Top 5 Reasons Physically Staging Luxury Properties Doesn’t Make Financial Sense

Virtual Staging 25 Columbus Circle PH80 New York City $49,900,000

Physically staging luxury properties is quickly becoming a thing of the past because it simply doesn't make financial sense anymore. Many real estate firms use a hugely successful staging process these days, but few people outside of the industry have heard of it: virtual staging.

With entire channels on television and across streaming platforms wholly dedicated to interior design and physical home staging, home sellers would assume that shelling out thousands of dollars to achieve the perfectly staged house is the only way to sell it. However, this isn't true any longer. 

Today, many luxury homes and upscale apartments are "virtually" staged as opposed to physically. Beginning a decade ago in New York City, the trend is quickly picking up traction in all major real estate markets in the United States, like San Francisco, Houston, Dallas, Austin, Los Angeles, Atlanta, Washington, D.C., and beyond.

Why Are Real Estate Agents Everywhere Turning To Virtual Staging?

Why has the trend of virtually rendering home staging layouts exploded in recent years? The reason is simple. Over the past ten years, the cost of home staging has soared dramatically, while quantum leaps in technology have made virtual staging incredibly realistic and cost-effective. 

Here are the five reasons why old-fashioned home staging doesn't make financial sense anymore:

#1 Costs of Home Staging Are Skyrocketing

A decade ago, you could physically stage a multi-million-dollar property in New York or San Francisco for less than $20K. Today that number is ten times higher. On average, staging costs are 1% of the asking price, that would amount to $100K or more for some properties. Although home staging is more expensive in areas like New York than other markets in the country, a home seller would still have to shell out several thousand dollars for the service even in less competitive markets. Virtual staging costs a fraction of that price, sometimes as low as a few hundred dollars, and is usually paid for by the listing agent.

#2 Selling Luxury Properties Can Take Months

All home stagers charge for the staging, but many forget about the cost of monthly furniture rental. That's usually a home stager's main stream of income. The longer your property sits on the market, the more money you put in their pocket. These days in most metropolitan locations in America, that extended listing time in challenging markets adds up to a lot of money! Virtual staging is typically charged as a flat fee, and there are no added monthly costs for using the rendered images.

#3 Traffic and Sales Generate Online 

Human brains process images 60,000 times faster than text, and today, most Americans are spending their time looking at screens. In fact, over 95% of home buyers start their real estate search online. Real estate firms use their marketing budget to create virtually staged pictures and videos of properties. Video can drive a 150% increase in organic traffic from search engines.

Outstanding visual marketing efforts make more memorable impressions, generate traffic faster, and ultimately sell your home. Why pay for a traditional physical staging when all you need are the pictures of a virtually staged home? Contact a reputable virtual staging firm instead that can create the perfect staging design and produce striking visuals that compliment your home.

#4 Speed

Speed is essential in the real estate business. That's especially true in the digital era. Traditional home staging takes weeks; hiring a stager, moving the furniture into a home, taking pictures and holding open houses, and removing all the furniture after a sale can be a lengthy process. Luckily, virtual staging is super-fast. In just a couple of days, your property can be staged, online, and shared with social media as a fantastic visual marketing piece.

#5 Unlimited Virtual Furniture Options

Different properties in different real estate markets require unique staging styles. Traditional home stagers are usually relatively limited by their inventory of furniture and available props. However, virtual staging offers an unlimited choice of home furnishings, styles, and aesthetics to appeal to all potential buyers in any market. Furthermore, virtual staging allows for many options that would be cost and time-restricted in real life, like stripping down wallpaper, re-staining wood fixtures, changing window treatments, adding a pool table, or replacing old furniture.

Perhaps the most significant benefit of all is the cost-effectiveness of virtual staging compared to traditional staging. In a financial capacity, it just makes sense. You will achieve the same traffic online, sell in the same timeframe (if not better), and buy yourself a vacation home with all the money you'll save on staging and furniture costs.

Traditional home stagers will tell you that having furniture in a home helps prospective buyers connect with the space while walking through it. While this opinion does hold some merit, is that really worth $100K or even $20K? I don't think so. Virtual staging helps luxury home sellers save money while still allowing potential buyers to envision their perfect future home using elegant furniture and universally appealing aesthetics.

Conclusion

After conducting many surveys over the years, the vast majority of agents confirmed that virtual staging helps during showings. Yes, you read that correctly: a vast majority of luxury real estate agents testified that a brochure with beautiful, virtually staged images helped buyers to still connect emotionally with the home during showings, regardless of whether it was empty or too taste specific. 

If all of that is not enough to convince you of the value of virtual staging, perhaps this will:

On minimal marketing budgets, almost all real estate firms across America have been paying for virtual staging for more than a decade. Real estate professionals would not pay out of pocket for a resource that didn't produce results.

In an increasingly virtual world, virtual staging makes sense financially for all home sellers, especially in luxury markets. It's about time that the go-to staging process of savvy sellers gets the mainstream attention it deserves.