Property Developers & Home Staging Professionals: A Perfect Match?
How to create a strong relationship with developers as a staging professional
The housing market is changing and for property developers, simply building homes in the right locations, is no longer enough.
New properties in quality locations will always sell. But for developers to get the most from their work and from their investment, those units need to sell for the right price, to buyers, willing to pay a premium.
Moreover, to protect their bottom line, developers need their units to sell quickly, in a timeframe that keeps holding costs and associated financial risks, to a minimum.
Of course, savvy developers have long been looking at ways to maximise the rewards they receive for their effort. Yet, over the last few years, the market has moved, increasing costs and reducing the scope they have to achieve the right profits.
If we look at the big, national house-builders it’s easy(ish) to see some of the practises that have been adopted and played with, to address this issue.
Here, numerous but often subtle changes in business methods and marketing, at every stage of the process, from the acquisition of land, through to the development, through to the completion of the sale, are apparent to the watchful eye.
But they don’t always get it right!
Adopting the wrong approach has seen some developers devaluing their brand over the long-term.
For example, some opt to simply focus on maximising the number of units they can build, on any given plot, by reducing the size of the homes they are building.
It’s not a great customer-focused strategy…
Such practices have been rubbished in the press and generated countless, negative headlines – taking centre-stage in a national, on-going debate about how best to solve the UK’s housing problem and the so-called crisis of quality in new-build homes.
In my opinion – uncontroversially, I hope – upsetting one’s customer base, homebuyers, is not the answer.
And yet the question remains…
How can development companies continue to improve on their bottom line, whilst still meeting the needs of their buyers and the needs of those who will end up living in the properties, being built?
Houses for sale in a buyer’s market
According to recent data from Zoopla, sellers are, increasingly, knocking more off property asking prices in a bid to get homes sold. The gap between asking price and sale price is up from 3.3% in 2018 to 3.9%, currently, in cities, across the UK, with localised statistics in some areas showing higher numbers.
For sure in some key cities across the UK property prices are flying, however some UK property, is squarely in a buyer’s market, meaning buyers can afford to be more discerning, negotiate lower prices and prioritise their feelings about build-quality, sustainability, architecture and style, above other considerations.
Homebuyers want beautiful homes, well built and nicely presented. Property developers, deep-down, know this to be true and most strive for this, despite some succumbing to the temptation to ignore this reality.
But while the popular, public perception is that, when margins are squeezed and demand is slowing, developers always – as a fait accompli – jump into cost and quality reduction, this is far from always the case.
For sure, too many developers focus solely on their costs and too few on analysing how they can build on their market position, improving their sale prices and speed of sales through simpler, smarter means.
The truth is, we are seeing developers paying a long term price for this kind of short-term thinking.
But many are innovating and adapting to the market.
Staging a property, properly – presenting it, properly – making it truly ready for sale – is one of the ways that developers can make an appeal to the market and improve on the numbers that count, without having to focus on bringing the price of the build, down.
And that is why home staging I genuinely see is a must for developers.
Employing the services of a home staging professional is one, perfect solution, for homebuilders who want to survive in the current, tightly-margined environment, we find ourselves in, today.
What home staging professionals can focus on
Home staging professionals should continue to prioritise the numbers, new-build developers care about, and how your services can help developers, including…
- Increasing the number of viewings.
- Increasing the number of enquiries.
- Increasing the number of offers.
- Decreasing the time between a property going on-the-market to the sale being agreed.
- Achieving the best sale price.
- Achieving the quickest time to sale-completion.
- Average time to sell
- Average marketing price
- Average sale price achieved
- Average number of viewings / offers to sale agreed
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