GUEST POST: The effect of virtual staging on real estate prices
By Jeena Wilson,
Living room virtual staging by Spotless Agency
Realtors are in a constant search of ways to sell real estate faster and for bigger money. Virtual staging is considered to be one of the following ways. Many realtors confirm the fact that staged homes sit in the market for a shorter period of time, but the question “Does it really have an impact on real estate prices?” is difficult to answer certainly. Let’s try to find out whether virtual staging can change prices of the selling property.
Virtual staging: the definition and benefits
By using the term “virtual staging” most of the realtors mean adding furniture and decor to the room using computer software. This approach is very popular among realtors who order professional home staging services of vacant property. It is done with the purpose to increase listing rates as well as help people to envision how the interior may look like if they buy the property.
It is natural that virtual staging has several benefits for real estate agents, including:
– Visualising vacant property;
– It is cost-effective;
– Modifications can take place anytime;
– It takes from several hours to several days to stage the home;
– These images are more often viewed by the potential buyers;
– It creates an inviting atmosphere in homes that are still under construction.
These are not all advantages of virtual staging that are mentioned by realtors. A couple of the most impressive ones are written lower.
Many real estate agents mention that:
1. Virtually staged homes are sold faster.
2. Virtual staging can help to sell a property for a higher price.
What to prefer:
One of the alternatives to virtual staging remains physical staging. It implies purchasing real furniture and accessories to design the interior and sell this estate together with it. The greatest advantage of physical staging is an opportunity not only to see but also feel the space actually. That means that buying property a client receives everything placed inside it too.
The main difference between virtual and physical staging is the cost. One photo of the house can be staged for $60-$70, while a traditional staging may vary between $1,000 and $3,000. The difference is quite impressive if one considers that this huge amount of money will be summarized with the total price of the property and that is the price for a single room.
Physical staging is a completely odd thing for people who have already obtained some furniture as well as like adjusting space to personal requirements. At the same time, it might influence the total cost of the home if done professionally.
For example, professional services of a physical stager that cost Theresa Janaitis $7,000 let her sell the house for $30,000 over the list price.
How does virtual staging influence real estate prices?
VR opens many possibilities to clients allowing them to transform an ordinary room into a luxurious suite for a little sum. Virtual staging services are not that expensive, but their impact on both real estate selling time and cost is beneficial.
According to the report by the US National Association of Realtors, home staging does decrease the time that real estate spends in the market – it was confirmed by 62 per cent of realtors.
Another study, one by the US Real Estate Staging Association (RESA), states that staged property was sold off five times faster than an empty one. At the same time, only 10 per cent of people are capable of visualizing space without extra help. Consequently, the importance of staging should never be questioned.
Another question: What type of staging to consider?
As you can understand, physical staging costs a fortune and can be afforded not by everyone, so virtual staging is the only right solution.
The 2012 study of professors and researchers Michael Seiler, Mark Lane and Vicky Seiler published in the Journal of Housing Research says that the selling price does not depend on staging. They offered potential property buyers a vacant estate, one property with ugly and one with attractive furniture and all of them were estimated at roughly the same price – $200,000.
The statistics of realtors differ somewhat
Many real estate agents confirm the fact that virtual staging influences the price of a property. It is explained by the emotions a buyer has when he sees a staged property. If he enjoys the result of a staged work, the buyer will be ready to pay up the purchase price for this estate not to be sold to everyone else.
To conclude, it is necessary to mention that all the studies on virtual staging prove that it shortens the time period of the property sitting on the market. Nevertheless, that there are no study results on virtual staging to increase the real estate price, but positive experience of realtors proves this fact.