The Secret Strategy For Selling Your New Build Faster!

As home builders in Edmonton, Alberta, face rising costs and increased competition, the decision to stage homes can feel like an additional burden. Material costs, labor shortages, and regulatory challenges are already driving up expenses. Amid these concerns, home staging—typically priced between 1% and 3% of a home’s selling price—may seem like an unnecessary luxury. But what if builders reframe this cost as an investment?

When viewed strategically, home staging could provide a strong return, helping homes sell faster and for higher prices. By understanding staging as a tool for differentiation in a saturated market, builders might unlock new opportunities to boost their bottom line.

The Pain Point: Rising Costs and Tight Margins

In the construction industry, costs have soared over the last few years. According to BILD Alberta, construction costs have been on a steep rise, particularly due to the spike in material costs and labor shortages. In Edmonton, the costs increased by 16% in 2023, with builders reporting that the additional expense for constructing a standard detached single-family home is now $40,000 to $50,000 higher than before. This surge is mainly attributed to lumber prices, which have increased by 125% to 200% since pre-pandemic times. Other materials have also seen price hikes, adding $20,000 to $30,000 to overall construction costs

For builders in Edmonton, these financial pressures are very real. The average cost of building a home in Alberta can range from $200 to $350 per square foot depending on materials, labor, and land. Adding another cost—like staging—might seem counterintuitive when the goal is to minimize expenditures. However, while staging can feel like an optional “extra,” focusing only on the upfront cost may overlook its potential to expedite sales and increase profitability.

Line graph titled “Canada Building Construction Price Indices (Part 2)” illustrates year-over-year percentage changes from Q1 2018 to Q4 2021 for single-detached houses, factories, and schools in a competitive market. Single-detached houses peaked at 25.7% in Q4 2021. Data source: Statistics Canada.

The Alternative View: Staging as an Investment

Let’s take a different perspective on staging. Instead of seeing it as a cost that drains resources, builders could consider it an investment capable of delivering measurable returns. Here are four reasons why:

1. Faster Sales: Time is Money

Homes that are staged typically spend less time on the market. According to the Real Estate Staging Association (RESA), staged homes sell up to 73% faster than non-staged homes, although this figure may vary based on market conditions. For builders, this can lead to a significant reduction in carrying costs like property taxes, utilities, and interest payments on construction loans. By reducing these “holding costs,” builders free up capital faster, allowing them to move on to new projects and generate additional revenue.

In Edmonton, where the average time on the market for a newly constructed home can range from 50 to 70 days depending on conditions, staging can make a crucial difference. A staged home, well-presented and ready to live in, captures buyers’ attention more quickly and is likely to sell sooner, further reducing costs.

2. Higher Sale Prices

Staging helps create an emotional connection with prospective buyers. When potential buyers walk through a staged home, they can better visualize themselves living in the space. According to the National Association of Realtors (NAR), 82% of buyers’ agents said that staging made it easier for their clients to imagine the property as their future home. This emotional impact often translates into higher offers.

For builders, staging could potentially add 1% to 5% to the final sale price. A small investment in staging—let’s say 2% of the home’s listing price—could result in a net gain if the property sells for just 5% more than an unstaged home. In Edmonton, where the average home price fluctuates around $450,000, a 5% increase translates to an additional $22,500 per home sold, making the staging investment worthwhile.

Infographic titled “Staging Statistics” shows how 73% of realtors in a competitive market agree staged homes sell faster; 65% believe staging helps sell for more; 85% say staged homes go over asking price, and 81% of agents note staging affects buyers’ view.

3. Competitive Edge in a Crowded Market

In today’s market, buyers are often overwhelmed by the sheer volume of listings. With platforms like Realtor.ca, and others making it easy to browse dozens of homes online, creating a strong first impression is crucial. A staged home photographs better, stands out in online listings, and attracts more foot traffic.

Edmonton’s housing market, while slower than some other Canadian cities, remains competitive. Suburban developments in areas like Windermere and Ambleside have created a lot of options for homebuyers. Builders who invest in professional staging give their homes a visual edge, potentially leading to more buyer interest and faster sales.

4. Brand Perception and Long-Term Gain

Staging can also enhance a builder’s reputation. In a market as interconnected as real estate, perception matters. A beautifully staged home reflects professionalism, attention to detail, and quality craftsmanship. Even if a buyer doesn’t make an offer, they may remember the builder’s name, leading to future referrals and long-term business relationships.

For builders in Edmonton, where many rely on word-of-mouth and reputation within the local community, delivering staged homes can have lasting benefits. A polished final product creates goodwill and promotes brand loyalty. Builders who stage homes effectively position themselves as premium developers, attracting discerning buyers who are willing to pay a higher price for quality.

Practical Approaches to Manage Staging Costs

Despite the potential benefits, many builders remain wary of staging costs. However, there are ways to make staging more cost-effective:

1. Focus on Key Rooms

Instead of staging the entire home, builders can collaborate with staging experts to focus on the most important rooms. According to industry professionals, staging the living room, kitchen, and primary bedroom is where the biggest impact is made. These are the areas that buyers care about most, and focusing on them keeps staging costs manageable

2. Incorporate Staging into Marketing Costs

Builders can pass some or all of the staging costs on to the buyer. For instance, they could offer the staging as part of a premium upgrade package, adding it to the home’s final price. This tactic allows builders to recoup the staging investment while offering buyers a higher-value product.

Conclusion: Investment for the Future

In a market where every expense is scrutinized, it’s tempting to view home staging as an avoidable cost. However, by shifting the mindset from “expense” to “investment,” builders can unlock real value. Staging speeds up sales, boosts home prices, and creates a competitive edge in a crowded market—all of which contribute to long-term profitability.

Staging offers an opportunity not just to sell homes faster and for more money, but also to build a reputation for quality.

For homebuilders in Edmonton, the numbers make a clear case. Staging offers an opportunity not just to sell homes faster and for more money, but also to build a reputation for quality. By strategically managing the costs—focusing on key rooms, using virtual staging, or incorporating costs into the sale price—builders can maximize the return on investment.

Ultimately, home staging is more than just decorating. It’s a way to position properties for success, ensuring they stand out and sell for top dollar. And in a market as competitive as Edmonton’s, that’s an investment worth making.

Ready to stand out in Edmonton’s competitive market? Transform your homes with professional staging, and watch them sell faster and for higher prices. Invest in your future today—don’t just build homes, build success!