CSP Risk Assessment & Mitigation 3 — Questions and Answers
Question 1: A seller insists on keeping personal family photos displayed during the staging. How should a CSP frame the risk of this decision to the seller?
- Explain that photos will clash with the furniture and paint choices selected
- Advise that personal photos reduce buyer emotional connection and can delay sale (Correct answer)
- Suggest that photos increase the risk of theft during open houses
- Warn that photos violate MLS rules for listing images
Correct answer: Advise that personal photos reduce buyer emotional connection and can delay sale
Personal photos prevent buyers from envisioning themselves in the home, which research shows can extend days on market and reduce offers.
Question 2: Which of the following best describes a 'soft risk' in home staging?
- Physical hazards such as unstable furniture or exposed wiring
- Aesthetic decisions that may reduce buyer appeal or marketability (Correct answer)
- Legal liabilities arising from contract breaches
- Financial risks related to non-payment from clients
Correct answer: Aesthetic decisions that may reduce buyer appeal or marketability
Soft risks in staging refer to non-physical risks related to design choices that could negatively impact how buyers perceive the property.
Question 3: A stager's rental furniture is damaged by the seller's child during the staging period. Which document MOST directly determines who is financially responsible?
- The Multiple Listing Service agreement between agent and seller
- The staging agreement and rental inventory addendum signed by the seller (Correct answer)
- The seller's homeowner's insurance policy declarations page
- The stager's business liability insurance certificate
Correct answer: The staging agreement and rental inventory addendum signed by the seller
The signed staging agreement and inventory addendum define client responsibility for damage to rented staging pieces.
Question 4: During a staging walkthrough, a stager notices the home has aluminum wiring throughout. What is the BEST course of action?
- Note it in the staging report as a decorative consideration
- Inform the seller and recommend an electrician evaluate the system before staging (Correct answer)
- Avoid placing lamps or electronic items in the home to reduce fire risk
- Proceed with staging since wiring is outside the stager's scope
Correct answer: Inform the seller and recommend an electrician evaluate the system before staging
Aluminum wiring is a known fire hazard and the stager should flag it for a licensed electrician's assessment to protect all parties.
Question 5: A stager is hired to stage a property listed as a short sale. What unique financial risk should the stager mitigate through the contract?
- The risk that the lender will lower the asking price after staging is complete
- The risk of non-payment if the bank rejects the short sale or the deal falls through (Correct answer)
- The risk that the seller will remove staged items before closing
- The risk that competing offers will exclude the stager's fees from closing costs
Correct answer: The risk of non-payment if the bank rejects the short sale or the deal falls through
Short sales frequently fall through or drag on for months, so stagers should require upfront payment or clear payment guarantees unrelated to closing.
Question 6: Which action BEST mitigates the risk of scope creep during a staging project?
- Conducting a follow-up call with the seller after each staging phase
- Defining all deliverables, exclusions, and change-order terms in the initial contract (Correct answer)
- Visiting the property weekly to ensure the seller has not added items
- Requiring the listing agent to approve all design decisions before installation
Correct answer: Defining all deliverables, exclusions, and change-order terms in the initial contract
A detailed contract with explicit scope, exclusions, and a change-order process prevents misunderstandings about what the stager is obligated to deliver.
Question 7: A stager arrives to de-stage a property and finds the home has sold and the new owner has moved in. Which risk does this scenario highlight?
- The risk of aesthetic damage to staged furnishings from the new owner
- The risk of unauthorized access and potential trespassing by the stager (Correct answer)
- The risk that staging fees were not collected before closing
- The risk that the seller removed staged items and relocated them
Correct answer: The risk of unauthorized access and potential trespassing by the stager
Entering a home without the new owner's permission after title transfer could constitute trespassing, making communication with the agent critical before de-staging.
CSP Risk Assessment & Mitigation 3
A seller insists on keeping personal family photos displayed during the staging.
How should a CSP frame the risk of this decision to the seller?