Interior Design: Why it matters

Interior design seems like the most frivolous thing in the world. But gone are the days when only million-dollar homes and Michelin-star restaurants had high end designs. More and more people are realizing good interiors make cents...20% more dollars and cents.

You have to spend money to make money. A residential interior designer costs around $5,000 exclusive of the cost of furniture. The typical cost for restaurant design? $120-$300 per square foot! But interior design does separate the good from the average.

A recent study found that a professionally designed home was valued at sale for 20% more than otherwise comparable homes. 20% also happens to be the increase in cost per person to eat out at a fine dining restaurant versus casual. Why are people willing to spend more?

The reason is physiological and psychological. Interior design in a home or restaurant focuses on creating a feeling. So while any old table will do, one that has a built in banquette will put your family or the dinner guests nestled close together, creating feelings of intimacy.

Both spaces will optimize color schemes for the intended psychological effect. Some colors--like green--we associate with health and nature. That would be great for a farm to table restaurant or in a living room that doesn't have a nice view of nature.

People are bias toward nice spaces. Walking into a home with high end design, potential buyers are more likely to assume the routine maintenance issues are also addressed. Similarly, people eating in a well designed restaurant believe that the food is better.

In a particularly infamous example, a famous chef invited important food critics to an exclusive dining event. He re-plated McDonalds and fooled several experts into believing it was high quality cuisine. It was all in the presentation and perception.

If the cost is prohibitive, take a DIY approach. Anyone can copy an image from a design magazine, finding less expensive alternatives to the high end pieces. Even restauranteurs are rolling up their sleeves since a cool atmosphere means higher menu prices but smaller portions.

At the end of the day, we eat--or buy a home--with our eyes. While we may believe that a home is nicer or dish tastes better, much of this is just our mind taking in the aesthetics. Aesthetics are one of the key differentiators between casual and fine, affordable and luxury.