An In-Depth Analysis of the REALTOR’s 2023 Profile of Home Staging

Home staging has become a hyped element in the real estate market, influencing buyers, sellers, and agents alike. The 2023 Profile of Home Staging, prepared by the National Association of REALTORS® Research Group, delves into the impact of staging on home sales. Drawing from survey data, this report explores buyer and seller perspectives, the influence of TV shows, and shifting buyer expectations.

It’s important to note that this report is not exactly a double-blind academic study.  Rather, it is a survey of National Association of REALTOR members.  It can hardly be considered scientific, and it must be remembered that the average REALTOR nationwide sold only 10 homes in 2023, and that the average length of a REALTOR career is only 10 years.  However, many REALTORs sell far fewer than a ten homes per year – especially in the Bay Area, where the average number is perhaps less than even 1/3rd of that.

It must be assumed that any information a REALTOR used to respond to this report must be considered purely anecdotal and not data driven. My advice is to read the report and this analysis of the findings but take both with a grain of salt.  At the end of this article I share information about an actual impartial study on the benefits of staging which serve as a strong counterpoint to this NAR “Research.”

Key Findings from the 2023 Report

1. Home Staging from Buyers’ Agents’ Perspective

According to the report, staging has a profound effect on buyers, significantly influencing their perceptions and actions. Eighty-one percent of buyers’ agents reported that staging made it easier for buyers to visualize the property as their future home. Nearly half (47%) of these agents noted that staging impacted most buyers’ views of the home, while 27% observed that buyers were more willing to overlook property faults in staged homes. Additionally, 23% of buyers’ agents stated that they felt staging increased the dollar value offered by 1% to 5% compared to similar unstaged homes. Specific rooms, such as the living room, master bedroom, and kitchen, were identified as particularly important for staging. These findings emphasize the value of staging in creating a positive impression, leading to faster sales and potentially higher offers.

Visualization and Engagement

• 81% of buyers’ agents agreed that staging made it easier for buyers to visualize the property as their future home.
• Staging increased willingness to tour a property seen online (40%) and improved perceptions of value when decorated to the buyer’s taste (34%).

Dollar Value Impact

• 20% of buyers’ agents felt that staging increased the dollar value offered by 1–5% compared to unstaged homes.
• 34% stated that staging had no direct impact on the offered price.

Room Importance

• Living rooms were deemed the most important to stage (39%), followed by primary bedrooms (36%) and kitchens (30%).
• Guest bedrooms ranked lowest in priority, with only 9% considering them highly important.

Marketing Tools

• High-quality photos (77%) were the most important marketing tool, followed by videos (74%), traditional staging (58%), and virtual tours (42%).

2. Home Staging from Sellers’ Agents’ Perspective

According to the report, 23% of sellers’ agents reported staging all homes prior to listing, while 10% staged only difficult-to-sell properties. The most commonly staged rooms were the living room (91%), kitchen (81%), primary bedroom (81%), and dining room (69%). Sellers’ agents frequently utilized professional staging services (24%), though some offered to stage homes themselves (22%), with median costs of $600 and $400, respectively. Staging was found to enhance property value, with 20% of agents noting a 1% to 5% increase in offers compared to similar unstaged homes, and 27% observing a reduction in time on the market. A

These insights highlight the strategic advantage of staging in enhancing property appeal and market performance.

Pre-Listing Staging Practices

• 23% of sellers’ agents staged all homes before listing, while 10% staged only challenging properties.
• 50% of agents recommended decluttering or fixing issues without full staging.

Most Commonly Staged Rooms

• Living rooms (91%), kitchens (81%), and primary bedrooms (81%) were the most frequently staged.
• Children’s bedrooms were the least staged (23%).

Cost of Staging

• The median expense for professional staging services was $600, compared to $400 when agents staged homes themselves.

Value and Market Time Impact

• 20% of sellers’ agents reported a 1–5% increase in the dollar value of staged homes.
• Staging slightly reduced time on market for 27% of agents, with 21% reporting significant reductions.

3. The Role of TV Shows

Television shows have reshaped buyer and seller expectations in real estate:

Unrealistic Expectations

• 73% of respondents indicated that TV shows heightened buyer expectations or set unrealistic standards for home appearances.

Influence on Staging Practices

• 23% of respondents were influenced by TV shows to stage homes in line with on-screen depictions, while 69% were not swayed.

Buyer Reactions

• 10% of respondents reported buyer disappointment with real-world homes compared to staged homes seen on TV.

4. Shifting Buyer Expectations

According to the report, 81% of buyers’ agents reported that staging a home made it easier for buyers to visualize the property as their future home. Additionally, 58% of buyers’ agents indicated that home staging had an effect on most buyers’ view of the home most of the time, while 31% said it had an effect but not always. Staging the living room was deemed most important (39%), followed by the primary bedroom (36%) and the kitchen (30%). Furthermore, 20% of buyers’ agents noted that staging increased the dollar value offered between 1% and 5% compared to similar unstaged homes. These findings underscore the significant impact of home staging on buyer perceptions and the potential financial benefits for sellers.

Pre-Existing Ideas

• 81% of respondents said buyers knew where they wanted to live before starting their search.
• 76% had specific ideas about their ideal home’s features.

Expectations of Viewing Process

• Buyers expected to see a median of 7 homes in person and 12 virtually before making a purchase decision.
• 56% of respondents felt these expectations aligned with the current market.

