Virtualreality Tech Is Helping Realestate Agents And Homebuyers Save Time And Close Deals — Even Remotely

• Real estate agents are bringing virtual reality technology to clients looking for their next home.
• Experts tell Business Insider that virtual reality home tours can help real estate agents reach more potential buyers.
• It can also help developers save time and money when listing properties for sale.
• This article is part of the Build IT series on digital technologies and innovative trends that are changing the industry.

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In a world filled with news about a seemingly endless variety of new technologies, virtual reality, or VR, has become a tool used by many businesses.

The value of the virtual reality industry is increasing as different industries take advantage of the immersive technology. According to a report by Grand View Research, the global virtual reality market was valued at nearly $60 billion last year and is expected to grow at a CAGR of 27.5% through 2030 .

While virtual reality technology has played an important role in the gaming and entertainment industry, it has also had a disruptive effect on the real estate industry; first-time homeowners looking for a place to own are no longer limited to looking inside. Personal space and real estate agents can expand their reach to more customers.

According to a Goldman Sachs study, 130,000 real estate agents used virtual reality to show homes in 2020, according to Encora. In fact, virtual tours played an important role in keeping the real estate market alive when the COVID-19 restrictions were in place. While virtual tours don't seem to have a long-term effect on home sales, research by Harvard Business School professor Isamar Troncoso shows they can still add value to listings in some cases and help buyers check things out. I don't want desire. I want to go home.

Use virtual reality to save time when buying a home

Real estate agent James Bowerman of Compass Real Creative Group has seen the benefits of innovative house hunting. Bowerman, who says he was an early adopter of the technology, focused on virtual reality and used a product called Matterport to virtually showcase his homes.

The 3D data platform uses its data library and artificial intelligence to capture 360-degree scans using compatible cameras. He then brings them together, transforming physical spaces into immersive pathways. According to the company, Digital Twins 3D models can be shared and viewed on virtually any device. At facilities where Matterport's virtual tours are available, people can "step into virtual reality" and navigate the virtual space online, Bowerman said.

While virtual reality enables potential homebuyers to overcome geographic restrictions, it can speed up the process by allowing people to see more homes and understand their best options.

"If you can put on a virtual reality headset and see that feature, you can make decisions faster," Bowerman told BI.

Bowerman operates in Maryland, which allows 21 days for "soon-to-be" listings on its Multiple Listing Service, a database where real estate agents and brokers exchange property data to list contracts and sales. Bowerman explained that people searching for a location described as "coming soon" can't physically visit a location, but virtual reality allows them to get closer to that limitation.

"By taking a virtual tour and putting a 'coming soon' sign, you're giving a potential buyer the opportunity to see it in virtual reality and decide if they feel comfortable enough to say, 'You know what, I've seen it.' person and I love the place. like I don't have to go see it in person. Let's talk about it,” Bowerman said.

"There is no rule against property bargaining in the near future," he added. In 2022, Bowerman said he received three offers from customers who hadn't seen his selection in person: A virtual tour was enough to get them to participate.

Virtual reality can save developers time and money

Patricio Navarro, CEO and co-founder of a Miami-based real estate tech startup , told BI that in his experience, virtual reality can reduce the time spent in the real estate market.

According to Navarro, Upix uses headsets and Unreal Engine to offer home tours, a tool that creates photorealistic 3D images. Customers can virtually travel between the New York headquarters and the 100-story building in Miami in seconds.

Refresh Miami, which tracks tech and startup news in the region, reported in August that Yupix partners have sold nearly $1.3 billion in real estate using its virtual reality platform over the past two years.

UPIX's technology can display features that already exist as well as those still in development, said Navarro, who has more than 30 years of experience in architecture and computer graphics. Technology can identify potential problems and find solutions in the development process, he added. For example, you may discover in a drawing that a closet is too small for a master bedroom before creating the floor plan.

Some argue that real estate technology, or proptech, is the future of real estate.

Bowerman emphasized that virtual reality cannot completely replace home tours, as there is still room to improve the quality, speed and accessibility of the technology.

Another challenge, Navarro said, is that some industry professionals are not yet ready to adapt to the changes brought about by technology.

"It takes some time for players to adjust to the new changes because it's not a replacement product like a 3D display," he said. "It's a complete change in thinking, equipment and skills."

While technological development is still in its infancy, Navarro says it's gaining momentum and "there's no going back."

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