Should REALTORS® Explore Using AI Home Staging?

Artificial intelligence (AI) is revolutionizing industries worldwide by automating tasks, enhancing decision-making, and driving innovation, and real estate is no exception.

Property valuations that use AI algorithms to analyze historical sales data, current market trends and property features, AI chatbots that improve response times and overall service for customer enquiries, and the use of AI to streamline the back end of office operations – such as data entry, marketing copy generation and document processing – to boost efficiency and free up more time to spend with clients are just a few of the ways that AI is reshaping real estate.

Another is in home staging. 

What is AI home staging? 

First, let’s be certain we’re all on the same page about what is AI home staging. 

REALTORS® may already be familiar with virtual home staging, which involves manually editing digital images to add elements such as décor, furniture, or landscaping, using photo editing software. 

AI home staging, to some, is the natural next step. With AI home staging AI will use algorithms to automatically enhance real estate photos. What does that mean in practice? Well, it could mean less time editing and more time on other stuff – business, family dinners, or otherwise. 

While it may look enticing from a business operations point of view there are advantages and disadvantages in utilizing this newer method of staging. 

The potential of AI home staging

Theresa Kerr, a broker and REALTOR® with Century 21 BJ Roth Realty in Barrie, Ontario, has a unique perspective. She’s both a REALTOR® and a home stager, in the traditional sense, offering staging as a complimentary service to her clients.

“This is not the norm in the industry, where most REALTORS® hire stagers and the sellers cover the costs,” she says. “AI home staging is definitely a game changer for most people in our industry to help show a home’s potential.”

And, it’s only growing in popularity for REALTORS®. Especially for vacant properties and homes with empty rooms, she adds.

“The cost to show a room staged with AI is pennies compared to the cost of traditional staging,” Kerr says. “The cost of renting or purchasing furniture can be very expensive, which would fall on the homeowner or the REALTOR® to cover.”

The cost to show a room staged with AI is pennies compared to the cost of traditional staging.” 

Theresa Kerr

Some of the tools and best use cases

AI-powered tools such as Virtual Staging AI, Spacely AI, and Styldod, create photorealistic images of furnished homes from empty spaces in the home. Algorithms place furniture, adjust lighting and match design styles to target buyer preferences.

“If we have a property that is tenanted and it doesn’t show as well, doesn’t have the best furniture and placement, we’ll get the furniture removed on the images and new furniture placed in that’s proportionately sized, with a style that matches the home,” says Tim Hill, a real estate advisor and REALTOR® with RE/MAX All Points Realty in New Westminster, British Columbia.

Hill says his firm always uses AI staging with vacant properties. AI staging is a great way to put the house in the best possible light, showcasing what the home could look like if it had been properly furnished. That helps the seller, because home buyers are usually starting their home searches online, and it’s in the seller’s best interest to make sure the home looks the best as possible digitally.

“Vacant photos are boring,” Hill says. “Not everyone has a good imagination.”

Time is money, and AI stagings saves both 

AI staging can cost $10 to $35 per image, whereas traditional staging costs a lot more – a minimum of $3,000 to $5,000 to stage a vacant condo, with monthly rental costs on top of that, Hill says. 

Physical staging also takes weeks to come together, whereas AI can produce staged images in minutes. 

REALTORS® can even take it a step further. AI can integrate with 3D tours and augmented reality allowing buyers to envision a space customized with different furnishings that are more in line with their personal style, helping to build an emotional connection to the space.

Words of caution from experienced REALTORS® 

REALTORS® need to be careful, though, not to go too far and enhance the home to the point where it’s being misrepresented. 

“I think it's also important to let the public know when we do use AI staging, so no one’s surprised or upset when they get there,” Hill says.

Overstaging to the point of not accurately reflecting the home’s actual condition, perhaps exaggerating the quality of finishes, or suggesting more space than exists, can lead to disputes during showings – and sow distrust. Buyers might be looking for the home to match the AI staged images exactly.

“What if something was changed? What if an appliance got changed somehow, while the AI just did its own thing? It’s got its own brain, if you will,” Hill says. “So, I'm always cautious about that. Just doublecheck your work at the end of the day. As a REALTOR®, it is our responsibility to present the property in its true fashion. Every detail counts.”

As a REALTOR®, it is our responsibility to present the property in its true fashion. Every detail counts.”

Tim Hill

One of the advantages to physical staging is it helps to create cozy vibes when the buyer actually sees the property, helping them to see, feel and touch the furnishings that make a house feel like home.

“A con for AI staging would be that a buyer does not get the same ‘wow factor’ when viewing the property compared to if it was physically staged,” Kerr adds. If the REALTOR® can work around the seller’s home life, since the homeowner is likely going to still be living there while the home is listed, then traditional staging can be a better option, she adds. 

In general, Kerr’s practice is to put the AI-staged home images first in property listings and then follow up with images of empty rooms to show what the home actually looks like. 

REALTORS® should pay attention to rules and regulations set out by local real estate boards about what you can have in property photographs, says Asif Khan, a broker/owner and REALTOR® with RE/MAX Prime Properties in the Greater Toronto Area.

“[REALTORS®] need to be aware AI is still relatively new and there are a lot of mistakes that AI makes,” he says. “The general use of AI is not mainstream enough that it's been through different situations and corrected itself. AI depends on us providing it information to be able to refine itself. And so, right now, for the agents who are solely relying on AI, it's not a replacement for any of our traditional needs. It's an enhancement to those needs.”

REALTORS®, “have to be careful that they're not just relying on AI to use for listings,” he continues. “They still have to put a lot of thought to it and make sure that they're looking at what AI is generating, and then being able to facilitate the rest of it. The human element is still a huge part of what we do.”