Virtual Reality is the Future of Real Estate
A variety of new technologies promise to change every aspect of the real estate industry. Virtual and augmented reality, in particular, show a lot of promise. In this guide, we'll introduce you to a few of the most exciting developments in VR and AR, as well as opportunities for incorporating the latest advancements into staging, tours, and more.
How Virtual Reality Is Used in Real Estate
Virtual reality is a versatile concept with a myriad of applications in the real
estate industry. It's especially effective for giving potential buyers a realistic look at homes, often in lieu of conventional open houses or seller-guided tours. The following are among the most popular VR and AR opportunities taking over the real estate sector.
Market Homes Before & After Construction
At one time, marketing options were decidedly limited for newly constructed homes. Developers and agents could clue potential buyers in on the general plans for the layout, but it was impossible to understand the essence of a particular property until it was visited after construction. This left a relatively short period available for marketing homes.
With virtual reality, it's possible to give aspiring homeowners a better sense of what their life might look like within houses that, in reality, are still in the early stages of construction. This can be especially helpful for custom homes, as buyers might like the idea of a particular design more than its execution. With VR or AR, they can determine whether they actually want to proceed with specifications, long before they've made significant investments.
Show Staged Interiors & Exteriors
According to a 2018 study conducted by Home Staging Resource and involving over 4,200 homes, nearly three-quarters of staged houses sell for more than their unstaged counterparts. Buyers' perception of value increases dramatically when they see attractively staged homes. These provide a far stronger first impression, encouraging potential buyers to imagine their future lives within these stylish, yet comfortable houses. This creates a level of emotional investment that would otherwise be difficult to achieve.
Conventional staging has its downsides, however. Even modest staging options such as adding lighting or decor can be prohibitively expensive. Staging accessories need to be chosen according to the style of the home in question. The moving process can also be cumbersome. All this adds a lot of time to what should be a streamlined process, thereby reducing the overall return on investment.
Virtual staging removes these barriers, with augmented reality solutions enhancing both interiors and exteriors to help prospects see the full potential of the homes they tour. This is a great option for fixer-upper homes that need a little tender love and care. It can also be helpful in cold-weather climates, where exteriors simply don't look as impressive during the month of March. When scenery plays a critical role in a particular property's appeal, it's important to provide an accurate, lifelike glimpse of the view that potential homeowners will enjoy.
Offer 3D Tours of Homes for Sale Remotely
The process of finding and buying a home can be a huge hassle for people who live hundreds or thousands of miles from the neighborhood in which they eventually hope to reside. Without virtual reality, multiple visits may be required to check out potential houses before getting more involved with pre-approval, offers, and home inspections.
In a competitive market, buyers are not always willing to travel long distances to view dozens of houses they might not want to purchase. Now, thanks to virtual reality, in-person visits are no longer required during the early stages of the homebuying process. Prospects can enjoy realistic tours from afar and potentially check out several properties before they decide to take the next step.
Even if candidates live near the homes they tour, remote offerings involving VR can be helpful. Many people are simply too busy to dedicate a lot of time to in-person visits. When 3D tours are available through VR technology, they can take on a new level of flexibility. Not only will prospects appreciate the convenience, some might even be willing to virtually tour homes that they would not bother to visit in person if a busy schedule were to get in the way.
Facilitate Flexible Scheduling for Open House Tours
In addition to 3D tours guided by real estate agents, VR can be called upon to recreate the conventional in-person open house. This could be a great marketing opportunity for reaching otherwise ambivalent prospects. Convenient VR-based open houses should pique their interest, ultimately encouraging them to get more invested in the real estate market and the possibility of buying a home. In what other capacity would 24/7 open house availability be provided?
Popular VR Headsets for Real Estate Tours
Currently, headsets are the preferred solution for many real estate developers, brokers, and agents. These devices help to mentally and emotionally move users beyond their current surroundings. Headset technology has made great strides in recent years, to the point that users report that they actually feel as if they've entered the homes they tour from afar. Once they've experienced the joy of touring via headset, many prospects will be eager to continue checking out other properties.
Strategic headset selection is critical, as the right device can spell the difference between an engaging experience and an underwhelming virtual reality real estate tour. The following are among the best options for real estate applications.
