How to Start a Real Estate Staging Business

Part 1 - How to start a Real Estate Staging business - Background

If you have an eye for interior decor and arrangement, think about opening a staging business. You’ll prepare clients’ homes for showings to potential buyers or renters. Staging also enhances the photos and virtual tours in real estate listings. This occupation offers a lucrative yet interesting way to employ your talents.

Our guide is in 3 parts:

• Part 1 - How to start a Real Estate Staging business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a Real Estate Staging Business?

This opportunity has relatively low initial expenses. You don’t really need a storefront, specialized equipment, or a college degree. However, optional training costs around $200 to $1,800. You’ll probably spend the most cash on home decor products. Some stagers shop at CB2, IKEA, or Cost Plus World Market, according to Apartment Therapy. Dollar stores provide an inexpensive source of basic glass and ceramic items.

What are the ongoing expenses for a Real Estate Staging Business?

There’s always a risk that you could accidentally damage homeowners’ belongings, so it’s wise to carry general liability insurance. Other potential hazards range from car accidents to employee injuries. You may also benefit from commercial auto, workers’ compensation, property, and/or professional liability coverage. Many stagers spend over $1,700 per year on insurance.

If you need a storage locker for furniture, you’ll probably pay $70 to $180 per month (depending on the size). This type of business periodically needs to purchase new decor items, and high-quality small furnishings often fetch prices ranging from $20 to $150. Other costs include local advertising, travel, and office products.

Who is the target market?

Busy homeowners and real estate agents seek professional stagers when they try to find buyers for valuable or hard-to-sell properties. If they own high-end homes, real estate investors and landlords may also use this service.

How does a Real Estate Staging Business make money?

Different stagers charge flat prices, hourly rates, or subscription fees for their services. HomeAdvisor reports that the majority of these professionals bill clients for consultations in addition to monthly fees. Business tends to slow down in the winter when fewer people buy homes.

How much can you charge customers?

Pricing depends on the specific services you provide, the level of demand for local properties, and whether or not a home is vacant. Clients pay less if you only rearrange existing items without adding anything new. Rates vary based on the size and number of rooms as well. Consider offering a “bulk rate” for valuable long-term clients like landlords, agents, and investors.

You can find a wide range of prices and estimates. Stagers charge around $450 initially and $550 per month, according to Realtor.com. HomeAdvisor reports that customers spend about $500 to $2,000 total, and some pay an average hourly rate of $75. A few professionals earn up to $20,000 to stage vast homes worth millions of dollars, according to Forbes.

How much profit can a Real Estate Staging Business make?

High fees and comparatively low expenses frequently produce a high profit margin. Many staging experts attain margins of around 25%. Introductory consultations yield the greatest profits. Stagers don’t need to supply any furnishings when they consult with new clients, so transportation is the only immediate cost.

How can you make your business more profitable?

Strive to maximize your tax deductions. Among other things, potentially deductible costs include internet access, insurance, decor products, postal stamps, and printer ink. Keep a log of all miles traveled by car. If you don’t succeed in partnering with local realty agencies, you could focus on for-sale-by-owner properties and generate revenue by offering extra services like photography or online advertising. Stagers can use several other strategies to reduce costs and gain additional income:

• Buy picture frames in bulk, and put scenic photos in them.
• Make the most of retailers’ loyalty programs and discounts.
• Use a credit or debit card that rewards you for spending.
• Offer to resell furnishings to clients who praise them.

Day-to-Day and Growth

What happens during a typical day at a Real Estate Staging Business?

Home stagers need to focus on promotion and business networking when they’re not busy serving clients. If someone calls, you can start by discussing how you would stage a specific residence. You’ll travel to homes and rearrange the contents of their rooms. The process may entail adding new furnishings after you hide personal items like family photos. This occupation also involves buying decor products, such as rugs, wall art, clocks, mirrors, and lamps. You might purchase larger furnishings when serving clients with vacant homes.

What are some skills and experiences that will help you build a successful Real Estate Staging Business?

You can begin learning by reading home decor catalogs and magazines. The process of selling your own house provides beneficial experiences. You could also gain useful knowledge while working as a real estate agent or interior decorator. Stagers normally don’t face any special licensing requirements, but you might gain credibility by earning a certification or completing an educational course. While traditional classes remain available, most programs use remote learning. The Motley Fool provides a helpful overview.

What is the growth potential for a Real Estate Staging Business?

Expert staging has become increasingly popular. Most firms concentrate on serving the surrounding area, but it’s certainly possible to expand beyond your local area. Meridith Baer Home stages thousands of opulent dwellings throughout the nation, according to Forbes. It employs more than 250 people and owns several warehouses full of furnishings. You could also create a franchise if you become highly successful. The most well-known franchisor in this sector is called Showhomes. It has been in business for over 30 years and works with franchisees across the United States.

What are some insider tips for jump starting a Real Estate Staging Business?

Develop a detailed agreement for clients to sign. It ought to clarify your expectations and responsibilities. Customers should know that they need to clean the home, remove pets, and address any safety hazards before you visit. They must also heat or cool the rooms where you work.

Use the slow winter months to improve your internet marketing, learn about the latest decor trends, and develop new partnerships. You could cooperate with reputable home service contractors, and everyone benefits when you refer customers to each other. Try talking to painters, maids, carpet installers, and repair professionals.

Retirees appreciate different decor styles than recent college graduates. Think about likely buyers when you stage a room. What impresses or appeals to this type of person? Always consider each home’s size, price, design, and location as you envision future occupants.

How and when to build a team

You can work alone but may benefit from hiring an assistant after you start gaining customers. This employee could help you carry decor items, reposition furniture, and inspect rooms. You might feel safer in strangers’ homes if someone accompanies you. General laborers earn $16 per hour on average, according to Salary.com. An alternative is to set lower prices and tell the client that you’ll need help with certain tasks.

Part 2 - Is a Real Estate Staging business the right fit for you?

Part 3 - Action plan to launch your Real Estate Staging business in 90 days