3D Virtual Staging or Home staging are two things you might consider when selling a property if you want to put a “sold in one week” sign. Yes, these are the ingredients necessary if you are willing to achieve a fast and profitable sale.
Alongside the location, near schools, shops, transport links, etc., there are two significant factors: price and presentation. But it is not just about price; it has to be the right price and the proper presentation.
Any good estate agent will set the price according to some marketing plan. Apparently, these property marketing methods are not that well utilized in the market, and there are a few weak spots that are playing significant importance for the sale.
As a virtual expert home stager at TALLBOX working with hundreds of estate agents regularly, I’ve noticed that many estate agents are against the PropTech revolution, despite adopting some of the features.
Now you might be thinking about what kind of animal is PropTech? Here is a perfect image that shows what exactly it is and how it’s being formed.
Let me explain a bit in-depth about PropTech.
It’s a kind of a buzzword. Two years ago, no one talked about innovations and digital implementation into the Real estate market. Yes, it’s a fact, and it will inevitably disrupt the whole property industry globally!
There are tons of questions. Why has this been such big news? Who will be affected? What problems might it solve? Are there any legal issues with it?
Luckily, I had the chance to be highly involved in the luxury part of the market for the past eight and a half years, where we all know all the latest trends hit first that small part of the market. Here are one widely shared views by James Dearsley (Digital Transformation Specialist).
Proptech is one small part of a wider digital transformation in the property industry. It considers both the technological and mentality change of the real estate industry, and its consumers to our attitudes, movements and transactions involving both buildings and cities.
That concept affects a vast part of the real estate business: the construction industry, commercial, and architecture sectors. So in a few words, PropTech is:
A collective term used to define startups offering technologically innovative products or new business models for the real estate markets
Okay, let's go back to the 3D Virtual Staging and Home Staging - costs and differences.
Every seller wants the best price that can be achieved, and often they trust their estate agent in that adventure entirely without being aware of what else could be done. There are marketing methods that could raise the asking price and slash the time in half. One of these methods it’s called home staging (or, as it’s known in Britain, as property styling or property presentation).
There are numerous reality television shows in the USA and Canada trying to make this method accessible, some of them are Designed to Sell, Flipping Out, The Stagers. Of course, as we all know, television is to entertain; these shows are packed full of dramatic transformations that turn dull for sale properties into spectacular, lovely spaces that shine in today’s real estate market.
They work with professional stagers, which makes everything a simple game that happens overnight. The real budgets and schedules are often not being shown, or even more often they are tight. Multi-tasking teams of a handyman are under the light of the projectors, asked to make everything even simpler, often for few hours or two-three days.
I know, all this sounds fantastic, and actually, it’s true if we don’t count the exaggeration that they use. In our reality, things are a bit more complicated and costly, but that is entirely normal, and this is how this marketing system works.
Every property needs staging, it doesn’t matter if it’s new or old. Staging designers tend to set up (dress or stage) the rooms in a special appealing way that talk to the prospective buyers in a way that they can imagine themselves living their life. Often cluttered spaces are not appealing, and they push away buyers, which leads to longer time spent on the market or the lower asking price. The home staging is involved a couple of factors that need to be added on top of the asking price; the designer fees, furniture rent, furniture insurance, removal/handyman fees, and they are all bound by a time. Yes, you have to pay fees every day, week, or month (depending on your contract). Fees are determined by the demand of the area, how good the designer is, the additional chosen marketing strategy, and the asking price.
Later in this article, I will try to make a fee comparison between virtual staging and approach home staging.
PS: It’s the Before and After some virtual home staging magic.
The Key Advantages Of The Cost-Effective Virtual Styling
Virtual styling can be considered a cost-effective method available for people to sell a vacant house. However, that’s not the only benefit virtual staging can deliver. Here is a list of some of the most prominent advantages that are linked with virtual staging. After going through these benefits, you will definitely have part of the key marketing tools for selling quickly a house.
Visualization can be considered as the most prominent benefit linked with virtual staging and buyers. All the potential homebuyers who live out there in the world prefer to visualize the homes before they purchase. This helps them to get a clear understanding of how the home and each room in it look. As a result, homebuyers can easily determine whether it is the perfect investment available for them to consider or not. This fact can be considered as the main reason behind virtual staging scoring high results. Empty spaces are not capable of convincing a message effectively. With the help of virtual staging, it is possible to eliminate empty spaces and attract more buyers to the home.
The home buyers will see the home, just like someone used to live there but more organized and decluttered. The benefits of a virtually staged property are not just available for residential real estate. Real estate agents who are working with commercial properties can also think about experiencing all the benefits that come along with virtual staging. For example, they can fill up an office with all the desks and make it look occupied. On the other hand, conference rooms and waiting areas can also be enhanced to make them look appealing to the property owners out there in the world.
Virtual staging can also be considered as a cost-efficient solution available for realtors to consider. If you take a close look at all the expenses, you will be able to figure out that there is a high possibility to save thousands of pounds or dollars in the long run. You have to make a one-time fee for virtual styling and use the photos in all aspects of the marketing. It would be an affordable payment as well. In fact, the amount you have to pay for a virtual staging entire house is just a fraction of the total cost of filling a single room with stuff.
Tap the target market directly
Another prominent benefit of virtual staging is that it provides an opportunity to tap the target market directly. In other words, you are provided with the ability to customize the look and feel of the home according to the target customer group.
