You might need to use 3D Virtual Staging or Home staging if you consider selling a property. 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 accordingly to some marketing plan. Apparently, these methods of property marketing are not that well utilised from the market, and there are a few weak spots that are playing significant importance for the sale.
In general, I’ve noticed that many estate agents are against the PropTech revolution, despite that they have been adopted 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 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 inevitably is going to disrupt the whole property industry, globally! There are tons of questions. Why has this been such a big news? Who will be affected? What problems might it solve? Are there any legal issues with it? Luckily, I had the change to be highly involved into the luxury part of the market for the past eight and a half years, where we all know all latest trends hit first that small part of the market. Here is 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, which parts are the construction industry, commercial and architecture sectors as well. 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 which could raise the asking price and slash the time in half. One of these methods it’s called home staging (or as its known in Britain as property styling or property presentation). There are numerous reality television shows in USA and Canada trying to make accessible this method, 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 in overnight. The real budgets and schedules are often not being shown or even more often they are tight. Multi-tasking teams of 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 bit more complicated and costly, but that is entirely normal, and this is how this marketing system works.
Every property needs staging, 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. With the home staging are 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 asking price.
Later in this article, I will try to make a fee’s comparison between the virtual staging and approach home staging.
Let take an example.
We have a buyer that is trying to sell his house in London’s market. The house is being Let by the seller 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 don’t want to invest lumps of cash to repaint and redecorate the house and takes important decision to contact directly an estate agent, they organise a photo shoot, cleaning 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 enquiries. This is a bad sign, as the first two weeks are most important ones, as the house will be new to the market and will be 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 a very low or none buyers instructions and enquiries.
Seventh week: At the sixth and seventh weeks, the agent will suggest for 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 with 35% or more just because of the wrong marketing strategy.
Conclusion: The seller lost a significant amount of money, the agent lost it’s commision as the seller decided to take off the house from the market.
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 amount of money into staging and redecoration. As we already know from the title of this articles 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 £65.
||3 Photos/rooms of Virtual Staging comes at a price of £165.
||Up to 6 Photos/rooms of Virtual Staging comes at a price of £350.
|Which make over £1300 of savings vs. traditional home staging
||Which make over £3900 of savings vs. traditional home staging.
||Which make over £7800 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 aim of the staging is 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 the major price difference. It is being utilised by interior design stagers with high precision and attention to the detail. On top of that, it comes with revisions where you or your agent can choose a preferred design scheme. As it has very quick 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.