Remodeling and Flipping Trends

• 51% of respondents noticed an increase in buyers planning to remodel homes, with most starting renovations within three months of purchase.
• 36% reported a rise in buyers planning to flip homes.

Why it is Claimed that Home Staging Matters

The National Association of REALTORS® (NAR) home staging reports claim staging makes a difference because of the tangible and psychological effects it has on both buyers and sellers. Here are the primary reasons:

For Buyers

1. Enhanced Visualization: Staging helps buyers imagine themselves living in the home. The reports consistently show that a majority of buyers’ agents (e.g., 81% in 2023) agree that staging makes it easier for buyers to visualize a property as their future home.
2. Emotional Connection: A well-staged home creates a welcoming and aspirational atmosphere that appeals to buyers emotionally, making them more likely to consider the property seriously.
3. Higher Expectations: With the influence of home improvement TV shows and online platforms, buyers now expect homes to be visually appealing and move-in ready. Staging meets or exceeds these expectations, setting the property apart.
4. Reduction of Faults: Staging can distract from minor flaws by drawing attention to the best features of the property. Around 27% of agents in past reports noted that buyers were more likely to overlook faults in a staged home.

For Sellers

1. Faster Sales: Staging often helps homes sell faster. In competitive markets, a staged home can appear more polished and desirable, reducing time on the market.
2. Higher Offers: Many agents report that staged homes receive higher offers compared to their unstaged counterparts, with increases often ranging from 1% to 5%.
3.  Increased Online Appeal: With 95% of buyers beginning their search online, high-quality staging contributes to better listing photos, which generate more interest and showings.

For Both Buyers and Sellers

Focus on Key Rooms:

Staging focuses on critical spaces like the living room, kitchen, and primary bedroom, which are key areas for influencing buyer decisions.

Neutral Appeal:

Staging removes overly personal or cluttered decor, creating a clean and neutral space that appeals to a broader audience.

These reports emphasize that staging transforms a property into a marketable product, aligning with buyer preferences and trends to maximize interest, offer value, and reduce time on the market.

Common Recommendations for Sellers

Sellers’ agents emphasize several pre-listing preparations to enhance a home’s appeal:

Decluttering and Cleaning

• 96% of agents recommended decluttering, while 88% stressed the importance of thorough cleaning.

Repairs and Touch-Ups

• Minor repairs (72%) and painting walls (57%) were frequently suggested

Depersonalization

• Removing personal items (71%) allows buyers to imagine the space as their own.

Challenges and Opportunities in Staging

While home staging is effective, it requires resources and strategic planning:

Cost Considerations:

• Sellers may hesitate due to the upfront costs of professional staging services.
• Agents offering personalized staging services or virtual options can mitigate this concern.

Balancing Expectations:

• Unrealistic buyer expectations, fueled by TV shows, require careful management to align visions with market realities.

Looking Ahead: Trends in Home Staging

The 2023 profile highlights several evolving trends:

1. Increased Use of Technology
   Virtual staging and high-quality visuals are becoming essential for online listings.
2. Customization
   Tailored staging strategies based on buyer demographics (e.g., families vs. young professionals) can maximize appeal.
3. Environmental Awareness
   Staging with sustainable materials and eco-friendly decor may become a priority for environmentally conscious buyers.
4. Focus on ROI
   As sellers seek measurable returns on staging investments, data-driven approaches to staging will gain importance.

Impartial Research on Home Staging Says Otherwise

It’s important to note that this is not an academic study, but is rather a survey of REALTORs about the benefits of home staging.  It could hardly be considered scientific or authoritative.  If you’re looking for academic research on the matter, you’ll need look no further than the Journal of Housing Research, which published a report in 2015 entitled “The Impact of Staging Conditions on Residential Real Estate Demand.”  This report said in part:

This study is the first to examine the widely debated merits of staging a home for sale. We find that both homeowners and real estate agents believe staging conditions (furnishings and wall color) will significantly impact homeowners’ willingness to pay for a property. Our results show that homeowners rationally do not significantly differ in their valuations based on staging conditions. However, staging conditions do influence the process, as we find a neutral wall color and good furnishings do significantly influence a buyer’s perceived livability and overall opinion of the home. While these are a necessary condition for purchase, staging is not enough to result in a higher selling price. Staging a residence for sale describes the process where a seller uses furnishings and decorations arranged in the most universally appealing way in the hopes of attracting the greatest number of potential buyers and thus receiving the highest possible offer price for the home.  While no study has ever quantified the potential benefits of staging, the industry is large with many participants. Moreover, many stagers make undocumented claims such as, ”Staging is no longer an option to many homeowners. It is often necessary to sell. The investment in staging is far less than a price reduction on the sales price of your home, or the additional cost of keeping your house on the market.”  These claims have sparked a great debate among real estate agents across the country as to whether or not paying to have a home staged results in a marginally higher sale price sufficient to cover the cost of staging the home.

and

while staging efforts do appear to impact potential buyers, the effect does not carry through all the way to the bottom line for sellers.

and

both agents and homebuyers are incorrect in their understanding of the impact of staging conditions on home price value opinion formation.

Conclusion

The 2023 Profile of Home Staging underscores the importance of staging as a tool for success in real estate. For buyers, it simplifies decision-making by creating a vision of homeownership. For sellers, it boosts property value and marketability. In an industry where first impressions matter, home staging remains a powerful strategy to bridge the gap between expectations and reality.

Whether leveraging professional services or DIY efforts, home staging is poised to remain a vital part of real estate practices for years to come.

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