REAL ESTATE: Professional ‘staging’ helps owners sell for more

Wendy McLellan
Province

Dekora’s Tracey Mills (left) and Ron Sowden are experts at making homes look their best. Photograph by : Les Bazso, The Province

Even in a sizzling real-estate market, a home may need more than a vase of fresh flowers and a quick clean-up to attract the best offer.

And old tricks, such as baking chocolate-chip cookies or simmering cinnamon sticks before the open house, don’t smell as sweet to prospective buyers any more.

In fact, you might want to consider getting professional help.

Home stagers are gaining popularity as homeowners embrace the concept of displaying their homes as a product for sale rather than hoping buyers will appreciate the homey, lived-in look of the place.

“We’re bringing what developers have been doing for years with show suites to the residential homeowner,” said John Carter, a partner in Vancouver home staging company, Dekora. “It’s common sense — homes are products, and if you’ve got a product for sale, you merchandise it.”

Home staging involves transforming new and lived-in spaces into show suites. It can be as simple as helping homeowners remove the clutter or repainting a garish bathroom to renting furniture and artwork that shows the potential of a living space.

Three years ago, when Dekora first opened its doors, the idea of home staging drew blank stares from realtors and homeowners alike. Now, thanks to marketing efforts and TV shows such as Sell This House, the idea of staging a home for sale has become more widely accepted.

Three partners, Carter, Vancouver businesswoman Barbara Rae and long-time film set designer Ron Sowden, started Dekora with a $30,000 line of credit.

In its first year of operation, 2004, the firm earned $5,000. Last year, Carter said sales jumped to $1.2 million and this year, the partners are projecting sales of $1.6 million.

The partners are now looking to take their business concept across Canada, with the first franchise expected to open within a few months. If it works, Dekora hopes to move into the U.S., Carter said.

The main office will provide the business model, marketing and operations support while the franchise owner takes care of staffing and staging work.

“A lot of people think they don’t need home staging — the house is going to sell,” Carter said. “That’s true, but how much money have you left on the table?

“Home staging maximizes a home’s value, and when you’re also buying when the market is hot, you want to get every dollar from the property you sell.”

The company stages everything from small condominiums to large houses.

Homeowners can choose a consultation for a couple of hundred dollars and do the work themselves, or Dekora will take care of some or all of the work, including furniture rentals for fees ranging up $5,000 depending on the scope of the job.

Even in a hot market, some homes sit on the market unsold for weeks. On Vancouver’s west side, an attractive new house has been for sale three months and last week, the owners turned to Dekora to hopefully help get them an offer.

Interior designer Tracey Mills had less than a week to turn the beautifully finished but vacant house into a home prospective buyers could imagine themselves living in.

She rented furniture, brought in lamps, artwork and area rugs to bring the house to life. Fluffy towels and tasteful knick-knacks now fill empty shelves and the house has the cozy, if impersonal, look of an upscale hotel.

“In a lot of cases, it’s the battle of the clutter,” said partner Ron Sowden a motion-picture set decorator for 17 years. “We try to clear the way for prospective buyers to see themselves in the home, and that usually means turning down the visual noise and presenting the house as aesthetically as possible.”

There is no formal research on the return on investment for home staging, but a 1999 survey by Coldwell Banker Realty in California found that staged homes sold for an average of five per cent more than unstaged homes — and in half the time.

“Everybody is too close to their own home,” Sowden said. “The challenge is to take a dispassionate view — once you decide to sell, it’s not your house any more. That’s the mindset that has to shift.”

Last summer, Dekora was called in to stage a small townhouse in east Vancouver that had been on the market for six months with no offers.

“It repelled everyone who looked at it,” Sowden said.

“The people were very nice, they had two small children and one parent worked from home. But the place was full of stuff, and it was dirty — it was just a mess.”He advised the family to move to a motel for three days, and the designers went to work. They hired cleaners, sent boxes of stuff to a storage garage and moved in area rugs, lamps and accessories to complement the couple’s furniture.

The next day, the first open house brought 16 offers in two hours, and the townhouse sold for $20,000 more than the asking price, Sowden said, adding staging cost about $1,500, plus the two nights in a motel.

