As a transformative tool in the real estate industry, virtual staging allows properties to be presented in their best light without the physical constraints of traditional staging. With today’s advances in technology and the competitive nature of the real estate market, understanding the costs and benefits of virtual staging can help agents, home sellers, and buyers alike.
This comprehensive guide will walk you through the benefits, possibilities, and stories associated with virtual staging in 2024.
First Things First: What Is Virtual Staging?
Virtual staging in real estate involves using digital tools and software programs to create computer-generated images of interior spaces. Unlike traditional staging, which highly depends on the physical arrangement of furniture and décor, virtual staging uses software to give a realistic view to these photos of empty or sparsely furnished rooms.
With its fast modification quality according to the target market’s preferences, this digital staging approach offers a high degree of customization and flexibility. With its fast modification quality according to the target market’s preferences, this digital staging approach offers a high degree of customization and flexibility.
Cost Benefits of Virtual Staging: Time, Money & More!
Virtual staging is always compared to traditional staging in cost, time, and effort. And there is a good reason for that since all these elements, directly and indirectly, can significantly impact property sales.
The effort aspect: Sweat and tears
Compared to traditional staging, virtual staging makes significant changes in property sales with much less effort in two ways:
- Enhancing property presentation: By creating visually appealing images, digital staging highlights a property’s potential and makes a space look more inviting and functional. The quality and efficiency of virtual staging help potential buyers envision themselves in the home and reach the final decision faster.
- Increasing appeal to potential buyers: Through virtual staging, high-quality, professionally staged images will stand out in online listings and can attract more buyers. The more views one property gets, the more potential it will have to get offers.
The time aspect: Save more to earn more
One of the main features of virtual staging that make it stay head and shoulder above traditional staging is how real estate agencies and home sellers use advanced virtual staging tools and software programs. That is why virtual staging is always “faster” in defining its services compared to traditional staging:
- Faster sales: Properties that are digitally staged often sell faster and at higher prices compared to those that are not staged. Less Time saver on the market for properties. According to research by Redfin, virtually staged homes sell a staggering 73% faster than vacant homes due to enhanced visualization capabilities, increased property visibility, heightened buyer interest, and a surge in the number of offers received.
- Simple listing process: Home listing will be smoother and more cost-efficient via virtual staging. You can have a deal with a real estate to arrange for professional real estate photography or snap some photos yourself with your smartphone. With a company like AI HomeDesign, you can transform your photos into professionally staged visuals within a mere 4-8 hours.
The financial aspect: The bottom line
Besides the speed and efficiency of virtual staging, the cost makes up a significant share of the benefits of virtual staging service.
- Higher price sale: According to the above-mentioned survey by Redfin, virtual staging can sell up to 73% faster than those without, staged homes generally command higher prices. This potential of virtual staging provides a cost-effective way to achieve this outcome.
- Low service cost: Traditional staging costs from $1,500 to $5,000 per room. In comparison, virtual staging cost is a small fraction of the cost of traditional staging. For example, virtual staging costs as low as $24 per image in agencies like AI HomeDesign.
- Fixed-rate: Virtual staging companies usually have a fixed rate per image basis, offering transparency and ease of budgeting. For example, at AI HomeDesign, the rate per photo is $0.24.
- Not bound to geography: The traditional staging cost highly depends on the local real estate market and the property. However, virtual staging offers a fixed price no matter where you are located.
How Much Does Virtual Staging Cost?
When evaluating the benefits and expenses of virtual staging, it’s important to consider the variety of costs involved.
Initial costs
The initial costs of virtual staging typically include the expenses you pay for software and tools, as well as professional service fees.
- Virtual staging software: Virtual staging costs will vary in price depending on the kind of subscription models or per-project charges. The basic virtual staging service might be anywhere between $100 to $200 per room. For more advanced options, these numbers can reach up to $500 per room or more depending on the complexity and level of detail you require.
- Professional services: Many real estate agents or property owners choose to outsource virtual staging companies for consultations, image preparation, and multiple rounds of revisions. On average, you might pay between $200 to $500 or more for these services depending on the provider and project scope.
Ongoing costs
Your property may become a matter of ongoing costs if you intend to:
- Remain on the market for an extended period: You may wish to update the virtually staged images to reflect current trends or changes in the market. These updates may typically cost between $50 to $100 per room.
- Maintain a library of digital assets: You may wish to involve some specific digital assets such as furniture and décor images, and it may involve subscription fees or licensing costs. These virtual staging costs can vary depending on the level of access and the number of assets you require for your property staging.
Who Pays Virtual Staging Costs?
There is no written real estate rule stating exactly who is responsible for paying for home staging. However, the cost of virtual staging highly depends on the situation and the agreement between the parties involved. For example,
- The seller can be responsible for covering the cost of virtual staging as part of their efforts to market and sell the property.
- The real estate agent or brokerage may be responsible for covering the cost of virtual staging as part of their marketing and advertising efforts.
In rare cases, clients, that is the buyers, can also be responsible for covering the virtual staging cost. This happens if the buyers ask for virtual staging as an extra service (if available) to evaluate the potential of a property in various ways. Real estate agents can offer virtual home staging services as an add-on service.
Is Virtual Staging Worth the Cost?
Various surveys, reports, and testimonials highlight how virtual staging can be beneficial in the real estate industry. For example, according to Forbes, staged homes sell for 87% faster and 17% more, increasing the average home’s sale price by 17%. This means that a house sells faster with a higher return on investment.
Another survey of buyers’ agents for NAR’s 2021 Profile of Home Staging shows how virtual staging significantly impacts buyers’ perceptions. As mentioned before, through virtual staging, buyers can envision the property as their future home. Buyers are more likely to physically visit the property after seeing it staged online.
On the other hand, home staging, as a general requirement, resulted in a 1-5% increase in property value and a substantial decrease in the properties’ days on the market (DOM).
Your Place in the Sun!
Virtual staging has emerged as a powerful tool in the real estate industry and offers a cost-effective and impactful way to present properties. Real estate professionals, agents, and property owners can make informed decisions that enhance property presentation and drive sales by understanding the costs, benefits, and successful stories of virtual staging. As speed and cost matter more in today’s continuously advancing world, we can witness how the real estate industry’s approach to virtual staging has changed, thanks to its efficiency and various benefits.
FAQs
The cost to virtually stage a home will depend on:
- Initial costs: These include the expenses for virtually designing photos.
- Ongoing costs: These include the price for editing, updating, and adding special digital assets if need be.
There is no written rule about it! Real estate brokerages can pay for the staging of each listing. Sometimes, real estate agents pay for the service out of pocket. It is also an option for homeowners to pay for virtual home staging.
