Homes in original condition would benefit, but you can’t finance these:
Home shoppers usually want to see a property at its best. This means that sellers truck in staged furniture, slap on fresh paint, and repair potential problems for buyers.
“When you walk into a beautifully designed and furnished unit, people can much more easily place themselves in this atmosphere,” says Jade Mills, a real estate agent at Coldwell Banker in Beverly Hills.
However, there’s an entirely different alternative that home sellers are trying. It’s called “white-boxing”. Home sellers—especially those in luxury markets with high-end properties that are in great locations—are ripping out everything in a home before showing the property.
As counterproductive as this may sound, white-boxing lets prospective home buyers start from scratch. It allows them to focus on potential and maybe even the views outside the residence, rather than what’s inside the home, which may not suit their tastes.
“White-boxing” is the exact opposite of staging a home to enhance its appeal. Instead of using furniture and accessories to sell the space, it presents a blank canvas, without the aesthetic choices in place, and allows the buyer to dream up layouts and floor design.
White-boxing is most relevant in luxury markets like New York City and Los Angeles, where breathtaking views and a desirable location are common selling points of a house, Mills says.
“As recently as a few years ago, it would be relatively rare for a seller to go to market with unfinished luxury space, but now, there’s increasing recognition that ‘designer-ready’ is exceedingly more attractive than ‘move-in ready’ to the ultrawealthy,” Josh Greer of Hilton & Hyland told CNBC.