Virtual Reality and Augmented Reality--the future of Real Estate

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:

1. 24/7 Access: Properties remain “open,” so the client can tour properties according to his/her schedule.

2. 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.

3. 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.

4. 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.

5. 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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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!

44 East

Artist’s rendering: 44eastaveaustin.com

More development is on its way to downtown Austin’s bustling Rainey Street District.

44 East is a new residential development located on East Avenue on the corner of Cummings Street, overlooking Lady Bird Lake. It is slated to be 51 stories and will rise approximately 545 feet tall. 322 residences will be for sale. Some smaller 1-2 bedroom residences will be available, all the way up to 4 bedroom residences with impressive penthouse views. The building will be constructed to take maximum advantage of the spectacular views up and down Lady Bird Lake and northwest toward downtown.

Approximately 3,000 square feet on the ground floor will also be available for retail/dining space. An on-location parking structure will include over 500 spaces for both tenants as well as some for the public.

44 East Avenue’s groundbreaking is planned for the spring of 2020 with delivery scheduled for fall of 2022.

Start planning your move to the Rainey district! Keep up to date on the latest 44 East News by clicking the link below.

48 East Condominiums to be Zoned as a Hotel

48 East is the one of the latest and most unique condominium development projects to be approved in the Rainey Street District.  It’s unique because the Austin-based STG Design building will actually be zoned as a hotel, which will be powered by Airbnb.   

It’s confusing, but innovative. The concept is a 33-story, 239 unit building that combines the comfortable qualities of a short-term residential rental with the amenities and efficiency of a hotel. 

Once constructed, the building will offer units for sale in the price range of $300,000 for a 454 square feet studio to up to $1.2 million for a 1390 square feet, multiple bedroom condominium. Residents will have the opportunity to rent out their units via Airbnb for up to 180 days per year. 

Airbnb plans to charge 25% off the top and will provide “MasterHost” services at each property for items such as guest check-in, cleaning and linen service.  An added amenity will be local “Airbnb Experiences” for guests—events that involve hosts sharing their own takes on local culture and activities.

Condominiums can be purchased furnished or unfurnished and will feature additional features such as an extra lockable closet to store sensitive belongings and digital locks for keyless entry.    The building itself will include amenities available to all owners and guests, including co-working spaces, hotel-style food and beverage offerings, a spa-inspired fitness center, and a rooftop pool deck.

Property owners will be responsible for hotel occupancy taxes as well as property taxes and will not be allowed homestead exemptions on property taxes. 48 East is expected to open in 2021. 

What is your opinion of this condo/hotel/Airbnb concept?  Do you like the idea of a downtown condominium building built for short term rentals? Make your opinion known in the comments below!

Bouldin Creek Development to Add Needed Office Space to South Lamar

Austin’s next high end office development is coming to the Bouldin Creek Neighborhood at South Lamar and Oltorf.

The Bouldin Creek Office Complex will house 165,000 square feet of office development and 2,500 square feet of retail shops, all fronting South Lamar. The location of this office complex, just 1.2 miles from downtown, will attract many potential tenants, including technology, marketing and financial services firms, as well as law and accounting firms.

The project will have an open-air feel and beautiful views of downtown, as it plans to house a rooftop deck and two acres of green space bordering Bouldin Creek.

When can we expect to see shops and offices open at Bouldin Creek? This project is designed by Austin architect Michael Hsu and is expected to deliver by the summer of 2020.

Interested in homes in the Bouldin Creek Area? Homes sold for a average price of $630,000 in this area last year! Check out all available listings here:

What to Consider When Buying a Home

The key turns, the door opens, the excitement mounts. Will this be the home of your dreams or a potential nightmare? What items should you beware of when checking out a home to buy? Follow this simple list below to help make sure that you are not just looking at the outward appearance of the home but also at the inward “bones” or structure of the home as well.

What to Look for When Buying a Home:

1.     Turn on faucets and even the shower—Does the home have the kind of water pressure that you like or need? If not, could this be easily fixed?

2.     A/C Unit-Air conditioning units are a major expense, and some houses can have multiple units that need upkeep or replacing. Make sure to take a look at the physical unit for signs of rust or decay and note how the home feels. Is the A/C working well to regulate the temperature? Ask the seller for the age of the unit or to see the service record & upkeep of the unit over the years.

3.     Roof-A new roof is a major expense. A quick visual examination of the roof will give you an initial idea of its age and condition, but you really will need an inspector to get up and walk on the roof to truly know how many more years you will be able to get out of it. Make sure to ask the sellers for the age of the roof and for a list of any roof repairs that have been done along the way!

