depending on the scope of the job. But today’s real estate landscape has shifted in ways that allow sellers to explore new ways of cutting costs.
The commission price-fixing settlement that reshaped the real estate market has resulted in more flexibility for sellers when it comes to negotiating the terms of their sale. Real estate agents, particularly those who are keen to expand their client base or secure a higher-end listing, may be more open to absorbing additional costs like staging, especially if they believe it will help them close the deal faster.
How It Works: The Staging Fee as Part of the Commission
The idea is simple: instead of paying for staging out of pocket, ask your agent if they would be willing to include it in their commission package. This means the agent takes on the upfront cost of staging in exchange for the promise of getting the full fee reimbursed once the sale closes.
While this may sound like a bold move, it’s a win-win scenario for both parties. Your agent, motivated to close the deal and make the sale as appealing as possible, might be willing to cover the staging fees in order to present your home in its best light. In exchange, they’ll get their commission once the property is sold. Essentially, they’re betting on the sale going through, and if it does, they get compensated for the cost they initially took on.
Of course, this arrangement doesn’t always work out in your favor. If your home doesn’t sell or the deal falls through, you may still need to pay the staging fee upfront. This serves as a safeguard for the agent, ensuring that they aren’t out of pocket if the deal doesn’t close. But in the event that the sale is successful, the cost of staging will be credited back to you at closing, effectively saving you 100% of the cost.
Why Agents Might Agree to This
It may seem counterintuitive for agents to take on such a cost, but there are several reasons why they might be willing to absorb the expense:
- Increased Chance of Sale: A professionally staged home often sells faster and for a higher price than an unstaged one. Agents know this, so they may be willing to invest in staging upfront to ensure that your home stands out in a competitive market.
- Stronger Listing: Having a beautifully staged home can make a significant difference in the overall appeal of a listing. Staging helps potential buyers visualize themselves in the space, and agents understand that emotional connection can lead to faster offers.
- Better Rates: Seasoned agents often have established relationships with staging companies. These connections can help them secure better rates than you would be able to access on your own. As a result, the agent may end up paying less for staging than you would if you were handling it directly.
- Incentive to Close the Deal: Real estate agents work on commission, so it’s in their best interest to help sell the property as quickly as possible. By agreeing to cover staging costs, they’re investing in making the home look as marketable as possible to generate a quicker sale and more favorable terms for both the seller and themselves.
Is This Arrangement Right for You?
While this strategy can be highly beneficial, it’s not necessarily suitable for every seller. There are a few things to keep in mind before proposing this arrangement:
- Market Conditions: In a hot market where homes are selling quickly and at high prices, agents may be less inclined to cover staging costs since they know they’ll be able to sell the home without much effort. However, in slower markets or for higher-end properties, where the competition is stiffer, your agent may be more open to offering extra incentives to ensure the home stands out.
- Trust and Communication: It’s important to have open communication with your agent about the costs and expectations. You should ensure that the agent’s decision to cover staging fees is part of a clear and transparent agreement. Additionally, some agents may feel uncomfortable with this arrangement, so it’s essential to gauge their willingness and be prepared to negotiate other aspects of the sale if necessary.
- Quality of Staging: If your agent does agree to cover the staging costs, make sure the quality of the staging meets your expectations. While they may be able to secure lower prices through their connections, the effectiveness of staging in terms of design and presentation can still vary. Be sure to discuss the staging details upfront, including what will be included in the package.
Conclusion: Everyone Wins with Smart Negotiation
At the end of the day, covering staging costs as part of an agent’s commission can be a smart strategy that saves you money while helping to present your home in the best possible light. The key is to negotiate and find a balance that works for both you and your agent. With the right approach, everyone wins: you get a beautifully staged home without paying the upfront cost, and your agent gets a better chance of closing the deal quickly, earning their commission in the process.
In a competitive real estate market, being creative with your strategies can give you an edge. So, next time you’re preparing to sell, consider asking your agent about including staging fees in their commission package—it could make a world of difference in both your wallet and your home’s selling potential.
