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Home Market Research Investing

Virtual Staging Tech is So Good Now That It’s Earning Flippers and Investors More Money

by TheAdviserMagazine
9 months ago
in Investing
Reading Time: 6 mins read
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Virtual Staging Tech is So Good Now That It’s Earning Flippers and Investors More Money
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In This Article

Virtual staging, once a real estate novelty, has unfurled like a magic carpet over the investment landscape, beckoning us all to an imaginary world of HGTV-design make-believe.

On a practical level, the advantages of replacing the cost of transporting furniture, assembling it, and renting it for weeks on end with a few clicks of a mouse can’t be overstated. This is a game-changer for flippers and landlords, aware that most houses are viewed online first by 43% of those polled by the National Association of Realtors (NAR) in 2024, with 41% looking at photos first. And HousingWire reports that 81% of buyers surveyed by NAR said that virtual staging helped them visualize living in a home.

Artificial intelligence (AI) has only supersized virtual staging’s capabilities. There used to be a time when the phrase “seeing is believing” held some weight. No more. 

These days, it’s hard to trust what you see, at least online, whether it’s otherworldly sea creatures with almost-human faces or famous actors appearing in movies they never made. Equally in real estate, renderings using new AI-powered technology are now so lifelike that it seems impossible to think that a skilled photographer with a lighting and staging crew didn’t shoot them. 

The good news is that these lifelike renderings can be created in hours, not days, and cost a fraction of hiring a stager and photographer. This means investors can start the marketing process of houses and apartments while construction is still underway. 

Staging Apps

REimagine Home won HousingWire’s best overall AI-based virtual staging app and is widely used by the real estate industry. It was founded in 2023 by Styldod, a pioneer in the art of virtual staging, and it starts at only $14/month (increasing depending on the usage amount)—a huge money saver on the cost of actual staging. 

Like its competitors, REimagine Home can remove furniture, adjust lighting, and be used for indoor and outdoor settings. It can also create large volumes of realistic online photos and alter the color palette.

Other notable staging apps include:

Collov AI

Trolto (specifically designed for social media staging)

ApplyDesign

AI Home Design

Practical Uses for Landlords and Flippers

Off-market listings and social media

Virtual staging minimizes vacancy time by allowing an apartment to be listed to garner interest while it is still being prepared for the next tenants. For flippers, high-quality images allow sellers to market their properties on private social media without incurring agents’ fees or facing competition from other houses crowding listings platforms. This works when the seller is not in a rush to sell and can market their home passively, waiting for the right offer.

“New technology is greatly improving access to the off-market,” Samuel Pro, CTO of UNLISTED, a platform dedicated to off-market real estate, told Reuters. “Both buyers and homeowners are discovering opportunities they didn’t know existed previously. More options result in better outcomes for everyone.” 

Listings platforms

AI-driven tools can work seamlessly with property management systems and listings platforms. Most VS apps are compatible with major listings platforms like Zillow, Realtor.com, Redfin, and Airbnb, allowing investors of any size to compete with well-financed brokerages with tech teams.

Virtual reality

The race is also on amongst listing platforms to create believable virtual reality walk-throughs of properties. Homes.com owns Matterport, which used to rely on actual photos of a property’s interior to view it, but has now augmented it with AI and virtual reality.

Zillow’s Showcase does similar things. Both platforms allow a homeowner to load their own virtual staging photos to their listing sites or generate their own AI virtual staged images using the platform’s AI tech.

Josh Weisberg, senior vice president of AI at Zillow, said in a statement:

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“Virtual Staging is the latest example of how we’re bringing our AI strategy to life for consumers and agents. From the Zestimate to personalized search and now to dynamic listing experiences, AI has long been part of Zillow’s DNA. Virtual Staging applies the AI field of computer vision to restyle listing photos in real time to help shoppers see a home’s potential and give agents a time-saving way to stand out.”

The Race to Keep Up With Staging Tech

Virtual staging has evolved from simply placing couches in empty rooms by integrating with AI models to understand local design, trends, and user behavior. However, the advancement of AI staging means that conventionally presented properties, or those shown in person, run the risk of looking tame by comparison.

“There’s no relation to reality. And now that person has a high expectation from the virtual staging when they get there. And that expectation just goes straight down,” Jason Saft, founder of Staged to Sell Home, told Forbes.

Saft recommends asking yourself a few questions about your property before investing in virtual staging. It makes sense to use the tech if the property is vacant or poorly furnished, and comparable staged units have enjoyed quick sales. Also, if you’ve priced your property at the top of the market, it will demand a high-end presentation.

However, in a tight market with bidding wars, staging probably isn’t necessary. Equally, if the home is already in showhouse condition after being prepped for an open house, additional virtual staging likely isn’t needed. 

Final Thoughts

For landlords and flippers, virtual staging will become an increasingly vital tool in their marketing arsenal. However, as glossier and fancier images pervade the real estate space, investors must draw a line to show where reality stops and virtual reality starts; otherwise—as is what’s happening on social media now—it’s hard to know whether what you are seeing is real or not.

As listings tech gets more advanced, the need for renters and buyers to visit properties in person before transacting will become more pronounced. Buying sight unseen will be a risky move. Equally, investors need to be honest in their depictions—making sure to show an “as-is” or “non-AI” image for comparison, or adding a note that the property is virtually staged.



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Tags: EarningFlippersgoodinvestorsMoneystagingtechvirtual
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