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!

Virtual Reality is Not the Same as 360-Degree 2D Images

Let’s review the differences between a 360-degree 2D image versus virtual reality. A 360-degree video is a compilation of 2D images connected. A buyer consumes the 2D images that are put in front of them; they cannot take part in what is happening because they are limited to the photos provided. The buyers experience is always the same, as you can’t change the photo sequence, move to a different perspective (other than what is provided), or get a 3D spatial feel of the room.

Virtual Reality is an interactive experience. Buyers can walk around, explore the space and even change the space. Does your project have different finishes? The VR technology allows buyers to switch in and out finishes so they can see the difference.

In VR, buyers are also not limited to a predefined sequence as they can access every aspect and area of the property. A buyer’s decision to interact with a certain area will change their experience. Every buyer is unique; so, during the VR walk through, buyers can focus on what is important to them (i.e. spend more time in the kitchen, master bathroom, or admiring the views from the bedroom). And this is what makes VR technology so engaging and attractive to a buyer.

http://www.360homephoto.com/ Example of a 360 Degree 2D image Home Tour

Virtual Reality tour—envision the project before it is even completed

What Will My Property Value be in 2020?

Wondering what your property will value at this year? In the city of Austin, the answer is most likely the same as last year. The TCAD (Travis County Appraisal District) does not intend on reappraising properties this year.

So, why wouldn’t TCAD want to reappraise properties in one of the hottest housing markets in the country? The short answer is that they can’t get it done this year. TCAD has been in a dispute with the Austin Board of Realtors (ABOR) about where it has been obtaining its property value data from. in recent years, TCAD has obtained such data from the MLS, the same service that ABOR uses to buy and sell homes. Now, ABOR has sent a cease and desist letter to the Travis County Appraisal District and stopped them from using MLS data, which has been a key determiner in the appraisal valuation of homes.

In the state of Texas, sales prices for homes are not required to be disclosed, so without the MLS data, all the Travis County Appraisal District can do now is ask home owners to voluntarily share data with them. Without measurable data, it is anybody’s guess what will happen this year. It is likely that many home values will remain the same this year. If you have a homestead exemption, the most you will see your property value go up in any year is 10%, so it’s possible that TCAD will just defer to the 10% increase, especially if a home’s taxable value is still below the market value of the home.

School districts and other public services that rely on property tax funding could also be impacted this year. So what will 2020 bring? We will have to watch ongoing discussions between ABOR and TCAD. However, right now it looks like the property tax bill you receive in the fall will look a lot like a blast from the past.

Austin Real Estate Boomed in 2019. What's Next in 2020?

An astounding view from the balcony of Shore Condominiums, Austin, TX.

According to the Austin Business Journal and Mark Sprague, who is the state director of information capital at Independence Title, the Austin market continues to thrive beyond everyone’s projections. At the end of 2019, Mark Sprague pointed out two encouraging economic developments for Austin that demonstrate just how phenomenal the economy and housing market have been. First, Austin is one of only eight cities in the nation that has seen its home prices FULLY bounce back since the 2008 recession. Second, over the past 20 years, Austin’s GDP, or gross domestic product, has seen more growth than any other major city in the United States! In other words, its a great time to own a home and earn a living in Austin, Texas.

None of this should be too surprising from the city that has added more people to its population this past ten years than any other city in the United States! Austin’s population has climbed from 1.7 million in 2010 to 2.2 million in 2018. That’s a growth percentage of 26%! And, according to Austin Business Journal, the median price of a single-family home in Austin has increased 64% from 193,520 in 2010 to 318,000 in 2019. Median family income has not kept up with the increase in home prices, however. Most families only saw a 35% increase in their income during the same time frame, causing many home buying procrastinators to get priced out of their desired markets.

If those statistics are not encouraging enough, here are some more astounding findings from the Statesman about Austin’s home market: 9,572 single-family homes sold in the city of Austin last year, totaling almost $13.2 billion total dollars in sales. This is a major increase from 2018 and a brand new record for Austin in both number of homes and total dollar amount in homes sold. In addition, this is the ninth year in a row that the sales volume and the median price both topped the previous years numbers!

And, the good news (if you’re a seller!) is that the housing market seems projected to continue its rise in 2020. With housing inventory in the city limits of Austin down to just 0.9 months in December 2019, we will soon face a housing shortage in this city without new construction and more sellers on the market!

With numbers like these, it’s easy to see why so many buyers consider a home in Austin such a good investment. If you are interested in getting in on the “growing edge” of Austin and finding an affordable home for you at the right price, contact me below! Don’t miss out on this opportunity to capitalize on Austin’s phenomenal growth phase, which will continue into 2020.

Or, if you have a home you need to sell, now is a GREAT time to get it on the market. You will most likely see high competition and multiple offers on your home, especially if you are in a favorable school district or trending area of town.

Whatever your home need, I am available to help you capitalize on this unprecedented time in Austin’s real estate history. Contact me today and let’s realize together your real estate dreams for 2020!

It's Raining New Development on Rainey Street

More development plans are in the works for Rainey Street District, an area of town that will continue to rapidly transform before our eyes in the coming years. In addition to the 44 East residential development and 48 East short term condo rental development, each of which we have already written about in previous blogs, other developments coming to the Rainey Street District include 70 Rainey, 90-92 Rainey Street, the Quincy & the Travis Tower.

Let’s take a quick glance at each and see what’s in store for the Rainey Street District in the coming years:

1. 44 East- 51 stories; 322 residences. Construction to begin in 2020 and open in 2022. The Trail Foundation is partnering with the Austin Parks and Recreation Department to revitalize the Rainey Street trailhead, which is across from 44 East Ave. Intracorp (the builder of 44 East) will be contributing to that project.

2. 48 East- 33-story, 239 short term rental units. Construction began in 2019 and should open in 2021.

3. 70 Rainey-34-story condominium; residents began moving in in April 2019.

4. 90-92 Rainey Street-a 51-story mixed-use tower containing apartments (290 units) and hotel space (293 rooms) on a tract spanning 90-92 Rainey Street. Currently the Container Bar and Bungalow stand on this property—they will be incorporated into the design and construction of the building. See the rendering below for the ‘cut out” design of the building that will integrate Bungalow into the second floor.

5. The Quincy-a 30-story mixed-use tower with Class A office at 93 Red River St. Broke ground in March and will open in 2021.

6. Travis Tower-50 story tower at 80 Red River St. in the Rainey Street area downtown with a possible additional second tower. The first tower will have apartments for rent, and the second will have multifamily units for sale, hotel rooms and a ground-floor coffee shop. The site was once home to the Villas on Town Lake, a condo community that was demolished in February.

The Travis Tower (far left) with proposed additional tower, pictured to the right.

What do you think of all the potential developmental changes coming to the Rainey Street District? Will current residents get to keep their views? Will more and more Austin residents make the move to downtown? Which tower will see the best sunsets? Give us your thoughts in the comments below!