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I still cannot believe how drastically our lives changed in the last few years. Coronavirus outbreak not only made us all stay home, but it also provoked economic crisis. Many business niches experienced numerous challenges and many people were left without jobs. And while some companies reconsidered their strategy, adapted to changes and continued working in a new way, others just had to temporarily freeze their business.
Although crisis itself is a negative phenomenon, something new gets invented every time it occurs. Hard times bring new opportunities, and even if you think that your business niche in not in demand right now, you just need to rethink your approach. To prove our point, we would like to talk about real estate and how it was transformed because of quarantine and crisis.
How COVID-19 influenced real estate
Real estate industry has always been a rather profitable. People always moved, rented or purchased apartments or houses, they invested a lot of costs in the living spaces that fit their needs and requirements. But now everything changed. It is impossible to leave your country because all borders are closed to prevent us from getting infected.
So since there is no chance to move or travel, the demand on rental services diminished. If you take a look at the prices set for the houses or apartments, you will be surprised how affordable they are.
The times are hard for all real estate agents. If we put aside the real estate price drop, we’ll see that it is extremely hard to sell any property these days. People just do not want to spend their savings, take loans from banks, or risk their health by violating quarantine regulations and coming to see the place for sale or rent.
According to CNBC this can be the reason why the sales will fall up to 40% in the upcoming months. It is rather worrying statistics, but we are speaking about it not to make you (as a business owner) stressed.
We have discovered one great technology trend that can be a real game changer for all real estate companies. And this technology is VR (virtual reality). Are you wondering how it can help to boost your business in times of crisis and when it’s over? Then let’s get started!
How business and real estate agents can benefit from virtual reality
If you’ve ever watches “House Hunters” (which, I should add, is quite enjoyable TV show), then you know how real estate companies function. The work with clients in different companies seems to be very similar.
The clients come to the office, describe their requirements and expectations, specify the price they are ready to pay. Then an agent looks through various catalogues, selects suitable variants and discusses them with client. Once they’ve decided which property is a perfect fit, an agent arranges a tour and visits the building with the client.
It all sounds like a great adventure. But now, in the times of pandemic, this adventure is forbidden. So what should your company do if you still have some inquiries and people waiting to rent or buy their dream place? Organize a virtual tour! Yes, virtual reality can be a great tool able to get your business to a whole new level.
According to the latest report the VR and augmented reality market in real estate will grow up to $80 billion by 2025. It is also predicted that there will be around 300,000 active users of VR and augmented reality technology in real estate field. Isn’t it impressive?
Virtual reality is not a cheap technology and yet more and more companies are planning to implement it and start offering virtual tours to houses and rooms to their potential clients.
What opportunities virtual tours grant to real estate industry
What can be easier than putting on a VR headset and start wandering through an apartment? A client gets a unique opportunity to take a look at the area, understand if its spacious and comfortable enough to invest in it. VR is not an entertainment tool as we all tend to think.
Thanks to virtual reality client gets a feeling that he or she is really present in that place, which in turn creates a certain level of emotional connection. So your real estate agents can convert clients into potential buyers much easier.
According to the latest survey, over 40% of real estate buyers claimed that virtual tour they’ve had before purchasing a house pushed them to make a positive decision and invest money.
Here are some other advantages of virtual reality in real estate:
- It saves time and money. Sometimes people want to buy an apartment that is located too far (in other city or even country). It can be quite time and money consuming to arrange a home tour. That is why it is easier to incorporate VR technology and let your clients roam through virtual version of a house and take a look at the neighborhood.
- It creates feeling of presence. Visualization is a powerful tool if you are selling property. By enjoying virtual tour around the house clients can enjoy room dimensions, pay attention to all necessary details, understand whether they like everything or would like to change the design or space planning. Moreover 3D image is much more engaging than 2D one.
- It gives a sense of ownership. If a person can not only imagine the dream house but also virtually visit it, it helps to easily create stronger emotional connection. And this can be an important decision-making point. If you add to your virtual tours some engaging elements like description of neighborhood, comparison with other alike properties, mortgage calculations, etc., this will let many clients collect all essential data about more properties faster, choose suitable variant and then arrange a real visit to it.
Must-have features for VR real estate software
As you’ve understood, virtual tours can become a game changer for real estate professionals. So now is the right time to implement and start using it to attract more prospective buyers, outshine competitors and close more sales deals. Speaking about VR solutions for real estate market, we couldn’t help mentioning that there are many free virtual tour software. However, what all those solutions lack is flexibility and adaptivity to your specific business processes.
Therefore it is better to invest in custom virtual tour app (and yes, it can be a budget friendly solution) and enrich it with the desired functionality. After all, real estate business is diverse, while some real estate agents sell residential property, others are involved in leasing office spaces or else. Although virtual tour software can be different, there is a must-have functionality that you should consider:
To conclude
Current situation with coronavirus demonstrated that companies should be ready for unexpected situations. Web and mobile presence is not enough. More advanced tools and technologies are required to keep your business running even during quarantine.
VR is quite costly technology but you should think about it like it’s your investment in the future of your company. It will pay for itself and even increase your expected income. So if you are still thinking whether you should invest into VR tours for your real estate company, the answer is definitely yes!
