Surprising Obstacle to Virtual Staging

Not So Virtual "Virtual Staging"

So, what's holding up virtual staging? (see also, "Virtual Staging: Ready for Prime Time?")

Not Realtors, who by and large are game (even if they have to dig a little deeper into their pockets to do it).

Not clients, who stand to save a small fortune on actual staging costs.

And not local Boards of Realtors, who as best I can tell are behind the curve addressing the issue -- but have hardly forbidden the practice.

Give up?

The virtual staging companies themselves.

(Legal) Boulders in Road

I'm in the process of doing virtual staging for the first time, and was eagerly awaiting a phone call from the (Atlanta-based) vendor, who contacted me Monday.

"Can you give me an idea what would you like the rooms to look like?," he asked.

By way of introduction, I explained that the home has a traditional look and formal floor plan, so therefore the furniture choices and arrangement should reflect that.

However, my highest priority -- and the reason I was popping for virtual staging -- was to be able to show prospective Buyers how the house would look without the dated, loud wallpaper -- and with the oak hardwood floors uncovered (now obscured by equally loud, decades-old carpeting).

"Check on the furniture, but can't change the flooring or wallpaper," the virtual stager told me flatly.

Litigation Risk -- And How to Avoid It

"Huh?!?," I said incredulously.

Due to litigation risk, he explained, the company's policy is not to alter a room's physical attributes, only to show how it would look with furniture and accessories added.

For a virtual staging company, isn't that like tying 1 3/4 arms behind your back?

Or, as Henry Ford might say, "you can have any color Model T, as long as it's black."

"One Size Fits All" Policy, For Now

I proceeded to explain that I am a former lawyer, and had no intention of using the staged photos in a misleading or deceptive fashion; or getting myself, my broker -- or them -- sued.

Specifically, I said that I would:

a) stipulate that I would not use the photos online or in MLS marketing materials, but only as "blow-ups" that I would display, physically, in each of the rooms, to contrast the "Before" and potential "After" appearance;

b) understood that each of the blown-up photos would be stamped with a conspicuous "virtually staged" disclaimer; and

c) would present prospective Buyers and their agents with a written acknowledgement for them to sign before entering the home and doing a showing.

What Buyer could claim that they'd been deceived after complying with all that?

"No go," came the quick answer.

Clearly, the virtual staging companies are risk-averse, and don't want to be in the business of policing how Realtors use their photos once their computer whizzes (electronically) ship the photos out the door.

I get that.

But by declaring the best applications off-limits -- at least for now -- the virtual staging companies are very much undermining demand for their services.

Virtual Staging: Ready for Prime Time?

Just Don't Call it 'Doctoring'

What's holding up virtual staging?

Virtual staging is the practice of digitally altering photos to show an empty room as it would look fully furnished and accessorized.

Much faster and cheaper than the real thing, you'd certainly guess that by now the technology isn't rocket science.

And yet virtual staging is just now debuting in housing markets like Manhattan -- and non-existent, at least as far as I'm aware -- in the Twin Cities.

Three guesses as to what's going on (or not, as the case may be):

1. Ethical concerns and lack of guidelines.

What do MLS rules say about virtual staging?

Nothing, beyond proscribing false or misleading advertising.

But is virtual staging false or misleading if the Listing Agent explicitly discloses it?

In fact, that's precisely how Manhattan brokers are handling the issue (see, "Furnished with Pixels").

All such photos are labelled "virtually staged," and juxtaposed with unaltered photos of the raw space.

Works for me -- and I suspect, most Buyers.

2. No Vendors.

I suppose it's possible that I may have missed the flyers and emails from virtual stagers amongst the deluge of other email I already receive.

But I doubt it.

Nor have the professional photographers I regularly work with started offering it.

If no Realtors are demanding virtual staging, and no vendors are pushing it . . . nothing's going to happen (clients don't know enough to ask).

3. Realtor Inertia.

Realtors can be creatures of habit, just like other people.

So, they market listings the way they always have.

They also can be under a great deal of time pressure to get a listing on the market.

Neither of those factors is conducive to trying something new.

It all adds up to a bit of a Catch-22: vendors aren't pitching virtual staging because they aren't sure if there's a market for it.

Meanwhile, Realtors aren't clamoring for it because they don't want to be guinea pigs, possibly incurring MLS' wrath (and fines).

May the (Task) Force Be With You

The solution?

Let the big brokers (Edina Realty, Coldwell Banker Burnet, ReMax) take it up with MLS and the Board of Realtors, and work out some initial guidance (and safe harbors for Realtors operating in good faith).

Consider this post my application for the relevant task force.

And if you're a virtual stager reading this blog, feel free to contact me -- I've got a listing coming up in two weeks that's a perfect candidate.