A current research study discovers that home-staging solutions have an effect on a house’s price that results being under what many people believe.
How much does a gaudy violet wall surface color scheme impact a residence’s sales price? Very little, based on brand new research on property staging.
Making a good impression may help with a general overview of a potential homebuyer, but it does not mean they will spend more to purchase the home.
In fact, now there is data that proves that staging a home does not cause buyers to pay more for your house. Michael Seiler, professor of Real Estate & Finance at the College of William & Mary, has investigated and conducted research on precisely how house shoppers / home buyers answered 6 residence visits that differed in the color of paint and quality of furnishings.
His research found that home buyers were willing to pay on average of $204,000 in each of
the staged homes, no matter if the home had premium of furnishings or even hideous color of paint. The irony is that his investigation also asked the home buyers if believed that the other home buyers would adjust what they would pay based upon the way the home was staged.
“We were able to parse out what you consciously believe and subconsciously believe,” Professor Seiler says. “Beforehand, everyone thinks poor staging is going to be a problem. But when we actually did the experiment, we found it doesn’t matter.”
Mr. Seiler and co-authors Mark Lane of Old Dominion University and Vicky Seiler of Johns Hopkins University led 820 home-buyers with one of 6 online residence trips in March 2012. Utilizing professional-grade making software application produced by a style company in Virginia Beach, Va., each residence showcased either a “neutral” off-white wall surface color or an “unsightly” purple paint color, and “great” furnishings, “unsightly” furnishings or no furnishings.
Still, Mr. Seiler warns: “All we could test is how much the home would sell for. What we don’t know is whether a well-staged home will sell faster. It may sell quicker.”
The research about the, “The Impact of Staging Conditions on Residential Real Estate Demand,” has actually been approved by the Journal of Housing Research for magazine at some point following year, he claimed.
It might be challenging to encourage real-estate “experts” to embrace these facts and share them with their clients.
Doug Eichman, a real-estate representative with Core in New York City, invested greater than $30,000 to stage a Midtown East penthouse co-op listed by an agent for $6.995 million. His stager, Cheryl Eisen, president of state of New York City-based Interior Marketing Group Inc., states staging a home works when a home buyer really feels emotional about the house.
Researchers took 820 home buyers through six different homes using video of houses that differed in home furnishings and wall surface color. Participants then ranked their perceptions of the home and stated what they would want to pay for the home.
The research found the following:
– Respondents shared they would pay about $204,000 for the residence in all 6 of the homes toured, no matter how high quality of home furnishings or paint color.
– Respondents thought other home buyers would pay $7,595.75 less, or 3.7 %, for a residence with an unpleasant wall surface color and $8,297.22 much less, or 4 %, for a home with inadequate home furnishings.
Source: Lead writer Michael Seiler, instructor of realty & finance of the College of William & Mary.