“(Staging) choices do not appear to have a significant effect on the actual revealed market value of the property,” the study’s authors wrote. “These results stand in stark contrast to the conscious opinion of both buyers and real estate agents that staging conditions significantly impact willingness to pay for a home.”
The study is titled, “The Impact of Staging Conditions on Residential Real Estate Demand.” Its co-authors are Mark Lane, associate professor in the finance department at Old Dominion University, and Vicky Seiler, researcher at Johns Hopkins University.
Why staging didn’t matter
One reason staging may not help raise the price, according to Michael Seiler, is that buyers are savvy. They know that staging is a superficial process, he says, and they know that cosmetic changes don’t cost much.
The same potential buyers thought that other buyers would spend more on the properties in the tour, which may explain why we don’t question the wisdom of staging.
“In individuals, there’s often a difference between the stated preference and the revealed preference,” he says.
The upside to staging
While sellers may not like hearing that money spent on staging won’t yield a higher price, Michael Seiler says, “I am definitely not ready to say spending money on staging would be a waste.”
For one thing, the study found that staging does give buyers a more favorable impression of the home’s livability, something Michael Seiler believes may help the property sell faster. He says the study might not be applicable to all price points and locations.
via Does Staging Really Raise a Home’s Price? | Fox Business.