Oculus
Arguably the top name in VR, Oculus is responsible for many of the impressive headsets that brought a technology that seemed impossible to life. The company currently produces a variety of headsets and accessories that, while largely used for gaming, are also popular in real estate.
The current Oculus lineup includes the all-in-one VR known as the Quest 2, along with the PC-powered Rift S. While both can be useful for real estate purposes, the Quest 2 provides a greater degree of flexibility due to its uniquely portable design. That being said, the Rift S delivers an elite visual experience. Oculus is beginning to phase out the Rift S, however, so those who prefer PC-oriented functionality will want to get on board soon.
HTC VIVE
Oculus is by no means the only company that produces VR headsets. HTC's impressive lineup of VR options caters to a more hardcore consumer — one willing to shell out big bucks not only for the headset itself, but also a computer rig powerful enough to get the most out of the experience.
HTC's VIVE line of devices features three excellent options:
- The base model that's been a VR staple for several years
- The Cosmos - an updated version of the VIVE with more pixels per eye
- The Cosmos Elite, which uses external tracking to give you a better sense of your surroundings
Augmented Reality’s Role in Real Estate
Augmented reality and virtual reality hold a few key similarities, but they are not one and the same. As its name suggests, augmented reality aims to alter or augment the experience to enhance associated sights, sounds, and other perceptions. In addition to making digital experiences feel more lifelike, AR can go a step further to expose users to concepts that would be out of reach in everyday life.
In real estate, augmented reality provides the opportunity to get clients excited without the need for headgear. AR technology is often used with tablets alone, thereby appeasing the fears of those who might otherwise be reluctant to take part in VR experiences.
Provide Augmented Reality Real Estate Tours Without Sharing Headgear
From hygiene concerns to fears of motion sickness, a variety of issues might keep otherwise interested clients from making the most of headgear-oriented VR. They can still enjoy a rich experience with help from AR, however, as it can be incorporated in tablets and smartphones.
Increasingly, AR is also available for Head-up Displays (HUDs) and even holograms. These and other options may appeal to prospects who don't own headgear and prefer not to share devices with others.
Showcase Properties Virtually with Fewer Data Privacy Concerns
Today's clients are understandably concerned about data privacy. Many prefer to view properties on their own terms. AR makes it possible to showcase real estate on a virtual basis while granting clients the control they desire. Conversely, VR may require a level of data collection that some prospects find concerning — especially if biometrics are involved.
Many buyers prefer to swap a slightly less immersive experience for greater peace of mind. This may not always be the case, however. Consider implementing AR solutions to help tech-averse customers make the transition to the VR-dominant world of tomorrow.
Real Estate VR and AR Tech Benefits
A variety of benefits make AR and VR devices and software some of today's most compelling solutions in the real estate sphere. Key advantages include the following:
- Cost-effective tours - As mentioned above, home staging can be expensive, as can many other aspects of preparing for tours. VR and AR minimize these costs to allow for a more affordable approach capable of delivering an exceptional ROI during each real estate virtual tour.
- Save time - From scheduling to travel and even the physical process of navigating homes, in-person tours eat up a lot of time. VR home tours streamline these visits to allow for a quick, yet effective glimpse into the advantages that various properties provide.
- Reach more people - VR and AR remove the geographic barriers that keep prospects from touring homes in person. These solutions can also bypass some of the scheduling limitations that prevent real estate brokers and agents from reaching high volumes of prospects. Virtual options make it possible for several people to conduct a VR real estate tour at once, thereby taking away yet another marketing obstacle.
- Support during the development period - The multi-step real estate development process can be confusing and time-consuming. During this time, developers need as much support as possible. Immersive technologies such as VR simulation provide engaging experiences that drive interest at every stage, including initiation, conception, and construction.
Brand Headsets & Tablets For Real Estate Virtual Reality With Custom Skins
From virtual reality headsets to smartphones or tablets optimized for augmented reality, a variety of high-tech solutions promise to transform digital interactions within the real estate industry. These options may prove powerful for real estate marketing. What's more, the devices themselves can be used for branding.
With help from custom wraps and skins, top devices can be adorned with relevant logos or other personalized designs. These accessories are easy to customize and order. So get started creating wraps that reflect your brand!