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The ROI of Home Staging: Cost vs. Increased Sale Price.

Writer's picture: Times Ten Design, Owner Jen HoseyTimes Ten Design, Owner Jen Hosey

Updated: Dec 6, 2024



When it comes to selling a home, the goal for most homeowners is clear: maximize the sale price while minimizing time on the market. One increasingly popular strategy for achieving this is home staging. The concept of staging—a process where furniture, décor, and layout are optimized to showcase the property’s potential—has gained traction due to its ability to help buyers visualize the space as their future home. But is the investment in staging truly worth it? Let’s dive into the cost-benefit analysis of staging versus the higher sale prices it can command.


The Cost of Staging

1. What Does Staging Involve?

Staging involves decluttering, depersonalizing, and designing spaces to appeal to a wide audience. Services can include:

  • Rearranging existing furniture.

  • Renting furniture and décor.

  • Minor repairs or repainting.

  • Professional photography for listings.


2. Cost Breakdown

The cost of staging depends on the size of the home, the scope of work, and the duration of the sale process. According to the National Association of Realtors (NAR), the average cost of staging is between $2,000 and $3,000 for a median-priced home. However, this can vary:

  • Occupied Homes: $800–$1,200 for initial consultation and $500–$600 monthly for rentals.

  • Vacant Homes: $2,000–$4,000 or more for staging the entire house, depending on square footage.


3. DIY vs. Professional Staging

Some sellers opt for DIY staging to cut costs, focusing on decluttering and minor upgrades. However, professional stagers bring expertise in market trends, design, and buyer psychology. While the upfront cost is higher, the returns often justify the investment.


The Benefits of Staging

1. Higher Sale Prices

The most significant benefit of staging is its impact on the sale price. Statistics from NAR’s 2023 Profile of Home Staging reveal that:

  • 81% of buyers’ agents say staging makes it easier for buyers to visualize the property as their future home.

  • 23% of agents reported that staging increased the offer price by 1–5%, while 18% reported increases of 6–10%.

For context, on a home valued at $400,000, a 5% increase equates to an additional $20,000—a substantial return on a $3,000 investment in staging.


2. Faster Sales

Staged homes typically spend less time on the market. A study by the Real Estate Staging Association (RESA) found that:

  • Staged homes sell 73% faster on average than non-staged homes.

  • Homes staged prior to listing spent an average of 18 days on the market, compared to 49 days for non-staged properties.


3. Enhanced Marketing Appeal

High-quality staging often includes professional photography, which is essential in today’s digital-first real estate market. According to Zillow, listings with professional photos receive 47% more views and sell faster than those without.


Weighing the Costs Against the Benefits

1. Return on Investment (ROI)

Calculating ROI involves comparing the cost of staging to the increased sale price. Let’s look at an example:

  • Property Value: $500,000

  • Staging Cost: $3,000

  • Expected Sale Price Increase: 5% ($25,000)

  • Net Gain: $22,000 after staging costs

In this scenario, the ROI is 733%—a compelling argument for staging.


2. Market Conditions Matter

In a seller’s market, where demand outpaces supply, staging may be less critical as buyers are competing for properties. However, in a buyer’s market or balanced market, staging can make a property stand out among numerous listings.

3. Property Type and Location

Luxury homes, unique properties, or homes in competitive markets often benefit the most from staging. Conversely, for lower-priced homes or fixer-uppers, the cost of staging might outweigh the potential benefits.


Case Studies and Statistics

1. RESA Studies

  • A RESA report found that 85% of staged homes sold for 6–25% more than unstaged homes in the same market.

  • Among 1,081 homes surveyed, staged homes averaged 9 days on the market, while unstaged homes averaged 90 days.

2. Regional Insights

Staging benefits can vary by region. For example:

  • In high-demand markets like California, staging often results in offers well above the asking price.

  • In slower markets, staging can be the deciding factor for securing a sale.

3. Real-World Example

A homeowner in Chicago spent $3,500 staging their $600,000 property. The home sold for $635,000 in just 12 days, compared to similar unstaged homes that lingered on the market for over a month. The seller netted an additional $35,000—an ROI of nearly 900%.


Is Staging Always Worth It?

While the numbers overwhelmingly favor staging, it’s not a one-size-fits-all solution. Here’s how to determine if it’s right for your situation:

1. Budget Constraints

If staging costs are prohibitive, consider partial staging or virtual staging. Virtual staging costs as little as $30–$150 per photo and can still make a significant impact.

2. Property Condition

If the property requires major repairs or updates, focus on those before staging. Staging cannot compensate for structural issues or glaring flaws.

3. Target Buyer Demographics

Understanding your target audience is key. Millennials, for instance, value move-in-ready homes and are more likely to be influenced by staging. In contrast, investors may prioritize the property’s potential over its appearance.

Maximizing the Impact of Staging

To get the most out of your staging investment, consider the following tips:

1. Focus on Key Rooms

According to NAR, the most important rooms to stage are:

  • Living Room: 46% of buyers find it most influential.

  • Primary Bedroom: 43% prioritize this space.

  • Kitchen: A top focus for 35% of buyers.

2. Neutral Palette

Neutral colors appeal to the widest audience and create a blank canvas for buyers to envision their own style.

3. Highlight Unique Features

Staging should draw attention to the home’s best features, such as a fireplace, large windows, or an open floor plan.

4. Professional Photos

High-quality images are essential for attracting online buyers. According to Redfin, staged homes with professional photos sell for 5–15% more than unstaged homes.


Conclusion: Is Staging Worth It?

The cost-benefit analysis of staging overwhelmingly supports its value in most situations. While the upfront investment may seem significant, the potential for higher sale prices and faster sales often makes it worthwhile. By presenting a home in its best light, staging creates an emotional connection with buyers, driving competitive offers and maximizing ROI.

For homeowners looking to sell quickly and profitably, staging is a proven strategy. However, it’s essential to weigh factors like market conditions, property type, and budget to determine the best approach. With thoughtful planning and expert guidance, staging can transform a property from "just another listing" to a buyer’s dream home—and a seller’s financial success.

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