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The Impact of Staging Conditions on Residential Real Estate Demand

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  • Mark A. Lane
  • Michael J. Seiler
  • Vicky L Seiler

Abstract

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 buyers' perceived liability 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.

Suggested Citation

  • Mark A. Lane & Michael J. Seiler & Vicky L Seiler, 2015. "The Impact of Staging Conditions on Residential Real Estate Demand," Framed Field Experiments 00631, The Field Experiments Website.
    • Handle: RePEc:feb:framed:00631
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    References listed on IDEAS

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    1. Michael Seiler, 2014. "The Effect of Perceived Lender Characteristics and Market Conditions on Strategic Mortgage Defaults," The Journal of Real Estate Finance and Economics, Springer, vol. 48(2), pages 256-270, February.
    2. Springer, Thomas M, 1996. "Single-Family Housing Transactions: Seller Motivations, Price, and Marketing Time," The Journal of Real Estate Finance and Economics, Springer, vol. 13(3), pages 237-254, November.
    3. Donald Haurin, 1988. "The Duration of Marketing Time of Residential Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 396-410, December.
    4. Michael J. Seiler & Vicky L. Seiler & Mark A. Lane & David M. Harrison, 2012. "Fear, Shame and Guilt: Economic and Behavioral Motivations for Strategic Default," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 40, pages 199-233, December.
    5. Sirmans, C. F. & Turnbull, Geoffrey K. & Dombrow, Jonathan, 1995. "Quick House Sales: Seller Mistake or Luck?," Journal of Housing Economics, Elsevier, vol. 4(3), pages 230-243, September.
    6. Michael Seiler & Mark Lane & David Harrison, 2014. "Mimetic Herding Behavior and the Decision to Strategically Default," The Journal of Real Estate Finance and Economics, Springer, vol. 49(4), pages 621-653, November.
    7. Asabere, Paul K & Huffman, Forrest E, 1993. "The Impact of Settlement Period on Sales Price," The Journal of Real Estate Finance and Economics, Springer, vol. 7(3), pages 213-219, November.
    8. John R. Knight, 2002. "Listing Price, Time on Market, and Ultimate Selling Price: Causes and Effects of Listing Price Changes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(2), pages 213-237.
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    Cited by:

    1. Paul M. Anglin & Yanmin Gao, 2023. "Value of Communication and Social Media: An Equilibrium Theory of Messaging," The Journal of Real Estate Finance and Economics, Springer, vol. 66(4), pages 861-903, May.

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