4.     Appliances-Open all appliances that convey with the home and look inside of them. Don’t be afraid to turn them on and make sure they work properly (and then turn them back OFF again!). If you are planning on replacing appliances, take measurements to make sure that your new appliance will fit within the alcove/space of the current appliance!

5.     Ceilings-Many buyers forget to look up and take note of the condition of the ceiling. Make sure to notice if there are any visible water leaks or if there are ceiling patches and fresh paint. If so, ask questions about roof leaks and past water damage. Take note of cracking and settling lines as well. If the cracks run along the seams of the house, then they could just be regular settling. However, if the cracks run down a wall or in an unusual pattern, then they could be evidence of a larger foundation problem.

6.    Foundation-In addition to looking up, make sure to look down and all around the house at the foundation. Does it look like it is in good visible condition? Do you see any cracks on the outside of the house running in an unusual pattern through the exterior of the home? A foundation repair is one of the most major repairs you can do on a house—and a good reason to run the other way when considering a home purchase.

7.     Loose wires— Any loose wires that you see are obviously a safety issue. Make sure to ask questions about any light fixtures or electrical outlets where you see loose wires that don’t make sense.

8.     Under the sink—Make sure to take the time to look under all sinks at the pipes. Do any pipes look cracked or rusted? Do you see any water stains on the cabinetry or flooring below?

9.     Windows—Make sure to go over by the windows and stand for a while. Can you feel the outside air? Note the quality of the windows (single paned? double paned?) and how well they are doing at keeping the weather out of the home. This will have direct impact on your energy bills!

10.  Outside—Make sure to note the environment outside of the home. Is it located on a busy traffic street? Take a listen and make sure you like what you hear. Is it located in a potential flood zone?  Do you see any fire hazards?  Is there anything you need to be made aware of about living on or near a gas line? Make sure you are aware of any outside environmental hazards that could impact your peace of mind in your new home.

11.  Smell-Take note of how the home smells as you enter and remember that smells are hard to get out of a home.  Whether it’s cigarette smoke, a sewage line, mildew, etc, these odors can be difficult to expunge and should be considered when purchasing an existing home.

12.  Turn on all lights & open all cabinets –Make sure everything works well in the home.  For example: Is there a kitchen cabinet that collides directly with the dishwasher door when it is open? These are the sorts of functional, spatial issues that many buyers overlook when considering the purchase of a home.

13.  Flooring/countertop surfaces- Take note of the materials and condition of the flooring and countertops in the home. Although these may not be a deal breaker, they can be expensive to replace and need to be taken into consideration when considering the price tag of a home.

14. Think through the design & layout of the home—Does it fit with your lifestyle? Will there be a functional place to use most of your existing furniture? Is there wall space for your favorite wall hangings? Does the layout line up with what you value? For example, if you value hosting large parties, is there a great room space where people could mingle that would help facilitate this value?

15. Part of town/school districts—Location is a huge part of a home and can be one of the largest determiners of resale value. Make sure to do your homework about neighborhoods and schools before you begin looking!

What to Overlook:

1.     Paint- Many buyers let paint colors persuade them too much in the sale or refusal of a home. Remember that paint is a relatively cheap fix and can easily be changed in a matter of days in a home. If you love the home and the above list checks out, then overlook the paint color!

2.     Normal settling lines-As houses age, they develop normal cracks and settling along the seams of the house. However, these cracks can be “unsettling,” especially to first-time home buyers. If the foundation checks out, you do not need to worry about these normal crack lines (they can be caulked!), and the home is still safe to purchase.

3.     Small repairs- I’ve seen home buyers walk away from a home because they didn’t like the stone surrounding the fireplace, or the tile on the backsplash of the kitchen. Keep in mind that, on the grand scale of things, these are small jobs that can be replaced for anywhere from $800-$1000. So, if the rest of the house is wonderful, don’t let a small job like a fireplace surround or kitchen backsplash throw you off of your game.

4. If it isn’t PERFECT—Here’s a little secret for you: no house is totally perfect and there is a bit of compromise involved in every home transaction. So, if the home meets the most important criteria on your list then don’t eliminate it just yet. Continue to develop its potential in your head and see if the advantages of the home significantly outweigh the disadvantages. If so, then this still may be the home for you! For example, one client loved all the natural light in the house but was frustrated that there was not a window directly above the kitchen sink to look out of. After many weeks of debate, the clients decided to go ahead and get the house as the lack of window was the only hiccup for them. The clients then ended up using a mirror in that space instead that reflected all the natural light from the house, kept the kitchen light and bright, and helped the homeowners keep an eye on their kids while they were doing the dishes! The moral of this story is to keep an open mind about the home and know that you are looking for the home that speaks to you and your family’s needs the most!