Photo Credit: Hackernoon
The future of buying and selling homes will be greatly impacted in the next 5 years by the ever increasing availability of virtual reality (VR) and augmented reality (AR) technologies in the real estate industry. But what is the difference between VR and AR, and how will each of them have an impact on the real estate industry in the years to come?
Virtual Reality immerses the user in a virtual world, one in which they were not already present in before. Instead of having to visit each property in person, a buyer will be able to put on a Virtual Reality Headset and immerse themselves in a three-dimensional tour of a property or properties. A more low-tech precursor to VR headsets is the 360 degree-tour, which is already available on many real estate platforms.
The advantages to Virtual Reality are several:
24/7 Access: Properties remain “open,” so the client can tour properties according to his/her schedule.
A Time Saver-VR saves both clients and realtors time, helping to narrow the field of properties a client is serious about and needs to actually go visit in person.
Global Access-Clients purchasing homes in another city or country will have access to VR to “look” through properties themselves, versus having to buy sight unseen or require extensive travel.
Money Saver-As the expression goes, time is money. The time saved with VR will automatically save both the client and the realtor money. In addition, clients can save on expensive staging costs and any expenses they would incur to be out of the home for open houses, etc.
Emotional Connection & a Sense of Ownership-Having a space readily available to a client to access at any time helps the client build an emotional connection to the home as they begin to envision their life in that space.
In contrast to Virtual Reality, which is 100% “virtual,” Augmented Reality combines the virtual and physical worlds, overlaying virtual objects in a real world environment. Augmented reality offers a way for clients who can still get to a property in person to build a deeper impression of the property. Augmented reality allows clients to use picture overlays that appear on top of the physical space that a client is standing in.
As you can imagine, AR technology has many beneficial uses for the real estate market:
Complete Unfinished Spaces: AR applications will allow builders and architects to show clients who are standing in a space under construction visuals of what the finished exterior and interior will look like.
Instant Staging- Customers standing in a house trying to imagine what their furniture will look like in it will not only be able to use applications to “furnish” the house, but will get to choose finishes and styles as well.
Learn About Properties for Sale- As a client is walking down the street, AR will allow them to point their phone at a house for sale and get all the relevant property information on the device’s live camera feed.
Revolutionize Renovations- Clients walking through a home with a contractor will be able to overlay blueprints of floor and design plans over the physical space they are in.
Nail Down Property Lines-AR technology will allow a client walking the property lines of a house for sale to see exactly where the boundary lines fall for a property.
Envision in 3D- As you can see from both VR and AR, the future of real estate is in 3D visualization. 2D flat paper visualization will be a thing of the past. With virtual and augmented reality, clients viewing plans and blueprints can walk around and inspect a property from every angle.
A Goldman Sachs report predicts that the virtual reality and augmented reality market in real estate could top $2.6 billion by 2025. As these virtual and augmented reality technologies continue to be refined and tested, we will start to see them make their way into the real estate market and become an integral part of the buying & selling process.
What do you think of virtual or augmented reality? Would you feel comfortable purchasing a home you had only taken a virtual tour of? Will the technology be able to be developed at a price that all families can eventually afford a virtual reality headset? What do you think is the future of this technology in the real estate market? Let me know in the comments below!
And, in the meantime, to look at some houses the old-fashioned 2D way, click on the button below!
