This is part 2 of the home stagers strategy focusing on the key clientele in their local area. And in the Part 1 we provided an overview of reaching out to real estate agents, and how to leverage their relationship with home sellers in order to promote your home staging business . If you missed part one of this blog, you can click here to read it.
The other two clientele that home stagers will need to focus on include, home sellers and real estate developers . The industry term for home sellers who choose not to work with a real estate agent, is known as ‘for sale by owner’ or ‘FSBO’ for short. Although for sale by owners account for much less of home sold on the market, they do account for approximately 8% of home sales per year, according to NAR.
However, not all home sellers perform as successfully as they would have, if they had worked with a real estate agent. For example, the typical FSBO sold for 190000 compared to 249,000, if the transaction was assisted by a real estate agent.
One of the largest reasons why a home seller would choose not to use a real estate agent, is the belief that they can get the home sold without having to pay the commission to a real estate agent. One of the most difficult tasks for home sellers included being unable to set the right price for their home, understanding the paperwork, selling within a specific time frame, and preparing or fixing up the home for sale.
In fact, you can find the full stats of a FSBO posted by NAR, below:
Being able to find home sellers who are selling their home without a real estate agent, maybe a little more scarce and difficult compared to reaching out to a local brokerage to offer your services to real estate agents. However, you are still able to see these listings on websites such as Kijiji or Craigslist , which will indicate the contact information of the home seller.
If you’re reaching out to a FSBO, you will want to use a similar strategy to the marketing piece that you would send to a real estate agent with a slightly different narrative. For example, you may want to include some of the stats as to the issues home sellers without a real estate agent face and how they will be able to benefit from your services.
You will also be using a different contract then you would with the real estate agent as you are now directly working with the homeowner, and not with a real estate agent. This may mean that the homeowner may ask for some flexibility in terms of payment, such as providing a deposit and paying the balance once the home is sold. Judging on how you would like to operate your home staging business , you may want to provide a given time frame rather than having the date of the home being sold as the end of the contract.
The next clientele who would benefit from home staging would also be real estate developers . The strategy that real estate developers typically deploy is to start marketing the property even before the construction for the properties has even begun. This is referred to as pre-construction homes.
One of the greatest ways to get up-to-date knowledge with pre-construction homes in your local marketplace is, to follow along on social media the brand names for companies of these real estate developers.
One of the more convenient strategies, however, to keep up-to-date is to follow certain real estate agents in your local area who primarily deal with pre-construction real estate. Creating a relation with them will help give you more information with regards to upcoming construction, including the real estate developer’s name and information, that you can forward your portfolio to, offering your services to stage the homes once they have been constructed. You can also find an online series of upcoming construction in your local area including whether it is a condo or a home, that you can start marketing or reaching out to the real estate developers, indicating the services you’re able to provide. If you are taking this route, it would be beneficial for you to also understand the demographics of the area of where the pre-construction is being built to understand the type of clientele they are trying to cater to.
For example, certain real estate construction and location would be ideal for young professionals or newly married couples, while other locations would be ideal for established families.
One of the reasons that this will make a difference is to be able to stage the home where I would appeal to all type of buyers, but also will portray certain accents that would be relevant to the type of clients who will be purchasing these homes in order to trigger the buyer psychology. having this type of breakdown in your portfolio, along with some of your previous work, will help you stand out with real estate developers, as it displays your knowledge of home staging being beyond how the home just looks but also understanding the clientele that real estate developers are trying to cater to.
We just covered the three target clienteles for your home staging business, which included real estate agents, FSBO, and real estate developers. You can see how each one of these clientele will require a slightly different narrative when it comes to marketing and approaching them for business. Building relationships will be a very important factor for your home staging business, which will need to sharpen your skills on as a different layer in addition to having a passion for home staging, to truly operate your business to reach levels that you deserve.