Virtualreality Tech Is Helping Realestate Agents And Homebuyers Save Time And Close Deals — Even Remotely
- Real estate agents are offering virtual reality technology to clients looking for their next home.
- Virtual reality home tours can help real estate agents reach more potential buyers, experts told Business Insider.
- It can also help developers save time and money when marketing a property.
- This article is part of a Building IT series on digital technology and industry disruption.
In a world full of seemingly endless news about new technologies, virtual reality or VR, technology has become a tool that many companies use.
As various industries adopt immersive technologies, the value of the virtual reality industry is increasing. According to a report by Grand View Research, the global virtual reality market was worth approximately $60 billion last year and is expected to grow at a compound annual growth rate of 27.5% through 2030 .
While VR technology has played an important role in the gaming and entertainment industry, it has also brought about disruptive changes in the real estate sector. Homeowners are no longer limited to private viewings, and real estate agents can expand their reach. More customers.
A Goldman Sachs study found that by 2020, 130,000 real estate agents will use virtual reality to view their homes, according to Encora. In fact, virtual tours have played a key role in keeping the real estate market alive despite the Covid-19 restrictions. While virtual tours don't seem to have a lasting effect on home sales, a study by Harvard Business School professor Isamar Troncoso found that they can still boost asking prices in some areas and help homebuyers see things they otherwise wouldn't. They want him home.
Save time while shopping at home with VR
Real estate agent James Bowerman, the original creator of Compass, recognized the benefits of creative home hunting. A self-proclaimed technology pioneer, Bowerman used virtual reality to show the details of her home in motion, using the Matterport product.
The 3D data platform uses a data library and artificial intelligence to capture 360-degree scans with a compatible camera. It then expands the physical spaces and transforms them into immersive tours. According to the company, 3D "digital twin" models can be shared and viewed on any device. With Matterport's virtual tour, real estate allows people to "immerse themselves in virtual reality" and navigate a virtual space online, Bowerman told The Bee.
While VR allows homebuyers to bypass geographic restrictions, it speeds up the process, allowing people to view more homes and narrow down their top choices.
"You could easily put on a VR headset and make a quick decision while looking at this property," Bowerman told The Bee.
Bowerman operates in Maryland, which provides Quick Appointment on the Multiple Listing Service, a database where real estate agents and brokers share information about listing transactions and properties for sale within 21 days. Bowerman explained that house hunters are not allowed to physically visit a location that has been announced "soon," but virtual reality allows them to bypass that restriction.
"By going on a virtual tour and seeing it up close, a potential buyer can see it in VR and decide if they feel comfortable enough where it is." You know: I literally saw it and I love the sight. I don't need to see it in person. Let's put it aside,” Bowerman said.
He added that "in recent times" there is no law prohibiting discounts on real estate. In 2022, Bowerman said he received three offers from customers who hadn't seen their selection in person: a virtual tour was enough to satisfy them.
Virtual reality can save real estate developers time and money.
Patricio Navarro, CEO and founder of Miami-based real estate technology startup Upix , says that in his experience, virtual reality can shorten the time a property spends on the market.
Yupix uses headphones and is a device that creates photorealistic 3D visualizations, Navarro said. Customers can virtually tour a room in New York and a 100-story building in Miami in seconds.
The Miami News, which tracks tech and startup news in the region, reported in August that UPIX Partners has sold $1.3 billion in real estate over the past two years using its VR platform.
Navarro, who has more than 30 years of experience in computer graphics and architecture, said the UPIX technology will highlight existing and under-construction properties. The technology can identify potential problems and find solutions during the development process, he said. For example, a pre-construction closet plan included in the design may indicate that it is too small for the master bedroom.
Some say that real estate technology or proptech is the future of the real estate industry
Bowerman emphasized that virtual reality cannot completely replace home visits, as there is still room to improve the quality, speed and accessibility of the technology.
Another challenge, according to Navarro, is the reluctance of some industry professionals to adapt to technological change.
"It will take time for players to get used to the new changes, as this is not a replacement for 3D rendering," he said. "It's a complete change in thinking, tools and skills."
While PropTech is still in its infancy, Navarro says it's gaining momentum and there's "no turning back."
