In today's competitive real estate market, interior design and furnishing play a crucial role in the appreciation of a property. Homeowners and real estate agents who understand this impact can make the most of their real estate's potential. Below, we'll explore how good interior design and furnishing can influence sales values and rental rates, backed by real metrics.
1. Increase in Sales Value
Various studies have shown that an investment in interior design can result in a significant increase in the sale value of a property. According to a Zillow report, homes with good interior design sell on average 10% more than properties without proper staging. (1) The study reveals that homes that are professionally decorated and well-kept furnished attract more buyers' interest, resulting in higher offers.
Additionally, a study conducted by NAR (National Association of Realtors) found that 77% of real estate agents believe that home staging can improve the perception of a property, contributing to a faster sale and a higher price. (2) This phenomenon is because an attractive design helps buyers visualize the potential of the space and value the property based on a higher standard.
2. Improvement in Rental Rates
Interior design not only impacts the sale, but also the rental of properties. According to a report by Apartment Therapy, well-furnished and designed properties can fetch up to 20% more in rent compared to similar properties without proper staging (3)Renters are willing to pay more for a space that feels modern, welcoming and well-maintained.
The Institute of Luxury Home Marketing also highlights that apartments and houses with attractive interior design have a shorter vacancy time. The study indicates that these properties rent 30% faster than those that are not adequately furnished or decorated (4)This is because good design can make the space appear more functional and desirable, attracting potential tenants more quickly.
3.Valuation of Investments in Design
The return on investment (ROI) on interior design and furnishing can be considerable. A HomeLight study shows that the average return for every dollar invested in staging can be up to $2 (5) In practical terms, if a homeowner invests $5,000 in improving the design of their property, they can expect an increase in sales value of approximately $10,000. This return on investment demonstrates how a well-executed design strategy can be a decisive factor in maximizing profits from a real estate transaction.
Conclusion
In conclusion, good interior design and adequate furnishing can have a significant impact on the value and income of a property. Metrics and studies support the idea that an investment in design can translate into higher sales prices, better rental rates, and a favorable return on investment. Homeowners and real estate agents who invest in interior design will be better positioned to stand out in the competitive market and maximize the value of their properties.
Notes:
1- Zillow. (2022). Impact of Home Staging on Sale Price. ↩
2- National Association of Realtors (NAR). (2023). Home Staging Impact Report. ↩
3- Apartment Therapy. (2022). Benefits of Interior Design on Rental Income. ↩
4- Institute of Luxury Home Marketing. (2023). The Effect of Design on Rental Vacancy Rates. ↩
5- HomeLight. (2023). Return on Investment for Home Staging. ↩