AI has ruined a home listing, but a change in strategy is driving more buyer interest

3 weeks ago

1 3 minutes read

In a competitive market, sellers are counting on ways to make their home stand out. Virtual staging via AI has become a tool to improve property listings.

But a real estate agent in New York City Louise Phillips Forbes of Brown Harris Stevens, with nearly $6 billion in sales to its name, says AI often can’t compete with good, old-fashioned staging.

She discovered this when she virtually staged two of her properties – and they didn’t sell.

When she listed 317 West 89th, Unit 9E, she originally staged it virtually.

“We staged it virtually for months,” she says Realtor.com®. It didn’t sell, so she ultimately decided to switch to physical staging to better showcase the home’s craftsmanship and positioning.

“The technology of virtual staging can tell a story, but it often falls apart when you touch and experience the furniture in a space in real life,” she says.

Once she physically staged the home, she said the difference was night and day.

“The difference is that there was a huge amount of interest in the digital listing. And we had a lot of second and third showings,” she says. “People see themselves living in it now. It accelerated that emotional connection and created a sense of urgency.”

Photo of the virtual staging of 317 West 89th, 9E, in New York City, which was on the market for months (Michael Weinstein)

Physically staged home listing — The physical staging of the same house, which quickly received an offer (Michael Weinstein)

Although staging often costs between $7,000 and $10,000, she says it “often pays for itself because the property sells faster or you get a higher purchase price.”

For another of her properties at 440 East 62nd Street, 15B, she initially launched with virtual staging for four months. She had one offer that fell through.

After relisting the unit with full staging, the home saw a 169% increase in views and a 50% increase in inquiries and tours, with several serious buyers expressing interest and making offers.

Virtually staged home listing — The virtually staged listing for 440 East 62nd Street, 15B, in New York City (Jon Nissenbaum)

Forbes says it really revamped the list and attracted people.

“It’s a very large bedroom, but no one could appreciate the size of it when you look at it virtually,” she says. “There’s nothing better than a real physical kitchen, with a dining table you can actually sit at. We’ve had more return visits and much more interest.”

She knows some people’s financial situations won’t allow for staging, but says having the option helps buyers get a clear idea of how they would live in the space.

“Fifteen years ago I thought staging was a waste of money, but I’ve been proven wrong so many times,” she says. “I’m a big supporter.”

Even though she knows AI is here to stay, she says, “the real thing is always better digitally.”

The plea for physical staging

Forbes says AI can inspire, but staging sells.

“Digital displays and AI-generated images can generate interest, but buyers ultimately respond to what they see and experience in person,” she says. “A beautifully staged home ensures that the real-life display exceeds initial expectations.”

Staging also creates an emotional connection, she adds.

“Well-executed staging emphasizes scale, layout and flow, helping buyers imagine how they would actually live in the space,” she says.

For homes that have spent time on the market, staging can provide a powerful reset, she says. “A new look can change perception, generate renewed interest online and encourage buyers to take another look.”

Finally, Forbes says that staging costs are a small investment on the bottom line.

“Compared to price reductions or longer monthly carrying costs, staging is often a relatively modest expense that can significantly improve buyer perception and help sellers achieve stronger results,” she says.