“There is no home that won’t benefit from attention,” he said. “The work can be very satisfying — people can’t believe how beautiful their homes can look.”

Vancouver realtor Andrew Hasman is a huge fan of home staging for obvious reasons: Homes sell faster and for more money when they look like show homes. “I go and see homes every day and more times than not, homes don’t show to their best advantage,” said Hasman, who owns Re/Max Andrew Hasman Realty.

“They may have beautiful rooms, but they don’t present very well.”

He said last fall he was trying to sell a house in the city’s elite Point Grey, but after six months, the owner had only a few lowball offers, so Hasman suggested staging the house.

“The first person who came through the door paid full price, and the client was thrilled,” Hasman said.

“Three years ago, I didn’t think anybody would pay for the service, but people are pretty open to it now. It’s a great way to go, no question.”

© The Vancouver Province 2006

Kim Davis
Sun

What does it really mean to live in a sustainable home? Where does a person begin when there is so much, and often conflicting, information? If you are torn between wanting to go green and feeling overwhelmed and frustrated, you are not alone.

Participants in sustainable-homes gathering at the B.C. Institute of Technology campus with these and other issues this week, under the direction of moderators Helen Goodland of the Sustainable Building Centre and David Kelly of the B.C. chapter of the Canadian Homes Builders’ Association.

They were all there — there being the ”Sustainability Cafe” — to take part in a ”30 Days of Sustainability” event organized by the regional district. They were a cross section of people, homeowners, grad students, consultants, suppliers, regulators.

While the definition of the sustainable home varied among participants, two dominated the discussion — a sustainable home is an energy-efficient home and a sustainable home is everything else, ranging from good indoor-air quality to ”green” building materials.

Several people shared the difficulties they had encountered in trying to “go green.”

One couple talked about how discouraging it had been trying to find a receptive contractor, and the more fundamental challenge of knowing what questions to even ask.

Several participants noted how difficult it is to find green products and services for residential projects and lamented the absence of a green consumer guide like the GVRD’s BuildSmart Directory aimed at businesses and industry.

One individual described a personal crusade to get bigger retailers to carry green products like dual and low-flush toilets.

At the end of the seemingly brief two-hour discussion, however, there was a clear consensus that widespread education across disciplines and a one-stop information resource for consumers and builders were two critical missing links in Vancouver’s shift to sustainable housing.

”Industry does a terrible job serving the public,” Thomas Osdoba of Vancouver city hall’s Office of Sustainability commented. ”We need a portal to create a better market place.”

Goodland echoed these sentiments saying “there is no common voice in the building community to speak on behalf of consumers. There is tons of information out there, but never the right information.”

While the past several years has seen an increasing number of programs and support for professionals and businesses, such as the LEED rating system and, more recently, Built Green BC, the general public has, for the most part, been left to fend for itself.

Fortunately help will soon be phone call away, for people looking to green their living spaces. On March 25, right in the heart of Granville Island, the Sustainable Building Centre will open its doors.

Described as “a destination for inspiration, advice and practical problem-solving for builders and the public,” the centre represents the first one-stop resource available to the residential market – homeowners, renters, builders, etc.

“The Sustainable Building Centre will be BC’s hub for everything to do with sustainable building design, construction and operation”, says Goodland. “An information and education centre, exhibition space and forum for sharing ideas that will shape the future of development. At last, there will be a ‘face’ to sustainable building for Greater Vancouver”.

Among the projects the SBC will manage is Save Energy Now, a $1.9 million provincial government pilot program.

A Community Action on Energy Efficiency (CAEE) pilot program, Save Energy Now will deliver a range of energy efficiency education, outreach and incentives to selected communities through to March 2007.

Aimed at existing residential, small industrial, commercial and institutional buildings including low-income housing, the program is part of the B.C. government’s strategy to significantly improve energy efficiency in new and existing buildings.

The SBC will deliver this program in partnership with City Green and Homeworks.

