Suggestions for your staging contracts

Want to Guest Blog for Us?

We are always looking to connect with other real estate professionals and we welcome guest bloggers! If you are interested, please take a look of our Contributors' Blogging Guidelines.

Search

Staged4more Home Staging Stagedwire

Real Estate Home Staging News Roundup Week of 1/02/2012 January 6, 2012
Real Estate Home Staging News Roundup Week of 12/26/2011 December 29, 2011
Everyday Inspiration: Bold Color Combos December 27, 2011
Real Estate Home Staging News Roundup Week of 12/12/2011 December 16, 2011
Pin-pointing Your Style December 13, 2011

Some Recent Work

Latest Comments:

It’s the burning question: what do I need to consider putting in my staging contract?

Many home staging training companies present their trainees with sample contracts. These are great starting points. However, you need to read through the samples, consider your individual business goals, and tailor them accordingly. Also, don’t assume that these sample contracts have been reviewed by an attorney – always take your contract to an attorney licensed in your state for review. Laws differ by state, county, and even town. This is your livelihood – don’t take any risks with what is arguably the most important document you’ll create for your business!

That being said, I’ve laid out some important considerations below. Again – the laws applicable to each of these may be different in your area – these are only suggestions. Once you’ve got a strong draft of your contract done, have an attorney look it over.

Set forth the parties to the contract: your name or your business’ name, along with the person or business who is paying you for your service.
Give the exact address of the property to be staged.
Consider drawing up your proposal for staging (stating what rooms you’re going to stage, whose furniture you’re going to use, your themes/goals for staging, if any) separately from the contract, and making it an exhibit or appendix to your contract. No matter what, if you intend to be bound by a proposal that you’ve made separate from the contract, be sure to reference it specifically in the contract.
Set a solid date and time for the staging.
Specify the rooms and areas you’re going to stage. For example, if you’re doing a full staging in some rooms and light staging in others, be sure to specify that. Or, as another example, if you’re going to provide only a bistro table or flower pots for outside, specify that.
Fees. This, of course, is an important one.

Do you require a deposit?
Is the deposit refundable?
Up to how many days before staging is it going to be refundable?
When do you need payment in full?
How can the client pay you?
How long of a staging period will these fees cover? What do you charge if they want to renew the staging?
What if they want the staging removed earlier than the term you specified? Do you refund some of their fees? How?

Tied in with fees is also the question of extending the staging period. With homes taking longer to sell in this market, this is an important consideration. You need to balance your need to get your furnishings back with how much money you can make by extending the contract. If you’re renting furniture, this can become even more complicated (look for future post on things to consider when entering into a contract for renting furniture . . . )

How many days notice do you need to extend staging?
When do you need payment by to extend the staging?
If, after initial staging period is over, the property sells in a renewal period. Will you return some of their renewal payment?

Termination of staging. This is very important for your sanity. Consider leaving yourself an out, specifying a period of days (for example, 14) notice that you can cancel the contract for any reason. This will make it easier to get your stuff out if they want to keep renewing the contract because the house isn’t selling.

How is the client to contact you in the event they want to cancel?

Damage to your property: How do you want to deal with damage or theft of your property while it’s at the staged home? Do you ask for a damage deposit?

What are your client’s duties regarding care of the staging items? Can they move anything? Are they responsible for cleaning or dusting your stuff? Professional cleaning?

In reverse, if you’re using the client’s furniture, what can and can’t you move?

Specify that the client gives you the right to enter onto the property, and that they are the only person who would need to give you permission to get into the property. You want to make sure everyone who owns the property knows about and agrees to the staging.

Are you going to require a key to the property? If so, you probably want to make this clear in your contract.

Address your liability for damage to the client’s property, personal injuries, etc. Are you going to be liable for anything you do while on the property? Make the extent of what you’re liable and not liable for clear in your contract. An attorney is an important part of drafting this section.

Alert the client to any damage you know you may do to the property, e.g. holes in walls from pictures. Get them to sign off on this and any other structural changes you may make.

Consider a hold harmless clause. It’s best to consult your attorney about the wording you want to use.

Unless you’re willing to back it up, don’t make any guarantees about getting the house sold. That’s not your job – that’s the agent’s! In fact, you might want to consider putting something in your contract that says you explicitly don’t make any guarantees.

Can you photograph, advertise in the property, use it on the web? Consider outlining thoroughly how you may use this staging job in your marketing.

If this contract were to result in litigation, what state’s law would apply? Who pays attorneys’ fees?

Insurance: if you want the owner to insure against damages, or for them to have any other form of insurance, state this in your contract.

Consider having a clause stating that this is your entire agreement with the client, and any changes need to be made in writing and signed by all parties. Again, this is a section that an attorney can really be a big help with.

State that everyone involved in the contract has had a chance to consult with legal counsel (if that’s true!) and that they’ve read, understand and agree to all the terms of the contract.

Some final considerations: you’ll need all parties to sign the contract, and I suggest having them initial each page. The contract should be dated, you should have everyone’s contact information on there, and I also suggest numbering all the pages in “page 1 of __” style.

The list above are just some suggestions of what to consider for your contract. Even though this is a super-long blog, this is NOT by ANY means an exhaustive list – getting into everything you need to consider is WAY beyond the scope of a blog. As always, consult with an attorney in your state to get advice on what should go in your contract.

Legal disclaimer: This blog is intended to be for general informational purposes only – it does not create any attorney-client relationship, and it’s not legal advice. The law may be different where you live, and every situation is different. Contact a lawyer licensed in your state directly to assess your individual situation. Thanks for reading!

Comments

new homes for sale April 9th, 2008 8:56 am
So here goes my rant: This guy totally screwed up!!! I just witnessed the biggest mistake a Realtor can do. An agent from a different company (I will not mention the name) put in an offer on a home that I have listed. Everything is going great, moving along fine and the inspection deadline (the time that a buyer can get out of a contract for basically any reason) passes with no issues. Two days after the deadline I receive a letter stating the buyer is terminating the contract. There is no reason- just the…

Burlingame home staging, San Mateo home staging, San Francisco home staging

Want to Guest Blog for Us?

Recent posts

Search

Staged4more Home Staging Stagedwire

Some Recent Work

Latest Comments:

CATEGORIES

ARCHIVES