How to use VR for Real Estate
What you need to know about virtual reality in real estate
If you like this article, remember to leave some applause!
As virtual reality (VR) gear becomes widely available and much more affordable, the technology is finally taking baby steps into the real estate industry.
Here’s what you need to know.
Does Real Estate Need VR?
According to The National Association of Realtors, only 17% of a homebuyer’s first contact when looking for a property is a real estate agent. When compared to 44% of people who prefer the Internet as their primary property-research tool, it’s clear that buyers are becoming comfortable with technology taking over the industry.
But there’s a problem.
Although it’s possible to look up high-definition photos and even inspect property surroundings using Google Maps, the experience lacks that tactile feel of actually visiting a physical space in person. And this is where VR comes into play.
VR Offers An Immersive Experience
Some listing sites already boast portfolios that include virtual tours where buyers can don a VR headset (or use their smartphones) and “walk” through a property to get a much more detailed insight into the space.
Zillow, for example, offers a 3DHome app that allows users to capture 3D snapshots of their places and add them directly to the listings on Zillow’s page. Others like Matterport provide developers and realtors with a subscription-based service that comes with a professional 360-degree camera and processing of the footage.
The improving quality and miniaturization of VR cameras make virtual tours a viable replacement for static images on listings and even potentially in sales centers. It also opens an immense opportunity for the forward-thinking industry leaders to win more clients with an experience that goes beyond passive content.
VR Saves Time and Money
Every property trading interaction comes with tangible and intangible costs that both buyers and sellers need to be conscious of.
If the open house or presentation center isn’t at a convenient time or location for a potential homebuyer, that can deter them from making the trip out to see the units. Brokers, on the other hand, have to keep tabs on all their listings and transfer between properties to service the incoming traffic of visitors, on top of arranging in-person meetings with all the different clients.
VR can help remove some of the hassle out of the equation. By reducing the distance between the parties involved, it allows buyers to get a detailed look at the property without the need to make in-person appointments. Brokers can send URL links with the VR footage to specific clients, allowing the lead to view the tour as time allows.
While the final purchase decision is unlikely to be taken on the basis of a virtual walk-throughs alone, a VR experience can definitely help pin down the most promising matches and save plenty of time down the road.
VR Equipment Becomes More Accessible
In the early stages of VR tech, equipment like cameras and headsets was expensive and difficult to acquire. These days, however, thanks to companies in the video game industry blazing the trail, these assets have become much more affordable.
It is estimated that in 2023, the sales of VR and AR headsets will surpass 68 million units worldwide. Apart from the advanced, consumer-grade products like Oculus Rift or HTC Vive, there are many budget-friendly alternatives, most notable of which include Google Cardboard and Samsung Gear VR.
Real estate organizations that are not yet ready to invest, can also book what’s essentially an on-demand VR service. For instance, Transported offers an all-in-one solution that includes scanning the property and putting together a virtual tour from start to finish.
The Application Of Virtual Reality In Real Estate
The ongoing discussion of possible applications of Virtual Reality and Augmented Reality (AR) across different industries shows there’s much interest in this kind of innovation.
However, given the spatial-oriented nature of the real estate business, the technology seems especially well-matched for the industry.
Virtual Property Tours
One of the most common uses of VR in real estate is the ability to run virtual tours that give buyers the opportunity to navigate through a property without the need to actually visit the site.
This can be done in a number of ways:
- Full 3D virtual tours that use computer-generated environment and objects. This is by far the most advanced iteration of VR. It lets viewers interact, to a degree, with the environment and move around just as they can in real life.
- 360 tours that use video footage or combined images of the actual property. This is a more passive experience where viewers can look around and inspect the space from different angles but cannot move freely or interact with objects.
The best part about interactive tours is that they are location and time-zone independent so buyers can jump on a tour whenever they see fit. It also helps realtors to save time since they can run fewer open-house events and only meet with the clients who are really interested.
Visualising Projects
Architectural design is another area that benefits from the implementation of the VR technology. Architects and designers can view and manipulate rendered models in a 3D environment to gain valuable insights and make more informed design choices.
Innovative developers can even market portfolios using 3D tours of buildings that haven’t been completed to incentivize potential buyers. The key benefit of this marketing strategy is that the 3D content can be shared at low cost via social media or e-mail campaigns..
Virtual Furnishing
Selling empty units is not an easy task since it prevents people from getting the full experience during property tours. For that reason, realtors often have to bring in professional staging services. As an alternative, staging properties using 3D models can eliminate the need to arrange physical spaces.
From the logistical point of view, virtual staging increases flexibility, giving the ability to change the furnishings as needed, or to appeal to different types of buyers. You could even gamify this element by allowing potential buyers to furnish the unit however they want, deepening the connection they feel towards the unit.
VR Commerce
Once a property has been staged with 3D models, buyers who take part in a virtual tour may come to like a particular piece of the decor and decide to buy it.
What happens next?
VR software can be used to aid the sales process by labelling 3D models with price tags so users can examine them, look up the specs and proceed to checkout without having to break the experience and hunt for offers on online auctions.
For example, back in 2016, Ikea explored the concept of a Virtual Reality demo that allowed users to snoop around an Ikea kitchen, interact with objects and even customize the space by changing colors and materials.
Communication With Tenants
While the lion’s share of potential VR applications in real estate revolves around improving the sales process, it doesn’t end there.
In the near future, VR communication might become an invaluable tool for landlords to onboard new tenants. Why send in the property manager every time new people move in if you can create a 360-video instructional to help them navigate the property and answer frequent questions?
VR communication could also take a more hands-on approach where the developer or homeowner can host a conference call and provide live instructions to the tenants. Sounds a tad futuristic? The good news is that we already have the technology to make that happen.
Conclusion
Although VR technology has been around for quite some time, we’re not even close to unleashing its full potential. As the real estate industry continues to evolve and adopt new technologies, we’re likely to see new and exciting implementations of VR in the near future.
This blog was written with Dawid Bednarski, freelance copywriter and blogger at OctoScribe. When he’s not writing about tech, he’s enjoying the simplicity of analog photography and daring bike trips with his wife.