As part of SBC’s opening, the centre will also have its inaugural exhibition: Ideas that Last. The show will feature a selection of BC’s sustainable design and building projects ranging from furniture design and home renovations to major building projects and planned communities. Targeting LEED-CI Gold certification (LEED for Commercial Interiors), the SBC itself exemplifies green and sustainable design, showcasing a variety of green and efficient products.

Whether you want to know the best paint to use, or what programs are available to help offset an energy upgrade, no question is too small for the professional green building consultants at SBC. Located at 1575 Johnston Street on Granville Island, the Centre will open its doors on March 25 from noon – 5pm.

For more information about the centre, and related programs, check out the following links:

sustainablebuildingcentre.com

ideasthatlast.com

bchydro.bc.ca/powersmartsaveenergynow.ca

chbabc.org

30daysofsustainability.com

© The Vancouver Sun 2006

UBC I Adera project pays tribute to the many great architects of the Vancouver school

Michael Sasges
Sun

Does Legacy show ‘West Coast Modern’ features? Adera’s Norm Couttie says its simple form and clean lines answer yes. K8 Photograph by : Glenn Baglo, Vancouver Sun

On time on budget Photograph by : Glenn Baglo, Vancouver Sun

LEGACY AT HAWTHORN PLACE

Location: University of B.C.

Presentation centre address: 102 – 6279 Eagles Drive, off Thunderbird Boulevard

Hours: “Grand Opening” noon next Saturday

Telephone: 604-221-8878

Web: Adera.com

Project size: Four storeys, 55 apartments

Residence size: 1,050 sq. ft. – 1,725 sq. ft.

Developer: Adera

Architect: Integra

Interior design: Portico

Warranty: St Paul Guarantee

Tentative occupancy: February, 2007

Legacy is the third new-home project from Adera in the “University Town” neighbourhood of “Hawthorn Place.” It is also the last new-home project in the neighbourhood.

Chronology alone would have been enough to inspire the project’s name. “Adera considers Legacy to be both its legacy to the neighbourhood and the legacy project of the three [projects] which Adera will have built in the Hawthorn neighbourhood,” Adera executive Norm Couttie reports.

But history, the stuff that chronologies create, equally inspired the name.

Adera intends Legacy as a pointer to, and a reminder of, the role of the University of B.C. generally and its architecture school in the formulation of the “Vancouver school” of architecture and “West Coast modern.”

“Many of the great architects known as the Vancouver school got their start at the UBC School of Architecture,” another Adera executive, Howard Steiss, says in a news release.

Adera’s Legacy “vision … is of a West Coast modern building,” Couttie says.

Journey, the first Adera project at Hawthorn Place, “was a contemporary take on a West Coast post-and-beam structure, reminiscent of the Museum of Anthropology.” Reflections “was westside traditional.”

Legacy’s chronological status, last of three new-home projects by the same developer in a neighbourhood, begs answers to a couple of questions.

1. Not have prices changed, not have prices gone up, but how much have prices gone up?

2. What has Adera learned about the demand for market housing in the new UBC neighbourhoods that it didn’t know before these three projects?

3. Are there any more Adera new home projects coming in the next UBC neighbourhoods to be developed?

Couttie answered question 3; the Adera executive responsible for marketing the three projects, Steiss, questions 2 and 1.

1. “Probably about 30-per-cent higher, as a result of soaring land and construction costs.”

2. “How strongly received the developments were to international buyers.” As an observation, it’s one more illustration of the 2005 new-home-project “quote of the year,” from Cameron McNeill, MAC Marketing Solutions, at a local homebuilders’ conference:

“Vancouver is the … Swiss bank account of [international] real estate.”

3. According to the University Town website, completion of all nine “neighbourhoods” will take at least another 15 years. Legacy is definitely not the last Adera new-home contribution to University Town.

“Adera has been successful in acquiring the first lowrise apartment property offered in the new ‘South Campus’ residential neighbourhood and has just begun the planning process for this new project,” Couttie reports.

The new home projects on the UBC campus are a collaboration between some very experienced developers — Adera has been in business for almost 40 years — and some new oversight and regulatory regimes.

UBC is a school, not a municipality with more than a century of regulating new construction behind it.

