February 17, 2020— Say the word ‘virtual reality’ and what comes to mind? For most of us we may associate the term with entertainment or video games. However, this technology is providing even more commercial value than we may have even originally anticipated.
How is Virtual Reality used in Real Estate?
To sell a property the Real Estate agent must be able to inspire the buyer to imagine themselves living within the dwelling. Nearly half of clients according to the national association of Realtors browse first online before viewing. This had led many agents now to seek ways to make their online listings stand out. VR is quickly becoming a solution for competitive marketing, and now an available tool for agents. Here is an example of how Matterport creates virtual tours with the help of VR.
How does VR create a more efficient Real Estate sales model?
Clients will typically visit several properties and maybe even agents before making a property purchase. According to the National Association of Relators on average 44% of clients start their property search online and 98% of buyers frequent the web for properties. For agents this means several trips, added expense and valuable time out of their schedules. Through a VR booth in the agency or online, clients can now see multiple properties virtually before viewing the ones that are worth the time.
How is VR used in Real Estate?
There are obvious advantages to home staging and many top selling agents have harnessed its benefits, and the evidence stacks up. According to Q1 2019 Top Agent Insights Survey agents who use home staging consistently outperform their peers using indicators like transaction volume, speed of sale, average selling price, and client satisfaction. Of Real Estate agents interviewed 77% said it helps buyers associate their property with a future home.
Staging has become a main stream service in many leading countries internationally, however the service can require a hefty fee from the property seller. Here comes virtual staging, which provides the viewers with a fully immersive experience of a digitally staged property. These renders are uploaded to the listings and can be viewed as an interactive VR tour. Imperium is one leading business based in Europe that is offering these types of services to developers and Real Estate agents.
Enhanced Architectural Visualisation
Huge expenses have gone into showrooms with large scale architectural models designed to help buyers imagine the property. Selling off plan developments or properties to international buyers has proven expensive and difficult. Virtual reality can better present properties to potential buyers giving a fully immersive experience for international buyers.
Interactive VR Tours
A client can explore a property online and move around at independently by clicking on special hotspots in the field of view. This provides a greater level of autonomy and engagement then 3D virtual guided tours so you can more efficiently showcase properties.
Is this game changer here to stay?
Proptech as its been coined, is changing the face of the wider property industry forcing quick adaption and rapid changes. The results and quick adaption speak in volumes. VR has been taken on by early adaptors who have gained several business advantages and a key competitive advantage which include:
- Greater engagement and emotional connection achieved through marketing initiatives
- Ability to reach a global market and provide a parallel real-life experience
- Save time and create efficiencies within the Real Estate sales model
- Develop a greater sense of ownership and ability to imagine oneself within a property