A Picture is Worth... 8 Percent

I had some new clients in my office the other day that sought me out because a big brand real estate agent failed to sell their home over the course of a year. 

The first thing I did, and always do in these types of situations, was review the marketing efforts of the other company up until this point. When I looked at the listing the first thing I noticed was how lacking the photography was. There were only four interior shots displayed, and a multiple listing service (MLS) allows 16.  The four that were posted were dark, crooked and clearly taken with a cheap camera. 

Photos are extremely important in getting buyers to visit a listing. I have worked with many buyers who wouldn’t walk in the door of a house unless they saw interior photos first.  If a listing has no interior shots then buyers are immediately suspicious and assume the sellers are hiding something. Is the property too messy, rundown or ugly to be photographed? 

But just how important are photos? To help answer this question I used a linear regression model to test for a correlation between interior photos of a property listed in the MLS and sale price. Turns out there is a strong correlation, as homes without interior photos sell for about 8 percent less than homes with. 

What are the causes of this correlation?  One theory is that properties without interior photos see less traffic from potential buyers than those with them.  Lower buyer traffic could also adversely affect the confidence of a seller leading them to a weaker negotiating position.

If you are having trouble selling your home, take a good look at your marketing, or better yet, get someone who is qualified to tell you the truth to take a look and give you an honest assessment. Are you using magazine quality photographs? Are you describing the property in a way that most people would consider accurate? If not, you are wasting precious money and time, and your house will not sell.