“The process from development permit application to construction start is as fast as the quickest municipal approvals and considerably faster than the most immediate neighbouring jurisdiction,”

ON TIME, ON BUDGET

The competition for labour and materials between Winter Olympics projects and new homes might make a construction site a more compelling reason than the existence of a presentation centre to buy.

Howard Steiss’s answer to the question what has Adera management done to assure itself and the market, that it will build Legacy on time and on budget.

“We are proud to stand behind our reputation for on-time, quality delivery. I think it’s important to check out the reputation of the builder before making the commitment to such a major purchase.

“As a Gold Georgie winner for best customer service on six occasions and a Georgie best builder, we have an obligation to stay on top with our clients. We feel that we are one of the best managed companies in our industry; we are very confident with our projected completions.”

© The Vancouver Sun 2006

DONE DEALS

TYEE BRIDGE AND MARCIE GOOD
Other

QUEEN’S PARK

436 2nd St.

Asking price: $589,900

Selling price: $576,500

Taxes: $2,980 (2004)

Days on market: 30

You can’t judge this house by its vinyl siding. Its 10-foot ceilings,
original fir floors, and heavy oak bannister tell a more complete story.

Built in 1895, it is an obscured example of the heritage that defines this
neighbourhood. Almost every house dates back to the same era, and the
distinctive feel is well guarded. “The Queen’s Park people, they’re
different than the average,” says agent Derek Love. “They appreciate the
history and they’ll pay for it. Most of the people looking to move usually
end up moving a street or two away; they never move out.”

While the house has no garage or basement, is on a relatively small lot, has
just one full bathroom and little street appeal, other features supported
its valuable vintage. In keeping with what Mr. Love calls “the Queen’s Park
thought,” the previous owners had recently installed a period-friendly
French door with a stained glass section at the top. The current owners plan
to replace the vinyl siding with shingles.

Other updates included a reconfiguration of the second floor with an open
den area between the three bedrooms. Along with the high ceilings, this gave
the sense of more space than the 1,610-sq.-footage suggests. The kitchen was
well-kept, with newer appliances but “nothing fancy.” A large side patio
made good use of the grassy, fenced-in yard.

Listing Agent: Derek Love (Coldwell Banker)

FALSE CREEK NORTH

907 Beach Ave., Penthouse 3

Asking price: $850,000

Selling price: $830,000

Taxes: $2,807

Days on market: 64

Watching five o’clock traffic inch across the Burrard Bridge, 150 feet below
your balcony, offers distinct “if you lived here, you’d be home by now” type
of satisfaction.

But then, in a 23rd storey, two-level penthouse with nine-foot ceilings,
Brazilian cherry wood floors , two seven- by nine-foot balconies and top-of
the-line everything, you don’t need to look down to enjoy yourself.

“Some people prefer penthouse living, because among other things there’s no
one living above you,” says agent Les Twarog.

Recently renovated for over $250,000, other advantages in this
1,396-square-foot two-bedroom include crown mouldings, Tuscany stone
fireplace, solid maple cabinets and granite countertops.

“This one is very elegant but was on the market for a few months because it
was initially overpriced at $950,000.

There’s a peekaboo to the water from the balcony, mostly you have city and
mountain views.”

A buyer from the U.S. felt this was reason enough, along with the
resort-like facilities at the building: indoor pool, sauna, squash court and
gym. Not bad for a summer home in the city.

Listing agent: Les Twarog, Re/Max Crest Realty Westside

Copyright 2006 Bell Globemedia Publishing Inc. All Rights Reserved.

City council in talks with developer to save landmark

John Bermingham
Province

The Evergreen building, designed by Arthur Erickson, is one of Vancouver’s landmarks. Photograph by : Les Bazso, The Province

It looks like Vancouver’s first “green” building will survive the wrecking ball.

And the man who designed the Evergreen building, world-famous architect Arthur Erickson, says he’s relieved the old girl is still standing.

“I’m very thrilled with the outcome,” a beaming Erickson said yesterday after Vancouver City Council ordered a public hearing on the fate of the property.

“It’s a unique building.”

The property at 1285 West Pender, which Erickson designed in 1980 for developer John Laxton, was slated to be replaced by a high-rise tower last year.

