Properties that are professionally staged, sell typically in a much shorter time frame than vacant listings and homes that are owner occupied. Buyer can envision how they use the house and how the rooms accommodate furniture placement. Empty homes often appear smaller and buyers can be left unsure if the space will accommodate their need. By taking away those questions it is easier for a buyer to make a purchasing decision.
Higher Value
Staging can influence the perception of value quite a bit. By placing updated high quality furniture in the property the buyer will appreciate the house more and will be likely to put a higher value on a staged home than on comparable homes. Buyer often associate the property by its furnishings even if those are not part of the real estate transaction.
The appraisal can often be an issue in real estate transactions. Especially in renovation flips the appraisals can come in lower than the sales price on the contract. If the appraisal comes below contract price a high percentage of transactions will not close or have to be re-negotiated at that lower price. Staging should not influence an evaluation by the appraiser since the furnishing are not part of the sale and do not represent value in the real estate sale. However, it has been our experience that we had very few issues with the evaluation on the staged properties, even if the contract price is higher than the most likely comparable sales. The appraisers are human and the overall impression of quality and value is simply better on fully decorated show homes. This should not be the case but we have talked with appraisers who told us that based on the beautiful high quality photos in MLS their preliminary research shifted already to comparable sales in the top price range. Many have taken properties farther away or in different neighborhoods to justify a higher value based on the fit and finishes in a renovation project. The examples on this website have sold at the high end of the price spectrum of similar houses. Many represent neighborhood records.