For example: if your target market consists of millennials, you will come across the need to make it look modern. That’s where virtual staging can help you with. You need to tweak the look with a few simple changes. It will only take a couple of hours to get the job done as well. As a result, you will be able to make the entire listing look more appealing. Therefore, you will be able to sell the product to target markets with minimum hassle as well.
Declutter the property
With virtual staging, there is a possibility to redecorate every single room of the house. Check out 19 different ways to redecorate virtually rooms: Click
As a result, you will be provided with the opportunity to redecorate as per your specific preferences. This can help people to declutter the houses as well. You can use a few of the existing furnishings and then appropriately redesign them so that you can attract more potential customers. As a homeowner, you will often overlook the personal belongings that you have on the property.
This can create a negative impact on your property in the long run. However, virtual styling can help you to avoid this frustration. You can declutter the home virtually and make sure that no distractions are present in the home. As a result, you will get the opportunity to grab the attention of potential customers without going through any frustration.
You can convince customers who search on the internet
From a recent study conducted by the National Association of Realtors in the United States, it has been identified that more than 90% of the people who search for homes tend to seek the assistance of the internet. Therefore, it has become important to advertise the home on the internet in an appealing way. That’s where virtual styling comes into play. Virtual staging is much better when compared to uploading ordinary photos. It can increase the number of inquiries that will come on your way as well. That’s because virtual staging is self-explanatory and people will be able to get a clear understanding of what they will receive.
Sell the home faster
Out of all benefits associated with virtual staging, the ability to sell the home faster can be considered the most prominent one. As a realtor, you are always looking forward to selling the home within a short period. This can help you stay away from a great deal of stress in the long run.
Virtual styling has got the ability to deliver perfect assistance to selling the home faster. That’s because you are making the home look more appealing to the eyes of potential customers through virtual staging. You can convince the home buyers on how they will be able to use the home. Also, you can convince how the home matches perfectly well into their lifestyles. As a result, the buyers will be tempted to go ahead and purchase the home immediately.
Let take an example.
At TALLBOX, often we have buyers that are trying to sell a second investment house in London’s market, which is a highly competitive place. Most of the time chance of the property looking like in the below video is high.
The seller is letting the house for quite a long period, and unfortunately, tenants that use to live there neglected the house and didn’t take appropriate care. At the same time seller doesn’t want to invest lumps of cash in repainting and redecorating the house and takes an important decision to contact an estate agent directly, organize a photoshoot, clean, etc. But that doesn’t help much, which we will see in this example. In the end, they upload the listing to one or two of the biggest property website in Britain and sit, waiting.
First two weeks: Despite the frenzy housing market in London, a big percentage of the properties are more than two weeks on the market without a single instruction and just a few inquiries. This is a bad sign, as the first two weeks are the most important ones, as the house will be new to the market and easily spotted. If it doesn’t attract buyers, it might go stale.
Three to four weeks: After three to four weeks the listing they will have less and fewer views.
Five weeks later: After five weeks, the agent probably will adjust the price a bit, it will replace some of the sentences in the description, it might re-upload some of the photos again in a desperate move to gain traction on the websites.
Unfortunately, these old tricks come with a success rate between 14-21%, which leads to very low or no buyer instructions and inquiries.
Seventh week: At the sixth and seventh weeks, the agent will suggest another price drop, blaming the property market, the location, the asking price, etc. We have clear examples every day with listings 4-5 months old where the asking price has dropped by 35% or more just because of the wrong marketing strategy.
Conclusion: The seller lost a significant amount of money. The agent lost its commission as the seller decided to take off the house from the market and possibly list it with another agent.
Possible solution: Let’s rewind the story at its beginning. If the seller had in mind and knew that he might sell with profit in no time, he could decide to invest some money into staging and redecoration. As we already know from the title of this article, there are virtual and home staging services available. Here are the price and time comparisons of both services:
Of course, this is just an example, and the events can develop in many different scenarios, some bad, some good.
1 Photo/room of Virtual Staging comes at a price of £35 / $45 Which make over £1300 / $1600 of savings vs. traditional home staging 3 Photos/rooms of Virtual Staging comes at a price of £105 / $125 Which make over £7800 / $9500 of savings vs. traditional home staging. Up to 6 Photos/rooms of Virtual Staging comes at a price of £180 / $220 Which make over £7800 / $9500 of savings vs. traditional home staging.
1 Photo/room of Virtual Staging comes at a price of £35 / $45
Which make over £1300 / $1600 of savings vs. traditional home staging
3 Photos/rooms of Virtual Staging comes at a price of £105 / $125
Which make over £7800 / $9500 of savings vs. traditional home staging.
Up to 6 Photos/rooms of Virtual Staging comes at a price of £180 / $220
Which make over £7800 / $9500 of savings vs. traditional home staging.
Would you like to sell your house fast for more?
Yes? Here is one of the solutions.
As the staging aims to get your house sold in no time and for the best price possible, we have to consider that there are additional staging types like – virtual staging.
It is the same as the traditional home staging but with a major price difference. Interior design stagers are utilizing it with high precision and attention to detail. On top of that, it comes with revisions where you or your agent can choose a preferred design scheme. As it has a rapid turnaround time, you can actually benefit immediately within the first two weeks. The other valuable side of the virtual staging is that you give the buyers the unique moment of seeing the actual state of the house. This way, they can be sure that there are no tricks used to mask out any damps, cracks, or other neglected parts of the house as well as if the buyer decides to change everything, it would be easier as he is starting from ground zero.
Here you can have a look at other questions that we answered already in our blog.