Since then, the city has been negotiating with Laxton to save the building, which has eyecatching terraces and a rooftop garden.

Laxton wants about 150,000 square feet of density to transfer to another development if the building is to be saved.

“Our preference is the building be saved,” Laxton told council. He said the high-rise plan is no longer attractive because the cost of building it has risen by as much as 25 per cent.

“Construction costs at the moment are in an impossible situation,” he said.

Laxton wants to preserve the Evergreen as is, but only if he gets enough extra density. Otherwise, he says, he may still tear it down and put up a tower.

Larry Beasley, the city’s director of current planning, said the Evergreen is only 25 years old but has unique heritage value.

“It’s hoped we will find a way of saving this very important building by Canada’s greatest architect,” Beasley said.

Susan Boissoneault of Heritage Vancouver said the Evergreen is one of 10 city landmarks at risk.

“We really don’t want this building to be a casualty of the development boom in Vancouver,” she said. “This building is far too important to let it go, even though it’s only 25 years old. It’s part of our future heritage.”

The public hearing will be held April 18 at city hall.

© The Vancouver Province 2006

Sun

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Construction reached 2,877 units last month, up 28.6% from January

Wency Leung
Sun

B.C. housing starts reached 2,877 units in February, up 28.6 per cent from 2,238 units in January. Photograph by : Ian Smith, Vancouver Sun

Urban housing construction in B.C. soared last month, outpacing home-building activity in the rest of the country, the Canadian Mortgage and Housing Corp. reported Wednesday.

B.C. housing starts reached 2,877 units in February, up 28.6 per cent from 2,238 units in January. That jumped 46.5 per cent from 1,964 units in February 2005.

In Vancouver, housing starts climbed 64 per cent to 1,988 units, compared with the same month last year. That was the highest number ever recorded in Vancouver during the month of February.

Housing analysts attributed the surge in activity, in part, to the dry weather last month.

The construction of a few large projects can also heavily impact housing start figures in the Vancouver area, said Tsur Somerville, an associate professor at the University of British Columbia.

Somerville noted that at the same time Vancouver area housing starts are rising, sales are down, providing a mixed picture of the real estate market.

Last week, the Real Estate Board of Greater Vancouver reported that sales fell 4.1 per cent in February, compared with a year ago.

“There’s a bit of uncertainty in the numbers to see what’s going on,” Somerville said.

CMHC regional economist Carol Frketich said strong employment growth and higher wages in B.C. have enabled more people to purchase homes.

“The strong demand conditions are still there,” she said.

Canada, overall, saw housing starts fall slightly to 13,685 units last month, down from 13,269 units in January, according to CMHC.

In the first two months of the year, however, urban starts in the country were 17.7 per cent higher compared with the same period in 2005.

Although the national housing agency said the rate of housing starts remained “very strong,” it forecast home building activity to slow down as mortgage rates creep higher.

The Bank of Canada on Tuesday raised its trendsetting rate by a quarter-point to 3.75 per cent, leading chartered banks to raise their prime lending rate to 5.5 per cent.

“The year started out very strong, but we’ll see that moderate over the year,” Frketich said.

But, she said, B.C.’s strong labour market and booming economy are expected to offset the effects of higher borrowing rates.

Housing starts in the province are expected to be on par with 2005, Frketich said. “In British Columbia, the housing outlook is strong and stable.”

Single-detached starts in the province rose 29 per cent to 995 units in February, compared with a year ago. Multiple starts climbed 58 per cent to 1,882 units.

In Vancouver, single-detached starts rose to 512 units, up 42 per cent from February 2005. Multiple-starts in the city surged 74 per cent to 1,476 units.

CMHC said the number of newly completed and unoccupied units in B.C. has plunged 30 per cent from a year ago, indicating strong demand for newly built homes.

TD Bank Financial Group economist Sebastien Lavoie agreed that the rest of the country would see a sharper downtrend in home building activity than B.C. and Alberta.

But, he anticipated B.C.’s housing market would also experience a soft decline, due to higher borrowing rates, an erosion in affordability, and a shortage of builders.