For many, virtual reality remains a far-off concept. It’s hard to imagine that it could have as significant an impact on the world and the economy as the internet has, because, well, it seems a bit sci-fi.
And, when it comes to real estate, the property industry hasn’t even begun to scratch the surface with virtual reality.
To attract international buyers and sell off-the-plan projects, virtual reality technology has the potential to move stock like never before. The challenge is that virtual reality has been limited to 3D virtual tours or underdeveloped virtual reality experiences that are frustrating and unattractive to end users.
One of the reasons this is the case is because many developers are unconvinced that consumers will grasp sophisticated virtual reality applications, and the investment just isn’t worth the risk—yet.
Until there is a broad market for virtual reality and it’s been tested in retail and entertainment, the property industry is likely to hold back, watch, and wait to implement any changes.
This approach may seem frustrating to some, who know that Australians are some of the most tech savvy individuals in the world, with a 90% smart phone penetration rate. We’re increasingly turning to mobile, we’re digitally advanced, and we buy property.
So, we should be looking at the many opportunities that virtual reality affords developers.
Virtual reality can speed up the purchase process. Typically, buyers need three touch points before they buy: awareness, online research, and a visit to the display.
As the buyer ages or the property or item increases in expense, the path to purchase requires even more time.
Virtual reality shrinks the length of the buyer’s journey, because buyers can download an app, view every floor plan in 3D, and position furniture in each room. Once they’ve virtually toured, they’re ready much more quickly to see a high quality real estate professional and purchase.
In a downsizer market where individuals need to consider whether furniture will fit, or family will fit, or they’ll be able to host for the holidays, virtual reality can hasten decisions.
A project by Undertow media showed—overwhelmingly—that websites with more information drive greater lead generation. It’s no surprise that buyers want more information. Virtual reality allows developers to provide a significant amount of information in a real-life setting.
Developers can gain leads using 3D apps by gating access and asking for more information. When a potential buyer sees something of interest, he or she can register for a Google Cardboard viewer, which will walk them through the property. If a potential buyer walks through a property, you can qualify him/her as an interested purchaser.
The qualification process for virtual reality will be online, so there will still be frustration around how serious leads are, but it will be much easier to differentiate vaguely interested purchasers from interested purchasers based on who takes the virtual reality tour and walks through the “door” of a property.
Virtual reality also swings open the doors for international and interstate buyers.
When it comes to virtual reality, it’ll be the innovative developer who takes the leap first who wins. And after that, the rest will follow.
What are your thoughts on virtual reality in real estate? Have you looked into it?
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