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VR Tours change Real Estate Industry

How are VR Property Tours transforming the Real Estate Industry

Zornitsa Vuteva 2 weeks ago 0 7

VR technology has made its way to a variety of industries, each of which benefit of this innovation’s contributions to sustainability, modern marketing strategies and production of experiences and tools accessible for all. VR tours have become an increasingly popular tool for real estate agents and developers, providing potential buyers with a comprehensive and interactive preview of a property before scheduling an in-person visit.

In this article, we will explore the benefits of VR tours in real estate, how they work, and the impact they are having on the industry.

What are VR property tours?

VR property tours offer an immersive and engaging way for potential buyers to explore real estate listings. These virtual tours allow users to virtually ‘walk through’ a property and view it from multiple angles, as if they were physically present. VR tours can be customized to enable buyers to virtually stage the home, change colors/finishes, and experiment with different furniture layouts. VR tours are particularly useful for marketing new construction or custom-built homes that don’t yet physically exist.

How do VR property tours enhance real estate

Virtual tours have become an essential tool for real estate agents to effectively market properties, save time and resources, and provide a better experience for potential buyers.

Increased buyer engagement and interest

Virtual tours allow potential buyers to explore properties in detail from the comfort of their own homes, leading to more qualified leads and higher engagement with listings.

Ability to showcase properties in detail

Virtual tours let buyers explore every room and corner of a home, providing a more comprehensive view than traditional photos or videos.

Time and cost savings

Virtual tours eliminate the need for in-person showings for uninterested buyers, saving agents time and money on travel expenses.

Improved property marketing

Listings with virtual tours receive over 40% more clicks than those with just photos, helping properties stand out and attract more potential buyers.

Accessibility for buyers

VR tours increase buyer reach by allowing you to showcase properties to buyers who may be located far away or have difficulty visiting in person, expanding your potential buyer pool.

Efficient buyer screening

Virtual tours allow buyers to quickly rule out properties that don’t meet their needs, making in-person showings more productive.

Increased online visibility and SEO benefits

Virtual tours drive more traffic to real estate websites, reducing bounce rates and improving search engine rankings. Listings with VR tours tend to receive more clicks and engagement, driving more traffic to your website and generating more leads.

Drawbacks and limitations of VR property tours

While VR tours offer many advantages, real estate professionals should carefully consider these drawbacks and limitations when deciding whether to incorporate them into their marketing strategies.

Lack of sensory experience

VR tours lack the ability to perceive smells, touch textures, or experience the ambiance and atmosphere of a property in person. This limitation may diminish the overall experience for potential buyers.

Viewer comfort and experience

Some viewers may experience motion sickness or discomfort when using VR headsets. This can limit the effectiveness of VR tours for certain individuals.

Equipment and technical requirements

Creating high-quality VR tours requires specialized equipment and technical expertise. This can be a barrier for some real estate professionals due to the cost and learning curve involved.

Limited interactivity

While VR tours offer a high level of immersion, they may lack some of the personalization and interactive features of in-person open houses. Potential buyers cannot ask questions or interact with the agent in real-time during a VR tour.

Real Estate Industry with VR technology

Time and cost

Developing a full-fledged 3D model for a VR tour can take at least three weeks for professional companies. The costs associated with creating VR tours, including the use of licensed programs, drone flights, and scenario development, can be prohibitive for some real estate agents.

Distrust and skepticism

Some potential buyers, especially older generations, may be skeptical of VR tours and perceive them as attempts to sell a fake or misleading representation of the property. In-person visits to the sales department and property inspections are still often necessary to build trust.

Legal insecurity for realtors

Contracts with realtors can be unilaterally terminated by sellers without payment of incurred costs, and court disputes often do not favor realtors. This legal uncertainty can discourage the use of VR solutions in the private sales market.

Examples VR in real estate property tours

Sotheby’s International Realty offers virtual reality tours of its luxury properties, allowing clients to access detailed high-resolution photography, video, and text descriptions of the homes using a mobile device and VR headset.

Zillow has developed the Zillow 3D Home app, which allows real estate agents to easily create VR property tours using just an iPhone 7 or newer. Agents can record the layout of rooms and upload the tour for clients to view.

Atlas Bay VR is leveraging VR to provide highly immersive experiences for prospective tenants, allowing them to virtually design and customize the interiors of apartments or condos that are still under construction.

CloudPano is a virtual tour software that enables real estate professionals to quickly create and publish 360-degree virtual tours, which can be viewed on any platform including VR headsets.

Matterport offers 3D VR tours for real estate agents, based on the finding that 95% of people are more likely to buy a property after taking a virtual tour.

Read more about the most popular VR Real Estate Apps.

How efficient are VR property tours?

VR tours have gained popularity in real estate marketing. Studies suggest they can reduce the time a property spends on the market and decrease the bid-ask spread. However, recent research indicates that the advantages of VR tours may not be as significant as previously believed.

A study conducted by researchers at Harvard Business School analyzed data from 75,178 home sales in the greater Los Angeles area between March 2019 and March 2021. They discovered that, when considering the quality of photos and listing descriptions, VR tours had an ‘insignificant’ impact on final sale prices. This finding contrasts with an earlier result that suggested a roughly 1.1% increase in sale prices resulting from using VR tours without factoring in those elements. The researchers also observed that VR tours provided more benefits for properties located in neighborhoods with a higher proportion of Black and Hispanic residents or lower average household incomes. This indicates that VR tours could help alleviate uncertainty regarding property values in these areas.

Another study aimed to evaluate the usefulness of VR in home sales, focusing on its influence on staging and the likelihood of property visits. The researchers conducted experiments to assess the role of VR headsets in the staging and sales process of single-family homes. While VR tours have the potential to save time and money for both buyers and sellers, increase property visibility, and attract more potential buyers, the effectiveness of VR in real estate marketing might depend on factors such as neighborhood demographics, the quality of photos and descriptions, and the specific use case (e.g., staging versus virtual design).

Conclusion

VR tours are beneficial for both home buyers and real estate agents. Buyers can conveniently explore properties in an immersive way without physically visiting each one, saving time and money, especially for long-distance purchases. Agents can showcase properties more effectively, highlighting unique features and reaching a wider audience of potential buyers who cannot visit in person. Virtual reality is quickly becoming an essential tool for real estate agents and home buyers alike. As the technology continues to advance and become more accessible, we can expect to see VR tours become the norm rather than the exception in the real estate industry.

Written By

Meet Zornitsa, our Content Manager, specializing in all things VR headsets and innovative VR use cases. With a passion for exploring the latest in virtual reality technology, Zornitsa is your trusted source for expert insights and informative content that will elevate your VR experience.

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